Kronos Worldwide Inc (KRO, Financial) has recently caught the attention of investors with a notable 6.87% gain in stock price over the past week and an impressive 23.69% surge over the past three months. The company's market capitalization stands at $1.41 billion, with the current stock price at $12.23. This recent performance has brought the stock to a state of being fairly valued according to the GF Value, which is currently set at $11.75. This is a slight shift from three months ago when the stock was considered modestly undervalued with a past GF Value of $12.2. The current valuation suggests that Kronos Worldwide Inc's stock price is aligning closely with the company's intrinsic value.
Introduction to Kronos Worldwide Inc
Kronos Worldwide Inc, operating within the chemicals industry, is a leading manufacturer and seller of titanium dioxide pigments. These pigments are essential components in a wide array of products, particularly for coatings on various surfaces and in plastics used in numerous consumer goods. The company's largest market is the United States, where it generates the majority of its revenue. The strategic focus on high-demand applications has positioned Kronos to capitalize on the needs of both industrial and consumer markets.
Assessing Profitability
Kronos Worldwide Inc's Profitability Rank is currently at 6/10, indicating a moderate level of profitability relative to other companies. The company's operating margin stands at -3.79%, which is better than 15.17% of 1,536 companies in the same sector. Additionally, the Return on Equity (ROE) is at -5.60%, surpassing 16.34% of its peers. The Return on Assets (ROA) and Return on Invested Capital (ROIC) are -2.70% and -3.15% respectively, each outperforming over 15% of the industry. Over the past decade, Kronos has maintained profitability for 8 years, which is more consistent than 43.62% of 1,497 companies in the chemicals industry.
Growth Prospects
Despite the company's solid profitability, its Growth Rank is at a low 1/10. The 3-Year Revenue Growth Rate per Share is a modest 0.70%, which is better than 24.12% of 1,455 companies in the same industry. The 5-Year Revenue Growth Rate per Share is slightly higher at 1.60%, surpassing 30.16% of 1,353 companies. These figures suggest that while Kronos has maintained a level of growth, it is relatively slow compared to its competitors.
Key Shareholders
Among the notable shareholders of Kronos Worldwide Inc, Jim Simons (Trades, Portfolio) stands out with 693,000 shares, representing a 0.6% share percentage. Following him is Paul Tudor Jones (Trades, Portfolio), holding 59,378 shares, which accounts for a 0.05% share percentage. The involvement of these prominent investors may provide a level of confidence in the company's future prospects and management.
Competitive Landscape
When compared to its competitors, Kronos Worldwide Inc holds its ground with a market cap of $1.41 billion. Koppers Holdings Inc (KOP, Financial) has a slightly lower market cap of $1.14 billion, while Select Water Solutions Inc (WTTR, Financial) and Mativ Holdings Inc (MATV, Financial) have market caps of $936.346 million and $975.776 million respectively. This places Kronos in a competitive position within the industry, with a market capitalization that reflects its standing among close competitors.
Conclusion
In summary, Kronos Worldwide Inc has demonstrated a strong stock performance in recent months, with its valuation now reflecting a fair alignment with its intrinsic value. The company's profitability metrics, although mixed, show resilience in a competitive industry. Growth rates are modest, indicating a potential area for improvement. The presence of significant shareholders like Jim Simons (Trades, Portfolio) and Paul Tudor Jones (Trades, Portfolio) may signal confidence in the company's long-term strategy. Finally, when compared to its competitors, Kronos maintains a solid market presence, suggesting it is well-positioned to navigate the challenges and opportunities within the chemicals sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
