Eastman Kodak Co (NYSE: KODK)

Sector: Industrials Industry: Specialty Business Services CIK: 0000031235
Market Cap -1.25 Bn
P/B -1.65
P/E -209.08
P/S -1.20
ROIC (Qtr) -0.48
Div Yield % 0.00
Rev 1y % (Qtr) 3.07
Total Debt (Qtr) 549.00 Mn
Debt/Equity (Qtr) 0.72
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About

Eastman Kodak Company, known as Kodak, is a reputable global manufacturer specializing in commercial print and advanced materials and chemicals, with a rich history dating back to 1880. The company has earned over 79,000 patents through continuous research and development, establishing itself as a leader in the industry. Kodak operates in three reportable segments: Print, Advanced Materials and Chemicals, and Brand. The Print segment is the largest, comprising five lines of business: Prepress Solutions, PROSPER, Software, Electrophotographic Printing...

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Investment thesis

Bull case

  • Strong tangible asset base of 2.05B provides 3.73x coverage of total debt 549M, indicating robust asset backing and low credit risk.
  • Tangible assets of 2.05B provide robust 14.93x coverage of other current liabilities 137M, indicating strong asset backing.
  • Cash reserves of 263M provide ample 15.47x coverage of acquisition spending 17M, enabling strategic growth opportunities.
  • Strong cash position of 263M provides 1.92x coverage of other current liabilities 137M, indicating excellent liquidity.
  • Strong tangible asset base of 2.05B provides 120.35x coverage of acquisition spending 17M, enabling strategic growth.

Bear case

  • Operating cash flow of (5M) barely covers its investment activities of (40M), with a coverage ratio of 0.12, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (40M) provide weak support for R&D spending of 33M, which is -1.21x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Free cash flow of (62M) provides weak coverage of capital expenditures of 57M, with a -1.09 ratio suggesting additional external financing needs for growth initiatives.
  • The company's operating cash flow of (5M) shows concerning coverage of stock compensation expenses of 5M, with a -1 ratio indicating potential earnings quality issues.
  • Operating cash flow of (5M) provides minimal -0.62x coverage of tax expenses of 8M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Segments Breakdown of Revenue (2024)

Core and Non-core Status Breakdown of Revenue (2024)

Peer comparison

Companies in the Specialty Business Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 CTAS Cintas Corp 120.08 Bn 556.91 33.85 3.24 Bn
2 RELX Relx Plc 56.19 Bn 20.01 4.34 9.82 Bn
3 TRI Thomson Reuters Corp /Can/ 37.42 Bn 24.91 5.00 2.44 Bn
4 CPRT Copart Inc 36.25 Bn 22.74 7.79 0.10 Bn
5 RBA Rb Global Inc. 19.20 Bn 49.09 4.24 4.21 Bn
6 ULS UL Solutions Inc. 14.12 Bn 43.32 4.92 0.74 Bn
7 GPN Global Payments Inc 11.52 Bn 284.78 8.66 16.20 Bn
8 ARMK Aramark 10.37 Bn 32.72 0.55 6.57 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.47 2.48
EV to Cash from Ops. EV/CFO 193.10 30.22
EV to Debt EV to Debt -1.76 31.08
EV to EBIT EV/EBIT -12.70 94.66
EV to EBITDA EV/EBITDA -45.98 18.37
EV to Free Cash Flow [EV/FCF] EV/FCF 15.57 -20.73
EV to Market Cap EV to Market Cap 0.77 178.66
EV to Revenue EV/Rev -0.92 8.12
Price to Book Value [P/B] P/B -1.65 5.37
Price to Earnings [P/E] P/E -209.08 65.19
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -15,800.59
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 10.14
Dividend per Basic Share Div per Share (Qtr) 0.00 0.35
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.65
Interest Coverage Int. cover (Qtr) 1.23 30.46
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -46.15 -178.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -16.24 155.14
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 5.38
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -75.66 -34.92
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 31.25 -86.28
EBIT Growth (1y) % EBIT 1y % (Qtr) -50.00 -22.62
EBT Growth (1y) % EBT 1y % (Qtr) -84.78 -287.35
EPS Growth (1y) % EPS 1y % (Qtr) -142.67 -118.47
FCF Growth (1y) % FCF 1y % (Qtr) -87.88 -146.43
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 8.54 2.63
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.50 0.84
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.03
Cash Ratio Cash Ratio (Qtr) 0.35 1.15
Current Ratio Curr Ratio (Qtr) 0.79 4.12
Debt to Equity Ratio Debt/Equity (Qtr) 0.72 0.92
Interest Cover Ratio Int Coverage (Qtr) 1.23 30.46
Times Interest Earned Times Interest Earned (Qtr) 1.23 30.46
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 10.00 -33.89
EBIT Margin % EBIT Margin % (Qtr) 7.27 -43.32
EBT Margin % EBT Margin % (Qtr) 1.34 -44.88
Gross Margin % Gross Margin % (Qtr) 20.70 39.81
Net Profit Margin % Net Margin % (Qtr) 0.60 -41.60