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 5 out of 10 in our fundamental rating. KRO was compared to 85 industry peers in the Chemicals industry. KRO has only an average score on both its financial health and profitability. KRO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
KRO had positive earnings in the past year.
KRO had a positive 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
Looking at the Return On Assets, with a value of 4.50%, KRO is in the better half of the industry, outperforming 74.12% of the companies in the same industry.
Looking at the Return On Equity, with a value of 10.55%, KRO is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.67%, KRO is in the better half of the industry, outperforming 65.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.5% | ||
| ROE | 10.55% | ||
| ROIC | 6.67% |
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 has a Profit Margin of 4.57%. This is in the better half of the industry: KRO outperforms 64.71% of its industry peers.
KRO's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 6.43%, KRO is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
KRO's Operating Margin has declined in the last couple of years.
KRO has a Gross Margin of 19.04%. This is in the lower half of the industry: KRO underperforms 67.06% of its industry peers.
In the last couple of years the Gross Margin of KRO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.43% | ||
| PM (TTM) | 4.57% | ||
| GM | 19.04% |
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.
KRO has about the same amout of shares outstanding than it did 1 year ago.
KRO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, KRO has a worse debt to assets ratio.
2.2 Solvency
KRO has an Altman-Z score of 1.88. 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 has a Altman-Z score of 1.88. This is comparable to the rest of the industry: KRO outperforms 57.65% of its industry peers.
KRO has a debt to FCF ratio of 11.80. This is a negative value and a sign of low solvency as KRO would need 11.80 years to pay back of all of its debts.
The Debt to FCF ratio of KRO (11.80) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.53 indicates that KRO is somewhat dependend on debt financing.
KRO has a Debt to Equity ratio of 0.53. This is comparable to the rest of the industry: KRO outperforms 57.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 11.8 | ||
| Altman-Z | 1.88 |
ROIC/WACC0.73
WACC9.12%
2.3 Liquidity
KRO has a Current Ratio of 2.32. This indicates that KRO is financially healthy and has no problem in meeting its short term obligations.
KRO has a better Current ratio (2.32) than 68.24% of its industry peers.
A Quick Ratio of 0.94 indicates that KRO may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.94, KRO is in line with its industry, outperforming 41.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
KRO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 141.86%, which is quite impressive.
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.
KRO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.24%.
The Revenue has been growing slightly by 1.74% on average over the past years.
EPS 1Y (TTM)141.86%
EPS 3Y-43.16%
EPS 5Y-24.83%
EPS Q2Q%-140%
Revenue 1Y (TTM)13.24%
Revenue growth 3Y-0.91%
Revenue growth 5Y1.74%
Sales Q2Q%5.75%
3.2 Future
The Earnings Per Share is expected to grow by 99.26% on average over the next years. This is a very strong growth
Based on estimates for the next years, KRO will show a small growth in Revenue. The Revenue will grow by 2.83% on average per year.
EPS Next Y402.19%
EPS Next 2Y157.32%
EPS Next 3Y99.26%
EPS Next 5YN/A
Revenue Next Year1.96%
Revenue Next 2Y4.62%
Revenue Next 3Y2.83%
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
The Price/Earnings ratio is 40.78, which means the current valuation is very expensive for KRO.
64.71% of the companies in the same industry are cheaper than KRO, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.33, KRO is valued a bit more expensive.
A Price/Forward Earnings ratio of 8.12 indicates a reasonable valuation of KRO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KRO indicates a rather cheap valuation: KRO is cheaper than 88.24% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of KRO to the average of the S&P500 Index (21.37), we can say KRO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.78 | ||
| Fwd PE | 8.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KRO indicates a somewhat cheap valuation: KRO is cheaper than 76.47% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KRO indicates a somewhat cheap valuation: KRO is cheaper than 65.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.64 | ||
| EV/EBITDA | 6.54 |
4.3 Compensation for Growth
KRO's 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 99.26% in the coming years.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y157.32%
EPS Next 3Y99.26%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.91%, KRO has a reasonable but not impressive dividend return.
The stock price of KRO dropped by -26.01% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.98, KRO pays a bit more dividend than its industry peers.
KRO's Dividend Yield is comparable with the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
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.
KRO has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-7.8%
Div Incr Years0
Div Non Decr Years13
5.3 Sustainability
KRO pays out 64.04% of its income as dividend. This is not a sustainable payout ratio.
DP64.04%
EPS Next 2Y157.32%
EPS Next 3Y99.26%
7.34
+0.26 (+3.67%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners16.2%
Inst Owner Change0.29%
Ins Owners0.11%
Ins Owner Change0.04%
Market Cap844.39M
Analysts46
Price Target10.2 (38.96%)
Short Float %3.29%
Short Ratio4.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.91% |
Yearly Dividend0.48
Dividend Growth(5Y)-7.8%
DP64.04%
Div Incr Years0
Div Non Decr Years13
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-132.5%
Min EPS beat(2)-188.88%
Max EPS beat(2)-76.11%
EPS beat(4)2
Avg EPS beat(4)128.2%
Min EPS beat(4)-188.88%
Max EPS beat(4)766.34%
EPS beat(8)3
Avg EPS beat(8)-0.85%
EPS beat(12)5
Avg EPS beat(12)-2.79%
EPS beat(16)7
Avg EPS beat(16)-3.24%
Revenue beat(2)0
Avg Revenue beat(2)-15.49%
Min Revenue beat(2)-15.74%
Max Revenue beat(2)-15.25%
Revenue beat(4)1
Avg Revenue beat(4)-9.16%
Min Revenue beat(4)-15.74%
Max Revenue beat(4)3.09%
Revenue beat(8)3
Avg Revenue beat(8)-3.87%
Revenue beat(12)6
Avg Revenue beat(12)-1.44%
Revenue beat(16)8
Avg Revenue beat(16)-1.25%
PT rev (1m)-16.67%
PT rev (3m)-16.67%
EPS NQ rev (1m)8.28%
EPS NQ rev (3m)12.96%
EPS NY rev (1m)6.38%
EPS NY rev (3m)6.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.49%
Revenue NY rev (1m)-4.3%
Revenue NY rev (3m)-4.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.78 | ||
| Fwd PE | 8.12 | ||
| P/S | 0.45 | ||
| P/FCF | 19.64 | ||
| P/OCF | 11.65 | ||
| P/B | 1.03 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 6.54 |
EPS(TTM)0.18
EY2.45%
EPS(NY)0.9
Fwd EY12.32%
FCF(TTM)0.37
FCFY5.09%
OCF(TTM)0.63
OCFY8.59%
SpS16.4
BVpS7.1
TBVpS7.08
PEG (NY)0.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.5% | ||
| ROE | 10.55% | ||
| ROCE | 8.44% | ||
| ROIC | 6.67% | ||
| ROICexc | 7.2% | ||
| ROICexgc | 7.22% | ||
| OM | 6.43% | ||
| PM (TTM) | 4.57% | ||
| GM | 19.04% | ||
| FCFM | 2.28% |
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-Score6
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 11.8 | ||
| Debt/EBITDA | 2.31 | ||
| Cap/Depr | 45.81% | ||
| Cap/Sales | 1.56% | ||
| Interest Coverage | 3.18 | ||
| Cash Conversion | 39.04% | ||
| Profit Quality | 49.88% | ||
| Current Ratio | 2.32 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 1.88 |
F-Score6
WACC9.12%
ROIC/WACC0.73
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)141.86%
EPS 3Y-43.16%
EPS 5Y-24.83%
EPS Q2Q%-140%
EPS Next Y402.19%
EPS Next 2Y157.32%
EPS Next 3Y99.26%
EPS Next 5YN/A
Revenue 1Y (TTM)13.24%
Revenue growth 3Y-0.91%
Revenue growth 5Y1.74%
Sales Q2Q%5.75%
Revenue Next Year1.96%
Revenue Next 2Y4.62%
Revenue Next 3Y2.83%
Revenue Next 5YN/A
EBIT growth 1Y302.5%
EBIT growth 3Y-13.2%
EBIT growth 5Y-3.37%
EBIT Next Year71.04%
EBIT Next 3Y30.35%
EBIT Next 5YN/A
FCF growth 1Y202.63%
FCF growth 3Y-33.75%
FCF growth 5Y-16.38%
OCF growth 1Y1218.18%
OCF growth 3Y-29.45%
OCF growth 5Y-14.67%