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. TROX has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
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
With a Return On Assets value of -2.47%, TROX is not doing good in the industry: 69.41% of the companies in the same industry are doing better.
TROX's Return On Equity of -8.96% is on the low side compared to the rest of the industry. TROX is outperformed by 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.
Measured over the past 3 years, the Average Return On Invested Capital for TROX is below the industry average of 6.84%.
| 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.
In the last couple of years the Operating Margin of TROX has grown nicely.
The Gross Margin of TROX (19.12%) is worse 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.
The number of shares outstanding for TROX has been increased compared to 1 year ago.
Compared to 5 years ago, TROX has more shares outstanding
The debt/assets ratio for TROX is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.12, we must say that TROX is in the distress zone and has some risk of bankruptcy.
TROX has a worse Altman-Z score (1.12) than 74.12% of its industry peers.
TROX has a Debt/Equity ratio of 1.75. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.75, TROX is not doing good in the industry: 81.18% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.75 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.12 |
ROIC/WACC0.62
WACC6.94%
2.3 Liquidity
A Current Ratio of 2.28 indicates that TROX has no problem at all paying 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.
With a Quick ratio value of 0.61, TROX is not doing good in the industry: 84.71% of the companies in the same industry are doing better.
| 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.
The Revenue has been growing slightly by 4.18% in the past 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
The Earnings Per Share is expected to grow by 140.51% on average over the next years. This is a very strong growth
Based on estimates for the next years, TROX will show a small growth in Revenue. The Revenue will grow by 2.41% on average per year.
EPS Next Y320.29%
EPS Next 2Y244.69%
EPS Next 3Y140.51%
EPS Next 5YN/A
Revenue Next Year0.28%
Revenue Next 2Y2.55%
Revenue Next 3Y2.41%
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 cheaply with a Price/Forward Earnings ratio of 6.92.
Based on the Price/Forward Earnings ratio, TROX is valued cheaply inside the industry as 89.41% of the companies are valued more expensively.
TROX is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, TROX is valued cheaper than 87.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.13 |
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.
TROX's earnings are expected to grow with 140.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y244.69%
EPS Next 3Y140.51%
5. Dividend
5.1 Amount
TROX has a Yearly Dividend Yield of 9.09%, which is a nice return.
In the last 3 months the price of TROX has falen by -24.55%. 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 3.75, TROX pays a better dividend. On top of this TROX pays more dividend than 91.76% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, TROX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.09% |
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.
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.
The dividend of TROX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-52.67%
EPS Next 2Y244.69%
EPS Next 3Y140.51%
5.47
+0.27 (+5.19%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners72.96%
Inst Owner Change-3.31%
Ins Owners1.68%
Ins Owner Change1.44%
Market Cap866.78M
Analysts77.5
Price Target8.67 (58.5%)
Short Float %9.37%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 9.09% |
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)-13.56%
PT rev (3m)-38.18%
EPS NQ rev (1m)-88.54%
EPS NQ rev (3m)-98.21%
EPS NY rev (1m)-22.06%
EPS NY rev (3m)-65.21%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-3.27%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)-2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 6.92 | ||
| P/S | 0.29 | ||
| P/FCF | N/A | ||
| P/OCF | 2.92 | ||
| P/B | 0.52 | ||
| P/tB | 0.61 | ||
| EV/EBITDA | 6.13 |
EPS(TTM)-0.18
EYN/A
EPS(NY)0.79
Fwd EY14.45%
FCF(TTM)-0.68
FCFYN/A
OCF(TTM)1.87
OCFY34.26%
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
WACC6.94%
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 Y320.29%
EPS Next 2Y244.69%
EPS Next 3Y140.51%
EPS Next 5YN/A
Revenue 1Y (TTM)4.18%
Revenue growth 3Y-4.88%
Revenue growth 5Y3.08%
Sales Q2Q%-4.65%
Revenue Next Year0.28%
Revenue Next 2Y2.55%
Revenue Next 3Y2.41%
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%