Kronos Worldwide Inc

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KRO : NYSE : Basic Materials
$22.19 -0.28 | -1.2%
Today's Range: 22.12 - 22.6599
Avg. Daily Volume: 498400.0
09/20/17 - 1:09 PM ET

Financial Analysis


KRONOS WORLDWIDE INC's gross profit margin for the second quarter of its fiscal year 2017 has significantly increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. KRONOS WORLDWIDE INC is extremely liquid. Currently, the Quick Ratio is 2.13 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 42.18% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)441.4356.1
EBITDA ($mil)83.818.2
EBIT ($mil)73.77.6
Net Income ($mil)196.51.7


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)115.480.6
Total Assets ($mil)1472.91234.4
Total Debt ($mil)354.4370.1
Equity ($mil)620.8436.6


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin31.6918.56
EBITDA Margin18.985.11
Operating Margin16.72.13
Sales Turnover1.021.05
Return on Assets18.92-2.77
Return on Equity44.89-7.85
Debt Q2 FY17 Q2 FY16
Current Ratio3.793.19
Debt/Capital0.360.46
Interest Expense4.85.1
Interest Coverage15.351.49


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)115.9115.89
Div / share0.150.15
EPS1.70.01
Book value / share5.363.77
Institutional Own % n/a n/a
Avg Daily Volume512113.0534742.0

Valuation


BUY. KRONOS WORLDWIDE INC's P/E ratio indicates a significant discount compared to an average of 47.63 for the Chemicals industry and a significant discount compared to the S&P 500 average of 24.88. To use another comparison, its price-to-book ratio of 4.03 indicates a premium versus the S&P 500 average of 3.10 and a discount versus the industry average of 4.92. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. Upon assessment of 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 8.96 Peers 47.63   KRO 14.33 Peers 16.70

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

KRO is trading at a significant discount to its peers.

 

Discount. 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 discount 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 12.55 Peers 21.35   KRO 0.03 Peers 1.69

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

KRO is trading at a significant discount to its peers.

 

Discount. 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.

KRO trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KRO 4.03 Peers 4.92   KRO 903.33 Peers -25.18

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 discount to its peers.

 

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

KRO is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KRO 1.67 Peers 2.35   KRO 15.63 Peers 9.42

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

KRO has a sales growth rate that significantly exceeds its peers.

 

 

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