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KEMET

NYSE:KEM
Snowflake Description

Undervalued with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KEM
NYSE
$1B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

KEMET Corporation manufactures and sells passive electronic components under the KEMET brand worldwide. The last earnings update was 47 days ago. More info.


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KEM Share Price and Events
7 Day Returns
-3.7%
NYSE:KEM
0.7%
US Electronic
1.2%
US Market
1 Year Returns
-12.3%
NYSE:KEM
-0.3%
US Electronic
3%
US Market
KEM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
KEMET (KEM) -3.7% -8.1% 5% -12.3% 846.5% 202.4%
US Electronic 0.7% 1.1% 21.2% -0.3% 59.3% 59.2%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • KEM underperformed the Electronic industry which returned -0.3% over the past year.
  • KEM underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
KEM
Industry
5yr Volatility vs Market
Related Companies

Value

 Is KEMET 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 KEMET 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 KEMET.

NYSE:KEM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10%
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:KEM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.071 (1 + (1- 21%) (30.56%))
1.221
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.22
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.221 * 5.96%)
10.01%

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

The calculations below outline how an intrinsic value for KEMET 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:KEM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.01%)
2019 7.06 Analyst x1 6.42
2020 84.60 Analyst x1 69.91
2021 100.27 Est @ 18.52% 75.32
2022 114.09 Est @ 13.78% 77.91
2023 126.03 Est @ 10.47% 78.23
2024 136.29 Est @ 8.14% 76.91
2025 145.18 Est @ 6.52% 74.47
2026 153.00 Est @ 5.38% 71.34
2027 160.01 Est @ 4.59% 67.83
2028 166.46 Est @ 4.03% 64.14
Present value of next 10 years cash flows $662.49
NYSE:KEM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $166.46 × (1 + 2.73%) ÷ (10.01% – 2.73%)
$2,350.33
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,350.33 ÷ (1 + 10.01%)10
$905.67
NYSE:KEM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $662.49 + $905.67
$1,568.16
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,568.16 / 57.79
$27.14
NYSE:KEM Discount to Share Price
Calculation Result
Value per share (USD) From above. $27.14
Current discount Discount to share price of $17.51
= -1 x ($17.51 - $27.14) / $27.14
35.5%

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

Current Discount
Amount off the current price KEMET is available for.
Intrinsic value
35%
Share price is $17.51 vs Future cash flow value of $27.14
Current Discount Checks
For KEMET to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • KEMET's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • KEMET's share price is below the future cash flow value, but not 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 KEMET's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are KEMET's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:KEM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $2.01
NYSE:KEM Share Price ** NYSE (2019-03-20) in USD $17.51
United States of America Electronic Industry PE Ratio Median Figure of 92 Publicly-Listed Electronic Companies 19.54x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

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

** Primary Listing of KEMET.

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

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

= 17.51 ÷ 2.01

8.7x

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

  • KEMET is good value based on earnings compared to the US Electronic industry average.
  • KEMET is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does KEMET's expected growth come at a high price?
Raw Data
NYSE:KEM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.7x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
23.6%per year
United States of America Electronic Industry PEG Ratio Median Figure of 60 Publicly-Listed Electronic Companies 1.54x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NYSE:KEM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.7x ÷ 23.6%

0.37x

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

  • KEMET is good value based on expected growth next year.
Price based on value of assets
What value do investors place on KEMET's assets?
Raw Data
NYSE:KEM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $9.31
NYSE:KEM Share Price * NYSE (2019-03-20) in USD $17.51
United States of America Electronic Industry PB Ratio Median Figure of 151 Publicly-Listed Electronic Companies 2.1x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NYSE:KEM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 17.51 ÷ 9.31

1.88x

* Primary Listing of KEMET.

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

  • KEMET is good value based on assets compared to the US Electronic industry average.
X
Value checks
We assess KEMET'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 Electronic 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 Electronic industry average (and greater than 0)? (1 check)
  5. KEMET 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.

Future Performance

 How is KEMET expected to perform in the next 1 to 3 years based on estimates from 4 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
23.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is KEMET expected to grow at an attractive rate?
  • KEMET's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • KEMET's earnings growth is expected to exceed the United States of America market average.
  • KEMET's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:KEM Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:KEM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 23.6%
NYSE:KEM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 3.7%
United States of America Electronic Industry Earnings Growth Rate Market Cap Weighted Average 17%
United States of America Electronic Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*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:KEM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:KEM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-03-31 1,585 1
2022-03-31 1,524 1
2021-03-31 1,462 2
2020-03-31 1,405 189 4
2019-03-31 1,369 167 4
NYSE:KEM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 1,345 121 116
2018-09-30 1,301 114 94
2018-06-30 1,254 95 69
2018-03-31 1,200 121 255
2017-12-31 1,080 112 305
2017-09-30 961 88 298
2017-06-30 847 85 281
2017-03-31 758 72 48
2016-12-31 744 75 -20
2016-09-30 733 66 -41
2016-06-30 732 51 -29
2016-03-31 735 32 -54

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • KEMET's earnings are expected to grow significantly at over 20% yearly.
  • KEMET's revenue is expected to grow by 3.7% 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:KEM 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 4 Analyst Estimates (S&P Global) See Below

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

NYSE:KEM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-03-31
2022-03-31
2021-03-31
2020-03-31 3.18 3.28 3.04 3.00
2019-03-31 2.82 2.95 2.76 3.00
NYSE:KEM Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 2.01
2018-09-30 1.63
2018-06-30 1.25
2018-03-31 4.82
2017-12-31 6.07
2017-09-30 6.27
2017-06-30 6.00
2017-03-31 1.03
2016-12-31 -0.43
2016-09-30 -0.88
2016-06-30 -0.62
2016-03-31 -1.17

*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.
  • KEMET is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess KEMET'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.
KEMET has a total score of 4/6, 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.

Past Performance

  How has KEMET 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 KEMET's growth in the last year to its industry (Electronic).
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.
  • KEMET has delivered over 20% year on year earnings growth in the past 5 years.
  • KEMET's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • KEMET's 1-year earnings growth is negative, it can't be compared to the US Electronic industry average.
Earnings and Revenue History
KEMET'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 KEMET Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:KEM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,344.86 115.85 189.41 43.97
2018-09-30 1,301.26 93.63 188.74 42.52
2018-06-30 1,253.60 69.31 178.90 41.06
2018-03-31 1,199.93 254.53 165.98 39.62
2017-12-31 1,079.61 304.76 154.90 35.13
2017-09-30 961.06 298.45 133.41 32.24
2017-06-30 846.80 280.63 114.89 29.73
2017-03-31 757.79 47.99 105.02 27.40
2016-12-31 744.20 -20.10 104.23 27.35
2016-09-30 733.35 -40.98 98.99 26.47
2016-06-30 732.17 -28.78 96.77 25.60
2016-03-31 734.82 -53.63 97.77 24.61
2015-12-31 744.61 -58.30 98.38 25.13
2015-09-30 768.73 -46.63 100.36 25.30
2015-06-30 797.90 -46.09 104.18 25.49
2015-03-31 823.19 -19.52 98.53 25.80
2014-12-31 845.31 -14.23 98.28 25.99
2014-09-30 851.33 -22.05 97.75 25.72
2014-06-30 844.49 -41.72 94.56 24.99
2014-03-31 833.67 -64.87 95.86 24.47
2013-12-31 817.39 -74.67 99.33 24.40
2013-09-30 807.74 -82.50 102.21 24.66
2013-06-30 802.33 -94.39 104.45 25.21
2013-03-31 823.90 -78.51 105.62 26.88
2012-12-31 835.03 -65.86 103.84 28.00
2012-09-30 856.13 -81.06 103.26 28.89
2012-06-30 918.61 -42.91 107.68 30.09
2012-03-31 924.05 -2.35 106.53 27.77

*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.
  • KEMET has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • KEMET used its assets more efficiently than the US Electronic industry average last year based on Return on Assets.
  • KEMET has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess KEMET'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 Electronic 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.
KEMET has a total score of 4/6, 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.

Health

 How is KEMET'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 KEMET's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • KEMET is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • KEMET's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of KEMET'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 covered by short term assets, assets are 2.1x 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 KEMET Company Filings, last reported 2 months ago.

NYSE:KEM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 538.43 309.25 234.36
2018-09-30 512.57 316.64 263.05
2018-06-30 468.97 320.22 244.65
2018-03-31 462.96 324.62 286.85
2017-12-31 438.00 328.16 284.17
2017-09-30 416.11 331.79 253.67
2017-06-30 385.32 335.15 225.64
2017-03-31 154.47 388.21 109.77
2016-12-31 90.45 386.23 87.36
2016-09-30 82.88 386.10 74.75
2016-06-30 88.40 385.97 52.94
2016-03-31 112.48 387.83 65.00
2015-12-31 124.41 394.89 43.16
2015-09-30 130.27 395.08 37.32
2015-06-30 130.53 396.26 31.06
2015-03-31 164.68 391.37 56.36
2014-12-31 215.91 404.60 55.58
2014-09-30 214.84 402.08 51.58
2014-06-30 218.25 403.84 58.42
2014-03-31 221.88 398.59 57.93
2013-12-31 237.83 401.90 55.59
2013-09-30 237.91 403.28 57.70
2013-06-30 244.37 383.29 53.16
2013-03-31 276.92 383.50 95.98
2012-12-31 303.81 383.50 137.56
2012-09-30 313.31 361.20 160.50
2012-06-30 334.57 361.29 187.85
2012-03-31 359.00 347.33 210.52
  • KEMET's level of debt (57.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (169.1% vs 57.4% today).
  • Debt is well covered by operating cash flow (39.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.8x coverage).
X
Financial health checks
We assess KEMET'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. KEMET has a total score of 5/6, 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.

Dividends

 What is KEMET'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
1.14%
Current annual income from KEMET dividends. Estimated to be 0.91% next year.
If you bought $2,000 of KEMET shares you are expected to receive $23 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?
  • KEMET's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • KEMET's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
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:KEM 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 4 Analyst Estimates (S&P Global) See Below
United States of America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 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 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

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

NYSE:KEM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-03-31
2022-03-31
2021-03-31 0.20 1.00
2020-03-31 0.20 2.00
2019-03-31 0.10 2.00
NYSE:KEM Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-31 0.200 1.078
2018-10-30 0.200 1.054

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

  • It is too early to tell whether KEMET has stable dividend payments.
  • KEMET only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of KEMET's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (40.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (20.9x coverage).
X
Income/ dividend checks
We assess KEMET'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 KEMET afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. KEMET has a total score of 2/6, see the detailed checks below.


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

Management

 What is the CEO of KEMET'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
Bill Lowe
COMPENSATION $2,037,636
AGE 65
TENURE AS CEO 0.3 years
CEO Bio

Mr. William M. Lowe, Jr., also known as Bill, has been Chief Executive Officer and Director of KEMET Corporation since December 21, 2018. Mr. Lowe served as the Chief Financial Officer and Executive Vice President of KEMET Corp. since July 14, 2008 until December 21, 2018 and also its Principal Accounting Officer until December 2018. Mr. Lowe has over 30 years of professional experience in financial management. He served as the Chief Financial Officer and Executive Vice President at Oldco M Corporation from June 2001 to July 2003. He served as Vice President, Financial Operations and Chief Accounting Officer of Arvin Industries, Inc. and served as its Executive Officer since 1998. He served as Chief Financial Officer and Vice President of Unifi Inc. since January 5, 2004, Chief Operating Officer since April 2004 and also served as its Chief Accounting Officer. Mr. Lowe joined Unifi Inc. from Michigan-based Metaldyne Corp., where he served as an Executive Vice President and Chief Financial Officer from June 18, 2001 to July 15, 2003. Prior to that, Mr. Lowe served as Vice President and Corporate Controller of Arvin Meritor Automotive Inc., since its merger with Arvin Inc. in July 2000. He joined Arvin in 1991 as Chief Tax Officer and served as Arvin's Vice President, Corporate Controller and Chief Accounting Officer. He also worked at Meritor, Inc. He served as Vice President of Simpson Industries, Inc. He serves as a Representative Director of Tokin Corporation and has been its Chairman since 2018. He served as Director of Simpson Industries, Inc. Mr. Lowe holds a BS in Business Administration and Accounting from Tri-State University.

CEO Compensation
  • Bill's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Bill's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

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

6.2
Average Tenure
58
Average Age
  • The average tenure for the KEMET management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Bill Lowe

TITLE
CEO & Director
COMPENSATION
$2M
AGE
65
TENURE
0.3 yrs

Ronald Assaf

TITLE
Senior VP
COMPENSATION
$1M
AGE
58
TENURE
10.7 yrs

Chuck Meeks

TITLE
Executive Vice President of Solid Capacitors
COMPENSATION
$2M
AGE
57
TENURE
11.4 yrs

Sean Oyama

TITLE
Executive Vice President of Magnetics
COMPENSATION
$3M
AGE
61
TENURE
1.7 yrs

Greg Thompson

TITLE
Executive VP & CFO
AGE
62
TENURE
0.3 yrs

Phil Lessner

TITLE
Senior VP & CTO
COMPENSATION
$681K
AGE
59
TENURE
5.1 yrs

Brian Burch

TITLE
Chief Information Officer & VP
AGE
50
TENURE
7.3 yrs

Robin Blackwell

TITLE
Vice President of Corporate Communications & Investor Relations

Sue Barkal

TITLE
Senior VP of Quality
AGE
55
TENURE
10.3 yrs

Claudio Lollini

TITLE
Senior Vice President of Global Sales & Marketing
COMPENSATION
$865K
AGE
38
Board of Directors Tenure

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

11
Average Tenure
70
Average Age
  • The average tenure for the KEMET board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Frank Brandenberg

TITLE
Chairman of the Board
COMPENSATION
$272K
AGE
71
TENURE
14 yrs

Bill Lowe

TITLE
CEO & Director
COMPENSATION
$2M
AGE
65
TENURE
0.3 yrs

E. Maddrey

TITLE
Independent Director
COMPENSATION
$257K
AGE
77
TENURE
26.8 yrs

Robert Paul

TITLE
Independent Director
COMPENSATION
$257K
AGE
76
TENURE
12.7 yrs

Gurminder Bedi

TITLE
Independent Director
COMPENSATION
$257K
AGE
70
TENURE
12.8 yrs

Wilfried Backes

TITLE
Independent Director
COMPENSATION
$257K
AGE
75
TENURE
11 yrs

Jacob Kotzubei

TITLE
Independent Director
COMPENSATION
$238K
AGE
49
TENURE
7.4 yrs

Yasuko Matsumoto

TITLE
Director
COMPENSATION
$189K
AGE
54
TENURE
1.8 yrs

Karen Rogge

TITLE
Independent Director
AGE
63
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • KEMET insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
21. Feb 19 Sell Shigenori Oyama Individual 19. Feb 19 19. Feb 19 -30,000 $18.69 $-560,670
21. Feb 19 Sell Charles Meeks Individual 15. Feb 19 15. Feb 19 -20,000 $19.01 $-380,272
08. Feb 19 Buy Gregory Thompson Individual 07. Feb 19 07. Feb 19 11,100 $18.02 $199,515
07. Feb 19 Sell Robert Paul Individual 06. Feb 19 06. Feb 19 -11,998 $18.61 $-223,229
05. Feb 19 Sell Charles Meeks Individual 04. Feb 19 04. Feb 19 -25,000 $18.35 $-458,680
27. Aug 18 Sell Per-Olof Loof Individual 24. Aug 18 24. Aug 18 -10,000 $25.41 $-254,002
07. Jun 18 Sell Claudio Lollini Individual 07. Jun 18 07. Jun 18 -10,000 $22.23 $-221,962
05. Jun 18 Sell Per-Olof Loof Individual 04. Jun 18 04. Jun 18 -47,000 $20.36 $-949,390
04. Jun 18 Sell Charles Meeks Individual 01. Jun 18 01. Jun 18 -15,000 $20.45 $-306,822
23. May 18 Sell Claudio Lollini Individual 21. May 18 21. May 18 -10,000 $17.95 $-179,500
23. Mar 18 Sell Gurminder Bedi Individual 21. Mar 18 21. Mar 18 -24,999 $20.15 $-501,634
X
Management checks
We assess KEMET'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. KEMET 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.

News

Simply Wall St News

Is KEMET Corporation's (NYSE:KEM) Balance Sheet Strong Enough To Weather A Storm?

KEMET Corporation (NYSE:KEM) is a small-cap stock with a market capitalization of US$1.0b. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Assessing first and foremost the financial health is

Simply Wall St -

An Intrinsic Calculation For KEMET Corporation (NYSE:KEM) Shows It's 33.67% Undervalued

by taking the expected future cash flows and discounting them to their present value. … discounted cash flows (DCF). … If you are reading this and its not December 2018 then I highly recommend you check out the latest calculation for KEMET by following the link below

Simply Wall St -

What Should Investors Know About KEMET Corporation's (NYSE:KEM) Return On Capital?

Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … 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. … Therefore, looking at how efficiently KEMET is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

Should You Be Excited About KEMET Corporation's (NYSE:KEM) 18% Return On Equity?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.18 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Does KEMET Corporation (NYSE:KEM) Have A Good P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at KEMET Corporation's (NYSE:KEM) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Does KEMET Corporation's (NYSE:KEM) CEO Pay Compare Well With Peers?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Per Loof's Compensation Compare With Similar Sized Companies. … It would therefore appear that KEMET Corporation pays Per Loof more than the median CEO remuneration at companies of a similar size, in the same market

Simply Wall St -

Who Owns Most Of KEMET Corporation (NYSE:KEM)?

Today, I will be analyzing KEMET Corporation’s (NYSE:KEM) recent ownership structure, an important but not-so-popular subject among individual investors. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … The implications of these institutions’ actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment.

Simply Wall St -

KEMET Corporation (NYSE:KEM) Delivered A Better ROE Than The Industry, Here’s Why

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … If KEM borrows debt to invest in its business, its profits will be higher. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface.

Simply Wall St -

Are KEMET Corporation's (NYSE:KEM) Interest Costs Too High?

Investors are always looking for growth in small-cap stocks like KEMET Corporation (NYSE:KEM), with a market cap of US$1.61b. … However, an important fact which most ignore is: how financially healthy is the business?

Simply Wall St -

Is KEMET Corporation (NYSE:KEM) A Buy At Its Current PE Ratio?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to begin learning the link between KEMET Corporation (NYSE:KEM)’s fundamentals and stock market performance. … KEMET Corporation (NYSE:KEM) is currently trading at a trailing P/E of 5.1x, which is lower than the industry average of 22.6x.

Simply Wall St -

Company Info

Description

KEMET Corporation manufactures and sells passive electronic components under the KEMET brand worldwide. The company operates in three segments: Solid Capacitors, Film and Electrolytic; and Electro-Magnetic, Sensors, and Actuators. It offers tantalum, aluminum polymer, and ceramic capacitors; film, paper, and wet aluminum electrolytic capacitors; electromagnetic interference filters; and electro-magnetic compatible materials and devices, piezo materials and actuators, and various types of sensors. The company serves original equipment manufacturers, electronics manufacturing services providers, and distributors in various industries, including automotive, communications, computer-related, industrial, consumer, military/aerospace, and alternative energy. It sells its products through direct sales force and independent sales representatives. The company was founded in 1919 and is headquartered in Fort Lauderdale, Florida.

Details
Name: KEMET Corporation
KEM
Exchange: NYSE
Founded: 1919
$1,011,847,078
57,786,812
Website: http://www.kemet.com
Address: KEMET Corporation
101 NE 3rd Avenue,
Suite 1700,
Fort Lauderdale,
Florida, 33301,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE KEM Common Stock New York Stock Exchange US USD 21. Oct 1992
DB KM1N Common Stock Deutsche Boerse AG DE EUR 21. Oct 1992
Number of employees
Current staff
Staff numbers
14,950
KEMET employees.
Industry
Electronic Manufacturing Services
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 23:39
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/02/25
Last earnings filing: 2019/02/01
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


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.