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Kraton

NYSE:KRA
Snowflake Description

Undervalued with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KRA
NYSE
$831M
Market Cap
  1. Home
  2. US
  3. Materials
Company description

Kraton Corporation manufactures and sells styrenic block copolymers and other engineered polymers in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The last earnings update was 54 days ago. More info.


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  • Kraton has significant price volatility in the past 3 months.
KRA Share Price and Events
7 Day Returns
-0.3%
NYSE:KRA
0.8%
US Chemicals
0.3%
US Market
1 Year Returns
-46.1%
NYSE:KRA
-12.2%
US Chemicals
0.7%
US Market
KRA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Kraton (KRA) -0.3% -7.6% -20.5% -46.1% -4.2% 20.5%
US Chemicals 0.8% 1.9% -6.5% -12.2% 17.8% 5.9%
US Market 0.3% 0.4% 0.6% 0.7% 37.2% 37.4%
1 Year Return vs Industry and Market
  • KRA underperformed the Chemicals industry which returned -12.2% over the past year.
  • KRA underperformed the Market in United States of America which returned 0.7% over the past year.
Price Volatility
KRA
Industry
5yr Volatility vs Market

KRA Value

 Is Kraton undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Kraton to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Kraton.

NYSE:KRA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 13.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:KRA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.87
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.874 (1 + (1- 21%) (192.46%))
1.806
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.81
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.806 * 5.96%)
13.49%

Discounted Cash Flow Calculation for NYSE:KRA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Kraton is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:KRA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 13.49%)
2019 183.20 Analyst x1 161.42
2020 197.90 Analyst x1 153.64
2021 210.19 Est @ 6.21% 143.78
2022 221.04 Est @ 5.16% 133.23
2023 230.84 Est @ 4.43% 122.60
2024 239.90 Est @ 3.92% 112.26
2025 248.45 Est @ 3.57% 102.45
2026 256.69 Est @ 3.31% 93.26
2027 264.74 Est @ 3.14% 84.75
2028 272.73 Est @ 3.02% 76.93
Present value of next 10 years cash flows $1,184.33
NYSE:KRA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $272.73 × (1 + 2.73%) ÷ (13.49% – 2.73%)
$2,603.44
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,603.44 ÷ (1 + 13.49%)10
$734.36
NYSE:KRA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,184.33 + $734.36
$1,918.69
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,918.69 / 32.02
$59.93
NYSE:KRA Discount to Share Price
Calculation Result
Value per share (USD) From above. $59.93
Current discount Discount to share price of $25.95
= -1 x ($25.95 - $59.93) / $59.93
56.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Kraton is available for.
Intrinsic value
>50%
Share price is $25.95 vs Future cash flow value of $59.93
Current Discount Checks
For Kraton to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Kraton's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Kraton's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Kraton's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Kraton's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:KRA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $1.80
NYSE:KRA Share Price ** NYSE (2019-06-17) in USD $25.95
United States of America Chemicals Industry PE Ratio Median Figure of 68 Publicly-Listed Chemicals Companies 17.79x
United States of America Market PE Ratio Median Figure of 3,093 Publicly-Listed Companies 17.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Kraton.

NYSE:KRA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:KRA Share Price ÷ EPS (both in USD)

= 25.95 ÷ 1.80

14.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kraton is good value based on earnings compared to the US Chemicals industry average.
  • Kraton is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Kraton's expected growth come at a high price?
Raw Data
NYSE:KRA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.38x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
Not available
United States of America Chemicals Industry PEG Ratio Median Figure of 49 Publicly-Listed Chemicals Companies 1.25x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Kraton, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Kraton's assets?
Raw Data
NYSE:KRA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $22.76
NYSE:KRA Share Price * NYSE (2019-06-17) in USD $25.95
United States of America Chemicals Industry PB Ratio Median Figure of 94 Publicly-Listed Chemicals Companies 2.03x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.79x
NYSE:KRA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:KRA Share Price ÷ Book Value per Share (both in USD)

= 25.95 ÷ 22.76

1.14x

* Primary Listing of Kraton.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kraton is good value based on assets compared to the US Chemicals industry average.
X
Value checks
We assess Kraton's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check)
  5. Kraton has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

KRA Future Performance

 How is Kraton expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2.9%
Expected annual growth in revenue.
Earnings growth vs Low Risk Savings
Is Kraton expected to grow at an attractive rate?
  • Unable to compare Kraton's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Kraton's earnings growth to the United States of America market average as no estimate data is available.
  • Kraton's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:KRA Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:KRA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 2.9%
United States of America Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 11.5%
United States of America Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:KRA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:KRA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 2,102 2
2020-12-31 2,070 297 6
2019-12-31 1,993 285 111 6
NYSE:KRA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,966 196 57
2018-12-31 2,012 247 66
2018-09-30 2,030 257 117
2018-06-30 2,018 277 71
2018-03-31 2,005 272 111
2017-12-31 1,960 255 96
2017-09-30 1,910 148 24
2017-06-30 1,853 124 43
2017-03-31 1,782 169 25
2016-12-31 1,744 138 105
2016-09-30 1,577 148 105
2016-06-30 1,392 100 98

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Kraton is high growth as no earnings estimate data is available.
  • Kraton's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:KRA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Kraton Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:KRA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31 3.52 3.52 3.52 1.00
NYSE:KRA Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 1.80
2018-12-31 2.10
2018-09-30 3.74
2018-06-30 2.30
2018-03-31 3.60
2017-12-31 3.12
2017-09-30 0.78
2017-06-30 1.41
2017-03-31 0.83
2016-12-31 3.48
2016-09-30 3.48
2016-06-30 3.24

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Kraton is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Kraton's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Kraton has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

KRA Past Performance

  How has Kraton performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Kraton's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Kraton has delivered over 20% year on year earnings growth in the past 5 years.
  • Kraton's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Kraton's 1-year earnings growth is negative, it can't be compared to the US Chemicals industry average.
Earnings and Revenue History
Kraton's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Kraton Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:KRA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,965.69 56.88 155.54 41.05
2018-12-31 2,011.68 66.04 155.99 41.30
2018-09-30 2,029.86 117.07 166.00 42.06
2018-06-30 2,017.70 71.35 163.57 41.67
2018-03-31 2,004.63 111.13 161.92 40.84
2017-12-31 1,960.36 95.72 162.65 40.28
2017-09-30 1,909.78 23.78 184.31 39.20
2017-06-30 1,852.98 42.99 166.10 38.69
2017-03-31 1,782.31 25.17 168.99 39.15
2016-12-31 1,744.10 105.00 177.85 39.13
2016-09-30 1,576.99 104.74 155.79 38.06
2016-06-30 1,391.86 97.78 161.53 35.97
2016-03-31 1,193.12 85.07 141.34 33.65
2015-12-31 1,034.63 -10.35 117.31 31.02
2015-09-30 1,062.39 -23.63 92.91 30.98
2015-06-30 1,112.35 -15.56 92.03 30.82
2015-03-31 1,180.21 0.89 93.41 31.02
2014-12-31 1,230.43 2.38 103.81 31.37
2014-09-30 1,244.76 24.39 105.02 20.78
2014-06-30 1,252.89 2.49 105.77 20.75
2014-03-31 1,263.67 -4.70 105.24 21.20
2013-12-31 1,292.12 -0.61 95.80 32.01
2013-09-30 1,298.18 -34.64 105.86 19.03
2013-06-30 1,313.70 -44.48 107.97 19.01
2013-03-31 1,354.92 -36.00 110.41 18.56
2012-12-31 1,423.12 -16.05 110.40 18.21
2012-09-30 1,430.93 -7.80 106.61 20.98
2012-06-30 1,490.29 50.41 109.11 20.28

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Kraton has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Kraton used its assets less efficiently than the US Chemicals industry average last year based on Return on Assets.
  • Kraton has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Kraton's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Kraton has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

KRA Health

 How is Kraton's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Kraton's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Kraton is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Kraton's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Kraton's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Kraton Company Filings, last reported 2 months ago.

NYSE:KRA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 762.05 1,598.94 37.16
2018-12-31 747.60 1,532.62 85.89
2018-09-30 723.43 1,578.01 51.51
2018-06-30 667.59 1,646.86 55.30
2018-03-31 692.15 1,618.21 64.85
2017-12-31 666.52 1,617.53 89.05
2017-09-30 584.37 1,700.63 89.12
2017-06-30 566.81 1,810.97 128.71
2017-03-31 511.76 1,781.57 104.07
2016-12-31 490.24 1,739.53 121.75
2016-09-30 534.73 1,722.09 143.55
2016-06-30 510.40 1,745.74 110.55
2016-03-31 506.89 1,751.03 78.38
2015-12-31 392.99 415.73 70.05
2015-09-30 395.94 404.94 63.80
2015-06-30 420.35 395.48 60.21
2015-03-31 415.07 392.65 39.79
2014-12-31 468.15 351.87 53.82
2014-09-30 556.31 351.90 62.29
2014-06-30 566.74 353.45 65.89
2014-03-31 551.14 354.97 97.32
2013-12-31 554.40 350.99 175.87
2013-09-30 520.31 351.03 144.63
2013-06-30 499.61 351.07 88.67
2013-03-31 498.04 391.10 136.12
2012-12-31 492.22 449.02 223.17
2012-09-30 531.60 448.05 202.27
2012-06-30 539.18 489.96 227.96
  • Kraton's level of debt (201%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (64.4% vs 201% today).
  • Debt is not well covered by operating cash flow (12.8%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Kraton's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Kraton has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

KRA Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Kraton dividends. Estimated to be 0% next year.
If you bought $2,000 of Kraton shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Kraton's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Kraton's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:KRA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 54 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:KRA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 2.00
2020-12-31 0.00 2.00
2019-12-31 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Kraton has not reported any payouts.
  • Unable to verify if Kraton's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Kraton's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Kraton has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Kraton's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Kraton's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Kraton afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Kraton has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

KRA Management

 What is the CEO of Kraton's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Kevin Fogarty
COMPENSATION $5,418,697
AGE 52
TENURE AS CEO 11.4 years
CEO Bio

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 served as Chief Executive Officer and President of Kraton Polymers LLC since January 14, 2008. Mr. Fogarty served as an Executive Vice President of Kraton Polymers LLC since June 20, 2005 and its Executive Vice President of Global Sales and Marketing of Kraton Performance Polymers Inc. (Polymer Holdings LLC) since June 15, 2005 until January 2008. He is responsible for managing the Kraton's five end-use business segments, including Compounding and Personal Hygiene, Packaging and Polymer Modification, Adhesives, Sealants and Coatings, Paving and Roofing and Footwear. He served as President of Polymer and Resins Business of INVISTA since May 2004. He is responsible for INVISTA’s polyester polymer, bottle resins and nylon salt and polymer businesses. He spent 14 years with the Koch Industries Inc. family of companies where he held various executive positions. He served as President of KoSa's Polymer & Intermediates business, responsible for KoSa's PET resin, polyester polymer and feedstock intermediates business activity. Additionally, he served as Vice President of Koch Chemical Company, responsible for the xylene derivative. He has 13 years of progressive management experience with Koch Industries and KoSa. He has been an Independent Director of PH Glatfelter Co. since January 20, 2012 and serves as its Independent Lead Director. He has been a Director of Kraton Corporation since September 2009. He serves as a Director of Kraton Polymers LLC and Kraton Performance Polymers Limited. Mr. Fogarty studied B.S. degree in Engineering from the Technical University of Nova Scotia.

CEO Compensation
  • Kevin's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Kevin's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Kraton management team in years:

3.3
Average Tenure
52
Average Age
  • The tenure for the Kraton management team is about average.
Management Team

Kevin Fogarty

TITLE
President
COMPENSATION
$5M
AGE
52
TENURE
11.4 yrs

Chris Russell

TITLE
VP & Chief Accounting Officer
COMPENSATION
$705K
AGE
52
TENURE
4 yrs

James Simmons

TITLE
Senior VP
COMPENSATION
$1M
AGE
52
TENURE
4.5 yrs

Holger Jung

TITLE
Senior VP & President of Polymer Segment
COMPENSATION
$1M
AGE
55

Marcello Boldrini

TITLE
Senior VP & Chemical Segment President
COMPENSATION
$1M
AGE
56
TENURE
2.2 yrs

Atanas Atanasov

TITLE
Senior VP & CFO
AGE
45
TENURE
0.1 yrs

Jose Fernando Haddad

TITLE
Senior Vice President of Global Operations
AGE
54
TENURE
4.2 yrs

Vijay Mhetar

TITLE
Senior VP & Chief Technology Officer
COMPENSATION
$1M
AGE
47
TENURE
2.4 yrs

H. Shiels

TITLE
Director of Investor Relations

Heba Botros

TITLE
Vice President of Corporate Development & Strategy
AGE
48
TENURE
2.5 yrs
Board of Directors Tenure

Average tenure and age of the Kraton board of directors in years:

7.8
Average Tenure
59
Average Age
  • The tenure for the Kraton board of directors is about average.
Board of Directors

Dan Smith

TITLE
Chairman & Presiding Director
COMPENSATION
$310K
AGE
72
TENURE
9.8 yrs

Kevin Fogarty

TITLE
President
COMPENSATION
$5M
AGE
52
TENURE
9.8 yrs

Karen Twitchell

TITLE
Independent Director
COMPENSATION
$193K
AGE
63
TENURE
9.5 yrs

Shawn Gallagher

TITLE
Independent Director
COMPENSATION
$198K
AGE
54
TENURE
7.9 yrs

Dominique Fournier

TITLE
Independent Director
COMPENSATION
$190K
AGE
67
TENURE
7.3 yrs

Anna Catalano

TITLE
Independent Director
COMPENSATION
$180K
AGE
59
TENURE
7.8 yrs

Shelley Bausch

TITLE
Independent Director
COMPENSATION
$180K
AGE
52
TENURE
1.8 yrs

Mark Blinn

TITLE
Independent Director
COMPENSATION
$180K
AGE
56
TENURE
1.8 yrs

Billie Williamson

TITLE
Non-Executive Director
COMPENSATION
$62K
AGE
65
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • Kraton insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
30. Apr 19 Sell Jose Fernando Haddad Individual 29. Apr 19 29. Apr 19 -6,000 $33.10 $-198,592
17. Dec 18 Buy Vijay Mhetar Individual 14. Dec 18 14. Dec 18 8,000 $23.13 $185,001
X
Management checks
We assess Kraton's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Kraton has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

KRA News

Simply Wall St News

Does Kraton Corporation (NYSE:KRA) Have A Good P/E Ratio?

A higher P/E ratio means that investors are paying a higher price for each $1 of company earnings. … How Does Kraton's Debt Impact Its P/E Ratio? … If the reality for a company is not as bad as the P/E ratio indicates, then the share price should increase as the market realizes this.

Simply Wall St -

Did Kraton Corporation (NYSE:KRA) Insiders Sell Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Kraton Corporation (NYSE:KRA). … View our latest analysis for Kraton The Last 12 Months Of Insider Transactions At Kraton In the last twelve months, the biggest single sale by an insider was when the Senior VP & President of Polymer Segment, Holger Jung, sold US$511k worth of shares at a price of US$49.59 per share. … Insiders at Kraton Have Sold Stock Recently Over the last three months, we've seen significant insider selling at Kraton.

Simply Wall St -

Read This Before Judging Kraton Corporation's (NYSE:KRA) ROE

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.094 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should Kraton Corporation’s (NYSE:KRA) Weak Investment Returns Worry You?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Did You Miss Kraton's Impressive 120% Share Price Gain?

It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. … For instance the Kraton Corporation (NYSE:KRA) share price is 120% higher than it was three years ago. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Simply Wall St -

Does Kraton Corporation's (NYSE:KRA) CEO Salary Compare Well With Others?

First, this article will compare CEO compensation with compensation at similar sized companies. … Then we'll look at a snap shot of the business growth. … How Does Kevin Fogarty's Compensation Compare With Similar Sized Companies?

Simply Wall St -

When Should You Buy Kraton Corporation (NYSE:KRA)?

saw a significant share price rise of over 20% in the past couple of months on the NYSE. … With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Let’s examine Kraton’s valuation and outlook in more detail to determine if there’s still a bargain opportunity

Simply Wall St -

Does Kraton Corporation (NYSE:KRA) Have A Particularly Volatile Share Price?

Volatility is considered to be a measure of risk in modern finance theory. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Is Kraton Corporation's (NYSE:KRA) P/E Ratio Really That Good?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … Kraton has a price to earnings ratio of 6.39, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Kraton Corporation (NYSE:KRA): Assessing Capital Returns

Owing to this, it is important that the underlying business is producing a sufficient amount of income from the capital invested by stockholders. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … To understand Kraton’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

KRA Company Info

Description

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.

Details
Name: Kraton Corporation
KRA
Exchange: NYSE
Founded:
$830,805,728
32,015,635
Website: http://www.kraton.com
Address: Kraton Corporation
15710 John F. Kennedy Boulevard,
Suite 300,
Houston,
Texas, 77032,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE KRA Common Shares New York Stock Exchange US USD 17. Dec 2009
DB K21 Common Shares Deutsche Boerse AG DE EUR 17. Dec 2009
Number of employees
Current staff
Staff numbers
1,918
Kraton employees.
Industry
Specialty Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 00:17
End of day share price update: 2019/06/17 00:00
Last estimates confirmation: 2019/06/11
Last earnings filing: 2019/04/25
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.