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Market Cap

US$1.2b

Last Updated

2021/04/18 22:33 UTC

Data Sources

Company Financials

Executive Summary

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


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Trecora Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TREC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: TREC's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.1%

TREC

2.9%

US Chemicals

1.3%

US Market


1 Year Return

38.3%

TREC

71.0%

US Chemicals

53.8%

US Market

Return vs Industry: TREC underperformed the US Chemicals industry which returned 71% over the past year.

Return vs Market: TREC underperformed the US Market which returned 53.9% over the past year.


Shareholder returns

TRECIndustryMarket
7 Day-0.1%2.9%1.3%
30 Day4.4%4.5%5.1%
90 Day11.1%7.6%8.9%
1 Year38.3%38.3%75.2%71.0%56.6%53.8%
3 Year-44.1%-44.1%41.0%14.7%64.4%53.6%
5 Year-34.4%-34.4%95.5%49.1%120.4%95.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Trecora Resources 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: TREC ($7.8) is trading below our estimate of fair value ($16.95)

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


Price To Earnings Ratio

PE vs Industry: TREC is poor value based on its PE Ratio (39x) compared to the US Chemicals industry average (28x).

PE vs Market: TREC is poor value based on its PE Ratio (39x) compared to the US market (22.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TREC is good value based on its PB Ratio (0.9x) compared to the US Chemicals industry average (2.8x).


Future Growth

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

21.2%

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.


Past Performance

How has Trecora Resources performed over the past 5 years?

-53.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TREC has high quality earnings.

Growing Profit Margin: TREC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TREC's earnings have declined by 53.8% 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 (3.3%).


Return on Equity

High ROE: TREC's Return on Equity (2.4%) is considered low.


Financial Health

How is Trecora Resources's financial position?


Financial Position Analysis

Short Term Liabilities: TREC's short term assets ($105.9M) exceed its short term liabilities ($29.6M).

Long Term Liabilities: TREC's short term assets ($105.9M) exceed its long term liabilities ($82.8M).


Debt to Equity History and Analysis

Debt Level: TREC's debt to equity ratio (25.5%) is considered satisfactory.

Reducing Debt: TREC's debt to equity ratio has reduced from 57.1% to 25.5% over the past 5 years.

Debt Coverage: TREC's debt is well covered by operating cash flow (49%).

Interest Coverage: TREC's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet


Dividend

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


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TREC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Pat Quarles (53 yo)

2.42yrs

Tenure

US$1,797,141

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 ($USD1.80M) is below average for companies of similar size in the US market ($USD3.79M).

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 (2.9 years average tenure).


Board Members

Experienced Board: TREC's board of directors are not considered experienced ( 2.6 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: Insufficient data to determine if 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

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


Key Information

  • Name: Trecora Resources
  • Ticker: TREC
  • Exchange: NYSE
  • Founded: 1967
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: US$1.214b
  • Shares outstanding: 24.96m
  • Website: https://www.trecora.com

Number of Employees


Location

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

Listings


Biography

Trecora Resources primarily manufactures and sells various specialty petrochemicals products and specialty waxes in the United States. The company operates through two segments, Specialty Petrochemicals an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/18 22:33
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.