(KRO) Kronos Worldwide - Ratings and Ratios

Kronos Worldwide, Inc. (NYSE:KRO) is a global leader in the production and marketing of titanium dioxide (TiO2) pigments, a critical component in imparting whiteness, brightness, and opacity to a wide range of products. The company operates across Europe, North America, the Asia Pacific, and other international markets, producing TiO2 in two crystalline forms: rutile and anatase. Rutile, the more durable form, is commonly used in paints, coatings, plastics, and ceramics, while anatase is often applied in specialty products like cosmetics and food coloring due to its higher brightness.

Beyond TiO2, Kronos produces ilmenite, a key raw material for sulfate-process TiO2 plants, ensuring a vertically integrated supply chain. The company also manufactures iron-based chemicals, which are essential for industrial wastewater treatment and the production of iron pigments, cement, and agricultural products. Additionally, Kronos offers specialty chemicals for pearlescent pigments and electroceramic capacitors used in cell phones and natural gas pipelines, showcasing its diversified product portfolio.

Kronos sells its products under the KRONOS brand, leveraging a network of agents and distributors to serve industries such as paints, plastics, decorative laminates, and paper manufacturing. Founded in 1916 and headquartered in Dallas, Texas, Kronos is a subsidiary of Valhi, Inc. Its long-standing presence in the industry underscores its stability and expertise in the commodity chemicals sector.

From a financial perspective, Kronos Worldwide has a market capitalization of approximately $1.11 billion, with a price-to-earnings (P/E) ratio of 11.96, indicating moderate valuation relative to its earnings. The price-to-book (P/B) ratio of 1.28 suggests that the stock is trading at a slight premium to its book value. With a price-to-sales (P/S) ratio of 0.60, Kronos appears to be reasonably valued compared to its revenue generation.

Investors and fund managers should note that Kronos operates in a cyclical industry, where demand for TiO2 can fluctuate based on economic conditions, particularly in construction, automotive, and consumer goods sectors. However, the company’s diversified product line and vertical integration provide some cushion against volatility. Its focus on specialty chemicals and high-performance materials also positions it well to capitalize on emerging trends in electronics and industrial applications.