Thinking About Eastman Kodak Company (KODK)? We Studied It, so You Don't Have To.

Now trading at a price of $3.05, Eastman Kodak Company has moved 0.0% so far today on a volume of 979,940, compared to its average of 709,388. In contrast, the S&P 500 index moved -0.3%.

Eastman Kodak Company shares moved -37.6% over the last 52 weeks, with a high of $7.5 and a low of $2.78. During this time, the stock lagged the S&P 500 index by -17.7%. As of January 2022, the company's 50-day average price is $4.3008. Eastman Kodak Company provides hardware, software, consumables, and services to customers in the commercial print, packaging, publishing, manufacturing, and entertainment markets worldwide. The small-cap Industrials company has 4,200 full time employees and is based in Rochester, NY. Eastman Kodak Company has not offered any dividends in the last year.

Overview of the Company's Irregular and Negative Cash Flows :

2019-12-31 2020-12-31 2021-12-31
Revenue (MM) $1,242 $1,029 $1,150
Revenue Growth n/a -17.15% 11.76%
Gross Margins 14.6% 13.1% 14.3%
Gross Margins Growth n/a -10.27% 9.16%
Operating Margins -5.3% -6.2% -4.0%
Operating Margins Growth n/a -16.98% 35.48%
Earnings Per Share $2.23 -$9.77 $0.3
EPS Growth n/a -538.12% 103.07%
Free Cash Flow (MM) -$3 -$52 -$68
FCF Growth n/a -1633.33% -30.77%
Capital Expenditures (MM) -$15 -$17 -$21
Net Debt / EBITDA -1.24 -2.33 -1.1

Eastman Kodak Company Is Fairly Priced at Current Levels:

Kodak has a trailing twelve month price to earnings (P/E) ratio of 43.6 compared to the Industrials sector's average of 21.46 .

Eastman Kodak Company is undervalued in terms of its assets because its price to book (P/B) ratio is 0.3 compared to its sector average of 3.7. The company's shares are now trading -65.2% below their Graham number, implying that there is a margin of safety for the stock. We calculate the number according to this formula:

√(22.5 * EPS * book value per share) = √(22.5 * 0.3 * 11.391) = $8.77

We note, however, that the positive EPS value reported last year is likely not reflective of the quality of the business, seen that the company's operating margins are negative. Graham Numbers are only relevant for profitable companies.

Eastman Kodak Company Is the Subject of Mixed Market Indicators:

The company has an above average percentage of its shares sold short since 9.8% of the company's shares are tied to short positions. Institutions own 31.6% of Eastman Kodak Company's shares, while the insider ownership rate stands at 29.7%. The biggest shareholder is Blackrock Inc. with a 5% stake in the company worth approximately $12,723,815.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.