uploads///REV EPS KAMN

How KAMN’s Dividend Yield Looks


Dec. 4 2020, Updated 10:53 a.m. ET

Revenue and EPS performance in 2015 and 2016

Kaman (KAMN) conducts business in the aerospace and distribution markets. The company reported 2% revenue growth in 2016 compared to a 1% decline in 2015. The distribution segment recorded growth in 2015 before posting declines in 2016. In contrast, the aerospace segment fell in 2015 before jumping in 2016. The Middle East, Asia, and others recorded growth in 2015 offset by North America, Europe, and Oceania. In contrast, Europe and Asia reported growth in 2016 offset by the rest. Costs dropped in 2015 before recovering in 2016.

Gross profit rose 6% in 2016 compared to 2% in 2015. Operating income rose 1% in 2016 after losing 5% in 2015. These factors translated into a 3% decline in 2016 after 4% growth in 2015 EPS. Interest expenses rose in 2016 after dropping slightly in 2015.

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Revenue and EPS performance in 1H17

Kaman’s 1H17 revenue fell by 4% as both the segments reported a decline. Costs also fell. Gross profit dropped 7%. Operating income fell 14% as operating expenses fell. Interest expenses rose during the period. These factors translated into a 26% decline in EPS.

Dividend yield

The company increased its dividend in 2017. The dividend yield has slipped to 1.4% as prices have risen 13.8% on a YTD basis. The Dow Jones Industrial Average (DJIA-INDEX) (DIA) has a dividend yield of 2.3% and YTD price gains of 15.7%. The S&P 500 (SPX-INDEX) (SPY) has a dividend yield of 2.3% and YTD price gains of 14%. The NASDAQ Composite (COMP-INDEX) (ONEQ) has a YTD price gain of 22.7%. Kaman generates enough free cash flow to pay off its dividends. The company has noted a decline in its free cash flow balance.

Let’s look at two dividend ETFs with exposure to Kaman. The WisdomTree Global SmallCap Dividend Fund (GSD) has a 2.7% dividend yield and a PE of 17x. The WisdomTree US SmallCap Dividend ETF (DES) has a 2.8% dividend yield and a PE of 20.7x.


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