NYSE:KRO

Stock Analysis Report

Executive Summary

Kronos Worldwide, Inc. produces and markets titanium dioxide pigments (TiO2) in Europe, North America, the Asia Pacific, and internationally.


Snowflake Analysis

Undervalued with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Kronos Worldwide's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KRO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.4%

KRO

-3.6%

US Chemicals

-4.2%

US Market


1 Year Return

-27.9%

KRO

-9.8%

US Chemicals

14.0%

US Market

Return vs Industry: KRO underperformed the US Chemicals industry which returned -7.4% over the past year.

Return vs Market: KRO underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

KROIndustryMarket
7 Day-1.4%-3.6%-4.2%
30 Day-2.8%-2.7%-1.8%
90 Day-18.3%-3.6%2.6%
1 Year-23.7%-27.9%3.4%-9.8%16.3%14.0%
3 Year-7.9%-18.8%24.2%0.4%43.2%34.0%
5 Year22.0%-7.0%32.7%3.9%65.9%47.6%

Price Volatility Vs. Market

How volatile is Kronos Worldwide's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kronos Worldwide undervalued compared to its fair value and its price relative to the market?

27.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KRO ($11.46) is trading below our estimate of fair value ($15.48)

Significantly Below Fair Value: KRO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KRO is good value based on its PE Ratio (13.1x) compared to the Chemicals industry average (22.6x).

PE vs Market: KRO is good value based on its PE Ratio (13.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KRO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KRO is good value based on its PB Ratio (1.6x) compared to the US Chemicals industry average (2.1x).


Next Steps

Future Growth

How is Kronos Worldwide forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

3.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if KRO's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if KRO's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KRO's revenue (3.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: KRO's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KRO's Return on Equity is forecast to be low in 3 years time (13.6%).


Next Steps

Past Performance

How has Kronos Worldwide performed over the past 5 years?

36.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KRO has high quality earnings.

Growing Profit Margin: KRO's current net profit margins (6%) are lower than last year (12.9%).


Past Earnings Growth Analysis

Earnings Trend: KRO's earnings have grown significantly by 36.7% per year over the past 5 years.

Accelerating Growth: KRO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KRO had negative earnings growth (-55.5%) over the past year, making it difficult to compare to the Chemicals industry average (-15.9%).


Return on Equity

High ROE: KRO's Return on Equity (12%) is considered low.


Next Steps

Financial Health

How is Kronos Worldwide's financial position?


Financial Position Analysis

Short Term Liabilities: KRO's short term assets ($1.2B) exceed its short term liabilities ($227.5M).

Long Term Liabilities: KRO's short term assets ($1.2B) exceed its long term liabilities ($810.5M).


Debt to Equity History and Analysis

Debt Level: KRO's debt to equity ratio (51.5%) is considered high.

Reducing Debt: KRO's debt to equity ratio has increased from 38.9% to 51.5% over the past 5 years.

Debt Coverage: KRO's debt is well covered by operating cash flow (26%).

Interest Coverage: KRO's interest payments on its debt are well covered by EBIT (12.3x coverage).


Balance Sheet

Inventory Level: KRO has a high level of physical assets or inventory.

Debt Coverage by Assets: KRO's debt is covered by short term assets (assets are 2.7x debt).


Next Steps

Dividend

What is Kronos Worldwide's current dividend yield, its reliability and sustainability?

6.39%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 25 2020Ex Dividend DateMar 02 2020Dividend Pay DateMar 12 202010 days from Ex DividendBuy in the next 5 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: KRO's dividend (6.28%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: KRO's dividend (6.28%) is in the top 25% of dividend payers in the US market (3.73%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, KRO has been paying a dividend for less than 10 years.

Growing Dividend: KRO's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.9%), KRO's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KRO's dividends in 3 years are forecast to be covered by earnings (80.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Robert Graham (63yo)

3.1yrs

Tenure

US$2,631,000

Compensation

Mr. Robert D. Graham serves as a Vice Chairman of the Board at CompX International Inc. He is has been Chief Executive Officer of NL Industries, Inc. since February 2014 and its Vice Chairman Since May 201 ...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD2.63M) is below average for companies of similar size in the US market ($USD3.81M).

Compensation vs Earnings: Robert's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Graham
Vice Chairman of the Board3.1yrsUS$2.63m0.014% $180.1k
James Buch
Chief Operating Officer4.2yrsUS$1.44m0.00086% $11.2k
Kelly Luttmer
Executive VP & Chief Tax Officer8.8yrsUS$1.96mno data
Brian Christian
Executive Vice President4yrsUS$1.25mno data
James Brown
Senior VP & CFO0.7yrsUS$429.30kno data
John Sunny
VP & CTO0yrsno datano data
Janet Keckeisen
Vice President of Corporate Strategy & Investor Relations7yrsno data0.0056% $73.2k
Clarence Brown
VP, General Counsel & Secretary4.8yrsno datano data
Benjiman Corona
President of Global Sales Management7.4yrsUS$792.29kno data
Patricia Kropp
VP & Director of Global Human Resources4.8yrsno datano data

4.8yrs

Average Tenure

58yo

Average Age

Experienced Management: KRO's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Graham
Vice Chairman of the Board3.1yrsUS$2.63m0.014% $180.1k
Thomas Stafford
Independent Director6.8yrsUS$81.58k0.021% $277.1k
Robert Turner
Independent Director16.3yrsUS$81.58k0.018% $231.9k
Meredith Mendes
Independent Director1.9yrsUS$78.08k0.0020% $25.9k
Cecil Moore
Presiding Director & Director of Nl Industries Inc0yrsUS$97.58k0.017% $217.6k
John Harper
Independent Director4.1yrsUS$97.58k0.0042% $54.0k
Loretta Feehan
Chair of the Board2.8yrsUS$102.58k0.0085% $110.3k

3.4yrs

Average Tenure

63yo

Average Age

Experienced Board: KRO's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kronos Worldwide, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kronos Worldwide, Inc.
  • Ticker: KRO
  • Exchange: NYSE
  • Founded: 1916
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: US$1.302b
  • Shares outstanding: 115.65m
  • Website: https://kronostio2.com

Number of Employees


Location

  • Kronos Worldwide, Inc.
  • 5430 LBJ Freeway
  • Suite 1700
  • Dallas
  • Texas
  • 75240
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KRONYSE (New York Stock Exchange)YesCommon StockUSUSDDec 2003
K1WDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2003

Biography

Kronos Worldwide, Inc. produces and markets titanium dioxide pigments (TiO2) in Europe, North America, the Asia Pacific, and internationally. It produces TiO2 in two crystalline forms, rutile and anatase to impart whiteness, brightness, opacity, and durability for various products, including paints, coatings, plastics, paper, fibers, and ceramics, as well as for various specialty products, such as inks, foods, and cosmetics. The company also produces ilmenite, a raw material used directly as a feedstock by sulfate-process TiO2 plants; iron-based chemicals, which are used as treatment and conditioning agents for industrial effluents and municipal wastewater, as well as in the manufacture of iron pigments, cement, and agricultural products; titanium oxychloride for use in the formulation of pearlescent pigments, and production of electroceramic capacitors for cell phones and other electronic devices; and titanyl sulfate that is used in pearlescent pigments, natural gas pipe, and other specialty applications. In addition, it sells and provides technical services for its products. The company sells its products under the KRONOS brand through agents and distributors to paint, plastics, decorative laminate, and paper manufacturers. The company was founded in 1916 and is headquartered in Dallas, Texas. Kronos Worldwide, Inc. is a subsidiary of Valhi, Inc. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 00:19
End of Day Share Price2020/02/24 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.