KODK - Eastman Kodak: Surprise Cash Windfall But Lacks Clarity
2024-03-25 06:14:08 ET
Summary
- Kodak, once a titan in photography, has struggled to adapt to digitalisation, returning from bankruptcy in 2013 but seeing its revenue dwindle to a fraction of its former glory.
- Despite improving bottom line in FY2023, Kodak lacks clear growth plans, relying heavily on the traditional print industry.
- Kodak's announcement of a $1.2 billion surplus cash reserve has intrigued investors, yet its potential utilisation remains uncertain.
At its peak, all the way back in 1996, Eastman Kodak Company's ( KODK ) brand, film and camera innovations made it one of the world's most valuable companies , reporting $16 billion in revenue, and the stock was trading above $90 . Since then, the company miss the mark on digitalisation, declaring bankruptcy and returning in 2013 after severe restructuring and business shifts. Still, little recent excitement about the company's fundamentals or stock performance has occurred. The company's top line has slowly decreased towards the $1 billion mark, and in the last five years, there was just one brief period in which we saw the stock price rise to $33.20 in July 2020. However, this was thanks to meme stock momentum rather than financial performance. Historically, most of the company's revenue is generated through traditional print, predicted to grow slowly at 3% between now and 2030. The company combined its digital and traditional print segments in 2023....
Eastman Kodak: Surprise Cash Windfall But Lacks Clarity