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KMG Chemicals (KMG Chemicals) Net-Net Working Capital : $-19.63 (As of Jul. 2018)


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What is KMG Chemicals Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

KMG Chemicals's Net-Net Working Capital for the quarter that ended in Jul. 2018 was $-19.63.

The industry rank for KMG Chemicals's Net-Net Working Capital or its related term are showing as below:

KMG's Price-to-Net-Net-Working-Capital is not ranked *
in the Chemicals industry.
Industry Median: 7.325
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

KMG Chemicals Net-Net Working Capital Historical Data

The historical data trend for KMG Chemicals's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

KMG Chemicals Net-Net Working Capital Chart

KMG Chemicals Annual Data
Trend Jul09 Jul10 Jul11 Jul12 Jul13 Jul14 Jul15 Jul16 Jul17 Jul18
Net-Net Working Capital
Get a 7-Day Free Trial Premium Member Only Premium Member Only -5.03 -5.36 -3.18 -45.11 -19.63

KMG Chemicals Quarterly Data
Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18
Net-Net Working Capital Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -45.11 -22.64 -20.94 -20.20 -19.63

Competitive Comparison of KMG Chemicals's Net-Net Working Capital

For the Specialty Chemicals subindustry, KMG Chemicals's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


KMG Chemicals's Price-to-Net-Net-Working-Capital Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, KMG Chemicals's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where KMG Chemicals's Price-to-Net-Net-Working-Capital falls into.



KMG Chemicals Net-Net Working Capital Calculation

KMG Chemicals's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Jul. 2018 is calculated as

Net-Net Working Capital(A: Jul. 2018 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(24.436+0.75 * 61.895+0.5 * 54.218-402.367
-0-0)/15.5097
=-19.63

KMG Chemicals's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jul. 2018 is calculated as

Net-Net Working Capital(Q: Jul. 2018 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(24.436+0.75 * 61.895+0.5 * 54.218-402.367
-0-0)/15.5097
=-19.63

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.


KMG Chemicals  (NYSE:KMG) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.


KMG Chemicals Net-Net Working Capital Related Terms

Thank you for viewing the detailed overview of KMG Chemicals's Net-Net Working Capital provided by GuruFocus.com. Please click on the following links to see related term pages.


KMG Chemicals (KMG Chemicals) Business Description

Traded in Other Exchanges
N/A
Address
KMG Chemicals Inc manufactures and sells a variety of chemicals and chemical-based products. The firm organizes itself into two segments based on product type. The electronic chemicals segment, which generates the majority of revenue, sells chemicals primarily to manufacturers of semiconductors. The other chemicals segment sells industrial sealants and lubricants primarily to the oil and gas storage and distribution industry as well as wood treatment chemicals used primarily to treat utility poles and cross arms. The majority of revenue comes from the United States.
Executives
Hunter John C Iii director C/O PENFORD CORPORATION, 7094 S. REVERE PARKWAY, CENTENNIAL CO 80112-3932
Karen A. Twitchell director 9 COURTLANDT PLACE, HOUSTON TX 77006
Christopher T. Fraser director, officer: President and CEO 9555 WEST SAM HOUSTON PARKWAY SOUTH, SUITE 600, HOUSTON TX 77099
Margaret C Montana director 910 LOUISIANA STREET, HOUSTON TX 77002
George W Gilman director 710 N. POST OAK RD., SUITE 400, HOUSTON TX 77024
James Gentilcore director NINE HAMPSHIRE STREET, MANSFIELD MA 02048
Malinda G Passmore officer: VP and CFO 9555 W SAM HOUSTON PARKWAY S, SUITE 600, HOUSTON TX 77099
Stephen A Thorington director 700 MILAM, SUITE 3100, HOUSTON TX 77002
Gendell Jeffrey L Et Al other: Former 10% Owner 200 PARK AVENUE SUITE 3900, NEW YORK NY 10166

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