KRONOS WORLDWIDE INC (KRO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KRO - US50105F1057 - Common Stock
5.46 USD
-0.06 (-1.09%)
5.46 USD
0 (0%)
Overall KRO gets a fundamental rating of 3 out of 10. We evaluated KRO against 83 industry peers in the Chemicals industry. KRO scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. While showing a medium growth rate, KRO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- KRO had negative earnings in the past year.
- In the past year KRO has reported a negative cash flow from operations.
- Of the past 5 years KRO 4 years were profitable.
- KRO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- KRO's Return On Assets of -2.16% is on the low side compared to the rest of the industry. KRO is outperformed by 65.06% of its industry peers.
- KRO's Return On Equity of -5.13% is on the low side compared to the rest of the industry. KRO is outperformed by 62.65% of its industry peers.
- The Return On Invested Capital of KRO (2.68%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.16% | ||
| ROE | -5.13% | ||
| ROIC | 2.68% |
ROA(3y)2.41%
ROA(5y)3.2%
ROE(3y)5.13%
ROE(5y)7.28%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- In the last couple of years the Profit Margin of KRO has declined.
- KRO's Operating Margin of 2.97% is on the low side compared to the rest of the industry. KRO is outperformed by 68.67% of its industry peers.
- In the last couple of years the Operating Margin of KRO has declined.
- The Gross Margin of KRO (16.25%) is worse than 73.49% of its industry peers.
- KRO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.97% | ||
| PM (TTM) | N/A | ||
| GM | 16.25% |
OM growth 3Y-12.41%
OM growth 5Y-5.03%
PM growth 3Y-7.77%
PM growth 5Y-1.91%
GM growth 3Y-6.11%
GM growth 5Y-3.12%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KRO is destroying value.
- KRO has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, KRO has less shares outstanding
- Compared to 1 year ago, KRO has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.72, we must say that KRO is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.72, KRO is in line with its industry, outperforming 43.37% of the companies in the same industry.
- KRO has a Debt/Equity ratio of 0.78. This is a neutral value indicating KRO is somewhat dependend on debt financing.
- KRO has a Debt to Equity ratio (0.78) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.72 |
ROIC/WACC0.23
WACC11.75%
2.3 Liquidity
- A Current Ratio of 3.83 indicates that KRO has no problem at all paying its short term obligations.
- KRO's Current ratio of 3.83 is amongst the best of the industry. KRO outperforms 87.95% of its industry peers.
- A Quick Ratio of 1.47 indicates that KRO should not have too much problems paying its short term obligations.
- KRO's Quick ratio of 1.47 is in line compared to the rest of the industry. KRO outperforms 59.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.83 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
- The earnings per share for KRO have decreased strongly by -244.00% in the last year.
- The earnings per share for KRO have been decreasing by -24.83% on average. This is quite bad
- KRO shows a small growth in Revenue. In the last year, the Revenue has grown by 0.01%.
- The Revenue has been growing slightly by 1.74% on average over the past years.
EPS 1Y (TTM)-244%
EPS 3Y-43.16%
EPS 5Y-24.83%
EPS Q2Q%-633.33%
Revenue 1Y (TTM)0.01%
Revenue growth 3Y-0.91%
Revenue growth 5Y1.74%
Sales Q2Q%-5.74%
3.2 Future
- The Earnings Per Share is expected to grow by 39.61% on average over the next years. This is a very strong growth
- Based on estimates for the next years, KRO will show a small growth in Revenue. The Revenue will grow by 0.80% on average per year.
EPS Next Y-335.67%
EPS Next 2Y-39.61%
EPS Next 3Y39.61%
EPS Next 5YN/A
Revenue Next Year-12.6%
Revenue Next 2Y-4.19%
Revenue Next 3Y0.8%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- KRO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Based on the Price/Forward Earnings ratio of 83.17, the valuation of KRO can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of KRO indicates a slightly more expensive valuation: KRO is more expensive than 67.47% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, KRO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 83.17 |
4.2 Price Multiples
- KRO's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.05 |
4.3 Compensation for Growth
- KRO's earnings are expected to grow with 39.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-39.61%
EPS Next 3Y39.61%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.58%, KRO has a reasonable but not impressive dividend return.
- KRO's Dividend Yield is rather good when compared to the industry average which is at 2.23. KRO pays more dividend than 84.34% of the companies in the same industry.
- KRO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
5.2 History
- The dividend of KRO decreases each year by -7.80%.
- KRO has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-7.8%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- KRO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-55.69%
EPS Next 2Y-39.61%
EPS Next 3Y39.61%
KRONOS WORLDWIDE INC / KRO FAQ
What is the ChartMill fundamental rating of KRONOS WORLDWIDE INC (KRO) stock?
ChartMill assigns a fundamental rating of 3 / 10 to KRO.
Can you provide the valuation status for KRONOS WORLDWIDE INC?
ChartMill assigns a valuation rating of 1 / 10 to KRONOS WORLDWIDE INC (KRO). This can be considered as Overvalued.
How profitable is KRONOS WORLDWIDE INC (KRO) stock?
KRONOS WORLDWIDE INC (KRO) has a profitability rating of 2 / 10.
How financially healthy is KRONOS WORLDWIDE INC?
The financial health rating of KRONOS WORLDWIDE INC (KRO) is 4 / 10.
What is the earnings growth outlook for KRONOS WORLDWIDE INC?
The Earnings per Share (EPS) of KRONOS WORLDWIDE INC (KRO) is expected to decline by -335.67% in the next year.