Kaman Corporation (KAMN) Stock Fundamental Analysis
NYSE:KAMN - New York Stock Exchange, Inc. - US4835481031 - Common Stock - Currency: USD
KAMN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 64 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of KAMN while its profitability can be described as average. KAMN has a correct valuation and a medium growth rate.
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.
KAMN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
KAMN has a Return On Assets (0.53%) which is comparable to the rest of the industry.
KAMN has a Return On Equity (1.16%) which is in line with its industry peers.
KAMN has a Return On Invested Capital (3.49%) which is comparable to the rest of the industry.
KAMN had an Average Return On Invested Capital over the past 3 years of 2.89%. This is significantly below the industry average of 7.94%.
The 3 year average ROIC (2.89%) for KAMN is below the current ROIC(3.49%), indicating increased profibility in the last year.
| 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 comparable to the rest of the industry.
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.
The Gross Margin of KAMN (34.96%) is better than 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KAMN is destroying value.
Compared to 1 year ago, KAMN has more shares outstanding
Compared to 5 years ago, KAMN has more shares outstanding
KAMN has a better debt/assets ratio than last year.
2.2 Solvency
KAMN has an Altman-Z score of 2.32. This is not the best score and indicates that KAMN is in the grey zone with still only limited risk for bankruptcy at the moment.
KAMN's Altman-Z score of 2.32 is in line compared to the rest of the industry. KAMN outperforms 51.56% of its industry peers.
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.
With a Debt to FCF ratio value of 11.95, KAMN perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
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.
With a Current ratio value of 1.32, KAMN is not doing good in the industry: 65.63% of the companies in the same industry are doing better.
A Quick Ratio of 0.71 indicates that KAMN may have some problems paying its short term obligations.
With a Quick ratio value of 0.71, KAMN is not doing good in the industry: 82.81% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
KAMN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -56.67%.
Measured over the past years, KAMN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -28.99% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 88.44, the valuation of KAMN can be described as expensive.
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 26.70, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 54.00, KAMN can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KAMN is on the same level as its industry peers.
KAMN's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.49.
| 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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KAMN indicates a rather cheap valuation: KAMN is cheaper than 81.25% of the companies listed in the same industry.
| 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%.
KAMN's Dividend Yield is rather good when compared to the industry average which is at 1.34. KAMN pays more dividend than 89.06% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.36, 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 paid a dividend for at least 10 years, which is 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
281.70% of the earnings are spent on dividend by KAMN. 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%