Kraton Corporation manufactures and sells styrenic block copolymers and other engineered polymers in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
Undervalued with poor track record.
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's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: KRA underperformed the US Chemicals industry which returned -9.8% over the past year.
Return vs Market: KRA underperformed the US Market which returned 14% over the past year.
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
1 week ago | Simply Wall StA Sliding Share Price Has Us Looking At Kraton Corporation's (NYSE:KRA) P/E Ratio
3 weeks ago | Simply Wall StWhat Is Kraton's (NYSE:KRA) P/E Ratio After Its Share Price Tanked?
3 weeks ago | Simply Wall StHow Should Investors Feel About Kraton Corporation's (NYSE:KRA) CEO Pay?
Is Kraton undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: KRA ($14.89) is trading below our estimate of fair value ($30.81)
Significantly Below Fair Value: KRA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: KRA is good value based on its PE Ratio (5.3x) compared to the Chemicals industry average (22x).
PE vs Market: KRA is good value based on its PE Ratio (5.3x) compared to the US market (17.7x).
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 (0.6x) compared to the US Chemicals industry average (1.9x).
How is Kraton forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
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 (1.7%).
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 is expected to decline over the next 3 years (-2% per year).
High Growth Revenue: KRA's revenue is forecast to decline over the next 3 years (-2% 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 (11.4%).
How has Kraton performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KRA has a large one-off gain of $20.7M impacting its September 30 2019 financial results.
Growing Profit Margin: KRA's current net profit margins (4.8%) are lower than last year (5.8%).
Past Earnings Growth Analysis
Earnings Trend: KRA's earnings have grown significantly by 32.2% per year over the past 5 years.
Accelerating Growth: KRA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: KRA had negative earnings growth (-23.8%) over the past year, making it difficult to compare to the Chemicals industry average (-15.9%).
Return on Equity
High ROE: KRA's Return on Equity (11.9%) is considered low.
How is Kraton's financial position?
Financial Position Analysis
Short Term Liabilities: KRA's short term assets ($771.0M) exceed its short term liabilities ($340.8M).
Long Term Liabilities: KRA's short term assets ($771.0M) do not cover its long term liabilities ($1.8B).
Debt to Equity History and Analysis
Debt Level: KRA's debt to equity ratio (179.7%) is considered high.
Reducing Debt: KRA's debt to equity ratio has increased from 63.4% to 179.7% over the past 5 years.
Debt Coverage: KRA's debt is not well covered by operating cash flow (15.5%).
Interest Coverage: KRA's interest payments on its debt are not well covered by EBIT (1.9x coverage).
Inventory Level: KRA has a high level of physical assets or inventory.
Debt Coverage by Assets: KRA's debt is not covered by short term assets (assets are 0.5x debt).
What is Kraton's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate KRA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate KRA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if KRA's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if KRA's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of KRA's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Kevin Fogarty (53yo)
Mr. Kevin M. Fogarty has been the Chief Executive Officer and President of Kraton Corporation since January 14, 2008 and the Chief Executive Officer of Kraton Performance Polymers Limited. Mr. Fogarty serv ...
CEO Compensation Analysis
Compensation vs Market: Kevin's total compensation ($USD5.42M) is above average for companies of similar size in the US market ($USD1.72M).
Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.
|VP & Chief Accounting Officer||4.7yrs||US$704.62k||0.020% $96.0k|
|Senior VP||5.2yrs||US$1.26m||0.077% $365.1k|
|Senior VP & President of Polymer Segment||0yrs||US$1.30m||0.12% $555.1k|
|Senior VP & Chemical Segment President||2.8yrs||US$1.10m||0.035% $164.8k|
|Senior VP & CFO||0.8yrs||no data||no data|
|Senior Vice President of Global Operations||4.8yrs||no data||0.047% $222.0k|
|Senior VP & Chief Technology Officer||3.1yrs||US$1.37m||0.055% $259.7k|
|Director of Investor Relations||0yrs||no data||no data|
|Vice President of Corporate Development & Strategy||3.2yrs||no data||0.016% $75.8k|
Experienced Management: KRA's management team is considered experienced (3.9 years average tenure).
|Chairman & Presiding Director||10.4yrs||US$310.01k||0.19% $885.5k|
|Independent Director||10.2yrs||US$192.51k||0.083% $394.0k|
|Independent Director||8.6yrs||US$197.51k||0.11% $531.3k|
|Independent Director||8.4yrs||US$180.01k||0.082% $385.1k|
|Independent Director||2.5yrs||US$180.01k||0.018% $87.0k|
|Independent Director||8yrs||US$190.01k||0.078% $366.6k|
|Independent Director||2.5yrs||US$180.01k||0.018% $87.0k|
|Non-Executive Director||1.5yrs||US$62.39k||no data|
Experienced Board: KRA's board of directors are considered experienced (8.4 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Kraton Corporation's company bio, employee growth, exchange listings and data sources
- Name: Kraton Corporation
- Ticker: KRA
- Exchange: NYSE
- Industry: Specialty Chemicals
- Sector: Materials
- Market Cap: US$472.068m
- Shares outstanding: 31.70m
- Website: https://www.kraton.com
Number of Employees
- Kraton Corporation
- 15710 John F. Kennedy Boulevard
- Suite 300
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|KRA||NYSE (New York Stock Exchange)||Yes||Common Shares||US||USD||Dec 2009|
|K21||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Dec 2009|
Kraton Corporation manufactures and sells styrenic block copolymers and other engineered polymers 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 and styrene-isoprene-styrene; and specialty polymers, such as hydrogenated styrenic block copolymers, as well as isoprene rubber and isoprene rubber latex for use in medical and personal care products, adhesives, tackifiers, paints, and coatings. The Chemical segment provides pine-based specialty products that include rosin-based tackifiers for packaging and pressure-sensitive adhesive applications; terpene-based tackifiers for bookbinding, hygiene, and pressure-sensitive adhesive applications; alpha-methyl-styrene (AMS) resins for bookbinding and pressure-sensitive adhesive applications; and hot melt polyamides for flexible packaging. It also provides rosin-based binders for the thermoplastic pavement marking submarket; tall oil fatty acids; tall oil rosin; distilled tall oil; and tall oil pitch; and produces insoluble maleic-based tackifiers, as well as bitumen additives. In addition, this segment offers terpene-based tread enhancement resins and AMS-based tread enhancement additives; dimer acids and terpene fractions for fuel additives, oilfield chemicals, mining fluids, coatings, metalworking fluids, and lubricants The company sells its products through various channels, including direct sales force, marketing representatives, and distributors under the Kraton and Cariflex brands. The company was formerly known as Kraton Performance Polymers, Inc. and changed its name to Kraton Corporation in September 2016. Kraton Corporation is based in Houston, Texas.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/25 00:48|
|End of Day Share Price||2020/02/24 00:00|
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.