Stock Analysis & Valuation Eastman Kodak Company (0IF4.L)

• Previous Close: £7.40
• Sector Valuation Confidence Level: Low

Valuation method	Value, £	Upside, %
Artificial intelligence (AI)	45.80	519
Intrinsic value (DCF)	2.54	-66
Graham-Dodd Method	12.30	66
Graham Formula	1.80	-76

Strategic Investment Analysis

Company Overview

Eastman Kodak Company (0IF4.L) is a historic leader in imaging technology, now pivoting toward commercial printing, packaging, and advanced materials. Headquartered in Rochester, New York, Kodak operates through four segments: Traditional Printing, Digital Printing, Advanced Materials and Chemicals, and Brand Licensing. The company serves industries such as commercial print, packaging, publishing, and entertainment with hardware, software, and consumables. Kodak’s digital printing solutions, including the PROSPER and NEXFINITY printers, cater to high-volume printing needs, while its Advanced Materials segment focuses on industrial films, motion picture products, and functional printing innovations. The company also monetizes its iconic brand through licensing agreements. Despite its legacy in photography, Kodak has repositioned itself as a B2B technology provider, leveraging its intellectual property and research capabilities. With a market cap of approximately $474 million, Kodak remains a niche player in the evolving printing and materials sector, balancing innovation with legacy challenges.

Investment Summary

Eastman Kodak presents a high-risk, high-reward investment case. The company’s transition from consumer photography to commercial printing and advanced materials has stabilized revenues ($1.04B in FY 2023) and delivered net income of $102M. However, its high beta (3.94) reflects extreme volatility, likely tied to its cyclical industry exposure and debt burden ($499M). Kodak’s digital printing and advanced materials segments show promise, but weak operating cash flow (-$7M) raises liquidity concerns. The lack of dividends and reliance on IP monetization add uncertainty. Investors must weigh Kodak’s niche innovations against its financial leverage and competitive pressures in a declining print industry.

Competitive Analysis

Kodak’s competitive positioning is defined by its legacy technology, IP portfolio, and pivot to industrial solutions. In Traditional Printing, it competes with offset plate suppliers, while its Digital Printing segment battles electrophotographic and inkjet rivals. The Advanced Materials segment faces chemical and film specialists. Kodak’s strengths include its brand recognition, R&D capabilities (via Kodak Research Labs), and diversified revenue streams. However, its small scale ($474M market cap) limits R&D and distribution advantages against larger peers. The company’s reliance on licensing (Brand segment) is a double-edged sword—providing steady income but exposing it to brand dilution. Competitively, Kodak lags behind industrial printing leaders in market share but retains niche expertise in high-performance films and proprietary printing tech. Its high debt load restricts agility, while competitors with stronger balance sheets invest in next-gen digital solutions. Kodak’s survival hinges on leveraging IP and targeting underserved industrial applications, but it remains vulnerable to disruption from inkjet and digital-first rivals.

Major Competitors

• Xerox Holdings Corporation (XRX): Xerox is a dominant player in document technology and services, with stronger scale and recurring revenue from managed print services. Unlike Kodak, Xerox has pivoted successfully to software and services, reducing reliance on hardware. However, it faces similar secular declines in traditional printing. Xerox’s broader product suite and stronger financials give it an edge over Kodak in enterprise deals.
• HP Inc. (HPQ): HP’s printing segment is a global leader in both consumer and commercial markets, with deep R&D and supply chain advantages. Its Indigo and PageWide technologies compete directly with Kodak’s digital presses. HP’s scale ($29B+ revenue) dwarfs Kodak’s, but it faces margin pressures from inkjet commoditization. HP’s stronger balance sheet allows for aggressive innovation in industrial printing.
• EFI (Electronics for Imaging) (EFX): EFI specializes in digital printing for packaging and textiles, overlapping with Kodak’s digital segment. Its Nozomi and Reggiani printers compete with Kodak’s PROSPER line. EFI’s focus on industrial inkjet gives it an edge in speed and customization, but it lacks Kodak’s legacy IP portfolio. Acquired by Siris Capital in 2019, EFI operates with private equity backing.
• Fujifilm Holdings Corporation (FUJIF): Fujifilm has successfully diversified beyond photography into healthcare, materials, and industrial printing. Its Jet Press and Revoria presses compete with Kodak’s digital offerings. Fujifilm’s vast resources ($21B+ revenue) and chemical expertise make it a formidable competitor in advanced materials, where Kodak struggles to match its R&D budget.
• 3D Systems Corporation (DDD): 3D Systems competes indirectly with Kodak in functional printing and materials. Its additive manufacturing solutions overlap with Kodak’s advanced materials segment. While smaller in revenue ($538M), 3D Systems leads in 3D printing innovation—a potential threat to Kodak’s traditional industrial film business. Both companies face profitability challenges but target different niches in manufacturing.