📊 KEQU Key Takeaways
Is Kewaunee Scientific Corp. /DE/ (KEQU) a Good Investment?
Strong 18% revenue growth is undermined by deteriorating profitability—net income declined 1.5% and diluted EPS fell 40% YoY despite top-line expansion. Thin 3.0% net margin and 5.5% operating margin indicate margin compression from cost pressures, while low ROA of 3.5% suggests capital deployment challenges. The solid balance sheet and positive $10.2M free cash flow provide stability, but the fundamental disconnect between growth and earnings quality warrants cautious positioning.
Kewaunee delivers strong revenue growth with solid cash generation and a conservative balance sheet. However, profitability remains thin and mixed—net income and especially EPS declined YoY despite higher sales—suggesting cost pressure or mix challenges. Sustained margin expansion and consistent FCF conversion are needed to justify a more constructive stance.
Why Buy Kewaunee Scientific Corp. /DE/ Stock? KEQU Key Strengths
- Strong 18% YoY revenue growth indicating solid market demand in laboratory apparatus sector
- Conservative balance sheet with 0.30x debt-to-equity ratio and robust 10.9x interest coverage ratio
- Healthy liquidity position with 2.12x current ratio and consistent free cash flow generation of $10.2M
- 18% YoY revenue growth with positive free cash flow (4.8% FCF margin)
- Healthy liquidity and low leverage (2.12x current ratio, 0.30x D/E, 10.9x interest coverage)
- Solid gross margin (28.1%) provides room for operating leverage if costs are controlled
KEQU Stock Risks: Kewaunee Scientific Corp. /DE/ Investment Risks
- Profitability deterioration despite growth—net income down 1.5% and EPS down 40% YoY signals cost pressures exceeding pricing power
- Dangerously thin margins of 3.0% net and 5.5% operating provide minimal buffer against business disruptions or demand changes
- Very low return ratios (3.5% ROA, 8.8% ROE) indicate inefficient capital deployment and limited shareholder value creation
- Significant EPS decline despite revenue growth suggests either share dilution, operational inefficiency, or unfavorable cost structure
- Thin profitability (5.5% operating margin, 3.0% net margin) limits downside cushion
- EPS down 40% YoY and net income slightly lower despite higher sales, indicating earnings volatility or cost pressure
- FCF relies on maintaining cash conversion; working-capital swings could compress OCF/FCF
Key Metrics to Watch
- Operating margin trend and gross margin sustainability to identify source of profitability deterioration
- SG&A expenses as percentage of revenue—tracking cost discipline relative to top-line growth
- Free cash flow stability and capital intensity requirements in coming quarters
- Operating margin trajectory
- Free cash flow margin and cash conversion
Kewaunee Scientific Corp. /DE/ (KEQU) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.8% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.12x current ratio provides a solid financial cushion.
KEQU Profit Margin, ROE & Profitability Analysis
KEQU vs Market Sector: How Kewaunee Scientific Corp. /DE/ Compares
How Kewaunee Scientific Corp. /DE/ compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Kewaunee Scientific Corp. /DE/ Stock Overvalued? KEQU Valuation Analysis 2026
Based on fundamental analysis, Kewaunee Scientific Corp. /DE/ has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Kewaunee Scientific Corp. /DE/ Balance Sheet: KEQU Debt, Cash & Liquidity
KEQU Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Kewaunee Scientific Corp. /DE/'s revenue has grown significantly by 63% over the 5-year period, indicating strong business expansion. The most recent EPS of $6.38 reflects profitable operations.
KEQU Revenue Growth, EPS Growth & YoY Performance
KEQU Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $67.2M | $692.0K | $0.23 |
| Q2 2026 | $47.8M | $2.2M | $0.82 |
| Q1 2026 | $48.4M | $2.2M | $0.74 |
| Q3 2025 | $46.8M | $1.4M | $0.45 |
| Q2 2025 | $47.8M | $2.2M | $0.93 |
| Q1 2025 | $48.4M | $2.2M | $0.74 |
| Q3 2024 | $46.8M | -$243.0K | $-0.09 |
| Q2 2024 | $50.4M | -$243.0K | $-0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Kewaunee Scientific Corp. /DE/ Dividends, Buybacks & Capital Allocation
KEQU SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Kewaunee Scientific Corp. /DE/ (CIK: 0000055529)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KEQU
What is the AI rating for KEQU?
Kewaunee Scientific Corp. /DE/ (KEQU) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 58% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KEQU's key strengths?
Claude: Strong 18% YoY revenue growth indicating solid market demand in laboratory apparatus sector. Conservative balance sheet with 0.30x debt-to-equity ratio and robust 10.9x interest coverage ratio. ChatGPT: 18% YoY revenue growth with positive free cash flow (4.8% FCF margin). Healthy liquidity and low leverage (2.12x current ratio, 0.30x D/E, 10.9x interest coverage).
What are the risks of investing in KEQU?
Claude: Profitability deterioration despite growth—net income down 1.5% and EPS down 40% YoY signals cost pressures exceeding pricing power. Dangerously thin margins of 3.0% net and 5.5% operating provide minimal buffer against business disruptions or demand changes. ChatGPT: Thin profitability (5.5% operating margin, 3.0% net margin) limits downside cushion. EPS down 40% YoY and net income slightly lower despite higher sales, indicating earnings volatility or cost pressure.
What is KEQU's revenue and growth?
Kewaunee Scientific Corp. /DE/ reported revenue of $210.6M.
Does KEQU pay dividends?
Kewaunee Scientific Corp. /DE/ does not currently pay dividends.
Where can I find KEQU SEC filings?
Official SEC filings for Kewaunee Scientific Corp. /DE/ (CIK: 0000055529) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KEQU's EPS?
Kewaunee Scientific Corp. /DE/ has a diluted EPS of $2.09.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is KEQU a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Kewaunee Scientific Corp. /DE/ has a HOLD rating with 58% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KEQU stock overvalued or undervalued?
Valuation metrics for KEQU: ROE of 8.8% (sector avg: 15%), net margin of 3.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy KEQU stock in 2026?
Our dual AI analysis gives Kewaunee Scientific Corp. /DE/ a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KEQU's free cash flow?
Kewaunee Scientific Corp. /DE/'s operating cash flow is $13.2M, with capital expenditures of $3.0M. FCF margin is 4.8%.
How does KEQU compare to other Market stocks?
Vs Default sector averages: Net margin 3.0% (avg: 12%), ROE 8.8% (avg: 15%), current ratio 2.12 (avg: 1.8).