KRONOS WORLDWIDE INC (KRO) Stock Fundamental Analysis
USA - NYSE:KRO - US50105F1057 - Common Stock
5.72 USD
+0.01 (+0.18%)
5.83 USD
+0.11 (+1.92%)
KRO gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year KRO was profitable.
KRO had a negative operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 3.48%, KRO is in the better half of the industry, outperforming 69.88% of the companies in the same industry.
KRO has a Return On Equity of 7.97%. This is in the better half of the industry: KRO outperforms 72.29% of its industry peers.
KRO's Return On Invested Capital of 5.53% is fine compared to the rest 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
Looking at the Profit Margin, with a value of 3.57%, KRO is in the better half of the industry, outperforming 63.86% of the companies in the same industry.
In the last couple of years the Profit Margin of KRO has declined.
KRO has a Operating Margin of 5.74%. This is in the lower half of the industry: KRO underperforms 60.24% of its industry peers.
KRO's Operating Margin has declined in the last couple of years.
KRO has a Gross Margin of 18.88%. This is in the lower half of the industry: KRO underperforms 67.47% of its industry peers.
KRO's Gross Margin has declined in the last couple of years.
| 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
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.
The debt/assets ratio for KRO is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.80, we must say that KRO is in the distress zone and has some risk of bankruptcy.
KRO's Altman-Z score of 1.80 is in line compared to the rest of the industry. KRO outperforms 48.19% of its industry peers.
A Debt/Equity ratio of 0.59 indicates that KRO is somewhat dependend on debt financing.
KRO's Debt to Equity ratio of 0.59 is fine compared to the rest of the industry. KRO outperforms 62.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.8 |
ROIC/WACC0.6
WACC9.27%
2.3 Liquidity
A Current Ratio of 2.79 indicates that KRO has no problem at all paying its short term obligations.
The Current ratio of KRO (2.79) is better than 77.11% of its industry peers.
KRO has a Quick Ratio of 1.04. 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 worse Quick ratio (1.04) than 66.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.79 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 100.00% over the past year.
The earnings per share for KRO have been decreasing by -24.83% on average. This is quite bad
KRO shows a small growth in Revenue. In the last year, the Revenue has grown by 6.51%.
The Revenue has been growing slightly by 1.74% on average over the past years.
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
The Price/Earnings ratio is 286.00, which means the current valuation is very expensive for KRO.
68.67% of the companies in the same industry are cheaper than KRO, based on the Price/Earnings ratio.
KRO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.86.
With a Price/Forward Earnings ratio of 6.99, the valuation of KRO can be described as very cheap.
93.98% of the companies in the same industry are more expensive than KRO, based on the Price/Forward Earnings ratio.
KRO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 286 | ||
| Fwd PE | 6.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KRO is valued a bit cheaper than 77.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KRO does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as KRO's earnings are expected to grow with 88.04% in the coming years.
PEG (NY)3.87
PEG (5Y)N/A
EPS Next 2Y113.19%
EPS Next 3Y88.04%
5. Dividend
5.1 Amount
KRO has a Yearly Dividend Yield of 3.50%.
Compared to an average industry Dividend Yield of 3.61, KRO pays a better dividend. On top of this KRO pays more dividend than 80.72% of the companies listed in the same industry.
KRO's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
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
34.07% of the earnings are spent on dividend by KRO. This is a low number and sustainable payout ratio.
DP34.07%
EPS Next 2Y113.19%
EPS Next 3Y88.04%
5.72
+0.01 (+0.18%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners17.24%
Inst Owner Change-2.35%
Ins Owners0.17%
Ins Owner Change0.12%
Market Cap658.09M
Analysts46.67
Price Target8.16 (42.66%)
Short Float %7.14%
Short Ratio3.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
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)-0.85%
Revenue NY rev (3m)-3.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 286 | ||
| Fwd PE | 6.99 | ||
| P/S | 0.35 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.78 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | 7.37 |
EPS(TTM)0.02
EY0.35%
EPS(NY)0.82
Fwd EY14.3%
FCF(TTM)-0.42
FCFYN/A
OCF(TTM)-0.04
OCFYN/A
SpS16.45
BVpS7.36
TBVpS7.34
PEG (NY)3.87
PEG (5Y)N/A
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
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-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 | 1.8 |
F-Score3
WACC9.27%
ROIC/WACC0.6
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%