KRONOS WORLDWIDE INC (KRO) Stock Fundamental Analysis
USA - NYSE:KRO - US50105F1057 - Common Stock
4.95 USD
+0.12 (+2.48%)
5.1095 USD
+0.16 (+3.22%)
We assign a fundamental rating of 4 out of 10 to KRO. KRO was compared to 83 industry peers in the Chemicals industry. While KRO is still in line with the averages on profitability rating, there are concerns on its financial health. KRO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year KRO was profitable.
In the past year KRO has reported a negative cash flow from operations.
Of the past 5 years KRO 4 years were profitable.
Each year in the past 5 years KRO had a positive operating cash flow.
1.2 Ratios
KRO has a Return On Assets of 3.48%. This is in the better half of the industry: KRO outperforms 69.88% of its industry peers.
KRO has a better Return On Equity (7.97%) than 72.29% of its industry peers.
KRO has a Return On Invested Capital of 5.53%. This is in the better half of the industry: KRO outperforms 62.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.48% | ||
| ROE | 7.97% | ||
| ROIC | 5.53% |
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
With a decent Profit Margin value of 3.57%, KRO is doing good in the industry, outperforming 63.86% of the companies in the same industry.
KRO's Profit Margin has declined in the last couple of years.
KRO's Operating Margin of 5.74% is on the low side compared to the rest of the industry. KRO is outperformed by 60.24% of its industry peers.
KRO's Operating Margin has declined in the last couple of years.
The Gross Margin of KRO (18.88%) is worse than 67.47% of its industry peers.
In the last couple of years the Gross Margin of KRO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.74% | ||
| PM (TTM) | 3.57% | ||
| GM | 18.88% |
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.
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 1.74, we must say that KRO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of KRO (1.74) is comparable to the rest of the industry.
KRO has a Debt/Equity ratio of 0.59. This is a neutral value indicating KRO is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.59, KRO is doing good in the industry, outperforming 62.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.74 |
ROIC/WACC0.61
WACC9.09%
2.3 Liquidity
KRO has a Current Ratio of 2.79. This indicates that KRO is financially healthy and has no problem in meeting its short term obligations.
KRO has a Current ratio of 2.79. This is in the better half of the industry: KRO outperforms 77.11% of its industry peers.
A Quick Ratio of 1.04 indicates that KRO should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.04, KRO is doing worse than 66.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.79 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
KRO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 100.00%, which is quite impressive.
The earnings per share for KRO have been decreasing by -24.83% on average. This is quite bad
The Revenue has been growing slightly by 6.51% 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)100%
EPS 3Y-43.16%
EPS 5Y-24.83%
EPS Q2Q%-147.06%
Revenue 1Y (TTM)6.51%
Revenue growth 3Y-0.91%
Revenue growth 5Y1.74%
Sales Q2Q%-1.22%
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 88.04% on average per year.
The Revenue is expected to grow by 3.13% on average over the next years.
EPS Next Y73.94%
EPS Next 2Y113.19%
EPS Next 3Y88.04%
EPS Next 5YN/A
Revenue Next Year-5.58%
Revenue Next 2Y1.14%
Revenue Next 3Y3.13%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 247.50, KRO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, KRO is valued a bit more expensive than the industry average as 68.67% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.91, KRO is valued quite expensively.
With a Price/Forward Earnings ratio of 6.05, the valuation of KRO can be described as very cheap.
95.18% 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 22.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 247.5 | ||
| Fwd PE | 6.05 |
4.2 Price Multiples
83.13% of the companies in the same industry are more expensive than KRO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KRO's earnings are expected to grow with 88.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.35
PEG (5Y)N/A
EPS Next 2Y113.19%
EPS Next 3Y88.04%
5. Dividend
5.1 Amount
KRO has a Yearly Dividend Yield of 4.14%, which is a nice return.
KRO's Dividend Yield is rather good when compared to the industry average which is at 3.76. KRO pays more dividend than 83.13% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, KRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
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 pays out 34.07% of its income as dividend. This is a sustainable payout ratio.
DP34.07%
EPS Next 2Y113.19%
EPS Next 3Y88.04%
4.95
+0.12 (+2.48%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners17.24%
Inst Owner Change-2.54%
Ins Owners0.17%
Ins Owner Change0.13%
Market Cap569.50M
Revenue(TTM)1.89B
Net Income(TTM)67.50M
Analysts46.67
Price Target8.16 (64.85%)
Short Float %7.57%
Short Ratio4.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
Yearly Dividend0.48
Dividend Growth(5Y)-7.8%
DP34.07%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-82.74%
Min EPS beat(2)-158.67%
Max EPS beat(2)-6.81%
EPS beat(4)0
Avg EPS beat(4)-107.62%
Min EPS beat(4)-188.88%
Max EPS beat(4)-6.81%
EPS beat(8)3
Avg EPS beat(8)28.83%
EPS beat(12)4
Avg EPS beat(12)-22.07%
EPS beat(16)7
Avg EPS beat(16)-10.9%
Revenue beat(2)0
Avg Revenue beat(2)-3.15%
Min Revenue beat(2)-3.28%
Max Revenue beat(2)-3.02%
Revenue beat(4)0
Avg Revenue beat(4)-9.32%
Min Revenue beat(4)-15.74%
Max Revenue beat(4)-3.02%
Revenue beat(8)2
Avg Revenue beat(8)-4.84%
Revenue beat(12)4
Avg Revenue beat(12)-3.11%
Revenue beat(16)7
Avg Revenue beat(16)-1.55%
PT rev (1m)0%
PT rev (3m)-8.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-70%
EPS NY rev (1m)-48.76%
EPS NY rev (3m)-60.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.77%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 247.5 | ||
| Fwd PE | 6.05 | ||
| P/S | 0.3 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.67 | ||
| P/tB | 0.67 | ||
| EV/EBITDA | 6.76 |
EPS(TTM)0.02
EY0.4%
EPS(NY)0.82
Fwd EY16.53%
FCF(TTM)-0.42
FCFYN/A
OCF(TTM)-0.04
OCFYN/A
SpS16.45
BVpS7.36
TBVpS7.34
PEG (NY)3.35
PEG (5Y)N/A
Graham Number1.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.48% | ||
| ROE | 7.97% | ||
| ROCE | 7.01% | ||
| ROIC | 5.53% | ||
| ROICexc | 5.6% | ||
| ROICexgc | 5.61% | ||
| OM | 5.74% | ||
| PM (TTM) | 3.57% | ||
| GM | 18.88% | ||
| 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 | 0.59 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.01 | ||
| Cap/Depr | 76.9% | ||
| Cap/Sales | 2.36% | ||
| Interest Coverage | 2.04 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.79 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 1.74 |
F-Score3
WACC9.09%
ROIC/WACC0.61
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)100%
EPS 3Y-43.16%
EPS 5Y-24.83%
EPS Q2Q%-147.06%
EPS Next Y73.94%
EPS Next 2Y113.19%
EPS Next 3Y88.04%
EPS Next 5YN/A
Revenue 1Y (TTM)6.51%
Revenue growth 3Y-0.91%
Revenue growth 5Y1.74%
Sales Q2Q%-1.22%
Revenue Next Year-5.58%
Revenue Next 2Y1.14%
Revenue Next 3Y3.13%
Revenue Next 5YN/A
EBIT growth 1Y271.92%
EBIT growth 3Y-13.2%
EBIT growth 5Y-3.37%
EBIT Next Year16.79%
EBIT Next 3Y26.65%
EBIT Next 5YN/A
FCF growth 1Y56.05%
FCF growth 3Y-33.75%
FCF growth 5Y-16.38%
OCF growth 1Y90.72%
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 4 / 10 to KRO.
What is the valuation status for KRO stock?
ChartMill assigns a valuation rating of 4 / 10 to KRONOS WORLDWIDE INC (KRO). This can be considered as Fairly Valued.
Can you provide the profitability details for KRONOS WORLDWIDE INC?
KRONOS WORLDWIDE INC (KRO) has a profitability rating of 4 / 10.
How financially healthy is KRONOS WORLDWIDE INC?
The financial health rating of KRONOS WORLDWIDE INC (KRO) is 3 / 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 grow by 73.94% in the next year.