KRONOS WORLDWIDE INC (KRO) Stock Fundamental Analysis
NYSE:KRO - New York Stock Exchange, Inc. - US50105F1057 - Common Stock - Currency: USD
Overall KRO gets a fundamental rating of 5 out of 10. We evaluated KRO against 84 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. KRO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
KRO had positive earnings in the past year.
KRO had a positive operating cash flow in the past year.
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 has a Return On Assets of 4.90%. This is in the better half of the industry: KRO outperforms 73.17% of its industry peers.
KRO has a Return On Equity of 11.10%. This is in the better half of the industry: KRO outperforms 73.17% of its industry peers.
The Return On Invested Capital of KRO (4.45%) is comparable to the rest of the industry.
| 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
KRO's Profit Margin of 5.05% is in line compared to the rest of the industry. KRO outperforms 59.76% of its industry peers.
KRO has a Operating Margin of 4.66%. This is in the lower half of the industry: KRO underperforms 67.07% of its industry peers.
Looking at the Gross Margin, with a value of 17.62%, KRO is doing worse than 69.51% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KRO is destroying value.
Compared to 1 year ago, KRO has less shares outstanding
Compared to 5 years ago, KRO has less shares outstanding
The debt/assets ratio for KRO is higher compared to a year ago.
2.2 Solvency
KRO has an Altman-Z score of 2.02. 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 has a Altman-Z score of 2.02. This is comparable to the rest of the industry: KRO outperforms 57.32% 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.
KRO's Debt to FCF ratio of 8.51 is in line compared to the rest of the industry. KRO outperforms 53.66% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that KRO is somewhat dependend on debt financing.
KRO's Debt to Equity ratio of 0.56 is in line compared to the rest of the industry. KRO outperforms 54.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 8.51 | ||
| Altman-Z | 2.02 |
ROIC/WACC0.55
WACC8.05%
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's Current ratio of 2.68 is fine compared to the rest of the industry. KRO outperforms 71.95% of its industry peers.
KRO has a Quick Ratio of 1.30. This is a normal value and indicates that KRO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.30, KRO is in line with its industry, outperforming 47.56% of the companies in the same 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.
Measured over the past years, KRO shows a small growth in Revenue. The Revenue has been growing by 0.06% on average per year.
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
The Earnings Per Share is expected to grow by 66.59% on average over the next years. This is a very strong growth
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
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
KRO is valuated quite expensively with a Price/Earnings ratio of 38.36.
67.07% of the companies in the same industry are cheaper than KRO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.46. KRO is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 11.29, the valuation of KRO can be described as very reasonable.
78.05% of the companies in the same industry are more expensive than KRO, based on the Price/Forward Earnings ratio.
KRO is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.36 | ||
| Fwd PE | 11.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KRO is on the same level as its industry peers.
67.07% of the companies in the same industry are more expensive than KRO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.95 | ||
| EV/EBITDA | 10.88 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as KRO's earnings are expected to grow with 66.59% in the coming years.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y99.4%
EPS Next 3Y66.59%
5. Dividend
5.1 Amount
KRO has a Yearly Dividend Yield of 1.99%.
KRO's Dividend Yield is a higher than the industry average which is at 3.22.
Compared to an average S&P500 Dividend Yield of 2.27, KRO has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
KRO's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP75.88%
EPS Next 2Y99.4%
EPS Next 3Y66.59%
KRONOS WORLDWIDE INC
NYSE:KRO (1/31/2025, 8:04:00 PM)
After market: 9.59 0 (0%)9.59
-0.15 (-1.54%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners14.66%
Inst Owner Change-0.08%
Ins Owners0.11%
Ins Owner Change0%
Market Cap1.10B
Analysts46
Price Target12.24 (27.63%)
Short Float %2.74%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.99% |
Yearly Dividend0.76
Dividend Growth(5Y)2.22%
DP75.88%
Div Incr Years0
Div Non Decr Years13
Ex-DateN/A
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.36 | ||
| Fwd PE | 11.29 | ||
| P/S | 0.59 | ||
| P/FCF | 16.95 | ||
| P/OCF | 12.59 | ||
| P/B | 1.3 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 10.88 |
EPS(TTM)0.25
EY2.61%
EPS(NY)0.85
Fwd EY8.86%
FCF(TTM)0.57
FCFY5.9%
OCF(TTM)0.76
OCFY7.94%
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 | 2.02 |
F-Score6
WACC8.05%
ROIC/WACC0.55
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 Year404.32%
EBIT Next 3Y84.76%
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%