The prospects for Kronos Worldwide (KRO) look bearish despite the significant 45% rally from the lows in August. There are several concerns that investors should weigh carefully before committing capital to KRO.
- TiO2 prices continue to decline.
- The company operated at a 97% average capacity utilization rate. Therefore, there is not much room for improvement there.
- Revenue for Q3 has increased meagerly over the past seven years.
- EBITDA dropped sharply for two consecutive Q3s.
- Margins are compressing
- The operational performance is not exciting.
Concerns regarding the TiO2 segment
KRO is a