Eastman Kodak Company Fundamental Analysis (NYSE: KODK)
Eastman Kodak Company (NYSE: KODK) shows weak financial fundamentals with a PE ratio of -7.66, profit margin of -8.28%, and ROE of -13.11%. The company generates $1.2B in annual revenue with weak year-over-year growth of 2.49%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 18.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze KODK's fundamental strength across five key dimensions:
Efficiency Score
WeakKODK struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKODK trades at attractive valuation levels.
Growth Score
WeakKODK faces weak or negative growth trends.
Financial Health Score
ExcellentKODK maintains a strong and stable balance sheet.
Profitability Score
WeakKODK struggles to sustain strong margins.
Key Financial Metrics
Is KODK Expensive or Cheap?
P/E Ratio
KODK trades at -7.66 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KODK's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Eastman Kodak Company at 1.46 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 141.36 times EBITDA. This signals the market has high growth expectations.
How Well Does KODK Make Money?
Net Profit Margin
For every $100 in sales, Eastman Kodak Company keeps $-8.28 as profit after all expenses.
Operating Margin
Core operations generate -9.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-13.11 in profit for every $100 of shareholder equity.
ROA
Eastman Kodak Company generates $-6.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Eastman Kodak Company generates strong operating cash flow of $528.78M, reflecting robust business health.
Free Cash Flow
Eastman Kodak Company generates strong free cash flow of $505.89M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.17 in free cash annually.
FCF Yield
KODK converts 46.88% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-7.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.24
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.91
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.13
vs 25 benchmark
ROA
Return on assets percentage
-0.06
vs 25 benchmark
ROCE
Return on capital employed
-0.08
vs 25 benchmark
How KODK Stacks Against Its Sector Peers
| Metric | KODK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -7.66 | 30.91 | Better (Cheaper) |
| ROE | -13.11% | 1122.00% | Weak |
| Net Margin | -8.28% | -21289.00% (disorted) | Weak |
| Debt/Equity | 0.24 | 0.76 | Strong (Low Leverage) |
| Current Ratio | 2.91 | 21.80 | Strong Liquidity |
| ROA | -6.16% | -1330634.00% (disorted) | Weak |
KODK outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Eastman Kodak Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-33.60%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
84.88%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
976.61%
Industry Style: Cyclical, Value, Infrastructure
High Growth