- Kraton's polymer segment is well positioned to meet swelling demand for thermoplastic elastomers and chemicals within the automotive, asphalt, and medical sectors.
- However, Kraton's faces raw material price and supply risks which are partly mitigated through their product diversification.
- Kraton's financial performance over the past year is respectable, having made headway in reducing consolidated debt.
- A simplified discounted free cash flow valuation indicates the stock is fairly valued but could be easily undervalued soon; consider buying if EBITDA margins increase along with swelling revenue.
For further details see:
Kraton: Well-Positioned To Meet A 5-Year Demand Wave