Intrinsic value of Kemet - KEM

Previous Close

$21.09

  Intrinsic Value

$9.78

stock screener

  Rating & Target

str. sell

-54%

  Value-price divergence*

-459%

Previous close

$21.09

 
Intrinsic value

$9.78

 
Up/down potential

-54%

 
Rating

str. sell

 
Value-price divergence*

-459%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of KEM stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2017), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 1.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  3.13
  7.60
  7.34
  7.11
  6.90
  6.71
  6.54
  6.38
  6.24
  6.12
  6.01
  5.91
  5.82
  5.73
  5.66
  5.59
  5.54
  5.48
  5.43
  5.39
  5.35
  5.32
  5.28
  5.26
  5.23
  5.21
  5.19
  5.17
  5.15
  5.14
  5.12
Revenue, $m
  758
  816
  875
  938
  1,002
  1,070
  1,139
  1,212
  1,288
  1,367
  1,449
  1,534
  1,624
  1,717
  1,814
  1,915
  2,021
  2,132
  2,248
  2,369
  2,496
  2,629
  2,768
  2,913
  3,065
  3,225
  3,392
  3,568
  3,751
  3,944
  4,146
Variable operating expenses, $m
 
  708
  760
  814
  870
  928
  988
  1,051
  1,116
  1,184
  1,255
  1,325
  1,402
  1,483
  1,567
  1,654
  1,746
  1,842
  1,942
  2,046
  2,156
  2,270
  2,390
  2,516
  2,648
  2,786
  2,930
  3,081
  3,240
  3,407
  3,581
Fixed operating expenses, $m
 
  68
  69
  71
  73
  75
  77
  78
  80
  82
  84
  87
  89
  91
  93
  96
  98
  100
  103
  106
  108
  111
  114
  116
  119
  122
  125
  129
  132
  135
  138
Total operating expenses, $m
  723
  776
  829
  885
  943
  1,003
  1,065
  1,129
  1,196
  1,266
  1,339
  1,412
  1,491
  1,574
  1,660
  1,750
  1,844
  1,942
  2,045
  2,152
  2,264
  2,381
  2,504
  2,632
  2,767
  2,908
  3,055
  3,210
  3,372
  3,542
  3,719
Operating income, $m
  35
  39
  46
  53
  60
  67
  75
  83
  91
  100
  109
  122
  132
  143
  154
  165
  177
  190
  203
  217
  232
  247
  264
  281
  298
  317
  337
  358
  379
  402
  427
EBITDA, $m
  72
  71
  80
  89
  98
  107
  117
  128
  139
  150
  162
  175
  188
  201
  216
  231
  246
  263
  280
  298
  317
  337
  358
  380
  403
  427
  452
  479
  507
  537
  568
Interest expense (income), $m
  0
  14
  15
  17
  18
  20
  22
  24
  26
  28
  30
  32
  34
  37
  39
  42
  44
  47
  50
  53
  57
  60
  63
  67
  71
  75
  79
  84
  88
  93
  99
Earnings before tax, $m
  11
  26
  31
  36
  41
  47
  53
  59
  65
  72
  79
  91
  98
  106
  115
  124
  133
  143
  153
  164
  175
  187
  200
  213
  227
  242
  258
  274
  291
  309
  328
Tax expense, $m
  5
  7
  8
  10
  11
  13
  14
  16
  18
  19
  21
  24
  27
  29
  31
  33
  36
  39
  41
  44
  47
  51
  54
  58
  61
  65
  70
  74
  79
  83
  89
Net income, $m
  48
  19
  23
  26
  30
  34
  39
  43
  48
  53
  58
  66
  72
  78
  84
  90
  97
  104
  112
  120
  128
  137
  146
  156
  166
  177
  188
  200
  212
  226
  239

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  110
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  735
  728
  782
  837
  895
  955
  1,017
  1,082
  1,150
  1,220
  1,294
  1,370
  1,450
  1,533
  1,620
  1,710
  1,805
  1,904
  2,007
  2,115
  2,229
  2,347
  2,471
  2,601
  2,737
  2,879
  3,029
  3,185
  3,349
  3,521
  3,702
Adjusted assets (=assets-cash), $m
  625
  728
  782
  837
  895
  955
  1,017
  1,082
  1,150
  1,220
  1,294
  1,370
  1,450
  1,533
  1,620
  1,710
  1,805
  1,904
  2,007
  2,115
  2,229
  2,347
  2,471
  2,601
  2,737
  2,879
  3,029
  3,185
  3,349
  3,521
  3,702
Revenue / Adjusted assets
  1.213
  1.121
  1.119
  1.121
  1.120
  1.120
  1.120
  1.120
  1.120
  1.120
  1.120
  1.120
  1.120
  1.120
  1.120
  1.120
  1.120
  1.120
  1.120
  1.120
  1.120
  1.120
  1.120
  1.120
  1.120
  1.120
  1.120
  1.120
  1.120
  1.120
  1.120
Average production assets, $m
  258
  277
  298
  319
  341
  364
  387
  412
  438
  465
  493
  522
  552
  584
  617
  651
  687
  725
  764
  806
  849
  894
  941
  990
  1,042
  1,097
  1,153
  1,213
  1,275
  1,341
  1,410
Working capital, $m
  249
  152
  163
  174
  186
  199
  212
  225
  240
  254
  269
  285
  302
  319
  337
  356
  376
  397
  418
  441
  464
  489
  515
  542
  570
  600
  631
  664
  698
  734
  771
Total debt, $m
  388
  430
  476
  523
  572
  624
  677
  732
  790
  850
  913
  978
  1,046
  1,117
  1,191
  1,268
  1,349
  1,434
  1,522
  1,615
  1,711
  1,812
  1,918
  2,029
  2,145
  2,267
  2,395
  2,528
  2,668
  2,815
  2,969
Total liabilities, $m
  580
  622
  668
  715
  764
  816
  869
  924
  982
  1,042
  1,105
  1,170
  1,238
  1,309
  1,383
  1,460
  1,541
  1,626
  1,714
  1,807
  1,903
  2,004
  2,110
  2,221
  2,337
  2,459
  2,587
  2,720
  2,860
  3,007
  3,161
Total equity, $m
  155
  106
  114
  122
  131
  139
  149
  158
  168
  178
  189
  200
  212
  224
  236
  250
  263
  278
  293
  309
  325
  343
  361
  380
  400
  420
  442
  465
  489
  514
  540
Total liabilities and equity, $m
  735
  728
  782
  837
  895
  955
  1,018
  1,082
  1,150
  1,220
  1,294
  1,370
  1,450
  1,533
  1,619
  1,710
  1,804
  1,904
  2,007
  2,116
  2,228
  2,347
  2,471
  2,601
  2,737
  2,879
  3,029
  3,185
  3,349
  3,521
  3,701
Debt-to-equity ratio
  2.503
  4.040
  4.170
  4.280
  4.380
  4.470
  4.560
  4.630
  4.710
  4.770
  4.830
  4.890
  4.940
  4.990
  5.040
  5.080
  5.120
  5.160
  5.190
  5.230
  5.260
  5.290
  5.320
  5.340
  5.370
  5.390
  5.420
  5.440
  5.460
  5.480
  5.490
Adjusted equity ratio
  0.072
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146
  0.146

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  48
  19
  23
  26
  30
  34
  39
  43
  48
  53
  58
  66
  72
  78
  84
  90
  97
  104
  112
  120
  128
  137
  146
  156
  166
  177
  188
  200
  212
  226
  239
Depreciation, amort., depletion, $m
  37
  32
  34
  36
  38
  40
  43
  45
  48
  50
  53
  52
  55
  58
  62
  65
  69
  72
  76
  81
  85
  89
  94
  99
  104
  110
  115
  121
  128
  134
  141
Funds from operations, $m
  92
  51
  56
  62
  68
  75
  81
  88
  96
  103
  111
  118
  127
  136
  146
  155
  166
  177
  188
  200
  213
  226
  240
  255
  270
  286
  303
  321
  340
  360
  380
Change in working capital, $m
  20
  11
  11
  12
  12
  13
  13
  14
  14
  15
  15
  16
  17
  17
  18
  19
  20
  21
  22
  23
  24
  25
  26
  27
  28
  30
  31
  33
  34
  36
  38
Cash from operations, $m
  72
  40
  45
  51
  56
  62
  68
  75
  81
  88
  96
  102
  110
  119
  127
  137
  146
  156
  167
  178
  189
  202
  214
  228
  242
  257
  272
  289
  306
  324
  343
Maintenance CAPEX, $m
  0
  -26
  -28
  -30
  -32
  -34
  -36
  -39
  -41
  -44
  -46
  -49
  -52
  -55
  -58
  -62
  -65
  -69
  -72
  -76
  -81
  -85
  -89
  -94
  -99
  -104
  -110
  -115
  -121
  -128
  -134
New CAPEX, $m
  -26
  -20
  -20
  -21
  -22
  -23
  -24
  -25
  -26
  -27
  -28
  -29
  -30
  -32
  -33
  -35
  -36
  -38
  -39
  -41
  -43
  -45
  -47
  -49
  -52
  -54
  -57
  -60
  -62
  -66
  -69
Cash from investing activities, $m
  -26
  -46
  -48
  -51
  -54
  -57
  -60
  -64
  -67
  -71
  -74
  -78
  -82
  -87
  -91
  -97
  -101
  -107
  -111
  -117
  -124
  -130
  -136
  -143
  -151
  -158
  -167
  -175
  -183
  -194
  -203
Free cash flow, $m
  46
  -6
  -3
  0
  2
  5
  8
  11
  15
  18
  21
  24
  28
  32
  36
  40
  45
  50
  55
  60
  66
  72
  78
  84
  91
  98
  106
  114
  122
  131
  140
Issuance/(repayment) of debt, $m
  0
  44
  46
  47
  49
  51
  53
  55
  58
  60
  63
  65
  68
  71
  74
  77
  81
  84
  88
  92
  97
  101
  106
  111
  116
  122
  128
  134
  140
  147
  154
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  0
  44
  46
  47
  49
  51
  53
  55
  58
  60
  63
  65
  68
  71
  74
  77
  81
  84
  88
  92
  97
  101
  106
  111
  116
  122
  128
  134
  140
  147
  154
Total cash flow (excl. dividends), $m
  45
  38
  43
  47
  52
  57
  62
  67
  72
  78
  84
  89
  96
  103
  110
  118
  126
  134
  143
  153
  162
  173
  184
  195
  207
  220
  233
  247
  262
  278
  294
Retained Cash Flow (-), $m
  -43
  -7
  -8
  -8
  -8
  -9
  -9
  -9
  -10
  -10
  -11
  -11
  -12
  -12
  -13
  -13
  -14
  -14
  -15
  -16
  -17
  -17
  -18
  -19
  -20
  -21
  -22
  -23
  -24
  -25
  -26
Prev. year cash balance distribution, $m
 
  56
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  87
  35
  39
  43
  48
  52
  57
  62
  68
  73
  78
  84
  91
  97
  105
  112
  120
  128
  137
  146
  155
  166
  176
  187
  199
  211
  224
  238
  253
  268
Discount rate, %
 
  8.20
  8.61
  9.04
  9.49
  9.97
  10.47
  10.99
  11.54
  12.12
  12.72
  13.36
  14.02
  14.73
  15.46
  16.24
  17.05
  17.90
  18.79
  19.73
  20.72
  21.76
  22.84
  23.99
  25.19
  26.45
  27.77
  29.16
  30.61
  32.15
  33.75
PV of cash for distribution, $m
 
  80
  30
  30
  30
  30
  29
  28
  26
  24
  22
  20
  17
  15
  13
  11
  9
  7
  6
  4
  3
  2
  2
  1
  1
  1
  0
  0
  0
  0
  0
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

KEMET Corporation, together with its subsidiaries, manufactures and sells passive electronic components under the KEMET brand worldwide. The company operates through two segments, Solid Capacitors, and Film and Electrolytic. Its products include tantalum, multilayer ceramic, film, electrolytic, paper, and solid aluminum capacitors, as well as EMI filters. The company offers its capacitors for use in the automotive, communications, computer-related, industrial, consumer, military/aerospace, and alternative energy industries. KEMET Corporation sells its products to original equipment manufacturers, electronics manufacturing services providers, and electronics distributors. The company was founded in 1919 and is headquartered in Simpsonville, South Carolina.

FINANCIAL RATIOS  of  Kemet (KEM)

Valuation Ratios
P/E Ratio 20.2
Price to Sales 1.3
Price to Book 6.3
Price to Tangible Book
Price to Cash Flow 13.5
Price to Free Cash Flow 21.1
Growth Rates
Sales Growth Rate 3.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 30%
Cap. Spend. - 3 Yr. Gr. Rate -4.1%
Financial Strength
Quick Ratio 55
Current Ratio 0
LT Debt to Equity 249%
Total Debt to Equity 250.3%
Interest Coverage 0
Management Effectiveness
Return On Assets 6.7%
Ret/ On Assets - 3 Yr. Avg. 3.6%
Return On Total Capital 9.2%
Ret/ On T. Cap. - 3 Yr. Avg. -1.1%
Return On Equity 36%
Return On Equity - 3 Yr. Avg. -3.4%
Asset Turnover 1.1
Profitability Ratios
Gross Margin 24.5%
Gross Margin - 3 Yr. Avg. 22.1%
EBITDA Margin 6.3%
EBITDA Margin - 3 Yr. Avg. 7%
Operating Margin 4.6%
Oper. Margin - 3 Yr. Avg. 3.9%
Pre-Tax Margin 1.5%
Pre-Tax Margin - 3 Yr. Avg. -1.4%
Net Profit Margin 6.3%
Net Profit Margin - 3 Yr. Avg. -0.9%
Effective Tax Rate 45.5%
Eff/ Tax Rate - 3 Yr. Avg. -5.2%
Payout Ratio 0%

KEM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the KEM stock intrinsic value calculation we used $758 million for the last fiscal year's total revenue generated by Kemet. The default revenue input number comes from 2017 income statement of Kemet. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our KEM stock valuation model: a) initial revenue growth rate of 7.6% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 8.2%, whose default value for KEM is calculated based on our internal credit rating of Kemet, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Kemet.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of KEM stock the variable cost ratio is equal to 86.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $66 million in the base year in the intrinsic value calculation for KEM stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Kemet.

Corporate tax rate of 27% is the nominal tax rate for Kemet. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the KEM stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for KEM are equal to 34%.

Life of production assets of 10 years is the average useful life of capital assets used in Kemet operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for KEM is equal to 18.6%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $155 million for Kemet - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 45.293 million for Kemet is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Kemet at the current share price and the inputted number of shares is $1.0 billion.

RELATED COMPANIES Price Int.Val. Rating
AVX AVX 17.23 19.58  hold
KYO Kyocera ADR 61.05 17.67  str.sell
VSH Vishay Interte 17.30 53.00  str.buy
LFUS Littelfuse 182.89 261.91  str.buy
MXWL Maxwell Techno 5.66 0.60  str.sell

COMPANY NEWS

▶ Top 10 Stocks Under $20   [Aug-11-17 02:15PM  Zacks]
▶ Kemet beats 1Q profit forecasts   [Aug-02-17 09:49PM  Associated Press]
▶ 4 Momentum Plays To Watch   [Jul-19-17 12:54PM  Forbes]
▶ ETFs with exposure to KEMET Corp. : July 17, 2017   [Jul-17-17 01:46PM  Capital Cube]
▶ ETFs with exposure to KEMET Corp. : July 6, 2017   [Jul-06-17 01:57PM  Capital Cube]
▶ ETFs with exposure to KEMET Corp. : June 19, 2017   [Jun-19-17 03:35PM  Capital Cube]
▶ ETFs with exposure to KEMET Corp. : June 9, 2017   [Jun-09-17 01:41PM  Capital Cube]
▶ Kemet beats Street 4Q forecasts   [May-10-17 09:06AM  Associated Press]
▶ KEMET Completes Acquisition of NEC TOKIN   [Apr-19-17 08:30AM  GlobeNewswire]
▶ NEC TOKIN Completes Sale of EMD Business   [Apr-14-17 08:45AM  GlobeNewswire]
▶ Why KEMET Corporation Shares Surged Today   [Feb-23-17 01:09PM  Motley Fool]
▶ Why KEMET Corporation Shares Surged Today   [01:09PM  at Motley Fool]
▶ 3 Small Cap Tech Stocks That Doubled in 2016   [Dec-18-16 12:35PM  at Motley Fool]
▶ Is KEMET Corporation (KEM) A Good Stock To Buy?   [Dec-12-16 12:22PM  at Insider Monkey]
Stock chart of KEM Financial statements of KEM
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.