TRONOX HOLDINGS PLC (TROX)
GB00BJT16S69 - Common Stock
Taking everything into account, TROX scores 2 out of 10 in our fundamental rating. TROX was compared to 84 industry peers in the Chemicals industry. Both the profitability and financial health of TROX have multiple concerns. TROX is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year TROX has reported negative net income.
TROX had a positive operating cash flow in the past year.
In multiple years TROX reported negative net income over the last 5 years.
Each year in the past 5 years TROX had a positive operating cash flow.
1.2 Ratios
TROX has a worse Return On Assets (-5.15%) than 79.76% of its industry peers.
TROX has a worse Return On Equity (-16.32%) than 82.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.73%, TROX is doing worse than 63.10% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for TROX is in line with the industry average of 7.41%.
The last Return On Invested Capital (2.73%) for TROX is well below the 3 year average (6.76%), which needs to be investigated, but indicates that TROX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.15% | ||
| ROE | -16.32% | ||
| ROIC | 2.73% |
ROA(3y)2.5%
ROA(5y)4.04%
ROE(3y)6.37%
ROE(5y)12.32%
ROIC(3y)6.76%
ROIC(5y)5.45%
1.3 Margins
Looking at the Operating Margin, with a value of 6.53%, TROX is doing worse than 61.90% of the companies in the same industry.
In the last couple of years the Operating Margin of TROX has declined.
The Gross Margin of TROX (16.21%) is worse than 70.24% of its industry peers.
TROX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.53% | ||
| PM (TTM) | N/A | ||
| GM | 16.21% |
OM growth 3Y-13.34%
OM growth 5Y-8.83%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.68%
GM growth 5Y-8.37%
2. Health
2.1 Basic Checks
TROX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
Compared to 1 year ago, TROX has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.42, we must say that TROX is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.42, TROX is not doing good in the industry: 70.24% of the companies in the same industry are doing better.
A Debt/Equity ratio of 1.44 is on the high side and indicates that TROX has dependencies on debt financing.
The Debt to Equity ratio of TROX (1.44) is worse than 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.42 |
ROIC/WACC0.36
WACC7.55%
2.3 Liquidity
A Current Ratio of 2.84 indicates that TROX has no problem at all paying its short term obligations.
TROX's Current ratio of 2.84 is fine compared to the rest of the industry. TROX outperforms 71.43% of its industry peers.
TROX has a Quick Ratio of 2.84. 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 (0.95) than 72.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.84 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
TROX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -107.65%.
TROX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.49%.
The Revenue has been growing by 9.40% on average over the past years. This is quite good.
EPS 1Y (TTM)-107.65%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-123.53%
Revenue 1Y (TTM)-17.49%
Revenue growth 3Y1.1%
Revenue growth 5Y9.4%
Revenue growth Q2Q5.7%
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 142.88% on average per year.
The Revenue is expected to grow by 7.31% on average over the next years.
EPS Next Y574.49%
EPS Next 2Y250.8%
EPS Next 3Y142.88%
EPS Next 5YN/A
Revenue Next Year9.27%
Revenue Next 2Y8.42%
Revenue Next 3Y7.31%
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
TROX reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 26.47, the valuation of TROX can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as TROX.
When comparing the Price/Forward Earnings ratio of TROX to the average of the S&P500 Index (20.88), we can say TROX is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 26.47 |
4.2 Price Multiples
TROX's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.08 |
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 142.88% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y250.8%
EPS Next 3Y142.88%
5. Dividend
5.1 Amount
TROX has a Yearly Dividend Yield of 2.61%.
Compared to an average industry Dividend Yield of 3.12, TROX pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, TROX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
5.2 History
On average, the dividend of TROX grows each year by 24.86%, which is quite nice.
TROX has been paying a dividend for at least 10 years, so it has 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)24.86%
Div Incr Years0
Div Non Decr Years6
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-28.16%
EPS Next 2Y250.8%
EPS Next 3Y142.88%
TRONOX HOLDINGS PLC
NYSE:TROX (5/3/2024, 7:22:45 PM)
After market: 18.84 0 (0%)18.84
-0.34 (-1.77%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.97B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 26.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.15% | ||
| ROE | -16.32% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.53% | ||
| PM (TTM) | N/A | ||
| GM | 16.21% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.44 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.84 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-107.65%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y574.49%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-17.49%
Revenue growth 3Y1.1%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y