Kronos Worldwide, Inc. produces and markets titanium dioxide pigments (TiO2) worldwide. It produces TiO2 in two crystalline forms, rutile and anatase to impart whiteness, brightness, opacity, and durability for products, paints, coatings, plastics, paper, fibers, and ceramics, as well as for various specialty products, such as inks, food, and cosmetics. The company is based in Dallas.
KRO Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for KRO, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Kronos Worldwide Inc ranked in the 20th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for KRO, they are:
The company's compound free cash flow growth rate over the past 5.5 years comes in at -0.1%; that's greater than just 16.91% of US stocks we're applying DCF forecasting to.
Kronos Worldwide Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 15.88% of tickers in our DCF set.
As a business, Kronos Worldwide Inc experienced a tax rate of about 21% over the past twelve months; relative to its sector (Basic Materials), this tax rate is higher than 79.2% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as KRO, try BTU, AA, CC, TORM, and AKS.