Kronos Worldwide, Inc.

KRO

Basic MaterialsChemicals - SpecialtyNYSE

$7.22

Market Cap: $830.68M

Kronos Worldwide, Inc. (KRO) Valuation Summary

Updated Apr 6, 2026 22:27

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$1.63 – $32.75	$7.08	+12.6%
Revenue DCF 10Y	$0.10 – $27.53	$5.15	-18.1%
▸ Trading Multiples
EV/Revenue	$6.51 – $22.33	$9.22	+46.6%

Valuation History

DCF Analysis

Kronos Worldwide, Inc. (KRO) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$5.15

Market Price

$7.22

Upside / Downside

-28.7%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -1.7% to a target of 12.9% over 5 years, discounted at a WACC of 9.0%, Kronos Worldwide, Inc. (KRO) has an intrinsic value of $5.15 per share (range: $0.10 – $27.53).

Key Assumptions

Current Operating Margin

-1.7%

Target Operating Margin

12.9%

WACC

9.0%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

2.6%

Target CapEx/Rev

6.0%

D&A/Revenue

3.2%

Tax Rate

30.3%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,965	5.7%	1.2%	24	17	63	(58)	529	-507	-486
2027	2,129	8.4%	4.1%	88	62	68	(70)	50	10	9
2028	2,205	3.5%	7.1%	156	109	70	(80)	23	76	62
2029	2,182	-1.1%	10.0%	218	152	70	(86)	-7	142	105
2030	2,159	-1.1%	12.9%	279	194	69	(93)	-7	177	120
2031	2,151	-0.4%	12.9%	278	194	69	(100)	-2	165	103
2032	2,157	0.3%	12.9%	278	194	69	(107)	2	154	88
2033	2,179	1.0%	12.9%	281	196	70	(116)	6	143	75
2034	2,215	1.7%	12.9%	286	199	71	(125)	11	134	64
2035	2,266	2.3%	12.9%	292	204	72	(136)	16	125	55

Enterprise Value Bridge

Sum of PV(FCFF)194

Terminal Value (Gordon Growth at 3.0%)2,133

PV of Terminal Value938

Enterprise Value1,132

(–) Net Debt540

Equity Value592

(÷) Shares Outstanding115

Fair Value per Share$5.15

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	6.9%	9.9%	12.9%	15.9%	18.9%
7.0%	$-3	$4	$12	$20	$28
8.0%	$-4	$2	$8	$14	$20
9.0%	$-5	$0	$5	$10	$15
10.0%	$-5	$-1	$3	$7	$12
11.0%	$-6	$-2	$2	$5	$9

Current price: $7.22. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 30.2% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Kronos Worldwide, Inc. (KRO) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$7.08

Market Price

$7.22

Upside / Downside

-1.9%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-1.7%

Target Operating Margin

12.9%

WACC

9.0%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

2.6%

Target CapEx/Rev

6.0%

D&A/Revenue

3.2%

Tax Rate

30.3%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,965	5.7%	1.2%	24	17	63	(64)	529	-514	-492
2027	2,129	8.4%	4.1%	88	62	68	(84)	50	-4	-4
2028	2,205	3.5%	7.1%	156	109	70	(102)	23	54	43
2029	2,182	-1.1%	10.0%	218	152	70	(116)	-7	113	83
2030	2,159	-1.1%	12.9%	279	194	69	(130)	-7	141	95

Enterprise Value Bridge

Sum of PV(FCFF)-274

Terminal Value (Gordon Growth at 3.0%)2,403

PV of Terminal Value1,629

Enterprise Value1,355

(–) Net Debt540

Equity Value814

(÷) Shares Outstanding115

Fair Value per Share$7.08

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	6.9%	9.9%	12.9%	15.9%	18.9%
7.0%	$-1	$8	$16	$24	$33
8.0%	$-3	$4	$11	$17	$24
9.0%	$-4	$2	$7	$13	$18
10.0%	$-5	$-0	$5	$9	$14
11.0%	$-5	$-1	$3	$7	$11

Current price: $7.22. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 30.2% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$9.22

Market Price

$7.22

Upside / Downside

+27.7%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Kronos Worldwide, Inc. (KRO) has a fair value of $9.22 based on 9 comparable companies in the Chemicals - Specialty industry.

EV/Revenue Valuation — Chemicals - Specialty

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Kronos Worldwide, Inc.KRO	830	0.7x	0.7x
Tronox Holdings plcTROX	1,465	1.7x	1.6x
Green Plains Inc.GPRE	1,124	0.7x	0.7x
LSB Industries, Inc.LXU	1,079	2.5x	2.4x
Cementos Pacasmayo S.A.A.CPAC	902	1.1x	1.1x
Koppers Holdings Inc.KOP	703	0.9x	0.8x
AdvanSix Inc.ASIX	662	0.7x	0.7x
Gevo, Inc.GEVO	527	4.3x	3.7x
Mativ Holdings, Inc.MATV	458	0.8x	0.8x
Valhi, Inc.VHI	391	0.4x	0.4x
Industry Median		0.9x	0.8x
(*) Revenue		1,859	1,928
= Enterprise Value		1,670	1,531
(-) Net Debt		540	540
Equity Value		1,129	991
(/) Outstanding shares		115	115
Fair Price		$10	$9

Selected Fair Value (avg of trailing + forward)

$9.22

+27.7%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$1.63 – $32.75

$7.08

+12.6%

Revenue DCF 10Y

$0.10 – $27.53

$5.15

-18.1%

▸ Trading Multiples

EV/Revenue

$6.51 – $22.33

$9.22

+46.6%

DCF Analysis

Kronos Worldwide, Inc. (KRO) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$5.15

Market Price

$7.22

Upside / Downside

-28.7%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-1.7%

Target Operating Margin

12.9%

WACC

9.0%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

2.6%

Target CapEx/Rev

6.0%

D&A/Revenue

3.2%

Tax Rate

30.3%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	1,965	5.7%	1.2%	24	17	63	(58)	529	-507	-486
2027	2,129	8.4%	4.1%	88	62	68	(70)	50	10	9
2028	2,205	3.5%	7.1%	156	109	70	(80)	23	76	62
2029	2,182	-1.1%	10.0%	218	152	70	(86)	-7	142	105
2030	2,159	-1.1%	12.9%	279	194	69	(93)	-7	177	120
2031	2,151	-0.4%	12.9%	278	194	69	(100)	-2	165	103
2032	2,157	0.3%	12.9%	278	194	69	(107)	2	154	88
2033	2,179	1.0%	12.9%	281	196	70	(116)	6	143	75
2034	2,215	1.7%	12.9%	286	199	71	(125)	11	134	64
2035	2,266	2.3%	12.9%	292	204	72	(136)	16	125	55

Enterprise Value Bridge

Sum of PV(FCFF)194

Terminal Value (Gordon Growth at 3.0%)2,133

PV of Terminal Value938

Enterprise Value1,132

(–) Net Debt540

Equity Value592

(÷) Shares Outstanding115

Fair Value per Share$5.15

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	6.9%	9.9%	12.9%	15.9%	18.9%
7.0%	$-3	$4	$12	$20	$28
8.0%	$-4	$2	$8	$14	$20
9.0%	$-5	$0	$5	$10	$15
10.0%	$-5	$-1	$3	$7	$12
11.0%	$-6	$-2	$2	$5	$9

Current price: $7.22. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 30.2% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$9.22

Market Price

$7.22

Upside / Downside

+27.7%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Kronos Worldwide, Inc. (KRO) has a fair value of $9.22 based on 9 comparable companies in the Chemicals - Specialty industry.

EV/Revenue Valuation — Chemicals - Specialty

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Kronos Worldwide, Inc.KRO	830	0.7x	0.7x
Tronox Holdings plcTROX	1,465	1.7x	1.6x
Green Plains Inc.GPRE	1,124	0.7x	0.7x
LSB Industries, Inc.LXU	1,079	2.5x	2.4x
Cementos Pacasmayo S.A.A.CPAC	902	1.1x	1.1x
Koppers Holdings Inc.KOP	703	0.9x	0.8x
AdvanSix Inc.ASIX	662	0.7x	0.7x
Gevo, Inc.GEVO	527	4.3x	3.7x
Mativ Holdings, Inc.MATV	458	0.8x	0.8x
Valhi, Inc.VHI	391	0.4x	0.4x
Industry Median		0.9x	0.8x
(*) Revenue		1,859	1,928
= Enterprise Value		1,670	1,531
(-) Net Debt		540	540
Equity Value		1,129	991
(/) Outstanding shares		115	115
Fair Price		$10	$9

Selected Fair Value (avg of trailing + forward)

$9.22

+27.7%