KRONOS WORLDWIDE INC (KRO) Stock Fundamental Analysis
NYSE:KRO - New York Stock Exchange, Inc. - US50105F1057 - Common Stock - Currency: USD
Overall KRO gets a fundamental rating of 5 out of 10. We evaluated KRO against 85 industry peers in the Chemicals industry. KRO has an average financial health and profitability rating. 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
KRO's Return On Assets of 4.50% is fine compared to the rest of the industry. KRO outperforms 74.12% of its industry peers.
Looking at the Return On Equity, with a value of 10.55%, KRO is in the better half of the industry, outperforming 75.29% of the companies in the same industry.
KRO has a Return On Invested Capital of 6.67%. This is in the better half of the industry: KRO outperforms 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
KRO's Profit Margin of 4.57% is fine compared to the rest of the industry. KRO outperforms 64.71% of its industry peers.
In the last couple of years the Profit Margin of KRO has declined.
KRO has a worse Operating Margin (6.43%) than 60.00% of its industry peers.
In the last couple of years the Operating Margin of KRO has declined.
With a Gross Margin value of 19.04%, KRO is not doing good in the industry: 67.06% of the companies in the same industry are doing better.
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
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.
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
KRO has an Altman-Z score of 1.92. 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 1.92. This is comparable to the rest of the industry: KRO outperforms 55.29% of its industry peers.
The Debt to FCF ratio of KRO is 11.80, which is on the high side as it means it would take KRO, 11.80 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 11.80, KRO perfoms like the industry average, outperforming 56.47% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that KRO is somewhat dependend on debt financing.
KRO's Debt to Equity ratio of 0.53 is in line compared 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 | 1.92 |
ROIC/WACC0.74
WACC9.02%
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 67.06% 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 comparable to the rest of the industry.
| 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.
The earnings per share for KRO have been decreasing by -24.83% on average. This is quite bad
The Revenue has grown by 13.24% in the past year. This is quite good.
KRO shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.74% yearly.
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
KRO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 99.26% yearly.
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
With a Price/Earnings ratio of 42.17, KRO can be considered very expensive at the moment.
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.
When comparing the Price/Earnings ratio of KRO to the average of the S&P500 Index (28.87), we can say KRO is valued slightly more expensively.
KRO is valuated reasonably with a Price/Forward Earnings ratio of 8.40.
Based on the Price/Forward Earnings ratio, KRO is valued cheaper than 84.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KRO to the average of the S&P500 Index (21.38), we can say KRO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.17 | ||
| Fwd PE | 8.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KRO is valued a bit cheaper than 75.29% of the companies in the same industry.
65.88% of the companies in the same industry are more expensive than KRO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.31 | ||
| EV/EBITDA | 6.92 |
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.
KRO's earnings are expected to grow with 99.26% in the coming years. This may justify a more expensive valuation.
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 2.59%, KRO has a reasonable but not impressive dividend return.
The stock price of KRO dropped by -20.86% 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.
KRO's Dividend Yield is a higher than the industry average which is at 3.80.
KRO's Dividend Yield is comparable with the S&P500 average which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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.
KRO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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%
7.59
-0.09 (-1.17%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners16.2%
Inst Owner Change0.28%
Ins Owners0.11%
Ins Owner Change0.04%
Market Cap873.15M
Analysts46
Price Target10.2 (34.39%)
Short Float %3.54%
Short Ratio3.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
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)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)-4.3%
Revenue NY rev (3m)-4.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.17 | ||
| Fwd PE | 8.4 | ||
| P/S | 0.46 | ||
| P/FCF | 20.31 | ||
| P/OCF | 12.04 | ||
| P/B | 1.07 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 6.92 |
EPS(TTM)0.18
EY2.37%
EPS(NY)0.9
Fwd EY11.91%
FCF(TTM)0.37
FCFY4.92%
OCF(TTM)0.63
OCFY8.3%
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 | 1.92 |
F-Score6
WACC9.02%
ROIC/WACC0.74
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%