We assign a fundamental rating of 3 out of 10 to KRO. KRO was compared to 83 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.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

KRO had negative earnings in the past year.
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

Looking at the Return On Assets, with a value of -2.16%, KRO is doing worse than 65.06% of the companies in the same industry.
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

KRO's Profit Margin has declined in the last couple of years.
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.
KRO's Gross Margin of 16.25% is on the low side compared to the rest of the industry. KRO is outperformed by 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KRO is destroying value.
KRO has about the same amout of shares outstanding than it did 1 year ago.
KRO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KRO is higher compared to a year ago.

2.2 Solvency

KRO has an Altman-Z score of 1.72. This is a bad value and indicates that KRO is not financially healthy and even 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 42.17% of the companies in the same industry.
A Debt/Equity ratio of 0.78 indicates that 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	1.72

ROIC/WACC0.23

WACC11.69%

2.3 Liquidity

A Current Ratio of 3.83 indicates that KRO has no problem at all paying its short term obligations.
KRO has a Current ratio of 3.83. This is amongst the best in 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 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

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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%.
KRO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.83% yearly.
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

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.

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4. Valuation

4.1 Price/Earnings Ratio

KRO reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 79.97 indicates a quite expensive valuation of KRO.
Based on the Price/Forward Earnings ratio, KRO is valued a bit more expensive than the industry average as 67.47% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, KRO is valued quite expensively.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	79.97

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	10.97

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%

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5. Dividend

5.1 Amount

KRO has a Yearly Dividend Yield of 3.72%. 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 2.24. KRO pays more dividend than 83.13% 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	3.72%

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

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 2Y-39.61%

EPS Next 3Y39.61%

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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.