KRONOS WORLDWIDE INC (KRO) Stock Fundamental Analysis
NYSE:KRO - New York Stock Exchange, Inc. - US50105F1057 - Common Stock - Currency: USD
Taking everything into account, KRO scores 4 out of 10 in our fundamental rating. KRO was compared to 85 industry peers in the Chemicals industry. There are concerns on the financial health of KRO while its profitability can be described as average. KRO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
KRO had positive earnings in the past year.
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
The Return On Assets of KRO (4.94%) is better than 75.29% of its industry peers.
KRO has a better Return On Equity (11.36%) than 78.82% of its industry peers.
With a decent Return On Invested Capital value of 7.83%, KRO is doing good in the industry, outperforming 71.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 11.36% | ||
| ROIC | 7.83% |
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
The Profit Margin of KRO (5.07%) is better than 65.88% of its industry peers.
In the last couple of years the Profit Margin of KRO has declined.
KRO has a Operating Margin (7.92%) which is in line with its industry peers.
In the last couple of years the Operating Margin of KRO has declined.
The Gross Margin of KRO (20.79%) is worse than 65.88% of its industry peers.
KRO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.92% | ||
| PM (TTM) | 5.07% | ||
| GM | 20.79% |
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
KRO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for KRO remains at a similar level compared to 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 1.93. 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 1.93 is in line compared to the rest of the industry. KRO outperforms 52.94% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that KRO is somewhat dependend on debt financing.
KRO has a Debt to Equity ratio of 0.56. This is comparable to the rest of the industry: KRO outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.93 |
ROIC/WACC0.84
WACC9.3%
2.3 Liquidity
A Current Ratio of 2.62 indicates that KRO has no problem at all paying its short term obligations.
KRO has a Current ratio of 2.62. This is in the better half of the industry: KRO outperforms 72.94% of its industry peers.
A Quick Ratio of 0.99 indicates that KRO may have some problems paying its short term obligations.
KRO's Quick ratio of 0.99 is on the low side compared to the rest of the industry. KRO is outperformed by 62.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
KRO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 217.39%, which is quite impressive.
KRO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.83% yearly.
Looking at the last year, KRO shows a quite strong growth in Revenue. The Revenue has grown by 10.42% in the last year.
The Revenue has been growing slightly by 1.74% on average over the past years.
EPS 1Y (TTM)217.39%
EPS 3Y-43.16%
EPS 5Y-24.83%
EPS Q2Q%128.57%
Revenue 1Y (TTM)10.42%
Revenue growth 3Y-0.91%
Revenue growth 5Y1.74%
Sales Q2Q%2.3%
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 97.12% on average per year.
KRO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.76% yearly.
EPS Next Y343.28%
EPS Next 2Y151.25%
EPS Next 3Y97.12%
EPS Next 5YN/A
Revenue Next Year-2.39%
Revenue Next 2Y4.32%
Revenue Next 3Y4.76%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 24.22 indicates a rather expensive valuation of KRO.
KRO's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.45. KRO is around the same levels.
Based on the Price/Forward Earnings ratio of 5.76, the valuation of KRO can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KRO indicates a rather cheap valuation: KRO is cheaper than 96.47% of the companies listed in the same industry.
KRO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.22 | ||
| Fwd PE | 5.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KRO is valued cheaply inside the industry as 89.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.89 |
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 97.12% in the coming years.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y151.25%
EPS Next 3Y97.12%
5. Dividend
5.1 Amount
KRO has a Yearly Dividend Yield of 3.06%. Purely for dividend investing, there may be better candidates out there.
KRO's Dividend Yield is a higher than the industry average which is at 3.69.
KRO's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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
KRO pays out 40.64% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP40.64%
EPS Next 2Y151.25%
EPS Next 3Y97.12%
6.54
-0.04 (-0.61%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners16.98%
Inst Owner Change5.53%
Ins Owners0.14%
Ins Owner Change0.07%
Market Cap752.36M
Analysts46.67
Price Target8.93 (36.54%)
Short Float %3.76%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend0.48
Dividend Growth(5Y)-7.8%
DP40.64%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-97.85%
Min EPS beat(2)-188.88%
Max EPS beat(2)-6.81%
EPS beat(4)1
Avg EPS beat(4)-65.09%
Min EPS beat(4)-188.88%
Max EPS beat(4)11.47%
EPS beat(8)3
Avg EPS beat(8)3.68%
EPS beat(12)4
Avg EPS beat(12)-10.3%
EPS beat(16)7
Avg EPS beat(16)-2.19%
Revenue beat(2)0
Avg Revenue beat(2)-9.26%
Min Revenue beat(2)-15.25%
Max Revenue beat(2)-3.28%
Revenue beat(4)0
Avg Revenue beat(4)-10.76%
Min Revenue beat(4)-15.74%
Max Revenue beat(4)-3.28%
Revenue beat(8)2
Avg Revenue beat(8)-5.54%
Revenue beat(12)5
Avg Revenue beat(12)-2.59%
Revenue beat(16)7
Avg Revenue beat(16)-1.48%
PT rev (1m)-12.5%
PT rev (3m)-12.5%
EPS NQ rev (1m)-6.49%
EPS NQ rev (3m)-26.38%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-8.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.22 | ||
| Fwd PE | 5.76 | ||
| P/S | 0.4 | ||
| P/FCF | N/A | ||
| P/OCF | 56.15 | ||
| P/B | 0.89 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 5.89 |
EPS(TTM)0.27
EY4.13%
EPS(NY)1.14
Fwd EY17.37%
FCF(TTM)-0.2
FCFYN/A
OCF(TTM)0.12
OCFY1.78%
SpS16.5
BVpS7.36
TBVpS7.34
PEG (NY)0.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 11.36% | ||
| ROCE | 9.92% | ||
| ROIC | 7.83% | ||
| ROICexc | 7.94% | ||
| ROICexgc | 7.96% | ||
| OM | 7.92% | ||
| PM (TTM) | 5.07% | ||
| GM | 20.79% | ||
| 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
ROICexcg growth 3Y-13.41%
ROICexcg 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-Score5
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.18 | ||
| Cap/Depr | 53.8% | ||
| Cap/Sales | 1.94% | ||
| Interest Coverage | 2.97 | ||
| Cash Conversion | 6.13% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.62 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 1.93 |
F-Score5
WACC9.3%
ROIC/WACC0.84
Cap/Depr(3y)85.77%
Cap/Depr(5y)95.93%
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)217.39%
EPS 3Y-43.16%
EPS 5Y-24.83%
EPS Q2Q%128.57%
EPS Next Y343.28%
EPS Next 2Y151.25%
EPS Next 3Y97.12%
EPS Next 5YN/A
Revenue 1Y (TTM)10.42%
Revenue growth 3Y-0.91%
Revenue growth 5Y1.74%
Sales Q2Q%2.3%
Revenue Next Year-2.39%
Revenue Next 2Y4.32%
Revenue Next 3Y4.76%
Revenue Next 5YN/A
EBIT growth 1Y822.6%
EBIT growth 3Y-13.2%
EBIT growth 5Y-3.37%
EBIT Next Year64.74%
EBIT Next 3Y30.37%
EBIT Next 5YN/A
FCF growth 1Y68.76%
FCF growth 3Y-33.75%
FCF growth 5Y-16.38%
OCF growth 1Y241.05%
OCF growth 3Y-29.45%
OCF growth 5Y-14.67%