KEMET Needs To Make Another Acquisition

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About: KEMET Corporation (KEM), Includes: AAPL, ABB, CTTAY, DLPH, DNZOY, GOOGL, HRIBF, MRAAF, NTDOY, SLB, SMSGF, TRUMF, TSLA, TTDKY, WDC
by: Robert Castellano
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Robert Castellano
Chipmakers, solar, research analyst, Expert Witness
Summary

KEMET's revenues have grown only 9.3% in the past four quarters and consensus is for Q1 revenues to be flat.

The multi-layer ceramic capacitor (MLCC) market is growing rapidly due to a severe chip shortage, but KEMET has less than a 2% share of the global market.

With organic growth nearly flat following the company's acquisition of TOKIN, the company needs another acquisition, its eighth since 2016, for growth.

On July 25, 2018, KEMET (KEM) will release FY Q1 earnings for the June 30, 2018 quarter. The consensus EPS for the current quarter is at $0.47 derived from a total of three