KRONOS WORLDWIDE INC (KRO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KRO - US50105F1057 - Common Stock
5.54 USD
+0.08 (+1.47%)
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
- In the past year KRO has reported negative net income.
- 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
- With a Return On Assets value of -2.16%, KRO is not doing good in the industry: 65.06% of the companies in the same industry are doing better.
- KRO has a Return On Equity of -5.13%. This is in the lower half of the industry: KRO underperforms 62.65% of its industry peers.
- KRO has a Return On Invested Capital (2.68%) which is comparable to the rest of the 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.
- KRO's Operating Margin of 2.97% is on the low side compared to the rest of the industry. KRO is outperformed by 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.
- KRO's Gross Margin has declined in the last couple of years.
| 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.
- 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.
- The debt/assets ratio for KRO is higher compared to a year ago.
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 has a Altman-Z score (1.72) which is in line with its industry peers.
- A Debt/Equity ratio of 0.78 indicates that KRO is somewhat dependend on debt financing.
- KRO's Debt to Equity ratio of 0.78 is in line compared to the rest of the industry. KRO outperforms 44.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.72 |
ROIC/WACC0.23
WACC11.75%
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.
- With an excellent Current ratio value of 3.83, KRO belongs to the best 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.
- The Quick ratio of KRO (1.47) is comparable to the rest of the 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%.
- The earnings per share for KRO have been decreasing by -24.83% on average. This is quite bad
- Looking at the last year, KRO shows a small growth in Revenue. The Revenue has grown by 0.01% in the last year.
- KRO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.74% yearly.
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
- The Earnings Per Share is expected to grow by 39.61% on average over the next years. This is a very strong growth
- 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
- 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 decreasing: in the next years the growth will be less 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.
- Based on the Price/Forward Earnings ratio of 84.39, the valuation of KRO can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of KRO indicates a slightly more expensive valuation: KRO is more expensive than 67.47% of the companies listed in the same industry.
- KRO's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 84.39 |
4.2 Price Multiples
- KRO's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.05 |
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%. Purely for dividend investing, there may be better candidates out there.
- 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 1.82, 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 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 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.