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. While KRO is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
KRO had a positive operating cash flow in the past year.
Of the past 5 years KRO 4 years were profitable.
KRO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.94%, KRO is doing good in the industry, outperforming 76.47% of the companies in the same industry.
The Return On Equity of KRO (11.36%) is better than 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.83%, KRO is in the better half of the industry, outperforming 71.76% of the companies in the same industry.
| 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
With a decent Profit Margin value of 5.07%, KRO is doing good in the industry, outperforming 67.06% of the companies in the same industry.
KRO's Profit Margin has declined in the last couple of years.
KRO has a Operating Margin (7.92%) which is comparable to the rest of the industry.
KRO's Operating Margin has declined in the last couple of years.
KRO has a Gross Margin of 20.79%. 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 | 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
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.
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
KRO has an Altman-Z score of 1.91. 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 (1.91) which is comparable to the rest of the industry.
KRO has a Debt/Equity ratio of 0.56. This is a neutral value indicating KRO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.56, KRO perfoms like the industry average, outperforming 58.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.91 |
ROIC/WACC0.84
WACC9.37%
2.3 Liquidity
A Current Ratio of 2.62 indicates that KRO has no problem at all paying its short term obligations.
The Current ratio of KRO (2.62) is better than 74.12% of its industry peers.
A Quick Ratio of 0.99 indicates that KRO may have some problems paying its short term obligations.
KRO's Quick ratio of 0.99 is on the low side compared to the rest of the industry. KRO is outperformed by 61.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 217.39% over the past year.
Measured over the past years, KRO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -24.83% on average per year.
KRO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.42%.
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)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
Based on estimates for the next years, KRO will show a very strong growth in Earnings Per Share. The EPS will grow by 97.12% on average per year.
KRO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.76% yearly.
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
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
Based on the Price/Earnings ratio of 24.48, the valuation of KRO can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as KRO.
The average S&P500 Price/Earnings ratio is at 26.29. KRO is around the same levels.
A Price/Forward Earnings ratio of 5.82 indicates a rather cheap valuation of KRO.
KRO's Price/Forward Earnings ratio is rather cheap when compared to the industry. KRO is cheaper than 96.47% of the companies in the same industry.
KRO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.17.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.48 | ||
| Fwd PE | 5.82 |
4.2 Price Multiples
89.41% 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 | 5.74 |
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 97.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y151.25%
EPS Next 3Y97.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.09%, KRO has a reasonable but not impressive dividend return.
KRO's Dividend Yield is a higher than the industry average which is at 3.75.
Compared to an average S&P500 Dividend Yield of 2.38, KRO pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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
40.64% of the earnings are spent on dividend by KRO. This is a bit on the high side, but may be sustainable.
DP40.64%
EPS Next 2Y151.25%
EPS Next 3Y97.12%
6.61
+0.37 (+5.93%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners16.2%
Inst Owner Change5.53%
Ins Owners0.11%
Ins Owner Change0.07%
Market Cap760.41M
Analysts46
Price Target10.2 (54.31%)
Short Float %4.2%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
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)0%
PT rev (3m)-16.67%
EPS NQ rev (1m)-21.28%
EPS NQ rev (3m)-0.27%
EPS NY rev (1m)-11.73%
EPS NY rev (3m)-6.1%
Revenue NQ rev (1m)-4.86%
Revenue NQ rev (3m)-7.67%
Revenue NY rev (1m)-4.26%
Revenue NY rev (3m)-8.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.48 | ||
| Fwd PE | 5.82 | ||
| P/S | 0.4 | ||
| P/FCF | N/A | ||
| P/OCF | 56.75 | ||
| P/B | 0.9 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 5.74 |
EPS(TTM)0.27
EY4.08%
EPS(NY)1.14
Fwd EY17.19%
FCF(TTM)-0.2
FCFYN/A
OCF(TTM)0.12
OCFY1.76%
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 | 1.91 |
F-Score5
WACC9.37%
ROIC/WACC0.84
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%