Is the business good?
How good a business is KTB?
Kontoor Brands, Inc. earns 16% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
16%
Return on invested capital · cost of capital 9.0% · 7.4 points above what the capital costs: growth creates value
- Operating margin
- 11%
Operating margin · Apparel Manufacturing median 6.9% · 12 months to Q1 2026
- Cash conversion
- 1.44×
Cash conversion · 1.63× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −0.11%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 5.9% |
| FY2021 | 11% |
| FY2022 | 14% |
| FY2023 | 12% |
| FY2024 | 13% |
| FY2025 | 11% |
Details›
- Gross margin12 months to Q1 2026
- 46%
- Operating margin12 months to Q1 2026
- 11%
- Net margin12 months to Q1 2026
- 8.8%
- Free cash flow margin
- 13%
- Revenue, trailing twelve months
- $3.14B
- Free cash flow, trailing twelve months
- $400M
- Net income, trailing twelve months
- $277M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 16%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Apparel Manufacturing
Ranks #3 of 11 by Smart Score