Kronos Worldwide Inc

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KRO : NYSE : Basic Materials
$5.74 up 0.25 | 4.50%
Today's Range: 5.46 - 5.78
Avg. Daily Volume: 370,500
07/26/16 - 3:59 PM ET

Financial Analysis


KRONOS WORLDWIDE INC's gross profit margin for the first quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. KRONOS WORLDWIDE INC has strong liquidity. Currently, the Quick Ratio is 1.64 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 36.70% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)318.4365.1
EBITDA ($mil)5.441.6
EBIT ($mil)-4.830.6
Net Income ($mil)-3.818.4


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)56.8122.9
Total Assets ($mil)1241.21504.5
Total Debt ($mil)349.8348.6
Equity ($mil)454.8718.5


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin15.8924.21
EBITDA Margin1.6911.39
Operating Margin-1.518.38
Sales Turnover1.051.06
Return on Assets-15.776.86
Return on Equity-43.0514.37
Debt Q1 FY16 Q1 FY15
Current Ratio3.684.22
Debt/Capital0.430.33
Interest Expense5.14.6
Interest Coverage-0.946.65


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)115.88115.87
Div / share0.150.15
EPS-0.030.16
Book value / share3.926.2
Institutional Own % n/a n/a
Avg Daily Volume372512.0417125.0

Valuation


SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. To use another comparison, its price-to-book ratio of 1.49 indicates a discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 5.91. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, KRONOS WORLDWIDE INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
KRO NM Peers 24.44   KRO 14.49 Peers 15.53

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

KRO's P/E is negative making this valuation measure meaningless.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

KRO is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
KRO 29.25 Peers 19.75   KRO NA Peers 2.43

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

KRO is trading at a significant premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KRO 1.49 Peers 5.91   KRO -287.77 Peers 43.16

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

KRO is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, KRO is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KRO 0.52 Peers 2.18   KRO -18.47 Peers -6.08

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

KRO is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

KRO significantly trails its peers on the basis of sales growth

 

 

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