KRONOS WORLDWIDE INC (KRO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KRO - US50105F1057 - Common Stock
5.33 USD
+0.11 (+2.11%)
5.3581 USD
+0.03 (+0.53%)
We assign a fundamental rating of 3 out of 10 to KRO. KRO was compared to 82 industry peers in the Chemicals industry. While KRO seems to be doing ok healthwise, there are quite some concerns on its profitability. KRO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year KRO has reported negative net income.
KRO had a negative operating cash flow in the past year.
KRO had positive earnings in 4 of the past 5 years.
KRO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KRO has a worse Return On Assets (-2.16%) than 63.86% of its industry peers.
KRO has a Return On Equity of -5.13%. This is in the lower half of the industry: KRO underperforms 61.45% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.68%, KRO is in line with its industry, outperforming 43.37% of the companies in the same 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
KRO's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 2.97%, KRO is not doing good in the industry: 68.67% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of KRO has declined.
With a Gross Margin value of 16.25%, KRO is not doing good in the industry: 72.29% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of KRO has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KRO is destroying value.
The number of shares outstanding for KRO remains at a similar level compared to 1 year ago.
Compared to 5 years ago, KRO has less shares outstanding
KRO has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.71, we must say that KRO is in the distress zone and has some risk of bankruptcy.
KRO has a Altman-Z score (1.71) which is comparable to the rest of the industry.
KRO has a Debt/Equity ratio of 0.78. This is a neutral value indicating KRO is somewhat dependend on debt financing.
The Debt to Equity ratio of KRO (0.78) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.71 |
ROIC/WACC0.23
WACC11.68%
2.3 Liquidity
KRO has a Current Ratio of 3.83. This indicates that KRO is financially healthy and has no problem in meeting its short term obligations.
KRO's Current ratio of 3.83 is amongst the best of the industry. KRO outperforms 89.16% of its industry peers.
KRO has a Quick Ratio of 1.47. This is a normal value and indicates that KRO is financially healthy and should not expect problems in meeting its short term obligations.
KRO has a Quick ratio (1.47) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.83 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
KRO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -244.00%.
The earnings per share for KRO have been decreasing by -24.83% on average. This is quite bad
The Revenue has been growing slightly by 0.01% in the past year.
KRO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.74% yearly.
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
Based on estimates for the next years, KRO will show a very strong growth in Earnings Per Share. The EPS will grow by 39.61% on average per year.
KRO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.80% yearly.
EPS Next Y-335.67%
EPS Next 2Y34%
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.
With a Price/Forward Earnings ratio of 16.49, KRO is valued correctly.
KRO's Price/Forward Earnings ratio is in line with the industry average.
KRO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 16.49 |
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 | 10.92 |
4.3 Compensation for Growth
A more expensive valuation may be justified as KRO's earnings are expected to grow with 39.61% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y34%
EPS Next 3Y39.61%
5. Dividend
5.1 Amount
KRO has a Yearly Dividend Yield of 3.83%. Purely for dividend investing, there may be better candidates out there.
KRO's Dividend Yield is rather good when compared to the industry average which is at 2.34. KRO pays more dividend than 86.75% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, KRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
5.2 History
The dividend of KRO decreases each year by -7.80%.
KRO has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-7.8%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of KRO are negative and hence is the payout ratio. KRO will probably not be able to sustain this dividend level.
DP-55.69%
EPS Next 2Y34%
EPS Next 3Y39.61%
5.33
+0.11 (+2.11%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners16.83%
Inst Owner Change-0.01%
Ins Owners0.17%
Ins Owner Change0.09%
Market Cap613.22M
Revenue(TTM)1.86B
Net Income(TTM)-41.30M
Analysts46.67
Price Target5.61 (5.25%)
Short Float %8.12%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
Yearly Dividend0.48
Dividend Growth(5Y)-7.8%
DP-55.69%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-293.36%
Min EPS beat(2)-428.05%
Max EPS beat(2)-158.67%
EPS beat(4)0
Avg EPS beat(4)-195.61%
Min EPS beat(4)-428.05%
Max EPS beat(4)-6.81%
EPS beat(8)3
Avg EPS beat(8)-2%
EPS beat(12)3
Avg EPS beat(12)-62.91%
EPS beat(16)6
Avg EPS beat(16)-38.64%
Revenue beat(2)0
Avg Revenue beat(2)-3.64%
Min Revenue beat(2)-4.26%
Max Revenue beat(2)-3.02%
Revenue beat(4)0
Avg Revenue beat(4)-6.45%
Min Revenue beat(4)-15.25%
Max Revenue beat(4)-3.02%
Revenue beat(8)2
Avg Revenue beat(8)-5.34%
Revenue beat(12)4
Avg Revenue beat(12)-2.96%
Revenue beat(16)7
Avg Revenue beat(16)-1.72%
PT rev (1m)-8.33%
PT rev (3m)-31.25%
EPS NQ rev (1m)-75%
EPS NQ rev (3m)-644.44%
EPS NY rev (1m)-1300%
EPS NY rev (3m)-235.48%
Revenue NQ rev (1m)-3.82%
Revenue NQ rev (3m)-16.87%
Revenue NY rev (1m)-2.4%
Revenue NY rev (3m)-7.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 16.49 | ||
| P/S | 0.33 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.76 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | 10.92 |
EPS(TTM)-0.36
EYN/A
EPS(NY)0.32
Fwd EY6.06%
FCF(TTM)-0.74
FCFYN/A
OCF(TTM)-0.35
OCFYN/A
SpS16.2
BVpS6.99
TBVpS6.97
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.16% | ||
| ROE | -5.13% | ||
| ROCE | 3.39% | ||
| ROIC | 2.68% | ||
| ROICexc | 2.73% | ||
| ROICexgc | 2.73% | ||
| OM | 2.97% | ||
| PM (TTM) | N/A | ||
| GM | 16.25% | ||
| FCFM | N/A |
ROA(3y)2.41%
ROA(5y)3.2%
ROE(3y)5.13%
ROE(5y)7.28%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y-13.41%
ROICexgc growth 5Y-3.71%
ROICexc growth 3Y-13.47%
ROICexc growth 5Y-3.75%
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%
F-Score3
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.64 | ||
| Cap/Depr | 80.79% | ||
| Cap/Sales | 2.41% | ||
| Interest Coverage | 1.08 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.83 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 1.71 |
F-Score3
WACC11.68%
ROIC/WACC0.23
Cap/Depr(3y)89.54%
Cap/Depr(5y)98.19%
Cap/Sales(3y)2.56%
Cap/Sales(5y)2.91%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-244%
EPS 3Y-43.16%
EPS 5Y-24.83%
EPS Q2Q%-633.33%
EPS Next Y-335.67%
EPS Next 2Y34%
EPS Next 3Y39.61%
EPS Next 5YN/A
Revenue 1Y (TTM)0.01%
Revenue growth 3Y-0.91%
Revenue growth 5Y1.74%
Sales Q2Q%-5.74%
Revenue Next Year-12.6%
Revenue Next 2Y-4.19%
Revenue Next 3Y0.8%
Revenue Next 5YN/A
EBIT growth 1Y-36.36%
EBIT growth 3Y-13.2%
EBIT growth 5Y-3.37%
EBIT Next Year-56.35%
EBIT Next 3Y9.68%
EBIT Next 5YN/A
FCF growth 1Y12.24%
FCF growth 3Y-33.75%
FCF growth 5Y-16.38%
OCF growth 1Y-11.02%
OCF growth 3Y-29.45%
OCF growth 5Y-14.67%
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 2 / 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.