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 it does not seem to be growing. Finally TROX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year TROX has reported negative net income.
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.
TROX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -4.04%, TROX is not doing good in the industry: 69.41% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -15.19%, TROX is doing worse than 71.76% of the companies in the same industry.
TROX has a worse Return On Invested Capital (3.26%) than 61.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TROX is in line with the industry average of 6.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.04% | ||
| ROE | -15.19% | ||
| ROIC | 3.26% |
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 has a Operating Margin (7.53%) which is comparable to the rest of the industry.
TROX's Operating Margin has improved in the last couple of years.
The Gross Margin of TROX (17.33%) is worse than 71.76% 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 | 7.53% | ||
| PM (TTM) | N/A | ||
| GM | 17.33% |
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.
TROX has more shares outstanding than it did 5 years ago.
TROX has a worse debt/assets ratio than last year.
2.2 Solvency
TROX has an Altman-Z score of 0.96. 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 (0.96) than 78.82% of its industry peers.
A Debt/Equity ratio of 1.83 is on the high side and indicates that TROX has dependencies on debt financing.
TROX has a worse Debt to Equity ratio (1.83) than 81.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.83 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.96 |
ROIC/WACC0.55
WACC5.93%
2.3 Liquidity
A Current Ratio of 2.10 indicates that TROX has no problem at all paying its short term obligations.
With a Current ratio value of 2.10, TROX perfoms like the industry average, outperforming 55.29% of the companies in the same industry.
TROX has a Quick Ratio of 2.10. This is a bad value and indicates that TROX is not financially healthy enough and could expect problems in meeting its short term obligations.
TROX has a worse Quick ratio (0.52) than 87.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
TROX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.45%.
The Revenue has been growing slightly by 0.24% in the past year.
The Revenue has been growing slightly by 3.08% on average over the past years.
EPS 1Y (TTM)-20.45%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-500%
Revenue 1Y (TTM)0.24%
Revenue growth 3Y-4.88%
Revenue growth 5Y3.08%
Sales Q2Q%-10.85%
3.2 Future
Based on estimates for the next years, TROX will show a very strong growth in Earnings Per Share. The EPS will grow by 130.66% on average per year.
Based on estimates for the next years, TROX will show a small growth in Revenue. The Revenue will grow by 1.97% on average per year.
EPS Next Y229.09%
EPS Next 2Y222.28%
EPS Next 3Y130.67%
EPS Next 5YN/A
Revenue Next Year-2.41%
Revenue Next 2Y1.43%
Revenue Next 3Y1.97%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
TROX reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
TROX is valuated cheaply with a Price/Forward Earnings ratio of 4.68.
Based on the Price/Forward Earnings ratio, TROX is valued cheaper than 95.29% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of TROX to the average of the S&P500 Index (34.04), we can say TROX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.68 |
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 | 6.23 |
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 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
With a Yearly Dividend Yield of 6.19%, TROX is a good candidate for dividend investing.
The stock price of TROX dropped by -40.19% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.79, TROX pays a better dividend. On top of this TROX pays more dividend than 87.06% of the companies listed in the same industry.
TROX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
5.2 History
The dividend of TROX is nicely growing with an annual growth rate of 20.05%!
TROX has been paying a dividend for at least 10 years, so it has 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-23.6%
EPS Next 2Y222.28%
EPS Next 3Y130.67%
3.14
-0.09 (-2.79%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners72.96%
Inst Owner Change0.33%
Ins Owners1.68%
Ins Owner Change1.77%
Market Cap497.56M
Analysts76
Price Target6.25 (99.04%)
Short Float %13.14%
Short Ratio5.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
Yearly Dividend0.51
Dividend Growth(5Y)20.05%
DP-23.6%
Div Incr Years0
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2256.99%
Min EPS beat(2)-4074.56%
Max EPS beat(2)-439.42%
EPS beat(4)0
Avg EPS beat(4)-1184.6%
Min EPS beat(4)-4074.56%
Max EPS beat(4)-43.8%
EPS beat(8)0
Avg EPS beat(8)-2583.68%
EPS beat(12)1
Avg EPS beat(12)-1743.17%
EPS beat(16)2
Avg EPS beat(16)-1308.14%
Revenue beat(2)0
Avg Revenue beat(2)-5.8%
Min Revenue beat(2)-8.24%
Max Revenue beat(2)-3.37%
Revenue beat(4)0
Avg Revenue beat(4)-4.22%
Min Revenue beat(4)-8.24%
Max Revenue beat(4)-0.31%
Revenue beat(8)2
Avg Revenue beat(8)-3.69%
Revenue beat(12)3
Avg Revenue beat(12)-3.28%
Revenue beat(16)5
Avg Revenue beat(16)-3.24%
PT rev (1m)-14.71%
PT rev (3m)-40.82%
EPS NQ rev (1m)-47.76%
EPS NQ rev (3m)-149.89%
EPS NY rev (1m)-41.4%
EPS NY rev (3m)-76.09%
Revenue NQ rev (1m)-1.93%
Revenue NQ rev (3m)-5.52%
Revenue NY rev (1m)-2.68%
Revenue NY rev (3m)-3.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.68 | ||
| P/S | 0.17 | ||
| P/FCF | N/A | ||
| P/OCF | 3.02 | ||
| P/B | 0.3 | ||
| P/tB | 0.35 | ||
| EV/EBITDA | 6.23 |
EPS(TTM)-0.53
EYN/A
EPS(NY)0.67
Fwd EY21.37%
FCF(TTM)-1.55
FCFYN/A
OCF(TTM)1.04
OCFY33.16%
SpS18.61
BVpS10.39
TBVpS8.95
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.04% | ||
| ROE | -15.19% | ||
| ROCE | 4.34% | ||
| ROIC | 3.26% | ||
| ROICexc | 3.34% | ||
| ROICexgc | 3.49% | ||
| OM | 7.53% | ||
| PM (TTM) | N/A | ||
| GM | 17.33% | ||
| 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-Score4
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.83 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.94 | ||
| Cap/Depr | 143.71% | ||
| Cap/Sales | 13.94% | ||
| Interest Coverage | 1.47 | ||
| Cash Conversion | 32.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.1 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 0.96 |
F-Score4
WACC5.93%
ROIC/WACC0.55
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)-20.45%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-500%
EPS Next Y229.09%
EPS Next 2Y222.28%
EPS Next 3Y130.67%
EPS Next 5YN/A
Revenue 1Y (TTM)0.24%
Revenue growth 3Y-4.88%
Revenue growth 5Y3.08%
Sales Q2Q%-10.85%
Revenue Next Year-2.41%
Revenue Next 2Y1.43%
Revenue Next 3Y1.97%
Revenue Next 5YN/A
EBIT growth 1Y11.56%
EBIT growth 3Y-25.58%
EBIT growth 5Y14.1%
EBIT Next Year80.05%
EBIT Next 3Y35%
EBIT Next 5YN/A
FCF growth 1Y-510%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-61.98%
OCF growth 3Y-25.99%
OCF growth 5Y-7.42%