Corporate Webpages Kemet Corporation
In this review of Kemet Corporation, an immediate thing which
jumped out at us were the company's excellent website describing
both its products and its concern for shareholders. Another factor,
was acquisition of Tokin Electronic Components Corporation coupled
with moves of manufacturing facility to overseas leading to a lengthy
writeupn in the Management's Discussion section regarding the uncertain
tax implications of a corporation doing a lot of employment and
manufacturing outside the U.S. even though based in Florida.
The current trade war situation with China certainly is not
helping this company, or the semiconductor group as a whole.
Also we first noted a high Zenith Index indicating strong fundamentals.
The corporation also pays nearly a 1% dividend. Dragging our
overall rating down has been a very poor stock chart pattern in
an otherwise strong market. This corporation's stock is lagging
others in the same strong industry group.
The company's products are classified in three segments,
capacitors, film and electrolytic, and electro-magnetic sensors
and actuators. The biggest prospects for revenue growth appear
to be coming from optimism for component circuit needs regarding
development of 5G (fifth generation) sources for wireless transmission
of data and Internet, mainly to smart phones.
The stock has dropped back into a channeling range between 18
and 22, and is at the low end of that range. We see it as a
buying opportunity in the light of favorable reports from
analysts and overwhelmingly favorable from researchers.
Institutions are recent net sellers, but Dimensional Fund
Advisors is among primary shareholders which is a good sign.
There appears to be some Swedish influence in this company which
explains the "strange" name of the CEO but the company has sold
off much of its manufacturing interests in Europe and even
America. It has always been based in the U.S. after having a
capacitor manufacturing division of Union Carbide spun off in 1987.
The company's roots go back much further than that in early electronics.
We frankly can't see any reason for the recent stock price decline. The
company gave a sterling earnings report beating analysts' estimates and
in line with increasing earnings trend as recently as February 1st. It also
started paying the quarterly dividend. It is anticipating heavy sales
opportunities for its electronic parts, especially capacitors, in the upcoming
"5G" equipment boom. But it does do a lot of business internationally, and
like so many other companies is being hurt by President Trump's mismanagement
of trade relations across the world. His isolationist and unrealistic view does not
comprehend the "global economy" at all. He brings jobs back to America only
at a high cost which may end up costing more to everyone than leaving some manufacturing
opportunities overseas.
02-04-2019: Kemet Corporation (KEM): A Leader in Capacitor Manufacture
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
Company History
News
Comparison with Peers
Bond Issue
Zenith Index
Financial Statements
Avg. P/E to Current P/E
Financial Ratios
Intrinsic Value (Disc. CashFlow)
Fair Value Estimator
Projected Earnings
Research Reports
Analysts' Opinions
Insider Activity
Institutional Activity
Sentiment
Short Interest
Standard & Poor's
Management's Discussion
Channel Potential
MACD Histogram
Intraday Chart
Val Idea
Stock Consultant
Point & Figure Chart
Wall Street Analyzer
Marketspace Chart
Time Series Forecast
Neural Network Prediction
Stock Options
Ultimate Trading Systems
Recommendation
Corporate Wepages
Company Profile |
Company History |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is considered strong and
> 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
KEMET Corporation (KEM) Exchange: NYSE
101 NE 3rd Avenue
Suite 1700 Sector: Technology
Fort Lauderdale, FL 33301 Industry: Electronic
KEMET Corporation manufactures and sells passive electronic components
under the KEMET brand worldwide. The company operates in three segments:
Solid Capacitors, Film and Electrolytic; and Electro-Magnetic, Sensors,
and Actuators. It offers tantalum, aluminum polymer, and ceramic
capacitors; film, paper, and wet aluminum electrolytic capacitors;
electromagnetic interference filters; and electro-magnetic compatible
materials and devices, piezo materials and actuators, and various types
of sensors. The company serves original equipment manufacturers,
electronics manufacturing services providers, and distributors in
various industries, including automotive, communications,
computer-related, industrial, consumer, military/aerospace, and
alternative energy. It sells its products through direct sales force and
independent sales representatives. The company was founded in 1919 and
is headquartered in Fort Lauderdale, Florida.
Last Trade: 17.72 52-Week Range: 29.85 - 15.55
Employees: 14,900 Avg.Volume: 1,307,847 Shares
Corporate Governance:
Pillar scores are Audit: 1; Board: 3; Shareholder Rights: 5; Compensation: 2.
(A lower number means less governance risk.)
EPS: 1.58 Dividend Amount: $ 0.20 Yield: 0.98%
Ex-Dividend Date: Nov 14, 2018 Payout Ratio: 0.00
Key Statistics:
Trailing P/E: 11.51 Forward P/E (est.): 4.64
Target Price: 27.67
Qrtly Stock Price Growth (yoy): -6.98% Beta: 0.00
Qrtly S&P Index Growth (yoy): 15.80% Short Ratio: 6.89%
Qrtly Revenue Growth (yoy): -4.18% Shares Out: 57440000
Qrtly Earnings Growth (yoy): 189.70%
Book Value: 8.92 Debt/Equity: 61.77%
Price/Book Value: 2.04 Operating Profit Margin: 12.18%
Price/Sales: 0.80 Profit Margin: 7.20%
Market Cap: 1,045,000,000 Return on Equity: 20.17%
Enterprise Value: 1,270,000,000 Return on Assets: 8.41%
Operating Cash Flow: 114,110,000
Free Cash Flow: 40,570,000
Annual Income Statement: (All numbers in thousands)
Period Ending 03/31/2018 3/31/2017 3/31/2016
Total Revenue 1,199,926 757,791 734,823
Cost of Revenue 859,533 570,864 570,639
Gross Profit 340,393 186,927 164,184
Operating Expenses:
Research & Development 39,619 27,398 24,613
Selling, General & Administrative 165,984 105,018 97,772
Non-Recurring Expenses 0 0 0
Other Operating Expenses 0 0 0
Total Operating Expenses 1,065,136 703,280 693,024
Operating Income or Loss 134,790 54,511 41,799
Income from Continuing Operations:
Total Other Income/Expenses Net 128,920 -2,232 -89,422
Earnings Before Interest & Taxes 134,790 54,511 41,799
Interest Expense -32,882 -39,755 -39,605
Income Before Taxes 263,710 52,279 -47,623
Income Tax Expense 9,181 4,290 6,006
Minority Interest 0 0 0
Net Income from Continuing Op.s 254,529 47,989 -53,629
Non-recurring Events:
Discontinued Operations 0 0 0
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income 254,529 47,989 -53,629
Preferred Stock & Other Adjustments 0 0 0
Net Income Avail to Common Shares 254,529 47,989 -53,629
Annual Cash Flow Statement: (All numbers in thousands)
Period Ending 03/31/2018 3/31/2017 3/31/2016
Net Income 254,529 47,989 -53,629
Operating Activities:
Depreciation 49,755 37,338 39,016
Adjustments to Net Income -191,855 -34,691 51,693
Changes in Accounts Recv'bls 30,084 -12 -2,346
Changes in Liabilities -16,053 6,170 -5,982
Changes in Investories -13,827 16,805 3,338
Changes in other Oper'g Acts 4,443 -2,837 -202
Total Cash Flow f Operations 120,860 71,667 32,365
Investing Activities:
Capital Exenditures -65,004 -25,617 -20,469
Investments -3,000 -3,000 -3,000
Other Cash Flows fr Investing 2,745 2,745 1,802
Total Cash Flows from Investing 102,364 -25,598 -20,588
Financing Activities:
Dividends Paid 0 0 0
Sale of Purchase of Stock 0 0 0
Net Borrowings -64,841 -114 -81
Other Cash Flows fr Financing -5,002 -5,002 1,802
Total Cash Flows from Financing -55,798 -125 -3,803
Effect of Exchange Rate Chg 9,646 -1,174 668
Change in Cash & Cash Equiv. 177,072 44,770 8,642
Annual Balance Sheets: (All Numbers in Thousands)
Period Ending 03/31/2018 3/31/2017 3/31/2016
Current Assets:
Cash & Cash Equivalents 286,846 109,774 65,004
Short Term Investments 0 0 0
Net Receivables 144,076 92,526 93,168
Inventory 204,386 147,955 168,879
Other Current Assets 1,154 2,907 0
Total Current Assets 636,462 353,162 327,051
Long-Term Investments 12,016 63,416 20,334
Property, Plant & Equipt 405,316 209,311 241,839
Goodwill 40,294 40,294 40,294
Intangible Assets 59,907 29,781 33,301
Accumulated Amortization 0 0 0
Other Assets 24,268 12,486 11,465
Deferred LT Asset Charges 13,837 8,367 8,397
Total Assets 1,218,269 734,325 699,780
Current Liabilities:
Accounts Payable 139,989 69,674 70,981
Current Portion LT Debt 20,540 2,000 2,000
Other Current Liabilities 44,425 1,699 1,399
Total Current Liabilities 284,916 130,141 123,754
Long Term Debt 304,083 386,211 385,833
Other Liabilities 166,307 63,501 77,712
Deferred LT Liab. Charges 0 0 0
Minority Interest 0 0 0
Negative Goodwill 0 0 0
Total Liabilities 755,306 579,853 587,299
Stockholder Equity:
Misc. Options, Warrants 0 0 0
Redeemable Preferred Stock 0 0 0
Preferred Stock 0 0 0
Common Stock 566 467 465
Retained Earnings 2,675 -251,854 -299,510
Treasury Stock -3,015 -41,812 -41,295
Capital Surplus 462,737 447,671 452,821
Other Stockhohlder Equity -3,015 -41,812 -31,425
Total Stockholder Equity 462,963 154,472 112,481
Net Tangible Assets 362,762 84,397 38,886
KEMET Corporation (KEM) [Indices near +3.0, near zero,
or < zero bear special attention.]
P/E Ratio Tests:
P/E Ratio < 28? 2.4327 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: 3.0000 Forward P/E Ratio < 28? 3.0000
Price/Sales Ratio < 2.3? 2.8750 Inventory/Sales < 5%? 0.2935
Sales < $1 Billion? 0.8334 Operating Margin < 7.5%? 0.6158
Balance Sheet Tests:
Debt/Equity < 0.40? 0.6476 Long-Term Debt Service: 1.5225
LTD Being Reduced? 3.0000 Short-Term Debt Service: -3.0000
Current Ratio > 2? 1.1169 Working Capital >= 1.5? 0.6804
Leverage Ratio < 20%? 0.4186 Debt/Assets < 1? 3.0000
Quick Ratio > 1? 3.0000 Inventory Turnover > 1? 0.1919
Share Equity Increase: 3.0000 Market Cap.< 1.5 Billion? 1.4354
Intangibles < 3% Assets? 0.3647
Income Tests:
Profit Margin < 7.5%? 0.9600 EPS Annual Growth > 10%? 0.0189
Dividend Yield > 2.0%? 2.0408 EPS 3-yr Growth > 15? -0.0316
Enterprise Value/Revenue 0.8709 EPS Growth Consistent? 2.0000
Enterprise Value/EBITDA: 3.0000 Collection < 45 days? 1.0268
EPS Qrtly Growth > 10%? 0.0005 Gross Pft/Cur. LTD > 1? 3.0000
Borrowing Int. Rate < 6%? -0.5549
Stock Performance Tests:
Volatility > 25%? 1.9162 % Held by Insiders < 5%? 0.6427
Beta > 1.25? 0.0000 % Held by Institut. < 50? 0.6148
50 Da MA > 200 Da MA? -0.4774 % Held by Institut. > 30? 2.7110
52-Wk Change vs. S&P 500: 1.6699 Short Ratio > 5? 1.3780
Price/Book Value < 3? 1.5102 Short % of Float > 20? 0.6245
Return on Assets > 17%? 0.4947 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 2.8127 Positive Free Cash Flow? 3.0000
Positive Oper. Cash Flow? 3.0000 Price to C.F.Ratio < 14?: 3.0000
Cash Flow / Assets > 10%? 2.2903
KEM KEMET Corporation Overall Zenith Index: 1.4277
Financial Statements |
KEMET CORP (KEM) INCOME STATEMENT Fiscal year ends in March. USD in thousands 2014-03 2015-03 2016-03 2017-03 2018-03 TTM Revenue 833,666 823,192 734,823 757,791 1,199,926 1,301,261 Cost of revenue 712,925 663,683 571,543 571,679 859,533 911,503 Gross profit 120,741 159,509 163,280 186,112 340,393 389,758 Operating expenses Research and development 24,466 25,802 24,955 27,629 39,619 42,519 Sales, General and administrative 95,856 98,533 101,446 107,445 183,520 206,272 Restructuring, merger and acquisition 14,122 13,017 4,178 5,404 -116,037 17,734 Other operating expenses -14,122 -13,017 -4,178 -5,404 116,037 -17,734 Total operating expenses 120,322 124,335 126,401 135,074 223,139 248,791 Operating income 419 35,174 36,879 51,038 117,254 140,967 Interest Expense 39,258 39,234 38,213 38,365 32,371 28,472 Other income (expense) -17,458 -8,066 -29,883 -2,037 102,635 -7,632 Income before taxes -56,297 -12,126 -31,217 10,636 187,518 104,863 Provision for income taxes 1,482 5,227 6,006 4,290 9,181 11,777 Other income -7,090 -2,169 -16,406 41,643 76,192 546 Net income from continuing operations -64,869 -19,522 -53,629 47,989 254,529 93,632 Net income from discontinuing ops -3,634 5,379 0 0 0 0 Net income -68,503 -14,143 -53,629 47,989 254,529 93,632 Net income available to common shareholders -68,503 -14,143 -53,629 47,989 254,529 93,632 Earnings per share Basic -1.52 -0.31 -1.17 1.03 4.82 1.28 Diluted -1.52 -0.31 -1.17 0.87 4.34 1.28 Weighted average shares outstanding Basic 45,102 45,381 46,004 46,552 52,798 57,280 Diluted 45,102 45,381 46,004 55,389 58,640 59,132 ____________________________________________________________________________________________________________________________________________ KEMET CORP (KEM) BALANCE SHEET Fiscal year ends in March. USD in thousands 2014-03 2015-03 2016-03 2017-03 2018-03 Assets Current assets Cash Total cash 57,929 56,362 65,004 109,774 286,846 Receivables 98,947 90,857 93,168 92,526 144,076 Inventories 187,974 171,843 168,879 147,955 204,386 Deferred income taxes 6,695 10,762 0 0 0 Prepaid expenses 36,871 41,503 25,496 28,759 41,160 Other current assets 12,160 0 0 0 0 Total current assets 400,576 371,327 352,547 379,014 676,468 Non-current assets Property, plant and equipment Gross property, plant and equipment 1,098,335 1,053,927 1,057,177 1,030,587 1,271,930 Accumulated Depreciation -805,687 -804,286 -815,338 -821,276 -866,614 Net property, plant and equipment 292,648 249,641 241,839 209,311 405,316 Equity and other investments 46,419 45,016 20,334 63,416 12,016 Goodwill 35,584 35,584 40,294 40,294 40,294 Intangible assets 37,184 33,282 33,301 29,781 59,907 Deferred income taxes 6,778 5,111 8,397 8,593 13,837 Other long-term assets 24,478 12,831 5,832 4,119 10,431 Total non-current assets 443,091 381,465 349,997 355,514 541,801 Total assets 843,667 752,792 702,544 734,528 1,218,269 Liabilities and stockholders' equity Liabilities Current liabilities Short-term debt 7,297 962 2,000 2,000 20,540 Accounts payable 74,818 69,785 70,981 69,674 139,989 Taxes payable 980 1,017 453 715 2,010 Accrued liabilities 57,315 60,456 50,320 57,752 122,377 Other current liabilities 26,422 0 0 0 0 Total current liabilities 166,832 132,220 123,754 130,141 284,916 Non-current liabilities Long-term debt 391,292 390,409 388,597 386,211 304,083 Deferred taxes liabilities 5,203 8,350 2,820 3,370 14,571 Pensions and other benefits 32,852 38,982 35,156 34,674 83,495 Other long-term liabilities 25,604 18,149 39,736 25,457 68,241 Total non-current liabilities 454,951 455,890 466,309 449,712 470,390 Total liabilities 621,783 588,110 590,063 579,853 755,306 Stockholders' equity Common stock 465 465 465 467 566 Additional paid-in capital 465,027 461,191 452,821 447,671 462,737 Retained earnings -231,738 -245,881 -299,510 -251,651 2,675 Treasury stock -30,054 -22,297 -9,870 0 0 Accumulated other comprehensive income 18,184 -28,796 -31,425 -41,812 -3,015 Total stockholders' equity 221,884 164,682 112,481 154,675 462,963 Total liabilities and stockholders' equity 843,667 752,792 702,544 734,528 1,218,269 ____________________________________________________________________________________________________________________________________________ KEMET CORP (KEM) Statement of CASH FLOW Fiscal year ends in March. USD in thousands 2014-03 2015-03 2016-03 2017-03 2018-03 TTM Cash Flows From Operating Activities Net income -68,503 -19,787 -53,629 47,989 254,529 93,632 Depreciation & amortization 49,527 40,768 39,016 37,338 49,755 49,384 Investment/asset impairment charges 5,960 52 24 10,343 -830 -58 Investments losses (gains) -3,111 -2,100 26,300 -10,700 0 0 Deferred income taxes -6,369 -2,084 495 -19 0 0 Stock based compensation 2,909 4,512 4,774 4,720 7,657 13,503 Change in working capital 2,386 14,033 -5,574 20,270 6,577 -57,008 Accounts receivable -4,618 8,220 -2,346 -12 30,084 0 Inventory 14,891 8,559 3,338 16,805 -13,827 0 Prepaid expenses 3,748 -8,404 13,588 -1,769 4,330 0 Accounts payable -2,070 -2,879 -5,982 6,170 -16,053 0 Income taxes payable 172 -383 -382 144 1,317 0 Other working capital -9,737 8,920 -13,790 -1,068 726 -57,008 Other non-cash items 10,455 -10,992 20,959 -38,274 -196,828 14,657 Net cash provided by operating activities -6,746 24,402 32,365 71,667 120,860 114,110 Cash Flows From Investing Activities Investments in property, plant, and equipmen -32,147 -22,232 -20,469 -25,617 -65,004 -87,652 Acquisitions, net 0 9,564 -2,892 0 160,985 -7,144 Other investing activities 6,894 16,297 2,773 19 6,383 5,974 Net cash used for investing activities -25,253 3,629 -20,588 -25,598 102,364 -88,822 Cash Flows From Financing Activities Debt issued 21,000 42,340 10,000 14,314 334,978 510 Debt repayment -6,150 -49,075 -10,081 -14,428 -399,819 -17,250 Common stock repurchased 0 -630 -722 -1,144 0 0 Other financing activities -21,727 -19,503 -3,000 1,133 9,043 1,612 Net cash provided by (used for) financing -6,877 -26,868 -3,803 -125 -55,798 -15,128 Effect of exchange rate changes 827 -2,730 668 -1,174 9,646 -786 Net change in cash -38,049 -1,567 8,642 44,770 177,072 9,374 Cash at beginning of period 95,978 57,929 56,362 65,004 109,774 253,673 Cash at end of period 57,929 56,362 65,004 109,774 286,846 263,047 Free Cash Flow Operating cash flow -6,746 24,402 32,365 71,667 120,860 114,110 Capital expenditure -32,147 -22,232 -20,469 -25,617 -65,004 -87,652 Free cash flow -38,893 2,170 11,896 46,050 55,856 26,458 ____________________________________________________________________________________________________________________________________________
Average to Current P/E Ratios |
(KEM) Kemet Corp.
2014 2015 2016 2017 2018
Annual Earnings: -1.52 -0.44 -1.17 0.87 4.34
Average Price During Year: 5.23 3.23 2.79 14.40 20.28
P/E Ratio: 3.44 7.34 2.38 16.56 4.67
Average 5-Year P/E Ratio = 6.88
Current Price = 18.08
Previous 5 Quarter Earnings: 0.22 0.32 0.04 0.60 0.63
Current Annualized (Last Four Quarters) Earnings = 1.27
________
Average PE / Current PE = 0.48
--------
...a number above 1.00 is good
1.00 or below is bad
Financial Ratios |
. . . . . . . . . . . . Lowest to Highest, Compared to Industry
Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Fair Value Estimator |
Fair Value Estimate:
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Standard & Poor's |
Management's Discussion of Results of Operations Excerpts |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for KEMET CORPORATION:
Symbol? KEM
Total Months Available: 25
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
21.47 16.30 29.85 18.58 23.13 15.55
RANGE = 29.85 TO 15.55 Close = 17.72
CHANNEL = 21.47 TO 18.58 Degree = 2
Volatility = 16.31% Index = 3
MACD Histogram Divergence |
The theory is that connecting the two most recent peaks or valleys of the MACD histogram will signal the direction of the next major move.
Intraday Chart |
2 Days:
Val Idea |
4 out of 8 favorable, (neutral opinion.)
Stock Consultant |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
3 out of 3 of the ultimate systems favor a downmove.
System Below:
Short term outlook: Positive: Bright Green, Negative: Bright Red
Long term outlook: Postive: Dark Green, Negative: Dark Red.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | + 1 |
| Comparison | + 1 |
| Industry | + 1 |
| Bond Issue | + 1 |
| Zenith Index | + 1 |
| Non-GAAP vs. GAAP Earnings | + 1 |
| Cash Flow | + 1 |
| Average to Current P/E | - 1 |
| Ratios | + 1 |
| Intrinsic Value DCF | 0 |
| Fair Value Estimator | + 1 |
| Projected Earnings | + 1 |
| Research Reports | + 1 |
| Analysts | + 1 |
| Executive Perquisites | - 1 |
| Insider Activity | - 1 |
| Institutional Activity | - 1 |
| Management Reporting | + 1 |
| Short Interest | - 1 |
| Sentiment | - 1 |
| Standard & Poor's | + 1 |
| MACD Histogram Divergence | + 1 |
| Val Idea | 0 |
| Stock Consultant | + 1 |
| Point & Figure | - 1 |
| Wall Street Analyzer | - 1 |
| Marketspace Chart | - 1 |
| Time Series Chart | - 1 |
| Neural Network | - 1 |
| Stock Options | + 1 |
| Ultimate Trading Systems | - 1 |
| Total | + 6 |
Place 1.660 shares of Kemet Corporation (KEM) on the Active List.
