KRONOS WORLDWIDE INC (KRO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KRO - US50105F1057 - Common Stock
5.48 USD
-0.11 (-1.97%)
5.48 USD
0 (0%)
KRO gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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 quite expensive at the moment. It does show a decent growth rate.
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
- KRO has a Return On Assets of -2.16%. This is in the lower half of the industry: KRO underperforms 65.06% of its industry peers.
- The Return On Equity of KRO (-5.13%) is worse than 62.65% of its industry peers.
- KRO has a Return On Invested Capital (2.68%) which is in line with its industry peers.
| 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 has a worse Operating Margin (2.97%) than 68.67% of its industry peers.
- In the last couple of years the Operating Margin of KRO has declined.
- Looking at the Gross Margin, with a value of 16.25%, KRO is doing worse than 73.49% 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KRO 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.
- KRO has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.72, we must say that KRO is in the distress zone and has some risk of bankruptcy.
- KRO's Altman-Z score of 1.72 is in line compared to the rest of the industry. KRO outperforms 43.37% of its industry peers.
- KRO has a Debt/Equity ratio of 0.78. This is a neutral value indicating 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
WACC11.77%
2.3 Liquidity
- KRO has a Current Ratio of 3.83. This indicates that KRO is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 3.83, KRO belongs to the top of the industry, outperforming 87.95% of the companies in the same industry.
- A Quick Ratio of 1.47 indicates that KRO should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.47, KRO is in line with its industry, outperforming 59.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.83 | ||
| Quick Ratio | 1.47 |
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.
- 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 39.61% on average per year.
- KRO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.80% yearly.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for KRO. In the last year negative earnings were reported.
- Based on the Price/Forward Earnings ratio of 83.47, the valuation of KRO can be described as expensive.
- KRO's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. KRO is more expensive than 67.47% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, KRO is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 83.47 |
4.2 Price Multiples
- KRO's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.07 |
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%
5. Dividend
5.1 Amount
- KRO has a Yearly Dividend Yield of 3.58%.
- Compared to an average industry Dividend Yield of 2.23, KRO pays a better dividend. On top of this KRO pays more dividend than 84.34% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, KRO pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
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
- 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%
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.