KRONOS WORLDWIDE INC (KRO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KRO - US50105F1057 - Common Stock
4.62 USD
-0.16 (-3.35%)
4.62 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to KRO. KRO was compared to 84 industry peers in the Chemicals industry. The financial health of KRO is average, but there are quite some concerns on its profitability. While showing a medium growth rate, KRO is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
KRO had negative earnings in the past year.
In the past year KRO has reported a negative cash flow from operations.
KRO had positive earnings in 4 of the past 5 years.
Each year in the past 5 years KRO had a positive operating cash flow.
1.2 Ratios
KRO has a worse Return On Assets (-2.16%) than 63.10% of its industry peers.
KRO's Return On Equity of -5.13% is on the low side compared to the rest of the industry. KRO is outperformed by 60.71% 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 44.05% 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
In the last couple of years the Profit Margin of KRO has declined.
With a Operating Margin value of 2.97%, KRO is not doing good in the industry: 67.86% of the companies in the same industry are doing better.
KRO's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 16.25%, KRO is doing worse than 71.43% 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 | 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
KRO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, KRO has about the same amount of shares outstanding.
The number of shares outstanding for KRO has been reduced compared to 5 years ago.
KRO has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.67, we must say that KRO is in the distress zone and has some risk of bankruptcy.
KRO has a Altman-Z score of 1.67. This is comparable to the rest of the industry: KRO outperforms 45.24% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that KRO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.78, KRO is in line with its industry, outperforming 46.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.67 |
ROIC/WACC0.29
WACC9.21%
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 89.29% 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 in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.83 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The earnings per share for KRO have decreased strongly by -244.00% in the last year.
Measured over the past years, KRO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -24.83% on average per year.
The Revenue has been growing slightly by 0.01% in the past year.
Measured over the past years, KRO shows a small growth in Revenue. The Revenue has been growing by 1.74% on average per year.
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 75.60% on average per year.
Based on estimates for the next years, KRO will show a small growth in Revenue. The Revenue will grow by 1.50% on average per year.
EPS Next Y-116.83%
EPS Next 2Y70.82%
EPS Next 3Y75.6%
EPS Next 5YN/A
Revenue Next Year-10.45%
Revenue Next 2Y-2.44%
Revenue Next 3Y1.5%
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 stable: in the next years the growth will be about the same 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 8.80, the valuation of KRO can be described as very reasonable.
Based on the Price/Forward Earnings ratio, KRO is valued cheaply inside the industry as 88.10% of the companies are valued more expensively.
KRO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.8 |
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.18 |
4.3 Compensation for Growth
A more expensive valuation may be justified as KRO's earnings are expected to grow with 75.60% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y70.82%
EPS Next 3Y75.6%
5. Dividend
5.1 Amount
KRO has a Yearly Dividend Yield of 4.18%, which is a nice return.
In the last 3 months the price of KRO has falen by -22.87%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
KRO's Dividend Yield is rather good when compared to the industry average which is at 2.46. KRO pays more dividend than 84.52% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, KRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
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
KRO has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-55.69%
EPS Next 2Y70.82%
EPS Next 3Y75.6%
4.62
-0.16 (-3.35%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners17.06%
Inst Owner Change-0.7%
Ins Owners0.17%
Ins Owner Change0.09%
Market Cap531.53M
Revenue(TTM)1.86B
Net Income(TTM)-41.30M
Analysts46.67
Price Target6.12 (32.47%)
Short Float %7.04%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.18% |
Yearly Dividend0.48
Dividend Growth(5Y)-7.8%
DP-55.69%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-11.11%
PT rev (3m)-25%
EPS NQ rev (1m)-180%
EPS NQ rev (3m)-411.11%
EPS NY rev (1m)0%
EPS NY rev (3m)-104.96%
Revenue NQ rev (1m)-3.48%
Revenue NQ rev (3m)-13.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.8 | ||
| P/S | 0.29 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.66 | ||
| P/tB | 0.66 | ||
| EV/EBITDA | 10.18 |
EPS(TTM)-0.36
EYN/A
EPS(NY)0.53
Fwd EY11.37%
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 | 1.67 |
F-Score3
WACC9.21%
ROIC/WACC0.29
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-116.83%
EPS Next 2Y70.82%
EPS Next 3Y75.6%
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-10.45%
Revenue Next 2Y-2.44%
Revenue Next 3Y1.5%
Revenue Next 5YN/A
EBIT growth 1Y-36.36%
EBIT growth 3Y-13.2%
EBIT growth 5Y-3.37%
EBIT Next Year-37.77%
EBIT Next 3Y16.75%
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.
What is the valuation status for KRO stock?
ChartMill assigns a valuation rating of 3 / 10 to KRONOS WORLDWIDE INC (KRO). This can be considered as Overvalued.
Can you provide the profitability details for KRONOS WORLDWIDE INC?
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 expected EPS growth for KRONOS WORLDWIDE INC (KRO) stock?
The Earnings per Share (EPS) of KRONOS WORLDWIDE INC (KRO) is expected to decline by -116.83% in the next year.