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We operate through our wholly-owned and majority-owned subsidiaries, including NL Industries, Inc., Kronos Worldwide, Inc., CompX International Inc., Basic Management, Inc. and The LandWell Company. Kronos (NYSE: KRO), NL (NYSE: NL) and CompX (NYSE American: CIX) each file periodic reports with the U.S.
Operating margin is thin at 3.05%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 1.3% YoY. Margins deteriorated 7.0pp alongside, both lines moving the wrong way.
Free cash flow declined 727% versus the prior year, cash generation momentum has weakened. ROIC dropped from 8.18% to 3.16%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$2.10B
▼ -1.3% YoY
Net Income (TTM)
-$73M
▼ -153.3% YoY
Op. Margin
2.20%
▼ -7.0pp YoY
ROIC
2.12%
▼ -5.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$30M
▼ -726.7% YoY
Op. Cash Flow (TTM)
$74M
▼ -180.7% YoY
Net Debt
$449M
Cash & Equiv.
$196M
5Y CAGR: +2.3%
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