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KRA

KratonNYSE:KRA Stock Report

Market Cap

US$1.5b

7D

13.7%

1Y

165.6%

Updated

27 Sep, 2021

Data

Company Financials +
KRA fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance0/6
Financial Health2/6
Dividends0/6

KRA Overview

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.

Kraton Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Kraton
Historical stock prices
Current Share PriceUS$45.41
52 Week HighUS$16.31
52 Week LowUS$45.89
Beta2.45
1 Month Change6.10%
3 Month Change44.48%
1 Year Change165.56%
3 Year Change-1.71%
5 Year Change31.97%
Change since IPO236.12%

Recent News & Updates

Aug 04
These 4 Measures Indicate That Kraton (NYSE:KRA) Is Using Debt Reasonably Well

These 4 Measures Indicate That Kraton (NYSE:KRA) Is Using Debt Reasonably Well

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Jun 08
Kraton (NYSE:KRA) Might Have The Makings Of A Multi-Bagger

Kraton (NYSE:KRA) Might Have The Makings Of A Multi-Bagger

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Jun 02

Kraton: Well-Positioned To Meet A 5-Year Demand Wave

Kraton's polymer segment is well positioned to meet swelling demand for thermoplastic elastomers and chemicals within the automotive, asphalt, and medical sectors. However, Kraton's faces raw material price and supply risks which are partly mitigated through their product diversification. Kraton's financial performance over the past year is respectable, having made headway in reducing consolidated debt. A simplified discounted free cash flow valuation indicates the stock is fairly valued but could be easily undervalued soon; consider buying if EBITDA margins increase along with swelling revenue.

May 13
We Discuss Why Kraton Corporation's (NYSE:KRA) CEO Compensation May Be Closely Reviewed

We Discuss Why Kraton Corporation's (NYSE:KRA) CEO Compensation May Be Closely Reviewed

Shareholders will probably not be too impressed with the underwhelming results at Kraton Corporation ( NYSE:KRA...

Shareholder Returns

KRAUS ChemicalsUS Market
7D13.7%3.2%2.0%
1Y165.6%28.1%32.8%

Return vs Industry: KRA exceeded the US Chemicals industry which returned 28.1% over the past year.

Return vs Market: KRA exceeded the US Market which returned 32.8% over the past year.

Price Volatility

Is KRA's price volatile compared to industry and market?
KRA volatility
KRA Beta2.45
Industry Beta1.14
Market Beta1

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.

About the Company

FoundedEmployeesCEOWebsite
20091,808Kevin Fogartyhttps://www.kraton.com

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 segments, Polymer and Chemical. The Polymer segment offers performance products, including styrene-butadiene-styrene for paving and roofing application; styrene-isoprene-styrene for personal care application; ethylene-vinyl acetate, polyolefins, and metallocene polyolefins for adhesives application; and specialty polymers, such as hydrogenated styrenic block copolymer, isoprene rubber, and isoprene rubber latex for use in medical and personal care products, adhesives, tackifiers, paints, and coatings.

Kraton Fundamentals Summary

How do Kraton's earnings and revenue compare to its market cap?
KRA fundamental statistics
Market CapUS$1.46b
Earnings (TTM)-US$354.64m
Revenue (TTM)US$1.71b

0.9x

P/S Ratio

-4.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KRA income statement (TTM)
RevenueUS$1.71b
Cost of RevenueUS$1.25b
Gross ProfitUS$461.19m
ExpensesUS$815.83m
Earnings-US$354.64m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-11.03
Gross Margin26.95%
Net Profit Margin-20.73%
Debt/Equity Ratio125.9%

How did KRA perform over the long term?

See historical performance and comparison

Valuation

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

2.15x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: KRA ($45.41) is trading above our estimate of fair value ($17.85)

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 (2.2x) 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?

133.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KRA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: KRA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: KRA's is expected to become profitable in the next 3 years.

Revenue vs Market: KRA's revenue (3.2% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: KRA's revenue (3.2% 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 (11.2%).


Past Performance

How has Kraton performed over the past 5 years?

-45.1%

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 45.1% 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 (32.6%).


Return on Equity

High ROE: KRA has a negative Return on Equity (-48.31%), as it is currently unprofitable.


Financial Health

How is Kraton's financial position?


Financial Position Analysis

Short Term Liabilities: KRA's short term assets ($748.0M) exceed its short term liabilities ($475.6M).

Long Term Liabilities: KRA's short term assets ($748.0M) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: KRA's debt to equity ratio (125.9%) is considered high.

Reducing Debt: KRA's debt to equity ratio has reduced from 341.5% to 125.9% over the past 5 years.

Debt Coverage: KRA's debt is not well covered by operating cash flow (18.1%).

Interest Coverage: KRA's interest payments on its debt are not well covered by EBIT (2.9x coverage).


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?

4.7yrs

Average management tenure


CEO

Kevin Fogarty (55 yo)

13.67yrs

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 ($USD5.66M) is above average for companies of similar size in the US market ($USD3.66M).

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


Leadership Team

Experienced Management: KRA's management team is considered experienced (4.7 years average tenure).


Board Members

Experienced Board: KRA's board of directors are seasoned and experienced ( 10 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 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$1.460b
  • Shares outstanding: 32.15m
  • Website: https://www.kraton.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 23:02
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
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.