Eastman Kodak Company moved 4.8% Friday, and is now trading at a price of $5.07.
Eastman Kodak Company returned gains of 9.7% last year, with its stock price reaching a high of $7.24 and a low of $2.78. Over the same period, the stock outperformed the S&P 500 index by 8.0%. More recently, the company's 50-day average price was $3.81. Eastman Kodak Company provides hardware, software, consumables, and services to customers in the commercial print, packaging, publishing, manufacturing, and entertainment markets worldwide. Based in Rochester, NY, the small-cap Consumer Discretionary company has 4,200 full time employees. Eastman Kodak Company has not offered a dividend during the last year.
Stable Revenues With Increasing Reinvestment in the Business:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $1,242 | $1,029 | $1,150 | $1,205 |
| Gross Margins | 14.6% | 13.1% | 14.3% | 14.1% |
| Operating Margins | -5.3% | -6.2% | -4.0% | -1.3% |
| Net Margins | 9.34% | -52.58% | 2.09% | 2.16% |
| Net Income (MM) | $116 | -$541 | $24 | $26 |
| Net Interest Income | -$16,000 | -$12,000 | -$33,000 | -$40,000 |
| Depreciation & Amort. | -$55,000 | -$37,000 | -$31,000 | -$29,000 |
| Earnings Per Share | $2.23 | -$9.77 | $0.3 | $0.57 |
| EPS Growth | n/a | -538.12% | 103.07% | 90.0% |
| Diluted Shares (MM) | 43 | 57 | 79 | 79 |
| Free Cash Flow (MM) | -$3 | -$52 | -$68 | -$147 |
| Capital Expenditures (MM) | -$15 | -$17 | -$21 | -$31 |
| Net Current Assets (MM) | -$428 | -$353 | -$387 | -$360 |
| Current Ratio | 1.92 | 2.12 | 2.61 | 2.32 |
| Long Term Debt (MM) | $105 | $14 | $252 | $316 |
| Net Debt / EBITDA | -0.52 | 0.52 | -1.04 | 1.15 |
Eastman Kodak Company has stable revenues and increasing reinvestment in the business, an excellent current ratio, and healthy leverage. However, Eastman Kodak Company's financial statements include several red flags such as slimmer gross margins than its peers, consistently negative operating margins, and declining EPS growth. Additionally, the firm has negative and highly variable cash flows.
The Market May Be Undervaluing Eastman Kodak Company's Assets and Equity:
Eastman Kodak Company has a trailing twelve month P/E ratio of 6.7 compared to the Consumer Discretionary sector's average of 22.33. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 4 years of reported EPS is -28.9%. On this basis, the company's PEG ratio is -0.23, which indicates that its shares are overpriced. In contrast, the market is likely undervaluing Eastman Kodak Company in terms of its equity because its P/B ratio is 0.38 while the sector average is 3.12. The company's shares are currently trading -61.4% below their Graham number.
Eastman Kodak Company Has a Large Number of Insider Shareholders:
Eastman Kodak Company has an above average percentage of its shares sold short because 10.6% of the company's shares are sold short. Institutions own 30.8% of the company's shares, and the insider ownership rate stands at 21.6%, suggesting a large amount of insider shareholders. The largest shareholder is Blackrock Inc., whose 5% stake in the company is worth $20,371,240.
