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TREC

Trecora Resources NYSE:TREC Stock Report

Last Price

US$9.81

Market Cap

US$232.6m

7D

0.3%

1Y

16.6%

Updated

26 Jun, 2022

Data

Company Financials

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.
TREC fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance1/6
Financial Health6/6
Dividends0/6

TREC Stock Overview

Trecora Resources manufactures and sells various specialty petrochemicals products and specialty waxes in the United States.

Trecora Resources Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Trecora Resources
Historical stock prices
Current Share PriceUS$9.81
52 Week HighUS$9.82
52 Week LowUS$7.46
Beta0.33
1 Month Change0.93%
3 Month Change15.28%
1 Year Change16.65%
3 Year Change2.51%
5 Year Change-12.80%
Change since IPO361.65%

Recent News & Updates

Shareholder Returns

TRECUS ChemicalsUS Market
7D0.3%1.5%1.4%
1Y16.6%-0.9%-8.4%

Return vs Industry: TREC exceeded the US Chemicals industry which returned -8.3% over the past year.

Return vs Market: TREC exceeded the US Market which returned -18.5% over the past year.

Price Volatility

Is TREC's price volatile compared to industry and market?
TREC volatility
TREC Average Weekly Movement9.0%
Chemicals Industry Average Movement6.6%
Market Average Movement7.6%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.1%

Stable Share Price: TREC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: TREC's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1967247Pat Quarleshttps://www.trecora.com

Trecora Resources manufactures and sells various specialty petrochemicals products and specialty waxes in the United States. It operates through two segments, Specialty Petrochemicals and Specialty Waxes. The Specialty Petrochemicals segment offers hydrocarbons and other petroleum-based products, such as isopentane, normal pentane, isohexane, and hexane used in the production of polyethylene, packaging, polypropylene, expandable polystyrene, poly-iso/urethane foams, crude oil from the Canadian tar sands, and in the catalyst support industry.

Trecora Resources Fundamentals Summary

How do Trecora Resources's earnings and revenue compare to its market cap?
TREC fundamental statistics
Market CapUS$232.63m
Earnings (TTM)US$8.99m
Revenue (TTM)US$301.32m

25.9x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TREC income statement (TTM)
RevenueUS$301.32m
Cost of RevenueUS$267.20m
Gross ProfitUS$34.12m
Other ExpensesUS$25.13m
EarningsUS$8.99m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.38
Gross Margin11.32%
Net Profit Margin2.98%
Debt/Equity Ratio20.5%

How did TREC perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is TREC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TREC?

Other financial metrics that can be useful for relative valuation.

TREC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.8x
Enterprise Value/EBITDA10.3x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does TREC's PE Ratio compare to its peers?

TREC PE Ratio vs Peers
The above table shows the PE ratio for TREC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average5.9x
SIRE Sisecam Resources
8.8xn/aUS$441.3m
TG Tredegar
6.5xn/aUS$379.5m
KOP Koppers Holdings
8.7x12.7%US$559.4m
LTUU Little Sioux Corn Processors
3.2xn/aUS$203.3m
TREC Trecora Resources
25.9xn/aUS$232.6m

Price-To-Earnings vs Peers: TREC is expensive based on its Price-To-Earnings Ratio (25.9x) compared to the peer average (5.9x).


Price to Earnings Ratio vs Industry

How does TREC's PE Ratio compare vs other companies in the US Chemicals Industry?

Price-To-Earnings vs Industry: TREC is expensive based on its Price-To-Earnings Ratio (25.9x) compared to the US Chemicals industry average (16.1x)


Price to Earnings Ratio vs Fair Ratio

What is TREC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TREC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate TREC's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of TREC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate TREC's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate TREC's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Trecora Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


7.4%

Forecasted Materials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Trecora Resources has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


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  • Examine Trecora Resources's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • Trecora Resources competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Trecora Resources performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-38.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TREC has a large one-off gain of $1.7M impacting its March 31 2022 financial results.

Growing Profit Margin: TREC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TREC's earnings have declined by 38.3% per year over the past 5 years.

Accelerating Growth: TREC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TREC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (30.2%).


Return on Equity

High ROE: TREC's Return on Equity (4.5%) is considered low.


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Financial Health

How is Trecora Resources's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: TREC's short term assets ($89.3M) exceed its short term liabilities ($27.4M).

Long Term Liabilities: TREC's short term assets ($89.3M) exceed its long term liabilities ($66.0M).


Debt to Equity History and Analysis

Debt Level: TREC's net debt to equity ratio (4.5%) is considered satisfactory.

Reducing Debt: TREC's debt to equity ratio has reduced from 50.6% to 20.5% over the past 5 years.

Debt Coverage: TREC's debt is well covered by operating cash flow (20.2%).

Interest Coverage: TREC's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet


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Dividend

What is Trecora Resources's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate TREC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TREC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TREC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TREC's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as TREC has not reported any payouts.


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Management

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

3.9yrs

Average management tenure


CEO

Pat Quarles (54 yo)

3.58yrs

Tenure

US$2,094,693

Compensation

Mr. Patrick D. Quarles, also known as Pat, serves as President, Chief Executive Officer and Director at Trecora Resources since November 30, 2018. He served as an Independent Director of Trecora Resources...


CEO Compensation Analysis

Compensation vs Market: Pat's total compensation ($USD2.09M) is about average for companies of similar size in the US market ($USD1.72M).

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


Leadership Team

Experienced Management: TREC's management team is considered experienced (3.9 years average tenure).


Board Members

Experienced Board: TREC's board of directors are considered experienced (5.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: TREC insiders have sold more shares than they have bought 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

Trecora Resources's employee growth, exchange listings and data sources


Key Information

  • Name: Trecora Resources
  • Ticker: TREC
  • Exchange: NYSE
  • Founded: 1967
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Implied Market Cap: US$232.631m
  • Shares outstanding: 23.71m
  • Website: https://www.trecora.com

Number of Employees


Location

  • Trecora Resources
  • 1650 Highway 6 South
  • Suite 190
  • Sugar Land
  • Texas
  • 77478
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.