AIM:KMK

Stock Analysis Report

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Market Cap

UK£68.7m

Last Updated

2021/06/18 22:47 UTC

Data Sources

Company Financials +

Executive Summary

Kromek Group plc, together with its subsidiaries, develops, manufactures, and sells radiation detection products for medical imaging, nuclear detection, and security screening markets in the United Kingdom, North America, Asia, Europe, and Australasia. More Details


Snowflake Analysis

Mediocre balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KMK is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: KMK's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

6.0%

KMK

6.9%

GB Semiconductor

0.1%

GB Market


1 Year Return

-14.1%

KMK

6.4%

GB Semiconductor

18.7%

GB Market

Return vs Industry: KMK underperformed the UK Semiconductor industry which returned 6.4% over the past year.

Return vs Market: KMK underperformed the UK Market which returned 18.7% over the past year.


Shareholder returns

KMKIndustryMarket
7 Day6.0%6.9%0.1%
30 Day13.2%6.1%1.4%
90 Day-2.9%-17.1%7.2%
1 Year-14.1%-14.1%7.5%6.4%24.6%18.7%
3 Year-26.5%-33.1%-42.6%-43.8%14.5%1.3%
5 Year-38.7%-44.2%27.6%22.2%47.6%19.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.32x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate KMK's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate KMK's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: KMK is unprofitable, so we can't compare its PE Ratio to the European Semiconductor industry average.

PE vs Market: KMK is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KMK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KMK is good value based on its PB Ratio (1.3x) compared to the GB Semiconductor industry average (2.2x).


Future Growth

How is Kromek Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

72.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KMK is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: KMK is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: KMK is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: KMK's revenue (22.9% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: KMK's revenue (22.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Kromek Group performed over the past 5 years?

-50.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KMK is currently unprofitable.

Growing Profit Margin: KMK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KMK is unprofitable, and losses have increased over the past 5 years at a rate of 50.1% per year.

Accelerating Growth: Unable to compare KMK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: KMK is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (13.9%).


Return on Equity

High ROE: KMK has a negative Return on Equity (-41.62%), as it is currently unprofitable.


Financial Health

How is Kromek Group's financial position?


Financial Position Analysis

Short Term Liabilities: KMK's short term assets (£20.1M) exceed its short term liabilities (£9.9M).

Long Term Liabilities: KMK's short term assets (£20.1M) exceed its long term liabilities (£8.6M).


Debt to Equity History and Analysis

Debt Level: KMK's debt to equity ratio (18.3%) is considered satisfactory.

Reducing Debt: KMK's debt to equity ratio has increased from 1.3% to 18.3% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: KMK has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: KMK has less than a year of cash runway if free cash flow continues to reduce at historical rates of 12.6% each year


Dividend

What is Kromek Group current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Arnab Basu (47 yo)

no data

Tenure

UK£231,000

Compensation

Dr. Arnab Basu, MBE, D.L., serves as the Chief Executive Officer and Executive Director of Kromek Group plc (former, Name: Durham Scientific Crystals Ltd). Dr. Basu served as Managing Director of Kromek Gr...


CEO Compensation Analysis

Compensation vs Market: Arnab's total compensation ($USD321.88K) is about average for companies of similar size in the UK market ($USD327.46K).

Compensation vs Earnings: Arnab's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: KMK's management team is seasoned and experienced (5.4 years average tenure).


Board Members

Experienced Board: KMK's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: KMK insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 25.3%.


Top Shareholders

Company Information

Kromek Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kromek Group plc
  • Ticker: KMK
  • Exchange: AIM
  • Founded: 2013
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: UK£68.664m
  • Shares outstanding: 431.85m
  • Website: https://www.kromek.com

Number of Employees


Location

  • Kromek Group plc
  • NETPark
  • Thomas Wright Way
  • Sedgefield
  • County Durham
  • TS21 3FD
  • United Kingdom

Listings


Biography

Kromek Group plc, together with its subsidiaries, develops, manufactures, and sells radiation detection products for medical imaging, nuclear detection, and security screening markets in the United Kingdom...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/18 22:47
End of Day Share Price2021/06/18 00:00
Earnings2020/10/31
Annual Earnings2020/04/30


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.