Kronos Worldwide Inc

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KRO : NYSE : Basic Materials
$19.43 -0.15 | -0.77%
Today's Range: 19.08 - 19.69
Avg. Daily Volume: 588800.0
05/22/17 - 12:34 PM ET

Financial Analysis


KRONOS WORLDWIDE INC's gross profit margin for the fourth quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. KRONOS WORLDWIDE INC has strong liquidity. Currently, the Quick Ratio is 1.63 which shows the ability to cover 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.

During the same period, stockholders' equity ("net worth") has decreased by 14.48% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)333.7287.0
EBITDA ($mil)49.7-8.4
EBIT ($mil)39.9-18.4
Net Income ($mil)23.2-20.4


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)52.394.3
Total Assets ($mil)1179.61242.7
Total Debt ($mil)339.0341.0
Equity ($mil)395.0461.9


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin28.5912.3
EBITDA Margin14.89-2.92
Operating Margin11.96-6.41
Sales Turnover1.161.09
Return on Assets3.67-13.96
Return on Equity10.96-37.58
Debt Q4 FY16 Q4 FY15
Current Ratio3.573.52
Debt/Capital0.460.42
Interest Expense5.15.2
Interest Coverage7.82-3.54


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)115.9115.9
Div / share0.150.15
EPS0.2-0.18
Book value / share3.413.99
Institutional Own % n/a n/a
Avg Daily Volume586358.0400862.0

Valuation


BUY. KRONOS WORLDWIDE INC's P/E ratio indicates a significant premium compared to an average of 30.38 for the Chemicals industry and a significant premium compared to the S&P 500 average of 25.02. Conducting a second comparison, its price-to-book ratio of 5.65 indicates a significant premium versus the S&P 500 average of 3.00 and a premium versus the industry average of 5.51. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. After reviewing these and other key valuation criteria, KRONOS WORLDWIDE INC proves to trade at a premium 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 52.08 Peers 30.38   KRO 24.93 Peers 16.36

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

KRO is trading at a significant premium to its peers.

 

Premium. 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 significant premium 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 15.17 Peers 19.78   KRO 0.23 Peers 4.63

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 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 5.65 Peers 5.51   KRO 124.66 Peers 7.17

Average. 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 valuation on par with 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 1.64 Peers 2.36   KRO 1.14 Peers 3.42

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.

 

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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