NYSE:KRA

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Undervalued with proven track record.


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


Market Performance


7 Day Return

-1.7%

KRA

-0.9%

US Chemicals

0.07%

US Market


1 Year Return

-34.2%

KRA

-3.9%

US Chemicals

8.9%

US Market

Return vs Industry: KRA underperformed the US Chemicals industry which returned -5.6% over the past year.

Return vs Market: KRA underperformed the US Market which returned 8% over the past year.


Shareholder returns

KRAIndustryMarket
7 Day-1.7%-0.9%0.07%
30 Day-31.7%-2.4%-0.3%
90 Day-32.0%-4.0%-1.6%
1 Year-34.2%-34.2%10.3%-3.9%11.3%8.9%
3 Year-30.3%-30.3%39.6%13.0%46.3%36.8%
5 Year29.6%29.6%43.1%11.1%62.1%44.3%

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?

42.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KRA ($21.96) is trading below our estimate of fair value ($38.17)

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 (6.2x) compared to the Chemicals industry average (19.3x).

PE vs Market: KRA is good value based on its PE Ratio (6.2x) compared to the US market (17.6x).


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 (0.9x) compared to the US Chemicals industry average (2x).


Next Steps

Future Growth

How is Kraton forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KRA's forecast earnings growth (12.1% per year) is above the savings rate (2.7%).

Earnings vs Market: KRA's earnings (12.1% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: KRA's earnings are forecast to grow, but not significantly.

Revenue vs Market: KRA's revenue (2.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: KRA's revenue (2.7% 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 (13.9%).


Next Steps

Past Performance

How has Kraton performed over the past 5 years?

36.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KRA's earnings have grown significantly by 36.2% per year over the past 5 years.

Accelerating Growth: KRA's earnings growth over the past year (57.5%) exceeds its 5-year average (36.2% per year).

Earnings vs Industry: KRA earnings growth over the past year (57.5%) exceeded the Chemicals industry -2.9%.


Return on Equity

High ROE: KRA's Return on Equity (15%) is considered low.


Return on Assets

ROA vs Industry: KRA's Return on Assets is below or equal to the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: KRA has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Kraton's financial position?


Financial Position Analysis

Short Term Liabilities: KRA's short term assets ($821.4M) exceeds its short term liabilities ($434.5M)

Long Term Liabilities: KRA's short term assets (821.4M) do not cover its long term liabilities (1.8B)


Debt to Equity History and Analysis

Debt Level: KRA's debt to equity ratio (191.9%) is considered high

Reducing Debt: KRA's debt to equity ratio has increased from 62.3% to 191.9% over the past 5 years.

Debt Coverage: KRA's debt is not well covered by operating cash flow (15.3%).

Interest Coverage: KRA's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

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).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

3.6yrs

Average management tenure


CEO

Kevin Fogarty (53yo)

11.8yrs

Tenure

US$5,418,697

Compensation

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 ($USD5.42M) is about average for companies of similar size in the US market ($USD2.67M).

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


Management Age and Tenure

3.6yrs

Average Tenure

53yo

Average Age

Experienced Management: KRA's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

8.1yrs

Average Tenure

60yo

Average Age

Experienced Board: KRA's board of directors are considered experienced (8.1 years average tenure).


Insider Trading

Insider Buying: KRA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$402,84801 Aug 19
Holger Jung
EntityIndividual
Role
Senior Key Executive
Senior VP & President of Polymer Segment
Shares13,102
Max PriceUS$31.04
SellUS$198,59230 Apr 19
Jose Fernando Haddad
EntityIndividual
Role
Chief Operating Officer
Senior Vice President of Global Operations
Shares6,000
Max PriceUS$33.10
BuyUS$185,00117 Dec 18
Vijay Mhetar
EntityIndividual
Role
Chief Technology Officer
Senior VP & Chief Technology Officer
Shares8,000
Max PriceUS$23.13

Ownership Breakdown


Management Team

  • Kevin Fogarty (53yo)

    President

    • Tenure: 11.8yrs
    • Compensation: US$5.42m
  • H. Shiels

    Director of Investor Relations

    • Tenure: 0yrs
  • James Simmons (53yo)

    Senior VP

    • Tenure: 4.8yrs
    • Compensation: US$1.26m
  • Holger Jung (56yo)

    Senior VP & President of Polymer Segment

    • Tenure: 0yrs
    • Compensation: US$1.30m
  • Atanas Atanasov (46yo)

    Senior VP & CFO

    • Tenure: 0.4yrs
  • Jose Fernando Haddad (55yo)

    Senior Vice President of Global Operations

    • Tenure: 4.5yrs
  • Chris Russell (53yo)

    VP & Chief Accounting Officer

    • Tenure: 4.3yrs
    • Compensation: US$704.62k
  • Heba Botros (49yo)

    Vice President of Corporate Development & Strategy

    • Tenure: 2.8yrs
  • Vijay Mhetar (48yo)

    Senior VP & Chief Technology Officer

    • Tenure: 2.8yrs
    • Compensation: US$1.37m
  • Marcello Boldrini (57yo)

    Senior VP & Chemical Segment President

    • Tenure: 2.5yrs
    • Compensation: US$1.10m

Board Members

  • Dan Smith (73yo)

    Chairman & Presiding Director

    • Tenure: 10.1yrs
    • Compensation: US$310.01k
  • Karen Twitchell (64yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$192.51k
  • Shawn Gallagher (55yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$197.51k
  • Anna Catalano (60yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: US$180.01k
  • Mark Blinn (57yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$180.01k
  • Kevin Fogarty (53yo)

    President

    • Tenure: 11.8yrs
    • Compensation: US$5.42m
  • Dominique Fournier (68yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$190.01k
  • Shelley Bausch (53yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$180.01k
  • Billie Williamson (66yo)

    Non-Executive Director

    • Tenure: 1.2yrs
    • Compensation: US$62.39k

Company Information

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


Key Information

  • Name: Kraton Corporation
  • Ticker: KRA
  • Exchange: NYSE
  • Founded:
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$696.275m
  • Shares outstanding: 31.71m
  • Website: https://www.kraton.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KRANYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 2009
K21DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2009

Biography

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, Polyme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:06
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.