DB:KM1N

Stock Analysis Report

Executive Summary

KEMET Corporation manufactures and sells passive electronic components under the KEMET brand worldwide.

Rewards

PE ratio (11.4x) is below the German market (20.9x)

Earnings grew by 17% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -21% per year for the next 3 years

High level of non-cash earnings

Has a high level of debt



Snowflake Analysis

Excellent balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has KEMET's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KM1N has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

KM1N

-0.4%

DE Electronic

0.1%

DE Market


1 Year Return

45.2%

KM1N

10.9%

DE Electronic

14.1%

DE Market

Return vs Industry: KM1N exceeded the German Electronic industry which returned 13.4% over the past year.

Return vs Market: KM1N exceeded the German Market which returned 15.1% over the past year.


Shareholder returns

KM1NIndustryMarket
7 Day0%-0.4%0.1%
30 Day0.8%7.3%0.2%
90 Day1.7%6.3%3.3%
1 Year46.0%45.2%13.4%10.9%17.6%14.1%
3 Year205.2%201.9%47.9%43.0%14.8%4.8%
5 Year530.1%523.2%113.8%98.5%22.2%5.4%

Price Volatility Vs. Market

How volatile is KEMET's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is KEMET undervalued compared to its fair value and its price relative to the market?

11.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KM1N (€24) is trading above our estimate of fair value (€8.46)

Significantly Below Fair Value: KM1N is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KM1N is good value based on its PE Ratio (11.4x) compared to the Electronic industry average (34.4x).

PE vs Market: KM1N is good value based on its PE Ratio (11.4x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: KM1N's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: KM1N is overvalued based on its PB Ratio (2.2x) compared to the DE Electronic industry average (1.8x).


Next Steps

Future Growth

How is KEMET forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-21.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KM1N's earnings are forecast to decline over the next 3 years (-21% per year).

Earnings vs Market: KM1N's earnings are forecast to decline over the next 3 years (-21% per year).

High Growth Earnings: KM1N's earnings are forecast to decline over the next 3 years.

Revenue vs Market: KM1N's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: KM1N's revenue is forecast to decline over the next 3 years (-1.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if KM1N's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has KEMET performed over the past 5 years?

47.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KM1N has a high level of non-cash earnings.

Growing Profit Margin: KM1N's current net profit margins (10.2%) are higher than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: KM1N has become profitable over the past 5 years, growing earnings by 47.5% per year.

Accelerating Growth: KM1N's earnings growth over the past year (17%) is below its 5-year average (47.5% per year).

Earnings vs Industry: KM1N earnings growth over the past year (17%) exceeded the Electronic industry -3.9%.


Return on Equity

High ROE: KM1N's Return on Equity (19.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is KEMET's financial position?


Financial Position Analysis

Short Term Liabilities: KM1N's short term assets ($655.6M) exceed its short term liabilities ($275.5M).

Long Term Liabilities: KM1N's short term assets ($655.6M) exceed its long term liabilities ($449.6M).


Debt to Equity History and Analysis

Debt Level: KM1N's debt to equity ratio (45.9%) is considered high.

Reducing Debt: KM1N's debt to equity ratio has reduced from 187.8% to 45.9% over the past 5 years.

Debt Coverage: KM1N's debt is well covered by operating cash flow (44.3%).

Interest Coverage: KM1N's interest payments on its debt are well covered by EBIT (29.7x coverage).


Balance Sheet

Inventory Level: KM1N has a high level of physical assets or inventory.

Debt Coverage by Assets: KM1N's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

What is KEMET's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.3%markettop25%3.6%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate KM1N's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate KM1N's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if KM1N's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KM1N's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: KM1N is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KM1N's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.1yrs

Average management tenure


CEO

Bill Lowe (66yo)

1.2yrs

Tenure

US$3,586,356

Compensation

Mr. William M. Lowe, Jr., also known as Bill, has been Chief Executive Officer and Director of KEMET Corporation since December 19, 2018. Mr. Lowe served as the Chief Financial Officer and Executive Vice P ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD3.59M) is above average for companies of similar size in the German market ($USD1.49M).

Compensation vs Earnings: Bill's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Lowe
CEO & Director1.2yrsUS$3.59m0.32% $4.6m
Gregory Thompson
Executive VP & CFO1.2yrsUS$3.06m0.047% $665.8k
Claudio Lollini
Senior Vice President of Global Sales & Marketing0yrsUS$1.10m0.25% $3.5m
Stefano Vetralla
Senior VP & Chief HR Officer5.8yrsUS$2.74m0.071% $998.8k
Charles Meeks
Executive Vice President of Solid Capacitors-Tantalum12.3yrsUS$1.69m0.12% $1.7m
Philip Lessner
Senior VP & CTO6yrsUS$681.25kno data
Brian Burch
Chief Information Officer & VP8.2yrsno datano data
Robin Blackwell
Vice President of Corporate Communications & Investor Relations0yrsno datano data
Ronald Assaf
Senior VP11.6yrsUS$1.04m0.096% $1.4m
Susan Barkal
Senior VP of Quality11.2yrsno datano data

7.1yrs

Average Tenure

58yo

Average Age

Experienced Management: KM1N's management team is seasoned and experienced (7.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Lowe
CEO & Director1.2yrsUS$3.59m0.32% $4.6m
Gurminder Bedi
Independent Director13.8yrsUS$345.00kno data
Robert Paul
Independent Director13.6yrsUS$345.00k0.021% $303.8k
E. Maddrey
Independent Director27.8yrsUS$345.00k0.021% $293.9k
Frank Brandenberg
Independent Chairman of the Board14.9yrsUS$360.00kno data
Wilfried Backes
Independent Director11.9yrsUS$345.00k0.014% $202.4k
Jacob Kotzubei
Independent Director8.3yrsUS$330.00k0.00017% $2.4k
Karen Rogge
Independent Director1.8yrsUS$280.80k0.00017% $2.4k
Yasuko Matsumoto
Independent Director2.7yrsUS$325.00k0.00017% $2.4k

11.9yrs

Average Tenure

71yo

Average Age

Experienced Board: KM1N's board of directors are seasoned and experienced ( 11.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

KEMET Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: KEMET Corporation
  • Ticker: KM1N
  • Exchange: DB
  • Founded: 1919
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: US$1.528b
  • Listing Market Cap: US$1.416b
  • Shares outstanding: 58.27m
  • Website: https://www.kemet.com

Number of Employees


Location

  • KEMET Corporation
  • KEMET Tower
  • One East Broward Boulevard
  • Fort Lauderdale
  • Florida
  • 33301
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KEMNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1992
KM1NDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1992

Biography

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 electronics 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. KEMET Corporation was founded in 1919 and is headquartered in Fort Lauderdale, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 21:46
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.