Stock Analysis & Valuation Eastman Kodak Company (KODK)

• Previous Close: $7.32
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	78.27	969
Intrinsic value (DCF)	2.70	-63
Graham-Dodd Method	16.19	121
Graham Formula	2.31	-68

Strategic Investment Analysis

Company Overview

Eastman Kodak Company (NYSE: KODK) is a historic leader in imaging and printing technology, now focused on commercial print, packaging, and advanced materials. Founded in 1880 and headquartered in Rochester, New York, Kodak operates through four segments: Traditional Printing, Digital Printing, Advanced Materials & Chemicals, and Brand Licensing. The company provides hardware, software, and services to industries such as publishing, manufacturing, and entertainment. Kodak’s Traditional Printing segment supplies digital offset plates and computer-to-plate solutions, while its Digital Printing segment offers electrophotographic printers like the PROSPER series. The Advanced Materials segment includes industrial films, motion picture products, and R&D through Kodak Research Laboratories. Despite its legacy in consumer photography, Kodak has pivoted toward B2B solutions, leveraging its intellectual property portfolio and Eastman Business Park as a tech hub. With a market cap of ~$475M, Kodak remains a niche player in specialty industrial services, balancing innovation with legacy challenges.

Investment Summary

Kodak presents a high-risk, speculative investment case. The company’s 3.94 beta reflects extreme volatility, and its $499M debt load outweighs $201M in cash. While FY revenue topped $1B with $102M net income, operating cash flow was negative ($7M), raising liquidity concerns. Kodak’s pivot to commercial printing and advanced materials has stabilized operations, but growth is stagnant. The lack of dividends and reliance on cyclical industries (e.g., packaging, publishing) add risk. However, its IP portfolio and Eastman Business Park offer hidden value. Investors must weigh Kodak’s legacy liabilities against potential niche-market upside.

Competitive Analysis

Kodak’s competitive position is bifurcated: it retains strength in legacy printing technologies but lags in digital transformation. In Traditional Printing, its computer-to-plate solutions compete with Fujifilm (FUJIY) and Agfa-Gevaert (AFGVF), though with narrower scale. The Digital Printing segment faces giants like HP Inc. (HPQ) in electrophotographic printing, where Kodak’s PROSPER series is technologically competitive but lacks HP’s distribution. Advanced Materials pits Kodak against DuPont (DD) and 3M (MMM) in industrial films, leveraging its chemical expertise but with smaller R&D budgets. Kodak’s key advantage is its deep IP portfolio (e.g., patents in imaging, materials) and the Eastman Business Park, which houses high-tech manufacturing. However, its brand licensing segment is underutilized compared to peers like Canon (CAJ). The company’s niche focus limits diversification, making it vulnerable to downturns in print markets. Competitors with broader portfolios (e.g., Ricoh (RICOY)) mitigate such risks better. Kodak’s turnaround hinges on monetizing IP and scaling digital printing—areas where it trails more agile rivals.

Major Competitors

• Fujifilm Holdings (FUJIY): Fujifilm dominates digital printing and imaging with superior scale and innovation (e.g., Jet Press inkjet printers). Its healthcare and materials divisions diversify revenue, unlike Kodak’s print-heavy focus. Weakness: Less specialized in offset plates vs. Kodak.
• HP Inc. (HPQ): HP leads digital printing via Indigo and PageWide technologies, with vast global distribution. Kodak’s PROSPER competes on quality but lacks HP’s brand recognition. Weakness: HP’s reliance on commoditized office printing creates margin pressure.
• DuPont (DD): DuPont outscales Kodak in advanced materials (e.g., electronic films, biomaterials) with higher R&D spend. Kodak’s motion picture films retain niche appeal. Weakness: DuPont’s complexity dilutes focus on print-specific chemistries.
• Agfa-Gevaert (AFGVF): Agfa rivals Kodak in offset plates and healthcare imaging, with stronger European presence. Both struggle with print decline, but Agfa’s medical division buffers volatility. Weakness: Similar debt challenges to Kodak.
• Ricoh (RICOY): Ricoh’s diversified office solutions (e.g., multifunction printers) and document services overshadow Kodak’s commercial focus. Kodak’s R&D in functional printing is unique. Weakness: Ricoh’s commoditized products face stiff competition.