KRONOS WORLDWIDE INC (KRO)
US50105F1057 - Common Stock
KRO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 83 industry peers in the Chemicals industry. While KRO seems to be doing ok healthwise, there are quite some concerns on its profitability. KRO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year KRO was profitable.
In the past year KRO had a positive cash flow from operations.
Of the past 5 years KRO 4 years were profitable.
In the past 5 years KRO always reported a positive cash flow from operatings.
1.2 Ratios
KRO has a better Return On Assets (4.90%) than 72.29% of its industry peers.
KRO has a better Return On Equity (11.10%) than 74.70% of its industry peers.
KRO has a Return On Invested Capital (4.45%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 11.1% | ||
| ROIC | 4.45% |
ROA(3y)2.78%
ROA(5y)3.18%
ROE(3y)5.94%
ROE(5y)7.3%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of KRO (5.05%) is comparable to the rest of the industry.
KRO has a Operating Margin of 4.66%. This is in the lower half of the industry: KRO underperforms 67.47% of its industry peers.
With a Gross Margin value of 17.62%, 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 Gross Margin of KRO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.66% | ||
| PM (TTM) | 5.05% | ||
| GM | 17.62% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-22.71%
GM growth 5Y-21.8%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KRO is destroying value.
Compared to 1 year ago, KRO has less shares outstanding
KRO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, KRO has a worse debt to assets ratio.
2.2 Solvency
KRO has an Altman-Z score of 2.03. This is not the best score and indicates that KRO is in the grey zone with still only limited risk for bankruptcy at the moment.
KRO's Altman-Z score of 2.03 is fine compared to the rest of the industry. KRO outperforms 60.24% of its industry peers.
KRO has a debt to FCF ratio of 8.51. This is a slightly negative value and a sign of low solvency as KRO would need 8.51 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.51, KRO is in line with its industry, outperforming 51.81% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that KRO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.56, KRO perfoms like the industry average, outperforming 55.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 2.03 |
ROIC/WACC0.6
WACC7.46%
2.3 Liquidity
KRO has a Current Ratio of 2.68. This indicates that KRO is financially healthy and has no problem in meeting its short term obligations.
KRO has a better Current ratio (2.68) than 72.29% of its industry peers.
A Quick Ratio of 1.30 indicates that KRO should not have too much problems paying its short term obligations.
KRO has a Quick ratio (1.30) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 144.64% over the past year.
Looking at the last year, KRO shows a quite strong growth in Revenue. The Revenue has grown by 15.87% in the last year.
KRO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.06% yearly.
EPS 1Y (TTM)144.64%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%133.33%
Revenue 1Y (TTM)15.87%
Revenue growth 3Y0.56%
Revenue growth 5Y0.06%
Sales Q2Q%22.12%
3.2 Future
KRO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 66.59% yearly.
Based on estimates for the next years, KRO will show a quite strong growth in Revenue. The Revenue will grow by 12.13% on average per year.
EPS Next Y239.91%
EPS Next 2Y99.4%
EPS Next 3Y66.59%
EPS Next 5YN/A
Revenue Next Year24.1%
Revenue Next 2Y14.98%
Revenue Next 3Y12.13%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 39.08, which means the current valuation is very expensive for KRO.
KRO's Price/Earnings ratio is a bit more expensive when compared to the industry. KRO is more expensive than 67.47% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.54. KRO is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 11.50, the valuation of KRO can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KRO indicates a somewhat cheap valuation: KRO is cheaper than 72.29% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.99. KRO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.08 | ||
| Fwd PE | 11.5 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as KRO.
Based on the Price/Free Cash Flow ratio, KRO is valued a bit cheaper than the industry average as 63.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.26 | ||
| EV/EBITDA | 10.91 |
4.3 Compensation for Growth
KRO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
KRO's earnings are expected to grow with 66.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y99.4%
EPS Next 3Y66.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.05%, KRO has a reasonable but not impressive dividend return.
In the last 3 months the price of KRO has falen by -21.53%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.35, KRO pays a bit more dividend than its industry peers.
KRO's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
5.2 History
The dividend of KRO has a limited annual growth rate of 2.22%.
KRO has been paying a dividend for at least 10 years, so it has a reliable track record.
KRO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.22%
Div Incr Years0
Div Non Decr Years13
5.3 Sustainability
KRO pays out 75.88% of its income as dividend. This is not a sustainable payout ratio.
The dividend of KRO is growing, but earnings are growing more, so the dividend growth is sustainable.
DP75.88%
EPS Next 2Y99.4%
EPS Next 3Y66.59%
KRONOS WORLDWIDE INC
NYSE:KRO (12/24/2024, 8:24:24 PM)
Premarket: 9.76 -0.01 (-0.1%)9.77
+0.01 (+0.1%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners14.66%
Inst Owner Change7.05%
Ins Owners0.11%
Ins Owner Change0%
Market Cap1.12B
Analysts46
Price Target12.24 (25.28%)
Short Float %2.82%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.05% |
Dividend Growth(5Y)2.22%
DP75.88%
Div Incr Years0
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-32.32%
Min EPS beat(2)-76.11%
Max EPS beat(2)11.47%
EPS beat(4)3
Avg EPS beat(4)191.6%
Min EPS beat(4)-76.11%
Max EPS beat(4)766.34%
EPS beat(8)3
Avg EPS beat(8)3.44%
EPS beat(12)6
Avg EPS beat(12)13.68%
EPS beat(16)8
Avg EPS beat(16)12.45%
Revenue beat(2)0
Avg Revenue beat(2)-12.25%
Min Revenue beat(2)-15.74%
Max Revenue beat(2)-8.76%
Revenue beat(4)2
Avg Revenue beat(4)-4.23%
Min Revenue beat(4)-15.74%
Max Revenue beat(4)4.51%
Revenue beat(8)4
Avg Revenue beat(8)-1.22%
Revenue beat(12)7
Avg Revenue beat(12)-0.15%
Revenue beat(16)9
Avg Revenue beat(16)0.56%
PT rev (1m)0%
PT rev (3m)2.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.37%
EPS NY rev (1m)-13.13%
EPS NY rev (3m)-2.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.66%
Revenue NY rev (1m)-1.46%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.08 | ||
| Fwd PE | 11.5 | ||
| P/S | 0.6 | ||
| P/FCF | 17.26 | ||
| P/OCF | 12.83 | ||
| P/B | 1.33 | ||
| P/tB | 1.33 | ||
| EV/EBITDA | 10.91 |
EPS(TTM)0.25
EY2.56%
EPS(NY)0.85
Fwd EY8.7%
FCF(TTM)0.57
FCFY5.79%
OCF(TTM)0.76
OCFY7.79%
SpS16.2
BVpS7.37
TBVpS7.34
PEG (NY)0.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 11.1% | ||
| ROCE | 5.7% | ||
| ROIC | 4.45% | ||
| ROICexc | 4.75% | ||
| ROICexgc | 4.76% | ||
| OM | 4.66% | ||
| PM (TTM) | 5.05% | ||
| GM | 17.62% | ||
| FCFM | 3.49% |
ROA(3y)2.78%
ROA(5y)3.18%
ROE(3y)5.94%
ROE(5y)7.3%
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
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-22.71%
GM growth 5Y-21.8%
F-Score6
Asset Turnover0.97
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 8.51 | ||
| Debt/EBITDA | 3.24 | ||
| Cap/Depr | 38.59% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 2.73 | ||
| Cash Conversion | 60.33% | ||
| Profit Quality | 69.18% | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 2.03 |
F-Score6
WACC7.46%
ROIC/WACC0.6
Cap/Depr(3y)111.34%
Cap/Depr(5y)111.33%
Cap/Sales(3y)3.05%
Cap/Sales(5y)3.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)144.64%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%133.33%
EPS Next Y239.91%
EPS Next 2Y99.4%
EPS Next 3Y66.59%
EPS Next 5YN/A
Revenue 1Y (TTM)15.87%
Revenue growth 3Y0.56%
Revenue growth 5Y0.06%
Sales Q2Q%22.12%
Revenue Next Year24.1%
Revenue Next 2Y14.98%
Revenue Next 3Y12.13%
Revenue Next 5YN/A
EBIT growth 1Y221.54%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year427.2%
EBIT Next 3Y86.48%
EBIT Next 5YN/A
FCF growth 1Y-10.21%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-37.25%
OCF growth 3Y-62.28%
OCF growth 5Y-50.68%