re: KYZEN Corporation - OTC/BB : KYZN $0.45
Homepage: kyzen.com
This looks like a real interesting company in the specialty performance chemicals segment. Debt free, profitable, growing (10% y/y in a stagnating industry environment), good gross margins (around 50%), interesting niche, IPR partnerships with DuPont and others, shipping CFC free cleaning solutions to the semiconductor, optics, electronics, avionics and mechanics industries, among others. The balance sheet also looks great. Due to the combined credentials, I’m going to add it to the thread’s main portfolio
Business Description:
Kyzen Corporation is a specialty chemical company focused on chemistries and processes for industrial manufacturing processes, including electronics, electronic packaging, optical, glass, aerospace, metal finishing, semiconductor and other high-technology industries where precision cleaning processes are required. The Company also manufactures and markets peripheral equipment, such as process control systems, prototype cleaning machines and chemical handling systems, that enhance the use of its chemical solutions by customers. Typically, the Company's products are sold as separate items and are integrated into a cleaning process by the customer or by the Company as part of a contract service. The Company develops chemical solutions and processes to replace ozone-depleting products used in the cleaning of electronic assemblies and precision metal components.
Financial Background:
Current quote : $0.45
Shares outstanding : 4.7m - Float: 1.7m - MarketCap : $2.2m
GrossMargin GM% : 54% Debt/Equity : 0 CurrentRatio : 3.68
ROE – 11.3% ROA – 8.8% ROI – 11.3%
PSR (TTM) – 0.30 PE (TTM) : 8.8 PCF – 5
PBK – 0.95
CAGR (sales) – 5-10% annually
Detailed Backgrounder:
Kyzen Corporation, incorporated in 1990, is a specialty chemical company focused on chemistries and processes for industrial manufacturing processes, including electronics, electronic packaging, optical, glass, aerospace, metal finishing, semiconductor and other high-technology industries where precision cleaning processes are required. The Company also manufactures and markets peripheral equipment, such as process control systems, prototype cleaning machines and chemical handling systems, that enhance the use of its chemical solutions by customers. Typically, the Company's products are sold as separate items and are integrated into a cleaning process by the customer or by the Company as part of a contract service.
The Company develops chemical solutions and processes to replace ozone-depleting products used in the cleaning of electronic assemblies and precision metal components. Historically, materials such as chlorofluorocarbon 113 (CFC-113) and 1,1,1, Trichloroethane were widely used in these applications. Most of the Company's formulations are non-flammable and non-combustible, low in toxicity and generally require no hazardous material shipping or storage precautions.
The goal of the Company's Engineering Services Group is to enhance its customers' cleaning processes and eliminate obstacles preventing the implementation of its chemical cleaning solutions. This group is responsible for developing, manufacturing and/or retrofitting process control and cleaning equipment. In addition, the group builds and maintains equipment in Kyzen's Cleaning Applications and Evaluation Center, maintains existing customer processes pursuant to service contracts and manufactures peripheral items necessary to assist in the installation and implementation of the cleaning products. The group also utilizes the Company's extensive array of equipment in its Cleaning Applications and Evaluation Centers in Manchester, New Hampshire, and Nashville, Tennessee, to perform contract-cleaning services.
Products sold by the Engineering Services Group include meters to monitor cleaner concentration, metering pumps, liquid level sensors, transfer pump systems, holding tanks and coalescors, filters and the PCS (Process Control System). The PCS is a fully integrated process tool based on the Company's proprietary technology that automatically samples and adjusts cleaning agent concentration to a specified level in a cleaning tank or machine. All the group's products are designed to operate on many of the Company's existing and developmental cleaning products.
Competition:
The Company's competitors include Petroferm, Church & Dwight, ITW-Magnaflux, Valtech, Alpha Metals, Oakite, Envirosense, EKC Technology, Brulin and Zestron/Dr. O.K. Wack Chemie |
