Kewaunee Scientific (KEQU) AI Stock Analysis

• Market Cap: $89.92M
• Dividend Yield: N/A
• Average Volume (3M): 24.81K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.24
• Revenue Growth: 9.44%
• EPS Growth: 102.67%
• Country: US
• Employees: 1,006
• Sector: Consumer Cyclical
• Sector Strength: 62
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 5.91
• Shares Outstanding: 2,854,464
• 10 Day Avg. Volume: 15,749
• 30 Day Avg. Volume: 24,813
• PEG Ratio: 0.05
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 1.96
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Kewaunee Scientific displays strong financial performance with robust revenue growth and profitability, although it faces challenges in cash flow management. The stock is technically oversold, indicating potential short-term downward pressure. However, its low P/E ratio presents an attractive valuation for value investors. Overall, the company is fundamentally solid but requires improvements in cash flow to enhance its market position.

Kewaunee Scientific Business Overview & Revenue Model

Company Description

Kewaunee Scientific Corporation designs, manufactures, and installs laboratory, healthcare, and technical furniture and infrastructure products. It operates through two segments, Domestic and International. The company's products include steel, wood, laminate furniture, fume hoods, biological safety cabinets, laminar flow and ductless hoods, adaptable modular and column systems, moveable workstations and carts, epoxy resin worksurfaces, sinks, and accessories and related design services. Its laboratory products are used in chemistry, physics, biology, and other general science laboratories in the pharmaceutical, biotechnology, industrial, chemical, commercial, educational, government, and health care markets; technical products are used in facilities manufacturing computers and light electronics and by users of computer and networking furniture; and laminate caseworks that are used in educational, healthcare, and industrial applications. The company sells its products primarily through dealers, its subidiaries, and a national distributor. Kewaunee Scientific Corporation was founded in 1906 and is headquartered in Statesville, North Carolina.

How the Company Makes Money

Kewaunee Scientific generates revenue through the sale of its laboratory and technical furniture products, which are custom-designed to meet the specific needs of its clients in various scientific and technical fields. The company's revenue model is primarily based on manufacturing and selling these products directly to customers or through a network of distributors. Key revenue streams include the sale of laboratory furniture systems, fume hoods, and other related products. Additionally, Kewaunee offers installation services, which provide an added layer of revenue. The company's earnings are significantly influenced by its ability to secure contracts from educational institutions, government laboratories, and private sector companies, as well as maintaining strong relationships with distributors and suppliers. Strategic partnerships and collaborations within the scientific community further bolster Kewaunee's market presence and contribute to its overall financial performance.

Kewaunee Scientific Financial Statement Overview

Summary

Kewaunee Scientific's financial performance is robust with strong revenue growth and profitability. The balance sheet reflects moderate leverage and efficient equity utilization. However, cash flow management poses challenges with negative free cash flow growth, highlighting the need for improved cash conversion. The company appears well-positioned but should focus on strengthening cash flows for sustained growth.

Income Statement

Kewaunee Scientific shows strong profitability with a TTM gross profit margin of 27.02% and a net profit margin of 7.99%. Revenue increased by 7.99% over the previous year, indicating positive growth. EBIT and EBITDA margins are healthy at 6.73% and 6.12% respectively, showcasing efficient operational performance. Overall, the company demonstrates robust revenue growth and profitability.

Balance Sheet

The debt-to-equity ratio stands at a manageable 0.36, reflecting moderate leverage. The return on equity is strong at 28.31%, highlighting efficient use of equity to generate profits. An equity ratio of 32.84% indicates a reasonable level of equity financing. The balance sheet suggests a stable financial position with a healthy equity base.

Cash Flow

Free cash flow growth is negative at -74.37%, contrasting with a positive operating cash flow to net income ratio of 0.37, indicating cash flow challenges despite profitability. The free cash flow to net income ratio is 0.22, suggesting limited cash conversion. Overall, cash flow management requires improvement to better support operations and growth initiatives.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
203.75M	219.49M	168.87M	147.47M	147.54M
	Gross Profit
52.05M	35.59M	24.22M	23.99M	23.43M
	EBIT
18.28M	3.63M	-2.61M	-1.32M	-2.35M
	EBITDA
18.04M	8.16M	916.00K	459.00K	281.00K
	Net Income Common Stockholders
18.75M	1.36M	-6.00M	-3.61M	-4.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.27M	8.08M	4.43M	5.21M	4.37M
	Total Assets
134.77M	118.90M	118.77M	89.38M	83.93M
	Total Debt
11.00M	12.92M	9.44M	16.15M	13.80M
	Net Debt
-12.27M	4.84M	5.01M	10.94M	9.44M
	Total Liabilities
78.56M	80.41M	82.59M	47.90M	45.23M
	Stockholders Equity
54.76M	37.41M	35.69M	41.24M	38.41M
Cash Flow		Free Cash Flow
15.19M	-7.94M	-9.79M	-1.49M	1.70M
	Operating Cash Flow
19.56M	-3.79M	-7.88M	912.00K	4.16M
	Investing Cash Flow
-4.37M	-4.15M	-1.91M	-2.40M	-2.46M
	Financing Cash Flow
-3.01M	14.93M	11.03M	1.98M	-7.46M

Kewaunee Scientific Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KEQU, the sentiment is Negative. The current price of 31.5 is below the 20-day moving average (MA) of 33.65, below the 50-day MA of 41.98, and below the 200-day MA of 46.24, indicating a bearish trend. The MACD of -2.92 indicates Negative momentum. The RSI at 33.41 is Neutral, neither overbought nor oversold. The STOCH value of 25.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KEQU.

Kewaunee Scientific Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ETD	73 Outperform	$748.91M	12.34	12.86%	5.37%	-11.10%	-23.77%
LZB	72 Outperform	$1.71B	14.16	12.40%	2.10%	1.81%	8.09%
KEQU	61 Neutral	$89.92M	5.33	33.52%	―	9.44%	102.67%
Sector *	61 Neutral	$6.66B	11.71	2.96%	4.01%	2.64%	-20.91%
BSET	56 Neutral	$162.42M	―	-3.83%	4.43%	-11.78%	-13.89%
HOFT	48 Neutral	$90.93M	―	-5.89%	9.92%	-8.26%	-233.72%
SNBR	47 Neutral	$161.57M	―	9.10%	―	-12.36%	37.69%

Kewaunee Scientific Corporate Events

Kewaunee Scientific Expands with Nu Aire Acquisition

Kewaunee Scientific Corporation has acquired Nu Aire, Inc. for $55 million, expanding its capabilities in the laboratory and technical product market. This acquisition allows Kewaunee to integrate Nu Aire’s well-regarded product line, which includes biological safety cabinets and CO2 incubators, into its offerings. The deal, financed partially through a loan from PNC Bank, enhances Kewaunee’s market presence and provides new growth opportunities, especially in regions previously untapped by Kewaunee. This strategic move positions the company for continued growth in recession-resistant industries like healthcare and life sciences.