KRONOS WORLDWIDE INC (KRO) Stock Fundamental Analysis
NYSE:KRO - New York Stock Exchange, Inc. - US50105F1057 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to KRO. KRO was compared to 84 industry peers in the Chemicals industry. KRO has an average financial health and profitability rating. KRO is not valued too expensively and it also shows a decent 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
Looking at the Return On Assets, with a value of 3.48%, KRO is in the better half of the industry, outperforming 69.05% of the companies in the same industry.
With a decent Return On Equity value of 7.97%, KRO is doing good in the industry, outperforming 71.43% of the companies in the same industry.
KRO has a better Return On Invested Capital (5.53%) than 60.71% 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
KRO's Profit Margin of 3.57% is fine compared to the rest of the industry. KRO outperforms 64.29% 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 perfoms like the industry average, outperforming 40.48% of the companies in the same industry.
KRO's Operating Margin has declined in the last couple of years.
KRO has a Gross Margin of 18.88%. This is in the lower half of the industry: KRO underperforms 67.86% of its industry peers.
In the last couple of years the Gross Margin of KRO has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KRO is destroying value.
KRO has about the same amout of shares outstanding than it did 1 year ago.
KRO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, KRO has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.83 indicates that KRO is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.83, KRO is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that KRO is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.59, KRO perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.83 |
ROIC/WACC0.58
WACC9.56%
2.3 Liquidity
A Current Ratio of 2.79 indicates that KRO has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.79, KRO is in the better half of the industry, outperforming 77.38% 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.
With a Quick ratio value of 1.04, KRO is not doing good in the industry: 65.48% of the companies in the same industry are doing better.
| 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.
The earnings per share for KRO have been decreasing by -24.83% on average. This is quite bad
KRO shows a small growth in Revenue. In the last year, the Revenue has grown by 6.51%.
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)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
KRO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 97.12% yearly.
KRO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.81% yearly.
EPS Next Y343.28%
EPS Next 2Y151.25%
EPS Next 3Y97.12%
EPS Next 5YN/A
Revenue Next Year-4.77%
Revenue Next 2Y2.85%
Revenue Next 3Y3.81%
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
The Price/Earnings ratio is 310.50, which means the current valuation is very expensive for KRO.
Compared to the rest of the industry, the Price/Earnings ratio of KRO indicates a slightly more expensive valuation: KRO is more expensive than 67.86% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KRO to the average of the S&P500 Index (26.85), we can say KRO is valued expensively.
Based on the Price/Forward Earnings ratio of 5.47, the valuation of KRO can be described as very cheap.
KRO's Price/Forward Earnings ratio is rather cheap when compared to the industry. KRO is cheaper than 96.43% 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 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 310.5 | ||
| Fwd PE | 5.47 |
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 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.44 |
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)0.9
PEG (5Y)N/A
EPS Next 2Y151.25%
EPS Next 3Y97.12%
5. Dividend
5.1 Amount
KRO has a Yearly Dividend Yield of 3.25%. Purely for dividend investing, there may be better candidates out there.
KRO's Dividend Yield is a higher than the industry average which is at 3.59.
KRO's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
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
34.07% of the earnings are spent on dividend by KRO. This is a low number and sustainable payout ratio.
DP34.07%
EPS Next 2Y151.25%
EPS Next 3Y97.12%
6.21
+0.03 (+0.49%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners16.93%
Inst Owner Change-2.56%
Ins Owners0.14%
Ins Owner Change0.16%
Market Cap714.40M
Analysts46.67
Price Target8.16 (31.4%)
Short Float %6.78%
Short Ratio4.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.25% |
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)-8.57%
PT rev (3m)-20%
EPS NQ rev (1m)-30%
EPS NQ rev (3m)-0.57%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-4.28%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.44%
Revenue NY rev (3m)-2.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 310.5 | ||
| Fwd PE | 5.47 | ||
| P/S | 0.38 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.84 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 7.44 |
EPS(TTM)0.02
EY0.32%
EPS(NY)1.14
Fwd EY18.3%
FCF(TTM)-0.42
FCFYN/A
OCF(TTM)-0.04
OCFYN/A
SpS16.45
BVpS7.36
TBVpS7.34
PEG (NY)0.9
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 | 1.83 |
F-Score3
WACC9.56%
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 Y343.28%
EPS Next 2Y151.25%
EPS Next 3Y97.12%
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-4.77%
Revenue Next 2Y2.85%
Revenue Next 3Y3.81%
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%