Kaman Corporation (KAMN) Stock Fundamental Analysis
NYSE:KAMN - New York Stock Exchange, Inc. - US4835481031 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to KAMN. KAMN was compared to 67 industry peers in the Aerospace & Defense industry. While KAMN is still in line with the averages on profitability rating, there are concerns on its financial health. KAMN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year KAMN was profitable.
KAMN had a positive operating cash flow in the past year.
In multiple years KAMN reported negative net income over the last 5 years.
Of the past 5 years KAMN 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of KAMN (0.53%) is comparable to the rest of the industry.
KAMN's Return On Equity of 1.16% is in line compared to the rest of the industry. KAMN outperforms 51.56% of its industry peers.
KAMN has a Return On Invested Capital (3.49%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for KAMN is significantly below the industry average of 8.49%.
The last Return On Invested Capital (3.49%) for KAMN is above the 3 year average (2.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 1.16% | ||
| ROIC | 3.49% |
ROA(3y)0.36%
ROA(5y)2.1%
ROE(3y)-0.05%
ROE(5y)3.2%
ROIC(3y)2.89%
ROIC(5y)3.14%
1.3 Margins
KAMN has a Profit Margin (1.03%) which is in line with its industry peers.
In the last couple of years the Profit Margin of KAMN has declined.
Looking at the Operating Margin, with a value of 6.99%, KAMN is in the better half of the industry, outperforming 60.94% of the companies in the same industry.
In the last couple of years the Operating Margin of KAMN has remained more or less at the same level.
KAMN has a Gross Margin of 34.96%. This is in the better half of the industry: KAMN outperforms 79.69% of its industry peers.
In the last couple of years the Gross Margin of KAMN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.99% | ||
| PM (TTM) | 1.03% | ||
| GM | 34.96% |
OM growth 3Y6.24%
OM growth 5Y-1.42%
PM growth 3YN/A
PM growth 5Y-32.6%
GM growth 3Y3.74%
GM growth 5Y2.51%
2. Health
2.1 Basic Checks
KAMN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
KAMN has more shares outstanding than it did 1 year ago.
KAMN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for KAMN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.32 indicates that KAMN is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.32, KAMN is in line with its industry, outperforming 51.56% of the companies in the same industry.
KAMN has a debt to FCF ratio of 11.95. This is a negative value and a sign of low solvency as KAMN would need 11.95 years to pay back of all of its debts.
KAMN's Debt to FCF ratio of 11.95 is in line compared to the rest of the industry. KAMN outperforms 56.25% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that KAMN is somewhat dependend on debt financing.
The Debt to Equity ratio of KAMN (0.52) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 11.95 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.41
WACC8.55%
2.3 Liquidity
A Current Ratio of 1.32 indicates that KAMN should not have too much problems paying its short term obligations.
The Current ratio of KAMN (1.32) is worse than 65.63% of its industry peers.
A Quick Ratio of 0.71 indicates that KAMN may have some problems paying its short term obligations.
The Quick ratio of KAMN (0.71) is worse than 82.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The earnings per share for KAMN have decreased strongly by -56.67% in the last year.
KAMN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -28.99% yearly.
Looking at the last year, KAMN shows a quite strong growth in Revenue. The Revenue has grown by 12.78% in the last year.
The Revenue has been growing slightly by 1.06% on average over the past years.
EPS 1Y (TTM)-56.67%
EPS 3Y-35.63%
EPS 5Y-28.99%
EPS Q2Q%-71.43%
Revenue 1Y (TTM)12.78%
Revenue growth 3Y-0.37%
Revenue growth 5Y1.06%
Sales Q2Q%3.06%
3.2 Future
KAMN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 52.14% yearly.
Based on estimates for the next years, KAMN will show a small growth in Revenue. The Revenue will grow by 4.19% on average per year.
EPS Next Y63.79%
EPS Next 2Y52.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.55%
Revenue Next 2Y4.19%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 88.44 indicates a quite expensive valuation of KAMN.
Compared to the rest of the industry, the Price/Earnings ratio of KAMN is on the same level as its industry peers.
KAMN is valuated expensively when we compare the Price/Earnings ratio to 28.05, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 54.00, which means the current valuation is very expensive for KAMN.
KAMN's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 37.67. KAMN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.44 | ||
| Fwd PE | 54 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KAMN indicates a somewhat cheap valuation: KAMN is cheaper than 67.19% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, KAMN is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.89 | ||
| EV/EBITDA | 17.51 |
4.3 Compensation for Growth
KAMN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as KAMN's earnings are expected to grow with 52.14% in the coming years.
PEG (NY)1.39
PEG (5Y)N/A
EPS Next 2Y52.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KAMN has a Yearly Dividend Yield of 1.74%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.17, KAMN pays a better dividend. On top of this KAMN pays more dividend than 89.06% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.30, KAMN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
The dividend of KAMN decreases each year by -0.01%.
KAMN has been paying a dividend for at least 10 years, so it has a reliable track record.
KAMN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.01%
Div Incr Years0
Div Non Decr Years19
5.3 Sustainability
KAMN pays out 281.70% of its income as dividend. This is not a sustainable payout ratio.
DP281.7%
EPS Next 2Y52.14%
EPS Next 3YN/A
45.99
+0.12 (+0.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners18.47%
Inst Owner Change0%
Ins Owners2.19%
Ins Owner Change0%
Market Cap1.30B
Analysts80
Price Target46.92 (2.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
Yearly Dividend0.8
Dividend Growth(5Y)-0.01%
DP281.7%
Div Incr Years0
Div Non Decr Years19
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.32%
Min EPS beat(2)-13.92%
Max EPS beat(2)22.55%
EPS beat(4)3
Avg EPS beat(4)114.91%
Min EPS beat(4)-13.92%
Max EPS beat(4)292.16%
EPS beat(8)4
Avg EPS beat(8)49.67%
EPS beat(12)7
Avg EPS beat(12)43.31%
EPS beat(16)10
Avg EPS beat(16)38.35%
Revenue beat(2)1
Avg Revenue beat(2)0.58%
Min Revenue beat(2)-0.57%
Max Revenue beat(2)1.72%
Revenue beat(4)3
Avg Revenue beat(4)2.93%
Min Revenue beat(4)-0.57%
Max Revenue beat(4)7.19%
Revenue beat(8)3
Avg Revenue beat(8)-3.88%
Revenue beat(12)4
Avg Revenue beat(12)-3.78%
Revenue beat(16)7
Avg Revenue beat(16)-1.58%
PT rev (1m)0%
PT rev (3m)53.33%
EPS NQ rev (1m)-37.5%
EPS NQ rev (3m)-19.35%
EPS NY rev (1m)-13.92%
EPS NY rev (3m)7.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.44 | ||
| Fwd PE | 54 | ||
| P/S | 1.68 | ||
| P/FCF | 27.89 | ||
| P/OCF | 17.92 | ||
| P/B | 1.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.51 |
EPS(TTM)0.52
EY1.13%
EPS(NY)0.85
Fwd EY1.85%
FCF(TTM)1.65
FCFY3.59%
OCF(TTM)2.57
OCFY5.58%
SpS27.39
BVpS24.42
TBVpS-1.4
PEG (NY)1.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 1.16% | ||
| ROCE | 4.69% | ||
| ROIC | 3.49% | ||
| ROICexc | 3.6% | ||
| ROICexgc | 10.36% | ||
| OM | 6.99% | ||
| PM (TTM) | 1.03% | ||
| GM | 34.96% | ||
| FCFM | 6.02% |
ROA(3y)0.36%
ROA(5y)2.1%
ROE(3y)-0.05%
ROE(5y)3.2%
ROIC(3y)2.89%
ROIC(5y)3.14%
ROICexc(3y)3.13%
ROICexc(5y)3.84%
ROICexgc(3y)6.92%
ROICexgc(5y)7.23%
ROCE(3y)3.89%
ROCE(5y)4.22%
ROICexcg growth 3Y20.58%
ROICexcg growth 5Y17.6%
ROICexc growth 3Y1.01%
ROICexc growth 5Y0.12%
OM growth 3Y6.24%
OM growth 5Y-1.42%
PM growth 3YN/A
PM growth 5Y-32.6%
GM growth 3Y3.74%
GM growth 5Y2.51%
F-Score8
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 11.95 | ||
| Debt/EBITDA | 3.43 | ||
| Cap/Depr | 51.96% | ||
| Cap/Sales | 3.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.74% | ||
| Profit Quality | 584.28% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 2.32 |
F-Score8
WACC8.55%
ROIC/WACC0.41
Cap/Depr(3y)52.63%
Cap/Depr(5y)56.98%
Cap/Sales(3y)3.09%
Cap/Sales(5y)2.89%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-56.67%
EPS 3Y-35.63%
EPS 5Y-28.99%
EPS Q2Q%-71.43%
EPS Next Y63.79%
EPS Next 2Y52.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.78%
Revenue growth 3Y-0.37%
Revenue growth 5Y1.06%
Sales Q2Q%3.06%
Revenue Next Year2.55%
Revenue Next 2Y4.19%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y165.8%
EBIT growth 3Y5.85%
EBIT growth 5Y-0.37%
EBIT Next Year109.46%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1830.11%
FCF growth 3YN/A
FCF growth 5Y-19.61%
OCF growth 1Y246.26%
OCF growth 3Y63.95%
OCF growth 5Y-14.66%