TRONOX HOLDINGS PLC (TROX) Stock Fundamental Analysis
NYSE:TROX - New York Stock Exchange, Inc. - GB00BJT16S69 - Common Stock - Currency: USD
Taking everything into account, TROX scores 3 out of 10 in our fundamental rating. 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 valuation in line with the averages, but on the other hand it scores bad on growth. 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.
The reported net income has been mixed in the past 5 years: TROX reported negative net income in multiple years.
Each year in the past 5 years TROX had a positive operating cash flow.
1.2 Ratios
TROX's Return On Assets of -2.47% is on the low side compared to the rest of the industry. TROX is outperformed by 69.41% of its industry peers.
The Return On Equity of TROX (-8.96%) is worse than 69.41% of its industry peers.
TROX's Return On Invested Capital of 4.33% is in line compared to the rest of the industry. TROX outperforms 49.41% of its industry peers.
The Average Return On Invested Capital over the past 3 years for TROX is below the industry average of 6.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.47% | ||
| ROE | -8.96% | ||
| ROIC | 4.33% |
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
TROX's Operating Margin of 9.55% is in line compared to the rest of the industry. TROX outperforms 55.29% of its industry peers.
TROX's Operating Margin has improved in the last couple of years.
TROX has a worse Gross Margin (19.12%) than 68.24% of its industry peers.
TROX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.55% | ||
| PM (TTM) | N/A | ||
| GM | 19.12% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
The debt/assets ratio for TROX is higher compared to a year ago.
2.2 Solvency
TROX has an Altman-Z score of 1.12. This is a bad value and indicates that TROX is not financially healthy and even has some risk of bankruptcy.
TROX has a worse Altman-Z score (1.12) than 75.29% of its industry peers.
A Debt/Equity ratio of 1.75 is on the high side and indicates that TROX has dependencies on debt financing.
The Debt to Equity ratio of TROX (1.75) is worse than 81.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.12 |
ROIC/WACC0.62
WACC7%
2.3 Liquidity
TROX has a Current Ratio of 2.28. This indicates that TROX is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.28, TROX is in the better half of the industry, outperforming 61.18% of the companies in the same industry.
A Quick Ratio of 0.61 indicates that TROX may have some problems paying its short term obligations.
TROX's Quick ratio of 0.61 is on the low side compared to the rest of the industry. TROX is outperformed by 84.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.28 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
TROX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 48.57%, which is quite impressive.
Looking at the last year, TROX shows a small growth in Revenue. The Revenue has grown by 4.18% in the last year.
The Revenue has been growing slightly by 3.08% on average over the past years.
EPS 1Y (TTM)48.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-200%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y-4.88%
Revenue growth 5Y3.08%
Sales Q2Q%-4.65%
3.2 Future
TROX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 130.66% yearly.
The Revenue is expected to grow by 1.97% on average over the next years.
EPS Next Y229.09%
EPS Next 2Y222.28%
EPS Next 3Y130.67%
EPS Next 5YN/A
Revenue Next Year-1.39%
Revenue Next 2Y1.65%
Revenue Next 3Y1.97%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for TROX. In the last year negative earnings were reported.
TROX is valuated reasonably with a Price/Forward Earnings ratio of 8.29.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TROX indicates a rather cheap valuation: TROX is cheaper than 89.41% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.52, TROX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.29 |
4.2 Price Multiples
87.06% of the companies in the same industry are more expensive than TROX, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.1 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TROX's earnings are expected to grow with 130.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y222.28%
EPS Next 3Y130.67%
5. Dividend
5.1 Amount
TROX has a Yearly Dividend Yield of 8.74%, which is a nice return.
TROX's Dividend Yield is rather good when compared to the industry average which is at 3.53. TROX pays more dividend than 94.12% of the companies in the same industry.
TROX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.74% |
5.2 History
The dividend of TROX is nicely growing with an annual growth rate of 20.05%!
TROX has paid a dividend for at least 10 years, which is a reliable track record.
As TROX did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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.
The dividend of TROX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-52.67%
EPS Next 2Y222.28%
EPS Next 3Y130.67%
5.56
+0.2 (+3.73%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners72.96%
Inst Owner Change0%
Ins Owners1.68%
Ins Owner Change1.44%
Market Cap881.04M
Analysts76
Price Target8.67 (55.94%)
Short Float %14.15%
Short Ratio5.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.74% |
Yearly Dividend0.51
Dividend Growth(5Y)20.05%
DP-52.67%
Div Incr Years0
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2059.18%
Min EPS beat(2)-4074.56%
Max EPS beat(2)-43.8%
EPS beat(4)0
Avg EPS beat(4)-1090.34%
Min EPS beat(4)-4074.56%
Max EPS beat(4)-43.8%
EPS beat(8)0
Avg EPS beat(8)-2534.14%
EPS beat(12)1
Avg EPS beat(12)-1706.94%
EPS beat(16)3
Avg EPS beat(16)-1279.67%
Revenue beat(2)0
Avg Revenue beat(2)-4.16%
Min Revenue beat(2)-4.96%
Max Revenue beat(2)-3.37%
Revenue beat(4)0
Avg Revenue beat(4)-3.46%
Min Revenue beat(4)-5.19%
Max Revenue beat(4)-0.31%
Revenue beat(8)2
Avg Revenue beat(8)-3.32%
Revenue beat(12)3
Avg Revenue beat(12)-3.33%
Revenue beat(16)5
Avg Revenue beat(16)-2.8%
PT rev (1m)-1.29%
PT rev (3m)-37.27%
EPS NQ rev (1m)-1740%
EPS NQ rev (3m)-133.76%
EPS NY rev (1m)-54.32%
EPS NY rev (3m)-78.25%
Revenue NQ rev (1m)-2.17%
Revenue NQ rev (3m)-4.4%
Revenue NY rev (1m)-1.46%
Revenue NY rev (3m)-3.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 8.29 | ||
| P/S | 0.29 | ||
| P/FCF | N/A | ||
| P/OCF | 2.97 | ||
| P/B | 0.53 | ||
| P/tB | 0.62 | ||
| EV/EBITDA | 6.1 |
EPS(TTM)-0.18
EYN/A
EPS(NY)0.67
Fwd EY12.07%
FCF(TTM)-0.68
FCFYN/A
OCF(TTM)1.87
OCFY33.71%
SpS19.17
BVpS10.56
TBVpS9.03
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.47% | ||
| ROE | -8.96% | ||
| ROCE | 5.68% | ||
| ROIC | 4.33% | ||
| ROICexc | 4.45% | ||
| ROICexgc | 4.67% | ||
| OM | 9.55% | ||
| PM (TTM) | N/A | ||
| GM | 19.12% | ||
| 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-Score6
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.11 | ||
| Cap/Depr | 142.25% | ||
| Cap/Sales | 13.3% | ||
| Interest Coverage | 1.93 | ||
| Cash Conversion | 51.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.28 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 1.12 |
F-Score6
WACC7%
ROIC/WACC0.62
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 Y229.09%
EPS Next 2Y222.28%
EPS Next 3Y130.67%
EPS Next 5YN/A
Revenue 1Y (TTM)4.18%
Revenue growth 3Y-4.88%
Revenue growth 5Y3.08%
Sales Q2Q%-4.65%
Revenue Next Year-1.39%
Revenue Next 2Y1.65%
Revenue Next 3Y1.97%
Revenue Next 5YN/A
EBIT growth 1Y40.1%
EBIT growth 3Y-25.58%
EBIT growth 5Y14.1%
EBIT Next Year111.78%
EBIT Next 3Y38%
EBIT Next 5YN/A
FCF growth 1Y-21.59%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-10%
OCF growth 3Y-25.99%
OCF growth 5Y-7.42%