KRONOS WORLDWIDE INC (KRO) Stock Fundamental Analysis
USA - NYSE:KRO - US50105F1057 - Common Stock
6.03 USD
-0.25 (-3.98%)
6.22 USD
+0.19 (+3.15%)
Overall KRO gets a fundamental rating of 4 out of 10. We evaluated KRO against 83 industry peers in the Chemicals industry. Both the profitability and the financial health of KRO get a neutral evaluation. Nothing too spectacular is happening here. KRO has a correct valuation and a medium 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.
KRO had positive earnings in 4 of the past 5 years.
In the past 5 years KRO always reported a positive cash flow from operatings.
1.2 Ratios
KRO has a Return On Assets of 3.48%. This is in the better half of the industry: KRO outperforms 69.88% of its industry peers.
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 has a better Return On Invested Capital (5.53%) than 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
The Profit Margin of KRO (3.57%) is better than 63.86% of its industry peers.
In the last couple of years the Profit Margin of KRO has declined.
With a Operating Margin value of 5.74%, KRO is not doing good in the industry: 60.24% of the companies in the same industry are doing better.
KRO's Operating Margin has declined in the last couple of years.
KRO's Gross Margin of 18.88% is on the low side compared to the rest of the industry. KRO is outperformed by 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
KRO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
KRO has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.82 indicates that KRO is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.82, KRO perfoms like the industry average, outperforming 50.60% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that KRO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.59, KRO is in the better half of the industry, outperforming 62.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.82 |
ROIC/WACC0.58
WACC9.47%
2.3 Liquidity
KRO has a Current Ratio of 2.79. This indicates that KRO is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.79, KRO is doing good in the industry, outperforming 77.11% of the companies in the same industry.
A Quick Ratio of 1.04 indicates that KRO should not have too much problems paying its short term obligations.
The Quick ratio of KRO (1.04) is worse 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.
KRO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.83% yearly.
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
The Earnings Per Share is expected to grow by 87.51% 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 3.13% on average per year.
EPS Next Y239.47%
EPS Next 2Y129.05%
EPS Next 3Y87.51%
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
A Price/Earnings ratio of 301.50 indicates a quite expensive valuation of KRO.
68.67% of the companies in the same industry are cheaper than KRO, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of KRO to the average of the S&P500 Index (27.30), we can say KRO is valued expensively.
With a Price/Forward Earnings ratio of 6.39, 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.
When comparing the Price/Forward Earnings ratio of KRO to the average of the S&P500 Index (22.73), we can say KRO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 301.5 | ||
| Fwd PE | 6.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KRO is valued a bit cheaper than 78.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.32 |
4.3 Compensation for Growth
KRO's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
KRO's earnings are expected to grow with 87.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)N/A
EPS Next 2Y129.05%
EPS Next 3Y87.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.18%, KRO has a reasonable but not impressive dividend return.
KRO's Dividend Yield is rather good when compared to the industry average which is at 3.43. KRO pays more dividend than 80.72% of the companies in the same industry.
KRO's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
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.
Dividend Growth(5Y)-7.8%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
KRO pays out 34.07% of its income as dividend. This is a sustainable payout ratio.
DP34.07%
EPS Next 2Y129.05%
EPS Next 3Y87.51%
6.03
-0.25 (-3.98%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners16.93%
Inst Owner Change-2.66%
Ins Owners0.14%
Ins Owner Change0.12%
Market Cap693.75M
Analysts46.67
Price Target8.16 (35.32%)
Short Float %6.7%
Short Ratio4.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
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)-2.04%
EPS NQ rev (1m)-57.14%
EPS NQ rev (3m)-65.33%
EPS NY rev (1m)-23.42%
EPS NY rev (3m)-23.42%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)-4.77%
Revenue NY rev (1m)-0.85%
Revenue NY rev (3m)-3.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 301.5 | ||
| Fwd PE | 6.39 | ||
| P/S | 0.37 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.82 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | 7.32 |
EPS(TTM)0.02
EY0.33%
EPS(NY)0.94
Fwd EY15.66%
FCF(TTM)-0.42
FCFYN/A
OCF(TTM)-0.04
OCFYN/A
SpS16.45
BVpS7.36
TBVpS7.34
PEG (NY)1.26
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 | 2.9 | ||
| Cap/Depr | 69.69% | ||
| 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 | 1.82 |
F-Score3
WACC9.47%
ROIC/WACC0.58
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)100%
EPS 3Y-43.16%
EPS 5Y-24.83%
EPS Q2Q%-147.06%
EPS Next Y239.47%
EPS Next 2Y129.05%
EPS Next 3Y87.51%
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 Year44.25%
EBIT Next 3Y25.84%
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%