5/19/2012

Good Company at a Cheap Price (Oversold)

KRO: Kronos Worldwide, Inc.

"(Kronos) is a global producer and marketer of titanium dioxide pigments (TiO2), a base industrial product used in a range of applications. s of December 31, 2011, approximately 50% of the Company was owned by Valhi, Inc. and approximately 30% was owned by NL Industries, Inc. Valhi also owns approximately 83% of NL Industries. Its customers include domestic and international paint, plastics, decorative laminate and paper manufacturers. It ships TiO2 to its customers in either a powder or slurry form through rail, truck or ocean carrier."
Dividend Yield currently at 3.50% now trading at historically cheap valuations based on price to sales and book value. Current P/B = 1.9 versus the 5 year average of 2.30. P/S at .90 approximates the .90 5 year average. Gross margins are at their historical high of 41.40% versus 16.80, 11.40,23.80 and 38.50 for the periods  ending 2008 to 2011 respectively. The balance sheet has also improved with total debt being aggressively reduced from  1,040,800 to 899,600,000 for the latest quarter. Steadily improving EV/EBITDA now sitting at only 3.12 or a yield of 32.02%. YOY revenue increase of 33%.





Insider buying has been stellar over the past 2 years providing more evidence of an oversold situation.




5 comments:

saggi said...

Why the figures of ROIC for the year 07 and 09 are negative?

ShadowStock said...

they reported losses. Far from the perfect stock as the shorts have been piling on but the will have to cover and could create a strong wave of buying.

John

Gurpreet Narang said...

which spreadsheet do you use ? it's very cool.

ShadowStock said...

Excel,Access and started using BI tool Qlikview

Anonymous said...

I was looking at this company. What I don't understand is why the chairman Harold Simmons would want to run the two holdings company along with his KRO business at the same time? Wouldn't it be more efficient to consolidate the three businesses into one? And how would an investor like me decide which one to invest in if they are ran by the person? Thank you.