Industrial Inorganic Chemicals
Kronos Worldwide, Inc. produces and markets titanium dioxide pigments (TiO2) in Europe, North America, the Asia Pacific, and internationally. The company produces TiO2 in two crystalline forms, rutile and anatase to impart whiteness, brightness, opacity, and durability for various products, including paints, coatings, plastics, paper, fibers, and ceramics, as well as for various specialty products, such as inks, foods, and cosmetics. It also produces ilmenite, a raw material used directly as a feedstock by sulfate-process TiO2 plants; iron-based chemicals, which are used as treatment and conditioning agents for industrial effluents and municipal wastewater, as well as in the manufacture of iron pigments, cement, and agricultural products; specialty chemicals for use in the formulation of pearlescent pigments, and production of electroceramic capacitors for cell phones and other electronic devices, as well as for use in pearlescent pigments, natural gas pipe, and other specialty applications. In addition, the company provides technical services for its products. It sells its products under the KRONOS brand through agents and distributors to paint, plastics, decorative laminate, and paper manufacturers. The company was founded in 1916 and is headquartered in Dallas, Texas. Kronos Worldwide, Inc. operates as a subsidiary of Valhi, Inc.
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
The average Net Margin over the past 5 years is +8.83%.
The trend of Net Margin over the past 5 years is -2.75%.
The average ROA over the past 5 years is +11.03%.
The trend of ROA over the past 5 years is -2.15%.
The average ROE over the past 5 years is +19%.
The trend of ROE over the past 5 years is -6.21%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
The Debt/FCF trailing twelve month is -4.36.
The trend of Debt/FCF over the past 5 years is 3.18.
Graham’s Stability measure stands at 0.30.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
The Revenue CAGR over the past 5 years is +2.23%.
The trend of Revenue growth rate over the past 5 years is +1.52%.
The Earnings CAGR over the past 5 years is -21.68%.
The trend of Earnings growth rate over the past 5 years is -92.67%.
The Equity CAGR over the past 5 years is +4.88%.
The trend of Equity growth rate over the past 5 years is +3.11%.
The FCF CAGR over the past 5 years is -38.59%.
The trend of FCF growth rate over the past 5 years is -15.76%.