Kronos Worldwide Inc (KRO, Financial) has experienced a notable surge in its stock price, with a 23.10% gain over the past week and an impressive 28.76% increase over the past three months. The company's market capitalization now stands at $1.26 billion, with the current stock price at $10.92. This recent performance has brought the stock to a valuation that GuruFocus deems as fairly valued, with a GF Value of $11.75. This is a slight decrease from the past GF Value of $12.2, indicating that the stock was previously considered modestly undervalued.
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 in coatings for various surfaces and plastics used in numerous applications. The company's largest market is the United States, where it enjoys a significant share of revenue. The strategic focus on high-demand sectors has positioned Kronos to capitalize on industry trends and maintain a stable customer base.
Assessing Profitability
When it comes to profitability, Kronos Worldwide Inc holds a Profitability Rank of 6/10. The company's operating margin is currently at -3.79%, which is more favorable than 15.04% of companies in the industry. Its return on equity (ROE) stands at -5.60%, surpassing 16.29% of its peers. Similarly, the return on assets (ROA) is -2.70%, better than 17.49% of competitors, and the return on invested capital (ROIC) is -3.15%, outperforming 15.48% of other companies. Over the past decade, Kronos has managed to maintain profitability for 8 years, which is better than 43.15% of companies in the sector.
Growth Prospects
The Growth Rank for Kronos Worldwide Inc is currently at 1/10, indicating that the company's growth is lower than the majority of its industry counterparts. The 3-year revenue growth rate per share is a modest 0.70%, which is better than 23.49% of companies in the same space. The 5-year revenue growth rate per share is slightly higher at 1.60%, surpassing 29.86% of the industry. These figures suggest that while Kronos has experienced growth, it has been relatively subdued compared to its potential.
Notable Shareholders
Among the notable shareholders of Kronos Worldwide Inc, Jim Simons (Trades, Portfolio) stands out with a holding of 693,000 shares, representing a 0.6% share percentage. Another prominent investor is Paul Tudor Jones (Trades, Portfolio), who owns 59,378 shares, equating to a 0.05% share percentage. The presence of these well-known investors may offer a vote of confidence in the company's long-term prospects.
Competitive Landscape
In comparison to its competitors, Kronos Worldwide Inc holds its ground with a market cap of $1.26 billion. Koppers Holdings Inc (KOP, Financial) has a slightly lower market cap of $1.11 billion, while Select Water Solutions Inc (WTTR, Financial) and Mativ Holdings Inc (MATV, Financial) have market caps of $875.691 million and $985.558 million, respectively. This places Kronos in a competitive position within its market cap range, suggesting that it is a significant player in the chemicals industry.
Conclusion
In summary, Kronos Worldwide Inc's stock performance has been robust in recent months, with the company currently valued as fairly valued according to the GF Value. The company's profitability metrics, while negative, are competitive within the industry, and its history of profitability over the past decade is commendable. Growth rates are modest, indicating potential areas for improvement. The company's shareholder base includes notable investors, and its market cap is competitive among its peers. As Kronos continues to navigate the chemicals industry landscape, investors will be watching closely to see if the company can leverage its strengths to drive further growth and profitability.
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.
