TRONOX HOLDINGS PLC (TROX) Stock Fundamental Analysis
NYSE:TROX - New York Stock Exchange, Inc. - GB00BJT16S69 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to TROX. TROX was compared to 85 industry peers in the Chemicals industry. Both the profitability and financial health of TROX have multiple concerns. TROX has a decent growth rate and is not valued too expensively. Finally TROX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
TROX had negative earnings in the past year.
In the past year TROX had a positive cash flow from operations.
In multiple years TROX reported negative net income over the last 5 years.
In the past 5 years TROX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of TROX (-0.79%) is worse than 67.06% of its industry peers.
With a Return On Equity value of -2.73%, TROX is not doing good in the industry: 63.53% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 3.97%, TROX is in line with its industry, outperforming 45.88% of the companies in the same industry.
TROX had an Average Return On Invested Capital over the past 3 years of 4.83%. This is below the industry average of 7.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.79% | ||
| ROE | -2.73% | ||
| ROIC | 3.97% |
ROA(3y)0.64%
ROA(5y)4.29%
ROE(3y)0.68%
ROE(5y)14.69%
ROIC(3y)4.83%
ROIC(5y)5.78%
1.3 Margins
With a Operating Margin value of 8.56%, TROX perfoms like the industry average, outperforming 50.59% of the companies in the same industry.
In the last couple of years the Operating Margin of TROX has grown nicely.
The Gross Margin of TROX (18.18%) is worse than 69.41% of its industry peers.
In the last couple of years the Gross Margin of TROX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.56% | ||
| PM (TTM) | N/A | ||
| GM | 18.18% |
OM growth 3Y-21.76%
OM growth 5Y10.7%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.53%
GM growth 5Y-0.11%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so TROX is destroying value.
TROX has more shares outstanding than it did 1 year ago.
The number of shares outstanding for TROX has been increased compared to 5 years ago.
TROX has a worse debt/assets ratio than last year.
2.2 Solvency
TROX has an Altman-Z score of 1.16. This is a bad value and indicates that TROX is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.16, TROX is doing worse than 70.59% of the companies in the same industry.
A Debt/Equity ratio of 1.60 is on the high side and indicates that TROX has dependencies on debt financing.
With a Debt to Equity ratio value of 1.60, TROX is not doing good in the industry: 77.65% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.16 |
ROIC/WACC0.57
WACC7.03%
2.3 Liquidity
A Current Ratio of 2.47 indicates that TROX has no problem at all paying its short term obligations.
TROX's Current ratio of 2.47 is fine compared to the rest of the industry. TROX outperforms 71.76% of its industry peers.
TROX has a Quick Ratio of 2.47. This is a bad value and indicates that TROX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of TROX (0.69) is worse than 81.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 48.57% over the past year.
TROX shows a small growth in Revenue. In the last year, the Revenue has grown by 7.86%.
Measured over the past years, TROX shows a small growth in Revenue. The Revenue has been growing by 3.08% on average per year.
EPS 1Y (TTM)48.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-200%
Revenue 1Y (TTM)7.86%
Revenue growth 3Y-4.88%
Revenue growth 5Y3.08%
Sales Q2Q%-4.65%
3.2 Future
The Earnings Per Share is expected to grow by 154.19% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.20% on average over the next years.
EPS Next Y639.83%
EPS Next 2Y267.26%
EPS Next 3Y154.19%
EPS Next 5YN/A
Revenue Next Year1.58%
Revenue Next 2Y3.47%
Revenue Next 3Y3.2%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for TROX. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 6.22 indicates a rather cheap valuation of TROX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TROX indicates a rather cheap valuation: TROX is cheaper than 95.29% of the companies listed in the same industry.
TROX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TROX is valued cheaply inside the industry as 81.18% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.48 |
4.3 Compensation for Growth
TROX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as TROX's earnings are expected to grow with 154.19% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y267.26%
EPS Next 3Y154.19%
5. Dividend
5.1 Amount
TROX has a Yearly Dividend Yield of 9.11%, which is a nice return.
In the last 3 months the price of TROX has falen by -44.30%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.80, TROX pays a better dividend. On top of this TROX pays more dividend than 92.94% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, TROX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.11% |
5.2 History
On average, the dividend of TROX grows each year by 20.05%, which is quite nice.
TROX has paid a dividend for at least 10 years, which is a reliable track record.
TROX has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)20.05%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
TROX has negative earnings and hence a negative payout ratio. The dividend may be in danger.
TROX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-166.67%
EPS Next 2Y267.26%
EPS Next 3Y154.19%
5.72
+0.23 (+4.19%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners75.22%
Inst Owner Change-0.96%
Ins Owners1.45%
Ins Owner Change0.93%
Market Cap906.39M
Analysts77.5
Price Target12.5 (118.53%)
Short Float %5.23%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.11% |
Yearly Dividend0.51
Dividend Growth(5Y)20.05%
DP-166.67%
Div Incr Years0
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-112.2%
Min EPS beat(2)-180.61%
Max EPS beat(2)-43.8%
EPS beat(4)0
Avg EPS beat(4)-271.77%
Min EPS beat(4)-800.28%
Max EPS beat(4)-43.8%
EPS beat(8)1
Avg EPS beat(8)-2018.28%
EPS beat(12)1
Avg EPS beat(12)-1368%
EPS beat(16)4
Avg EPS beat(16)-1022.39%
Revenue beat(2)0
Avg Revenue beat(2)-2.63%
Min Revenue beat(2)-4.96%
Max Revenue beat(2)-0.31%
Revenue beat(4)1
Avg Revenue beat(4)-2.45%
Min Revenue beat(4)-5.19%
Max Revenue beat(4)0.64%
Revenue beat(8)3
Avg Revenue beat(8)-2.77%
Revenue beat(12)4
Avg Revenue beat(12)-2.94%
Revenue beat(16)6
Avg Revenue beat(16)-2.35%
PT rev (1m)-9.59%
PT rev (3m)-22.56%
EPS NQ rev (1m)-67.63%
EPS NQ rev (3m)-95.3%
EPS NY rev (1m)-9.06%
EPS NY rev (3m)-52.72%
Revenue NQ rev (1m)-1.48%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)-1.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.22 | ||
| P/S | 0.29 | ||
| P/FCF | N/A | ||
| P/OCF | 3.02 | ||
| P/B | 0.51 | ||
| P/tB | 0.6 | ||
| EV/EBITDA | 6.48 |
EPS(TTM)-0.18
EYN/A
EPS(NY)0.92
Fwd EY16.07%
FCF(TTM)-0.44
FCFYN/A
OCF(TTM)1.89
OCFY33.1%
SpS19.4
BVpS11.11
TBVpS9.57
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.79% | ||
| ROE | -2.73% | ||
| ROCE | 5.09% | ||
| ROIC | 3.97% | ||
| ROICexc | 4.09% | ||
| ROICexgc | 4.3% | ||
| OM | 8.56% | ||
| PM (TTM) | N/A | ||
| GM | 18.18% | ||
| FCFM | N/A |
ROA(3y)0.64%
ROA(5y)4.29%
ROE(3y)0.68%
ROE(5y)14.69%
ROIC(3y)4.83%
ROIC(5y)5.78%
ROICexc(3y)5%
ROICexc(5y)6.08%
ROICexgc(3y)5.25%
ROICexgc(5y)6.37%
ROCE(3y)6.16%
ROCE(5y)7.35%
ROICexcg growth 3Y-26.17%
ROICexcg growth 5Y10.16%
ROICexc growth 3Y-26.27%
ROICexc growth 5Y10.18%
OM growth 3Y-21.76%
OM growth 5Y10.7%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.53%
GM growth 5Y-0.11%
F-Score5
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.15 | ||
| Cap/Depr | 129.82% | ||
| Cap/Sales | 12.04% | ||
| Interest Coverage | 1.74 | ||
| Cash Conversion | 54.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 1.16 |
F-Score5
WACC7.03%
ROIC/WACC0.57
Cap/Depr(3y)127.95%
Cap/Depr(5y)107.91%
Cap/Sales(3y)11.2%
Cap/Sales(5y)9.65%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)48.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-200%
EPS Next Y639.83%
EPS Next 2Y267.26%
EPS Next 3Y154.19%
EPS Next 5YN/A
Revenue 1Y (TTM)7.86%
Revenue growth 3Y-4.88%
Revenue growth 5Y3.08%
Sales Q2Q%-4.65%
Revenue Next Year1.58%
Revenue Next 2Y3.47%
Revenue Next 3Y3.2%
Revenue Next 5YN/A
EBIT growth 1Y15.35%
EBIT growth 3Y-25.58%
EBIT growth 5Y14.1%
EBIT Next Year120.9%
EBIT Next 3Y40.76%
EBIT Next 5YN/A
FCF growth 1Y9.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y63.04%
OCF growth 3Y-25.99%
OCF growth 5Y-7.42%