Kaman Corporation (KAMN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KAMN - US4835481031 - Common Stock
45.99 USD
+0.12 (+0.26%)
45.99 USD
0 (0%)
Taking everything into account, KAMN scores 4 out of 10 in our fundamental rating. KAMN was compared to 73 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.
- In the past year KAMN had a positive cash flow from operations.
- 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
- Looking at the Return On Assets, with a value of 0.53%, KAMN is in line with its industry, outperforming 48.44% of the companies in the same industry.
- KAMN has a Return On Equity (1.16%) which is in line with its industry peers.
- Looking at the Return On Invested Capital, with a value of 3.49%, KAMN is in line with its industry, outperforming 48.44% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for KAMN is significantly below the industry average of 8.56%.
- 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
- The Profit Margin of KAMN (1.03%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of KAMN has declined.
- KAMN's Operating Margin of 6.99% is fine compared to the rest of the industry. KAMN outperforms 60.94% of its industry peers.
- 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.
- KAMN's Gross Margin has improved in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KAMN is destroying value.
- Compared to 1 year ago, KAMN has more shares outstanding
- KAMN has a better debt/assets ratio than last year.
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.
- KAMN has a Altman-Z score of 2.32. This is comparable 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.
- 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.
- Looking at the Debt to Equity ratio, with a value of 0.52, KAMN is in line with its industry, outperforming 46.88% of the companies in the same 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.
- KAMN has a Current ratio of 1.32. This is in the lower half of the industry: KAMN underperforms 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.
- 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.
- The Revenue has grown by 12.78% in the past year. This is quite good.
- KAMN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.06% yearly.
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
- Based on estimates for the next years, KAMN will show a very strong growth in Earnings Per Share. The EPS will grow by 52.14% on average per year.
- The Revenue is expected to grow by 4.19% on average over the next years.
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
- The Price/Earnings ratio is 88.44, which means the current valuation is very expensive for KAMN.
- Compared to the rest of the industry, the Price/Earnings ratio of KAMN is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of KAMN to the average of the S&P500 Index (28.39), we can say KAMN is valued expensively.
- A Price/Forward Earnings ratio of 54.00 indicates a quite expensive valuation of KAMN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of KAMN is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, KAMN is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.44 | ||
| Fwd PE | 54 |
4.2 Price Multiples
- 67.19% of the companies in the same industry are more expensive than KAMN, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, KAMN is valued cheaper than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.89 | ||
| EV/EBITDA | 17.51 |
4.3 Compensation for Growth
- The 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
- With a Yearly Dividend Yield of 1.74%, KAMN has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.34, 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 an average S&P500 Dividend Yield of 1.82, KAMN has a dividend comparable with the average S&P500 company.
| 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
Kaman Corporation / KAMN FAQ
Can you provide the ChartMill fundamental rating for Kaman Corporation?
ChartMill assigns a fundamental rating of 4 / 10 to KAMN.
What is the valuation status of Kaman Corporation (KAMN) stock?
ChartMill assigns a valuation rating of 4 / 10 to Kaman Corporation (KAMN). This can be considered as Fairly Valued.
What is the profitability of KAMN stock?
Kaman Corporation (KAMN) has a profitability rating of 5 / 10.
What is the financial health of Kaman Corporation (KAMN) stock?
The financial health rating of Kaman Corporation (KAMN) is 3 / 10.
What is the earnings growth outlook for Kaman Corporation?
The Earnings per Share (EPS) of Kaman Corporation (KAMN) is expected to grow by 63.79% in the next year.