Kewaunee Scientific Corp (KEQU) stock analysis

P/E above its 5-year median

Kewaunee Scientific's P/E of 13.0 is above its own 5-year median of 10.7.

P/E below the industry

Kewaunee Scientific's P/E of 13.0 is below the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 35.5.

EV/EBITDA above its 5-year median

Kewaunee Scientific's EV/EBITDA of 5.5 is above its 5-year median of 5.4.

P/B below the industry

Kewaunee Scientific's price-to-book of 1.39 is below the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 3.19.

Trading below fair value

The share price of $35.94 is below our fair value estimate of $77.52.

Margin of safety over 20%

The price is 53.6% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 8.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 134% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 5.3% over the last twelve months; the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median is 8.0%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin slipping

Gross margin was 28.6% over the last twelve months, against 29.4% a year earlier.

Return on equity under 15%

Return on equity was 11.6% over the last twelve months and averaged 11.9% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 13.1%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Kewaunee Scientific's return on equity of 11.6% is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 1.1%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 3.0% over the last twelve months, against a 5-year average of 2.8%.

Net margin above the industry

Kewaunee Scientific's net margin of 3.0% is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of -3.5%.

Low debt

Debt is 25.1% of shareholders' equity, under the 40% we consider low.

Debt rising against equity

Debt to equity rose from 16.6% five years ago to 25.1%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 78.7% of total debt.

Interest not well covered

Operating income covers interest expense 4.4 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 2.20 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.44; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Kewaunee Scientific has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.