KRONOS WORLDWIDE INC (KRO) Stock Fundamental Analysis
NYSE:KRO - New York Stock Exchange, Inc. - US50105F1057 - Common Stock - Currency: USD
KRO gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. KRO has an average financial health and profitability rating. KRO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
KRO had positive earnings in the past year.
In the past year KRO had a positive 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 4.50%. This is in the better half of the industry: KRO outperforms 75.29% of its industry peers.
KRO's Return On Equity of 10.55% is fine compared to the rest of the industry. KRO outperforms 76.47% of its industry peers.
KRO has a better Return On Invested Capital (6.67%) than 65.88% of its industry peers.
| 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
With a decent Profit Margin value of 4.57%, KRO is doing good in the industry, outperforming 64.71% of the companies in the same industry.
KRO's Profit Margin has declined in the last couple of years.
The Operating Margin of KRO (6.43%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of KRO has declined.
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.
KRO's Gross Margin has declined in the last couple of years.
| 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
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
An Altman-Z score of 1.90 indicates that KRO is not a great score, but indicates only limited risk for bankruptcy at the moment.
KRO has a Altman-Z score (1.90) which is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 11.80, KRO is in line with its industry, outperforming 56.47% of the companies in the same industry.
KRO has a Debt/Equity ratio of 0.53. This is a neutral value indicating KRO is somewhat dependend on debt financing.
KRO has a Debt to Equity ratio (0.53) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 11.8 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.72
WACC9.2%
2.3 Liquidity
A Current Ratio of 2.32 indicates that KRO has no problem at all paying its short term obligations.
The Current ratio of KRO (2.32) is better than 68.24% of its industry peers.
KRO has a Quick Ratio of 2.32. This is a bad value and indicates that KRO is not financially healthy enough and could expect problems in meeting its short term obligations.
KRO has a Quick ratio (0.94) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.32 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 141.86% over the past year.
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 grown by 13.24% in the past year. This is quite good.
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)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
Based on estimates for the next years, KRO will show a very strong growth in Earnings Per Share. The EPS will grow by 99.26% on average per year.
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
KRO is valuated quite expensively with a Price/Earnings ratio of 41.11.
Based on the Price/Earnings ratio, KRO is valued a bit more expensive than the industry average as 64.71% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 28.10. KRO is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 8.19, the valuation of KRO can be described as very reasonable.
84.71% of the companies in the same industry are more expensive than KRO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, KRO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.11 | ||
| Fwd PE | 8.19 |
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 78.82% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, KRO is valued a bit cheaper than the industry average as 65.88% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.8 | ||
| EV/EBITDA | 6.74 |
4.3 Compensation for Growth
The 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
KRO has a Yearly Dividend Yield of 2.69%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of KRO has falen by -21.69%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
KRO's Dividend Yield is a higher than the industry average which is at 3.81.
KRO's Dividend Yield is comparable with the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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
64.04% of the earnings are spent on dividend by KRO. This is not a sustainable payout ratio.
DP64.04%
EPS Next 2Y157.32%
EPS Next 3Y99.26%
7.4
-0.16 (-2.12%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners16.2%
Inst Owner Change-0.08%
Ins Owners0.11%
Ins Owner Change0.04%
Market Cap851.30M
Analysts46
Price Target10.2 (37.84%)
Short Float %4.36%
Short Ratio3.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.69% |
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)0%
PT rev (3m)-16.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.96%
EPS NY rev (1m)0%
EPS NY rev (3m)6.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.11 | ||
| Fwd PE | 8.19 | ||
| P/S | 0.45 | ||
| P/FCF | 19.8 | ||
| P/OCF | 11.74 | ||
| P/B | 1.04 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 6.74 |
EPS(TTM)0.18
EY2.43%
EPS(NY)0.9
Fwd EY12.22%
FCF(TTM)0.37
FCFY5.05%
OCF(TTM)0.63
OCFY8.52%
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 | 1.9 |
F-Score6
WACC9.2%
ROIC/WACC0.72
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%