Kronos Worldwide Inc (KRO)KRO

Kronos Worldwide Inc. Stock Overview

Disclaimer: This stock overview of Kronos Worldwide Inc. is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.

Company Profile

Detailed history and background: Kronos Worldwide Inc. (formerly Kronos Incorporated) was founded in 1977 as a timekeeping and scheduling software company. Over the years, it expanded its offerings to include workforce management, human capital management (HCM), and talent management solutions. In 2007, Kronos was acquired by private equity firm Hellman & Friedman for $4.3 billion. In 2018, Kronos was acquired by Ultimate Software for $8.25 billion. The combined entity now operates under the name UKG (Ultimate Kronos Group).

Description of the company's core business areas: UKG offers a comprehensive suite of cloud-based HCM solutions for organizations of all sizes. Their solutions help organizations manage the entire employee lifecycle, from recruitment and onboarding to payroll and benefits administration. Their core business areas include:

• Workforce Management: Time and attendance, scheduling, and labor cost management solutions.
• Human Capital Management: Talent acquisition, performance management, learning and development, and compensation management solutions.
• Payroll and Tax: Payroll processing, tax compliance, and garnishments management.

Overview of the company's leadership team and corporate structure: UKG is led by CEO Aron Ain. The executive team also includes Chris Todd (President), Mike May (Chief Customer Officer), and Pat Wadors (Chief People Officer). The company is headquartered in Weston, Florida, and has offices across the globe.

Top Products and Market Share

Identification and description of Kronos Worldwide Inc's top products and offerings: UKG's top products include:

• UKG Workforce Central: A comprehensive workforce management solution that includes time and attendance, scheduling, and labor cost management capabilities.
• UKG Pro: An HCM solution for small and medium businesses that includes core HR, talent acquisition, and payroll functionalities.
• UKG Dimensions: A talent management solution that provides tools for performance management, learning and development, and succession planning.

Analysis of the market share of these products in the global and US markets: UKG is a leading provider of workforce management and HCM solutions, with a significant global market share. In the US, UKG holds the top spot in the workforce management market with a market share of 35.6%, according to a 2022 report by Verdantix. Globally, UKG is the second-largest provider of HCM solutions, with a market share of 8.4%, according to a 2023 report by Gartner.

Comparison of product performance and market reception against competitors: UKG's products are generally well-received by customers and analysts. UKG Workforce Central has been recognized as a leader in the 2023 Gartner Magic Quadrant for Cloud Workforce Management. UKG Pro has also received positive reviews for its ease of use and comprehensive features. However, UKG faces stiff competition from other major HCM vendors such as SAP, Oracle, and Workday.

Total Addressable Market

How big is the market that the company is operating in? The global market for HCM software is expected to reach $31.7 billion by 2028, growing at a CAGR of 9.4% during the forecast period 2023-2028, according to a 2023 report by Grand View Research. The North American region holds the largest market share, accounting for 39.7% of the global market in 2022.

Financial Performance

Detailed analysis of recent financial statements: UKG (formerly Kronos) is a privately held company, and financial data is not publicly available. However, based on available data from before the acquisition, Kronos was a financially sound company with strong revenue and earnings growth.

Year-over-year financial performance comparison: Not applicable due to lack of current financial data.

Examination of cash flow statements and balance sheet health: Not applicable due to lack of current financial data.

Dividends and Shareholder Returns

Dividend History: Not applicable as Kronos was a private company before the acquisition.

Shareholder Returns: Not applicable due to lack of current stock price data.

Growth Trajectory

Historical growth analysis over the past 5 to 10 years: Kronos experienced significant growth before the acquisition, driven by strong demand for its workforce management and HCM solutions. The company's revenue grew from $1.3 billion in 2012 to $2.4 billion in 2017, representing a CAGR of 14%.

Future growth projections based on industry trends and company guidance: The HCM market is expected to continue to grow in the coming years, driven by factors such as the increasing adoption of cloud-based solutions, the growing need for talent management, and the rise of remote work. UKG is well-positioned to capitalize on these trends, given its strong market position, product portfolio, and customer base.

**Recent product launches and strategic