Kronos Worldwide Inc

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KRO : NYSE : Basic Materials
$20.93 up 0.17 | 0.82%
Today's Range: 20.76 - 21.18
Avg. Daily Volume: 488800.0
07/25/17 - 4:02 PM ET

Financial Analysis


KRONOS WORLDWIDE INC's gross profit margin for the first quarter of its fiscal year 2017 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 1.78 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 6.15% 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 FY17 Q1 FY16
Net Sales ($mil)369.8318.4
EBITDA ($mil)62.55.4
EBIT ($mil)52.4-4.8
Net Income ($mil)36.8-3.8


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)90.956.8
Total Assets ($mil)1269.01241.2
Total Debt ($mil)364.5349.8
Equity ($mil)426.8454.8


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin30.6915.89
EBITDA Margin16.91.69
Operating Margin14.17-1.51
Sales Turnover1.121.05
Return on Assets6.61-15.77
Return on Equity19.65-43.05
Debt Q1 FY17 Q1 FY16
Current Ratio3.573.68
Debt/Capital0.460.43
Interest Expense4.75.1
Interest Coverage11.15-0.94


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)115.89115.88
Div / share0.150.15
EPS0.32-0.03
Book value / share3.683.92
Institutional Own % n/a n/a
Avg Daily Volume488031.0525009.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 31.04 for the Chemicals industry and a premium compared to the S&P 500 average of 24.66. Conducting a second comparison, its price-to-book ratio of 5.48 indicates a significant premium versus the S&P 500 average of 3.07 and a premium versus the industry average of 5.12. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. The valuation analysis reveals that, KRONOS WORLDWIDE INC seems to be trading 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 28.04 Peers 31.04   KRO 15.97 Peers 16.21

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

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

 

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 15.90 Peers 20.69   KRO 0.13 Peers 4.62

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 5.48 Peers 5.12   KRO 142.60 Peers 12.97

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 1.65 Peers 2.45   KRO 8.72 Peers 3.78

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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