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 4 out of 10. We evaluated KRO against 85 industry peers in the Chemicals industry. KRO has a medium profitability rating, but doesn't score so well on its financial health evaluation. KRO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year KRO was profitable.
KRO had a positive 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
With a decent Return On Assets value of 4.94%, KRO is doing good in the industry, outperforming 75.29% of the companies in the same industry.
With a decent Return On Equity value of 11.36%, KRO is doing good in the industry, outperforming 78.82% of the companies in the same industry.
The Return On Invested Capital of KRO (7.83%) is better than 71.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 11.36% | ||
| ROIC | 7.83% |
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 5.07%. This is in the better half of the industry: KRO outperforms 65.88% of its industry peers.
In the last couple of years the Profit Margin of KRO has declined.
Looking at the Operating Margin, with a value of 7.92%, KRO is in line with its industry, outperforming 47.06% of the companies in the same industry.
In the last couple of years the Operating Margin of KRO has declined.
KRO has a Gross Margin of 20.79%. This is in the lower half of the industry: KRO underperforms 65.88% of its industry peers.
In the last couple of years the Gross Margin of KRO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.92% | ||
| PM (TTM) | 5.07% | ||
| GM | 20.79% |
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
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 of 1.90. This is comparable to the rest of the industry: KRO outperforms 50.59% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that KRO is somewhat dependend on debt financing.
KRO has a Debt to Equity ratio (0.56) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.9 |
ROIC/WACC0.82
WACC9.5%
2.3 Liquidity
KRO has a Current Ratio of 2.62. This indicates that KRO is financially healthy and has no problem in meeting its short term obligations.
KRO's Current ratio of 2.62 is fine compared to the rest of the industry. KRO outperforms 72.94% of its industry peers.
KRO has a Quick Ratio of 2.62. This is a bad value and indicates that KRO is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.99, KRO is not doing good in the industry: 62.35% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
KRO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 217.39%, which is quite impressive.
KRO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.83% yearly.
Looking at the last year, KRO shows a quite strong growth in Revenue. The Revenue has grown by 10.42% in the last year.
The Revenue has been growing slightly by 1.74% on average over the past years.
EPS 1Y (TTM)217.39%
EPS 3Y-43.16%
EPS 5Y-24.83%
EPS Q2Q%128.57%
Revenue 1Y (TTM)10.42%
Revenue growth 3Y-0.91%
Revenue growth 5Y1.74%
Sales Q2Q%2.3%
3.2 Future
KRO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 97.12% yearly.
The Revenue is expected to grow by 4.76% on average over the next years.
EPS Next Y343.28%
EPS Next 2Y151.25%
EPS Next 3Y97.12%
EPS Next 5YN/A
Revenue Next Year-2.39%
Revenue Next 2Y4.32%
Revenue Next 3Y4.76%
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 22.74, which indicates a rather expensive current valuation of KRO.
KRO's Price/Earnings is on the same level as the industry average.
KRO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.04, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 5.40, the valuation of KRO can be described as very cheap.
Based on the Price/Forward Earnings ratio, KRO is valued cheaper than 97.65% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KRO to the average of the S&P500 Index (37.64), we can say KRO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.74 | ||
| Fwd PE | 5.4 |
4.2 Price Multiples
90.59% of the companies in the same industry are more expensive than KRO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.65 |
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 97.12% in the coming years.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y151.25%
EPS Next 3Y97.12%
5. Dividend
5.1 Amount
KRO has a Yearly Dividend Yield of 3.29%.
In the last 3 months the price of KRO has falen by -20.05%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.63, KRO pays a bit more dividend than its industry peers.
KRO's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
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
KRO pays out 40.64% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP40.64%
EPS Next 2Y151.25%
EPS Next 3Y97.12%
6.14
+0.06 (+0.99%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners16.98%
Inst Owner Change0.06%
Ins Owners0.14%
Ins Owner Change0.07%
Market Cap706.35M
Analysts46.67
Price Target8.93 (45.44%)
Short Float %6.05%
Short Ratio5.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
Yearly Dividend0.48
Dividend Growth(5Y)-7.8%
DP40.64%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-97.85%
Min EPS beat(2)-188.88%
Max EPS beat(2)-6.81%
EPS beat(4)1
Avg EPS beat(4)-65.09%
Min EPS beat(4)-188.88%
Max EPS beat(4)11.47%
EPS beat(8)3
Avg EPS beat(8)3.68%
EPS beat(12)4
Avg EPS beat(12)-10.3%
EPS beat(16)7
Avg EPS beat(16)-2.19%
Revenue beat(2)0
Avg Revenue beat(2)-9.26%
Min Revenue beat(2)-15.25%
Max Revenue beat(2)-3.28%
Revenue beat(4)0
Avg Revenue beat(4)-10.76%
Min Revenue beat(4)-15.74%
Max Revenue beat(4)-3.28%
Revenue beat(8)2
Avg Revenue beat(8)-5.54%
Revenue beat(12)5
Avg Revenue beat(12)-2.59%
Revenue beat(16)7
Avg Revenue beat(16)-1.48%
PT rev (1m)7.14%
PT rev (3m)-12.5%
EPS NQ rev (1m)6.94%
EPS NQ rev (3m)-21.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.74 | ||
| Fwd PE | 5.4 | ||
| P/S | 0.37 | ||
| P/FCF | N/A | ||
| P/OCF | 52.71 | ||
| P/B | 0.83 | ||
| P/tB | 0.84 | ||
| EV/EBITDA | 5.65 |
EPS(TTM)0.27
EY4.4%
EPS(NY)1.14
Fwd EY18.51%
FCF(TTM)-0.2
FCFYN/A
OCF(TTM)0.12
OCFY1.9%
SpS16.5
BVpS7.36
TBVpS7.34
PEG (NY)0.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.94% | ||
| ROE | 11.36% | ||
| ROCE | 9.92% | ||
| ROIC | 7.83% | ||
| ROICexc | 7.94% | ||
| ROICexgc | 7.96% | ||
| OM | 7.92% | ||
| PM (TTM) | 5.07% | ||
| GM | 20.79% | ||
| 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-Score5
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.18 | ||
| Cap/Depr | 53.8% | ||
| Cap/Sales | 1.94% | ||
| Interest Coverage | 2.97 | ||
| Cash Conversion | 6.13% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.62 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 1.9 |
F-Score5
WACC9.5%
ROIC/WACC0.82
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)217.39%
EPS 3Y-43.16%
EPS 5Y-24.83%
EPS Q2Q%128.57%
EPS Next Y343.28%
EPS Next 2Y151.25%
EPS Next 3Y97.12%
EPS Next 5YN/A
Revenue 1Y (TTM)10.42%
Revenue growth 3Y-0.91%
Revenue growth 5Y1.74%
Sales Q2Q%2.3%
Revenue Next Year-2.39%
Revenue Next 2Y4.32%
Revenue Next 3Y4.76%
Revenue Next 5YN/A
EBIT growth 1Y822.6%
EBIT growth 3Y-13.2%
EBIT growth 5Y-3.37%
EBIT Next Year64.74%
EBIT Next 3Y30.37%
EBIT Next 5YN/A
FCF growth 1Y68.76%
FCF growth 3Y-33.75%
FCF growth 5Y-16.38%
OCF growth 1Y241.05%
OCF growth 3Y-29.45%
OCF growth 5Y-14.67%