KRO - Kronos Worldwide: No Cut Still Appealing Yield Recent Insider Buying
- Though KRO was not the most afflicted among the basic materials companies, the toll the pandemic took on it was anything but cosmetic.
- It seems the worst is far behind. For example, despite Q3 sales contraction YoY, Kronos reported an 8% sequential improvement. Also, its peers are expecting an improvement in demand.
- Though net CFFO weakened, KRO remained FCF-positive in 9M20.
- Since summer, Kronos' stock price has been on a tear, which led to the dividend yield compression, but I reckon ~5% is still quite appealing.
- Insider buying even after a vertiginous rally points to the fact that Kronos’ executives believe the market has not priced in the revenue recovery prospects yet.
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Kronos Worldwide: No Cut, Still Appealing Yield, Recent Insider Buying