NYSE:KRA

Stock Analysis Report

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Market Cap

US$1.0b

Last Updated

2021/06/19 01:32 UTC

Data Sources

Company Financials +

Executive Summary

Kraton Corporation manufactures and sells styrenic block copolymers, specialty polymers, and other products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. More Details


Snowflake Analysis

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KRA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: KRA's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-9.0%

KRA

-3.0%

US Chemicals

-0.2%

US Market


1 Year Return

95.6%

KRA

41.9%

US Chemicals

39.4%

US Market

Return vs Industry: KRA exceeded the US Chemicals industry which returned 41.9% over the past year.

Return vs Market: KRA exceeded the US Market which returned 39.4% over the past year.


Shareholder returns

KRAIndustryMarket
7 Day-9.0%-3.0%-0.2%
30 Day-9.3%-4.1%3.1%
90 Day-16.0%3.3%5.6%
1 Year95.6%95.6%44.7%41.9%41.7%39.4%
3 Year-34.6%-34.6%45.4%23.7%59.7%49.9%
5 Year14.2%14.2%94.8%56.5%122.6%97.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.59x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: KRA ($31.24) is trading above our estimate of fair value ($16.44)

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


Price To Earnings Ratio

PE vs Industry: KRA is unprofitable, so we can't compare its PE Ratio to the US Chemicals industry average.

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: KRA is good value based on its PB Ratio (1.6x) compared to the US Chemicals industry average (2.7x).


Future Growth

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

5.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if KRA's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if KRA's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KRA's revenue (5.5% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: KRA's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KRA's Return on Equity is forecast to be low in 3 years time (11.3%).


Past Performance

How has Kraton performed over the past 5 years?

-35.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KRA is currently unprofitable.

Growing Profit Margin: KRA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KRA is unprofitable, and losses have increased over the past 5 years at a rate of 35% per year.

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

Earnings vs Industry: KRA is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (1.6%).


Return on Equity

High ROE: KRA has a negative Return on Equity (-58.57%), as it is currently unprofitable.


Financial Health

How is Kraton's financial position?


Financial Position Analysis

Short Term Liabilities: KRA's short term assets ($683.7M) exceed its short term liabilities ($442.8M).

Long Term Liabilities: KRA's short term assets ($683.7M) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: KRA's debt to equity ratio (137.2%) is considered high.

Reducing Debt: KRA's debt to equity ratio has reduced from 345.1% to 137.2% over the past 5 years.

Debt Coverage: KRA's debt is not well covered by operating cash flow (15.4%).

Interest Coverage: KRA is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Dividend

What is Kraton current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate KRA'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 KRA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KRA'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 KRA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Kevin Fogarty (54 yo)

13.42yrs

Tenure

US$5,662,949

Compensation

Mr. Kevin M. Fogarty had been the Chief Executive Officer and President of Kraton Corporation since January 14, 2008 and the Chief Executive Officer of Kraton Performance Polymers Limited. He served as a D...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD5.66M) is above average for companies of similar size in the US market ($USD2.38M).

Compensation vs Earnings: Kevin's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: KRA's management team is considered experienced (4.4 years average tenure).


Board Members

Experienced Board: KRA's board of directors are considered experienced (9.8 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

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


Key Information

  • Name: Kraton Corporation
  • Ticker: KRA
  • Exchange: NYSE
  • Founded: 2009
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$1.004b
  • Shares outstanding: 32.14m
  • Website: https://www.kraton.com

Number of Employees


Location

  • Kraton Corporation
  • 15710 John F. Kennedy Boulevard
  • Suite 300
  • Houston
  • Texas
  • 77032
  • United States

Listings


Biography

Kraton Corporation manufactures and sells styrenic block copolymers, specialty polymers, and other products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in two segmen...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/19 01:32
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.