As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Kronos Worldwide, Inc. (NYSE:KRO), it is a financially-sound , dividend-paying company with a a great track record of performance. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Kronos Worldwide here.
Adequate balance sheet with proven track record and pays a dividend
KRO has a strong track record of performance. In the previous year, KRO delivered an impressive double-digit return of 24% Not surprisingly, KRO outperformed its industry which returned 15%, giving us more conviction of the company's capacity to drive bottom-line growth going forward. KRO's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. KRO's has produced operating cash levels of 0.41x total debt over the past year, which implies that KRO's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
KRO's high dividend payments make it one of the best dividend stocks on the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments.
For Kronos Worldwide, I've put together three fundamental factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for KRO’s future growth? Take a look at our free research report of analyst consensus for KRO’s outlook.
- Valuation: What is KRO worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether KRO is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of KRO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.