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 85 industry peers in the Chemicals industry. There are concerns on the financial health of KRO while its profitability can be described as average. KRO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
KRO had positive earnings in the past year.
In the past year KRO had a positive cash flow from operations.
KRO had positive earnings in 4 of the past 5 years.
Each year in the past 5 years KRO had a positive operating cash flow.
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.
KRO has a Return On Equity of 11.36%. This is in the better half of the industry: KRO outperforms 78.82% of its industry peers.
With a decent Return On Invested Capital value of 7.83%, KRO is doing good in 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
The Profit Margin of KRO (5.07%) is better than 65.88% of its industry peers.
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.
Looking at the Gross Margin, with a value of 20.79%, KRO is doing worse than 65.88% of the companies in the same industry.
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.
The number of shares outstanding for KRO remains at a similar level compared to 1 year ago.
Compared to 5 years ago, KRO has less shares outstanding
The debt/assets ratio for KRO is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.92 indicates that KRO is not a great score, but indicates only limited risk for bankruptcy at the moment.
KRO has a Altman-Z score (1.92) which is in line with 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.92 |
ROIC/WACC0.84
WACC9.36%
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.
Looking at the Current ratio, with a value of 2.62, KRO is in the better half of the industry, outperforming 72.94% of the companies in the same industry.
A Quick Ratio of 0.99 indicates that KRO may have some problems paying its short term obligations.
The Quick ratio of KRO (0.99) is worse than 62.35% of its industry peers.
| 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.
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.
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 24.37, which indicates a rather expensive current valuation of KRO.
The rest of the industry has a similar Price/Earnings ratio as KRO.
When comparing the Price/Earnings ratio of KRO to the average of the S&P500 Index (27.28), we can say KRO is valued inline with the index average.
A Price/Forward Earnings ratio of 5.79 indicates a rather cheap valuation of KRO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KRO indicates a rather cheap valuation: KRO is cheaper than 96.47% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. KRO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.37 | ||
| Fwd PE | 5.79 |
4.2 Price Multiples
KRO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KRO is cheaper than 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.84 |
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 3.14%, KRO has a reasonable but not impressive dividend return.
KRO's Dividend Yield is a higher than the industry average which is at 3.69.
KRO's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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%
6.58
+0.15 (+2.33%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners16.98%
Inst Owner Change5.53%
Ins Owners0.14%
Ins Owner Change0.07%
Market Cap756.96M
Analysts46
Price Target8.93 (35.71%)
Short Float %3.76%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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)-12.5%
PT rev (3m)-12.5%
EPS NQ rev (1m)-6.49%
EPS NQ rev (3m)-26.38%
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)-8.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.37 | ||
| Fwd PE | 5.79 | ||
| P/S | 0.4 | ||
| P/FCF | N/A | ||
| P/OCF | 56.49 | ||
| P/B | 0.89 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 5.84 |
EPS(TTM)0.27
EY4.1%
EPS(NY)1.14
Fwd EY17.27%
FCF(TTM)-0.2
FCFYN/A
OCF(TTM)0.12
OCFY1.77%
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 | 1.92 |
F-Score5
WACC9.36%
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%