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KSS - 50% discount on a retail play
Kohl’s Corporation (Kohl’s) is an operator of department stores. The Company operates approximately 1,154 Kohl’s department stores. The Company’s stores and Website sell moderately-priced private label and national brand apparel, footwear, accessories, beauty and home products.
Off the $33.87 low made in May 2016 KSS has been following the Five Wave fractal. It topped in wave A of 3 at $83.28 in Nov’18.
Since then KSS played a nice looking corrective wave B of 3 structured as a textbook A-B-C.
It may test two main retracement levels, 76.4% of wave A of 3 ( 46.47 ) and 85.4% ( 42.16 ).
I also watch for extensions of wave ( a ) of B down. Particularly 123.6% ext (46.32 ) is a very important one.
In conclusion, KSS is about to hit a very important Demand Zone 46.50 – 44.00 – 42.15. And its decline from Nov’18 top slashed the stock price by 50%!
KSS - daily chart updated at 6-18-2019
Financial Strength
Kohl’s have a solid Net Margin of 4% relative for retail industry. It is traded at attractive x6.7 Price-to-Free Cash Flow.
Even though it has a significant Debt load, x 2.5 EBITDA looks not to aggressive.
Finally, KSS pays very attractive dividend at 5.4% yield.
Operating Margin
7
Net
Margin
4
Return on Capital
15
Price-to-Free-Cash-Flow
6.7
Debt-to-Ebitda
2.5
Dividend Yield
5.4
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