DB:T5X

Stock Analysis Report

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Executive Summary

Tronox Holdings plc operates as a vertically integrated manufacturer of TiO2 pigment in South and Central America, Europe, the Middle East, Africa, and the Asia Pacific.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Tronox Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: T5X's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.2%

T5X

0.9%

DE Chemicals

2.2%

DE Market


1 Year Return

-40.6%

T5X

-18.5%

DE Chemicals

-3.9%

DE Market

Return vs Industry: T5X underperformed the German Chemicals industry which returned -18.4% over the past year.

Return vs Market: T5X underperformed the German Market which returned -4.6% over the past year.


Shareholder returns

T5XIndustryMarket
7 Day-4.2%0.9%2.2%
30 Day2.7%3.9%8.0%
90 Day-19.7%-15.5%-9.6%
1 Year-38.7%-40.6%-18.0%-18.5%-2.3%-3.9%
3 Year-59.0%-61.2%-33.3%-37.9%-7.6%-14.8%
5 Year-53.4%-62.1%-26.2%-35.8%-0.3%-12.9%

Price Volatility Vs. Market

How volatile is Tronox Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Tronox Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: T5X (€5.7) is trading below our estimate of fair value (€26.62)

Significantly Below Fair Value: T5X is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: T5X is unprofitable, so we can't compare its PE Ratio to the Chemicals industry average.

PE vs Market: T5X is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate T5X's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: T5X is overvalued based on its PB Ratio (1.6x) compared to the DE Chemicals industry average (1.4x).


Next Steps

Future Growth

How is Tronox Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

78.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: T5X is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: T5X is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: T5X's is expected to become profitable in the next 3 years.

Revenue vs Market: T5X's revenue (2.9% per year) is forecast to grow slower than the German market (5.7% per year).

High Growth Revenue: T5X's revenue (2.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: T5X's Return on Equity is forecast to be high in 3 years time (23%)


Next Steps

Past Performance

How has Tronox Holdings performed over the past 5 years?

51.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: T5X is currently unprofitable.

Growing Profit Margin: T5X is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: T5X is unprofitable, but has reduced losses over the past 5 years at a rate of 51.9% per year.

Accelerating Growth: Unable to compare T5X's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: T5X is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-16.7%).


Return on Equity

High ROE: T5X has a negative Return on Equity (-4.71%), as it is currently unprofitable.


Next Steps

Financial Health

How is Tronox Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: T5X's short term assets ($2.2B) exceed its short term liabilities ($911.0M).

Long Term Liabilities: T5X's short term assets ($2.2B) do not cover its long term liabilities ($3.5B).


Debt to Equity History and Analysis

Debt Level: T5X's debt to equity ratio (476.9%) is considered high.

Reducing Debt: T5X's debt to equity ratio has increased from 180.7% to 476.9% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable T5X has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: T5X is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 19.1% per year.


Next Steps

Dividend

What is Tronox Holdings's current dividend yield, its reliability and sustainability?

4.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: T5X's dividend (4.48%) is higher than the bottom 25% of dividend payers in the German market (1.36%).

High Dividend: T5X's dividend (4.48%) is in the top 25% of dividend payers in the German market (4.18%)


Stability and Growth of Payments

Stable Dividend: T5X has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: T5X has only been paying a dividend for 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: T5X is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: T5X's dividends in 3 years are forecast to be well covered by earnings (25.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Jeff Quinn (60yo)

2.42yrs

Tenure

US$7,263,598

Compensation

Mr. Jeffry N. Quinn, also known as Jeff, J.D., CPA has been Chairman of the Board at Tronox Holdings plc (formerly, Tronox Limited) since March 28, 2019. Mr. Quinn serves as President and Chief Executive O ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD7.26M) is above average for companies of similar size in the German market ($USD1.25M).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jeffry Quinn
Chairman2.42yrsUS$7.26m0.17% $1.4m
Timothy Carlson
Senior VP & CFO3.58yrsUS$2.08m0.11% $939.3k
Jean-François Turgeon
Executive VP & COO2.67yrsUS$2.49m0.26% $2.1m
Willem van Niekerk
Senior Vice President of Technology & Saudi Arabia0.083yrUS$1.95m0.21% $1.8m
John Romano
Executive VP and Chief Commercial & Strategy Officer9.25yrsUS$2.32m0.27% $2.2m
Todd Putnam
Chief Information Officer3.25yrsno datano data
Jennifer Guenther
Vice President of Investor Relations0.083yrno datano data
Jeffrey Neuman
Senior VP2.08yrsUS$2.72m0.021% $169.5k
Raoul Mancini
Senior VP & Chief Human Resources Officer0.25yrno data0.18% $1.4m
Melissa Zona
Senior VP of External Affairs & Chief Sustainability Officer0.67yrno datano data

2.3yrs

Average Tenure

54.5yo

Average Age

Experienced Management: T5X's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffry Quinn
Chairman2.42yrsUS$7.26m0.17% $1.4m
Ilan Kaufthal
Lead Independent Director1.17yrsUS$345.18k0.14% $1.2m
Sipho Nkosi
Independent Director7.92yrsUS$266.64k0.066% $546.4k
Andrews Hines
Independent Director7.92yrsUS$289.05k0.11% $926.7k
Peter Johnston
Independent Director7.75yrsUS$273.93k0.061% $501.8k
Stephen Jones
Independent Director1.17yrsUS$256.44kno data
Wayne Hinman
Independent Director7.92yrsUS$283.38k0.11% $890.8k
Ginger Jones
Independent Director2.08yrsUS$287.99k0.029% $234.7k
Vanessa Guthrie
Independent Director1.17yrsUS$253.39kno data
Moazzam Khan
Director1.08yrsUS$222.52k0.00067% $5.5k

1.6yrs

Average Tenure

63yo

Average Age

Experienced Board: T5X's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: T5X insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Tronox Holdings plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tronox Holdings plc
  • Ticker: T5X
  • Exchange: DB
  • Founded:
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: US$896.050m
  • Listing Market Cap: US$822.574m
  • Shares outstanding: 143.37m
  • Website: https://www.tronox.com

Number of Employees


Location

  • Tronox Holdings plc
  • 263 Tresser Boulevard
  • Suite 1100
  • Stamford
  • Connecticut
  • 6901
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
T5XDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2010
TROXNYSE (New York Stock Exchange)YesOrdinary SharesUSUSDDec 2010

Biography

Tronox Holdings plc operates as a vertically integrated manufacturer of TiO2 pigment in South and Central America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates titanium-bearing mineral sand mines, and beneficiation and smelting operations. Its products include TiO2, zircon, and pig iron, as well as feedstock and other products comprising rutile prime, ilmenite, chloride slag, and other mining products. The company’s products are used for the manufacture of paints, coatings, plastics, and paper, as well as a range of other applications. Tronox Holdings plc is based in Stamford, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 01:01
End of Day Share Price2020/05/25 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.