Kronos Worldwide Inc — Earnings Quality Grade F
KRO · Basic Materials
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 53 days, change +1 days YoY
AR growth 0.6% vs revenue growth -1.5%
Revenue -1.5%, CFFO -96.6%. Cash follows revenue
Expense Quality
Inventory -4.3% vs COGS 7.8%. Normal
CapEx growth 45.4% is >2x revenue growth -1.5%
SG&A/Gross Profit = 107.6%, exceeds 70%
Gross margin swung -7.6pp (19.0% → 11.5%)
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.
FCF is negative ($-0.0B)
Accruals ratio = -6.2%. Low accruals
Cash $0.0B covers only 6% of debt $0.6B
Balance Sheet Health
Goodwill+Intangibles $0.0B = 0% of equity. Manageable
Debt/EBITDA = 28.3x (>4x). Interest coverage = -0.8x (<2x). Financial stress
Other assets 17.0% vs revenue -1.5%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Small-cap context: A single acquisition on a small balance sheet can trip serial-acquirer logic.
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
M-Score = -2.50 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25