Kronos Worldwide, Inc. (KRO) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Kronos Worldwide, Inc. (KRO) Materials & Commodity Exposure

Kronos Worldwide, Inc. is a global producer of titanium dioxide pigments (TiO2), offering rutile and anatase crystalline forms for diverse applications. Operating as a subsidiary of Valhi, Inc., KRO serves the paints, coatings, plastics, and paper industries across Europe, North America, and the Asia Pacific region, leveraging a century-old legacy.

What Is the Investment Thesis for KRO?

Kronos Worldwide, Inc. presents a mixed investment case. The company's established position in the TiO2 market and global reach provide a stable revenue base. However, the recent profit margin of -7.1% raises concerns about operational efficiency and cost management. The dividend yield of 2.74% offers some appeal to income-seeking investors. Key catalysts include potential increases in TiO2 demand from infrastructure projects and growth in emerging markets. The company's beta of 0.97 suggests moderate volatility relative to the market. Investors should closely monitor the company's ability to improve profitability and manage raw material costs.

Based on FMP financials and quantitative analysis

KRO Key Highlights

Market capitalization of $943M reflects the company's current valuation in the specialty chemicals market.

• Gross margin of 10.1% indicates the profitability of the company's core TiO2 production business.
• Dividend yield of 2.74% provides a potential income stream for investors.
• Beta of 0.97 suggests the stock's volatility is similar to the overall market.
• Operates as a subsidiary of Valhi, Inc., which influences its strategic direction and financial structure.

Who Are KRO's Competitors?

KRO is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are KRO's Key Strengths?

Global presence and distribution network.

• Established brand reputation.
• Diverse product portfolio of TiO2 and related chemicals.
• Technical expertise in TiO2 production.

What Are KRO's Weaknesses?

Recent negative profit margin.

• Dependence on cyclical TiO2 demand.
• Exposure to fluctuating raw material costs.
• Smaller scale compared to larger competitors.

What Could Drive KRO Stock Higher?

Potential increase in TiO2 demand from infrastructure projects in developing countries.

• Efforts to improve operational efficiency and reduce costs.
• Development of new TiO2 formulations for specialty applications.
• Potential strategic acquisitions or partnerships to expand product portfolio.

What Are the Key Risks for KRO?

Financial-distress signal — its Altman Z-Score of 1.78 sits in the distress zone (elevated bankruptcy risk).

• Negative return on equity (-17.0%) — the business is not currently generating profit on shareholder capital.
• Economic downturns impacting construction and manufacturing activity.
• Fluctuations in raw material costs, such as ilmenite.
• Increased competition from low-cost TiO2 producers.
• Environmental regulations restricting TiO2 production and use.

What Are the Growth Opportunities for KRO?

• Expansion in Emerging Markets: The increasing construction and manufacturing activities in emerging markets, particularly in Asia Pacific, present a significant growth opportunity for Kronos. These regions are experiencing rapid urbanization and infrastructure development, driving demand for TiO2 in paints, coatings, and plastics. By strengthening its distribution networks and tailoring its product offerings to meet local needs, Kronos can capitalize on this growing demand. The Asia Pacific TiO2 market is projected to reach $XX billion by 2030.
• Product Innovation and Specialty Applications: Developing new TiO2 formulations for specialty applications, such as high-performance coatings, UV-resistant plastics, and advanced ceramics, can drive growth. These niche markets often command higher margins and offer greater differentiation. Investing in research and development to create innovative products that meet specific customer needs can enhance Kronos's competitive advantage. The global market for specialty TiO2 applications is estimated at $XX billion.
• Vertical Integration and Raw Material Sourcing: Securing reliable and cost-effective sources of raw materials, such as ilmenite, is crucial for maintaining profitability. Exploring opportunities for vertical integration, such as acquiring or partnering with mining operations, can reduce exposure to price volatility and supply disruptions. Diversifying raw material sources and implementing efficient sourcing strategies can improve cost competitiveness. The global ilmenite market is valued at $XX billion.
• Sustainability and Eco-Friendly Products: The increasing focus on sustainability and environmental regulations is driving demand for eco-friendly TiO2 products. Developing TiO2 pigments with lower environmental impact, such as those produced using more sustainable manufacturing processes or those that enhance the durability and longevity of end products, can attract environmentally conscious customers. Investing in green technologies and obtaining relevant certifications can enhance Kronos's reputation and market position. The market for sustainable coatings and pigments is growing at a rate of XX% per year.
• Strategic Acquisitions and Partnerships: Pursuing strategic acquisitions or partnerships with complementary businesses can expand Kronos's product portfolio, geographic reach, and technological capabilities. Acquiring smaller TiO2 producers or specialty chemical companies can provide access to new markets, technologies, and customer relationships. Forming partnerships with research institutions or technology providers can accelerate innovation and product development. The specialty chemicals M&A market is active, with numerous opportunities for consolidation and strategic alliances.

What Are KRO's Competitive Advantages?

• Established brand reputation under the KRONOS brand.
• Global distribution network reaching diverse markets.
• Technical expertise in TiO2 production and applications.
• Long-standing relationships with key customers in various industries.

What Does KRO Do?

Kronos Worldwide, Inc., founded in 1916 and headquartered in Dallas, Texas, is a global manufacturer and marketer of titanium dioxide pigments (TiO2). These pigments are produced in two crystalline forms, rutile and anatase, and are essential for imparting whiteness, brightness, opacity, and durability to a wide array of products. The company's products are integral to the manufacturing processes of paints, coatings, plastics, paper, fibers, and ceramics. Additionally, Kronos produces TiO2 for specialty applications, including inks, foods, and cosmetics. Beyond TiO2, Kronos also produces ilmenite, a raw material used in sulfate-process TiO2 plants, and iron-based chemicals used in industrial effluent and municipal wastewater treatment. The company further manufactures specialty chemicals for pearlescent pigments and electroceramic capacitors. Kronos sells its products under the KRONOS brand through agents and distributors, primarily targeting paint, plastics, decorative laminate, and paper manufacturers. Operating as a subsidiary of Valhi, Inc., Kronos Worldwide has established a significant presence in Europe, North America, and the Asia Pacific region, serving a diverse customer base with its comprehensive product portfolio and technical services.

What Products and Services Does KRO Offer?

• Produces titanium dioxide pigments (TiO2) in rutile and anatase crystalline forms.
• Supplies TiO2 for paints, coatings, plastics, paper, fibers, and ceramics.
• Manufactures TiO2 for specialty applications like inks, foods, and cosmetics.
• Produces ilmenite, a raw material for sulfate-process TiO2 plants.
• Creates iron-based chemicals for industrial effluent and wastewater treatment.
• Develops specialty chemicals for pearlescent pigments and electroceramic capacitors.
• Provides technical services for its TiO2 products.

How Does KRO Make Money?

• Manufactures and sells titanium dioxide pigments (TiO2) to various industries.
• Generates revenue from the sale of TiO2 and related chemicals.
• Distributes products through agents and distributors globally.
• Focuses on serving paint, plastics, decorative laminate, and paper manufacturers.

What Industry Does KRO Operate In?

Kronos Worldwide operates within the specialty chemicals industry, specifically focusing on titanium dioxide pigments. The TiO2 market is influenced by construction activity, automotive production, and consumer goods manufacturing. The industry is characterized by cyclical demand and fluctuating raw material costs. Competitors include major chemical companies with TiO2 production capabilities. Kronos's position is shaped by its global presence and product diversification, but it faces challenges from larger, more integrated players and regional competitors in Asia. The TiO2 market is expected to grow moderately, driven by urbanization and infrastructure development in emerging economies.

Who Are KRO's Key Customers?

• Paint manufacturers requiring TiO2 for whiteness and opacity.
• Plastics manufacturers using TiO2 for color and durability.
• Paper manufacturers incorporating TiO2 for brightness and opacity.
• Coatings manufacturers needing TiO2 for protective and aesthetic properties.

Company Profile

Kronos Worldwide, Inc. operates in the Chemicals - Specialty industry within the Basic Materials sector. It is headquartered in Dallas, US. The company is led by CEO Brian W. Christian. KRO has traded publicly since 2003.

Kronos Worldwide, Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.78 places it in the distress zone, a signal of elevated financial risk.

Return on equity for Kronos Worldwide, Inc. stands at -17.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -7.4%, showing how much profit it generates from its asset base. Its free cash flow yield is 1.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 3.18 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -18.6%, the inverse of the P/E and a quick read on earnings relative to price.

KRO Valuation & Market Position

With a $943M market cap, Kronos Worldwide, Inc. sits in the small-cap segment of the market. Relative to its peer group, KRO's quantitative score of 29/100 is below the peer average of 61/100.

Wall Street analysts project Kronos Worldwide, Inc. revenue of about $2.03B for fiscal 2026, with EPS near $0.06.

Over the past six months, Kronos Worldwide, Inc. insiders filed 12 SEC Form 4 transactions — 0 sales and 12 purchases. On net that is roughly 59K shares acquired (about $419K) — insiders putting money in tends to read as conviction.

KRO Financials

KRO Latest News

KRO Analyst Consensus

KRO MoonshotScore

Common Questions About KRO (Basic Materials)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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