Stock fact sheet · data as of
Kohl's Corporation (KSS): fair value, margin of safety and Wheel Score
Consumer Cyclical · Department Stores · United States · Value
Is KSS undervalued?
KSS has a margin of safety of 74%: the stock closed at 22.41 on 16 Oct 2026 against a GLS average fair value of 86.86. 7 of the 9 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
There is a wide gap between DDM (7.36) and Payback Time (236.54). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files KSS under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for KSS
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 67.25 | +200% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 44.53 | +99% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 38.55 | +72% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 9.56 | -57% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 146.28 | +553% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 205.17 | +816% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 236.54 | +955% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 7.36 | -67% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 26.55 | +18% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -49.60 | -321% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 15.50 | -31% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Kohl's Corporation scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 4.4/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC 2.5%, ROE 6.7%, ROA 2.0% - with debt at 1.64 times equity and a free-cash-flow yield of 38.9%.
The dividend yield is 2.23% at a payout ratio of 21%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Product 94%, Product and Service, Other 6% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 2.5% |
|---|---|---|---|
| GLS Moat | 4.4 / 10 | ROE | 6.7% |
| Debt / equity | 1.64 | ROA | 2.0% |
| Free-cash-flow yield | 38.9% | Payout ratio | 21% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 82: Prime
With a Wheel Score of 82, Kohl's Corporation sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 25/25, Health 13/20, Moat 7/15, Premium 20/20, Stability 17/20. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.
Implied volatility is 61% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (20 of 20) because volatility this high usually comes with a reason. The option chain is deep: 167,426 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 4.5M shares a day on a market cap of $2.5B, with a beta of 1.35 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 17 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 74% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 7 / 15 | moat 4.4/10 | |
| Premium | 20 / 20 | implied volatility 61% | |
| Stability | 17 / 20 | 4.5M shares/day, $2.5B cap, beta 1.35 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 24 Nov 2026 (before the open), 39 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Department Stores
The 12 companies below are the closest to Kohl's Corporation by market cap within the Department Stores industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| PLBL Polibeli Group Ltd | 5.51 | - | - | 28No options | $2.0B |
| M Macy's, Inc. | 24.22 | 45.94 | +47% | 84Prime | $6.3B |
| GPK Graphic Packaging Holding Company | 8.73 | 16.62 | +47% | 81Prime | $2.6B |
| CALY Callaway Golf Company | 13.98 | 18.14 | +23% | 80Prime | $2.5B |
| HOVNP Hovnanian Enterprises, Inc. PFD DEP1/1000A | 16.85 | 130.60 | +87% | 39No options | $2.5B |
| KBH KB Home | 43.65 | 62.28 | +30% | 80Prime | $2.7B |
| AAP Advance Auto Parts, Inc. | 43.92 | 22.19 | -98% | 52Fair | $2.7B |
| QS QuantumScape Corporation | 3.93 | 0.2596 | -1414% | 34Weak | $2.4B |
| OSW OneSpaWorld Holdings Ltd | 23.91 | 16.71 | -43% | 59Fair | $2.4B |
| GRBK Green Brick Partners, Inc. | 61.98 | 91.90 | +33% | 79Good | $2.7B |
| CHA Chagee Holdings Limited American Depositary Shares | 12.44 | 63.22 | +80% | 39No options | $2.4B |
| BKE The Buckle, Inc. | 46.57 | 50.55 | +8% | 70Good | $2.4B |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about KSS
Is KSS undervalued right now?
By the GLS models, yes: at 22.41 the stock is 74% below the average fair value of 86.86 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of KSS and what does it mean?
KSS scores 82 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for KSS?
86.86 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Kohl's Corporation report earnings next?
The next earnings report is due on 24 Nov 2026 (before the open), 39 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does KSS have listed options, and how liquid are they?
Yes. The nightly snapshot found 708 listed contracts with 167,426 open interest across all expiries and implied volatility of 61% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.