KEMET Corporation [NYSE:KEM]: Analyst Rating and Earnings
Pro stock market traders often keep their attention pointed at what top market analysts have to say regarding a potential equity investment. For KEMET Corporation [KEM] currently, the latest-available mean analyst rating is for the fiscal quarter that will end in March. On average, stock market experts give KEM an Outperform rating. The average 12-month price forecast for this stock is $27.67, with the high estimate being $33.00, the low estimate being $22.00 and the median estimate amounting to $28.00. This is compared to its latest closing price of $17.47.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for KEMET Corporation [KEM] is sitting at 2.33. This is compared to 1 month ago, when its average rating was 2.33.
For the quarter ending in Sep-18 KEMET Corporation [KEM] generated $0.35 billion in sales. That’s 4.08% higher than the average estimate of $0.34 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Thu 7 Feb (In 30 Days).
Fundamental Analysis of KEMET Corporation [KEM]
Now let’s turn to look at profitability: with a current Operating Margin for KEMET Corporation [KEM] sitting at +10.87 and its Gross Margin at +28.57, this company’s Net Margin is now 7.20%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 19.61, and its Return on Invested Capital has reached 36.20%. its Return on Equity is 82.42, and its Return on Assets is 26.07. These metrics all suggest that KEMET Corporation is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, KEMET Corporation [KEM] has generated a Total Debt to Total Equity ratio of 70.12. Similarly, its Total Debt to Total Capital is 41.22, while its Total Debt to Total Assets stands at 26.65. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 65.68, and its Long-Term Debt to Total Capital is 38.61. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 5.79 and its Total Debt to EBITDA Value is 1.80. The Enterprise Value to Sales for this firm is now 0.80, and its Total Debt to Enterprise Value stands at 0.30. KEMET Corporation [KEM] has a Price to Book Ratio of 2.22, a Price to Cash Flow Ratio of 8.60 and P/E Ratio of 11.23. These metrics all suggest that KEMET Corporation is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, KEMET Corporation [KEM] earns $80,803 for each employee under its payroll. Income works out to $17,140 per employee. Similarly, this company’s Receivables Turnover is 10.14 and its Total Asset Turnover is 1.23. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.66 and its Current Ratio is 2.37. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: KEMET Corporation [KEM] has 58.94M shares outstanding, amounting to a total market cap of $1.05B. Its stock price has been found in the range of 15.55 to 29.85. At its current price, it has moved by -40.30% from its 52-week high, and it has moved 14.60% from its 52-week low.
This stock’s Beta value is currently 2.93, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 47.73. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is KEMET Corporation [KEM] a Reliable Buy?
Shares of KEMET Corporation [KEM], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.