KMG Chemicals, Inc.
KMG Chemicals, Inc. Fundamental Analysis
KMG Chemicals, Inc. (KMG) shows moderate financial fundamentals with a PE ratio of 17.74, profit margin of 13.93%, and ROE of 21.99%. The company generates N/A in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze KMG's fundamental strength across five key dimensions:
Efficiency Score
WeakKMG struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKMG trades at attractive valuation levels.
Growth Score
WeakKMG faces weak or negative growth trends.
Financial Health Score
ExcellentKMG maintains a strong and stable balance sheet.
Profitability Score
WeakKMG struggles to sustain strong margins.
Key Financial Metrics
Is KMG Expensive or Cheap?
P/E Ratio
KMG trades at 17.74 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, KMG's PEG of 0.18 indicates potential undervaluation.
Price to Book
The market values KMG Chemicals, Inc. at 2.77 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.92 times EBITDA. This is generally considered low.
How Well Does KMG Make Money?
Net Profit Margin
For every $100 in sales, KMG Chemicals, Inc. keeps $13.93 as profit after all expenses.
Operating Margin
Core operations generate 18.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.99 in profit for every $100 of shareholder equity.
ROA
KMG Chemicals, Inc. generates $7.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $4.26 in free cash annually.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.77
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.74
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.22
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How KMG Stacks Against Its Sector Peers
| Metric | KMG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.74 | 24.08 | Better (Cheaper) |
| ROE | 21.99% | 921.00% | Weak |
| Net Margin | 13.93% | -113338.00% (disorted) | Strong |
| Debt/Equity | 0.74 | 0.53 | Weak (High Leverage) |
| Current Ratio | 2.62 | 5.09 | Strong Liquidity |
| ROA | 7.92% | -9816.00% (disorted) | Weak |
KMG outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews KMG Chemicals, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Commodity, Value
EPS CAGR
N/A
Industry Style: Cyclical, Commodity, Value
FCF CAGR
N/A
Industry Style: Cyclical, Commodity, Value