NYSE:TROX

Stock Analysis Report

Executive Summary

Tronox Holdings plc engages in the mining, production, and marketing of inorganic minerals and chemicals in North America, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific.

Snowflake

Fundamentals

Reasonable growth potential and slightly overvalued.

Risks

  • Tronox has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-3.5%

TROX

-0.6%

US Chemicals

-0.2%

US Market


1 Year Return

-32.1%

TROX

-14.1%

US Chemicals

1.1%

US Market

TROX underperformed the Chemicals industry which returned -4.7% over the past year.

TROX underperformed the Market in United States of America which returned 6.5% over the past year.


Share holder returns

TROXIndustryMarket
7 Day-3.5%-0.6%-0.2%
30 Day8.3%4.0%2.5%
90 Day60.8%0.8%1.6%
1 Year-31.2%-32.1%-0.6%-14.1%3.4%1.1%
3 Year104.7%96.1%43.8%17.4%45.2%35.8%
5 Year-36.8%-49.5%38.0%7.5%62.6%44.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Tronox undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Tronox's share price is below the future cash flow value, and at a moderate discount (> 20%).

Tronox's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Tronox is loss making, we can't compare its value to the US Chemicals industry average.

Tronox is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Tronox, we can't assess if its growth is good value.


Price Based on Value of Assets

Tronox is overvalued based on assets compared to the US Chemicals industry average.


Next Steps

Future Growth

How is Tronox expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

60.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Tronox's revenue is expected to grow by 13.9% yearly, however this is not considered high growth (20% yearly).

Tronox's earnings are expected to grow significantly at over 20% yearly.

Tronox's revenue growth is expected to exceed the United States of America market average.

Tronox's earnings growth is expected to exceed the United States of America market average.

Tronox's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Tronox is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Tronox performed over the past 5 years?

27.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Tronox does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Tronox's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Tronox's 1-year growth to the US Chemicals industry average as it is not currently profitable.


Return on Equity

Tronox has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Tronox used its assets less efficiently than the US Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Tronox improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Tronox's financial position?


Financial Position Analysis

Tronox is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Tronox's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Tronox's level of debt (366.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (99.1% vs 366.7% today).

Debt is not well covered by operating cash flow (5.4%, less than 20% of total debt).

Tronox is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.8x debt.


Next Steps

Dividend

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

1.41%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Tronox's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

Tronox's dividend is below the markets top 25% of dividend payers in United States of America (3.68%).

Tronox has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Tronox has only been paying a dividend for 7 years, and since then dividends per share have fallen.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (9.7x coverage).


Next Steps

Management

What is the CEO of Tronox's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Jeff Quinn (59yo)

1.3yrs

Tenure

US$3,407,227

Compensation

Mr. Jeffry N. Quinn, also known as Jeff, J.D., CPA serves as President and Chief Executive Officer of Tronox Ltd. since December 01, 2017. Mr. Quinn founded Quinpario Partners LLC and served as its Chief E ...


CEO Compensation Analysis

Jeff's remuneration is about average for companies of similar size in United States of America.

Jeff's compensation has increased whilst company is loss making.


Management Age and Tenure

2.1yrs

Average Tenure

53.5yo

Average Age

The tenure for the Tronox management team is about average.


Board Age and Tenure

6.8yrs

Average Tenure

65yo

Average Age

The tenure for the Tronox board of directors is about average.


Insider Trading

More shares have been bought than sold by Tronox insiders in the past 3 months.


Recent Insider Transactions

BuyUS$229,00006 Mar 19
Ginger Jones
EntityIndividual
Role
Member of the Board of Directors
Director
Shares20,000
Max PriceUS$11.45
BuyUS$150,06613 Dec 18
Timothy Carlson
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares21,000
Max PriceUS$7.15
BuyUS$180,25010 Dec 18
Jeffry Quinn
EntityIndividual
Role
Chief Executive Officer
President
Shares25,000
Max PriceUS$7.21
BuyUS$50,76510 Dec 18
Jeffrey Neuman
EntityIndividual
Shares6,500
Max PriceUS$7.81
BuyUS$28,27210 Dec 18
Willem van Niekerk
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Strategy
Shares3,800
Max PriceUS$7.44

Ownership Breakdown


Management Team

  • Jeff Quinn (59yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$3.41m
  • Chuck Mancini

    Senior VP of Organizational Effectiveness & Chief of Staff

    • Tenure: 0yrs
  • Todd Putnam (54yo)

    Chief Information Officer

    • Tenure: 2.1yrs
  • Brennen Arndt

    Senior Vice President of Investor Relations

    • Tenure: 1.2yrs
  • Tim Carlson (53yo)

    Senior VP & CFO

    • Tenure: 2.4yrs
    • Compensation: US$4.30m
  • John Romano (53yo)

    Senior VP & Chief Commercial Officer

    • Tenure: 8.1yrs
    • Compensation: US$2.03m
  • Jean-François Turgeon (52yo)

    Executive VP & COO

    • Tenure: 2.2yrs
    • Compensation: US$5.90m
  • Willem van Niekerk (59yo)

    Senior Vice President of Strategy

    • Tenure: 6.8yrs
    • Compensation: US$4.31m
  • Melissa Zona

    Vice President of Corporate Communications & Public Relations

    • Tenure: 1.2yrs
  • Jeff Neuman

    Senior VP

    • Tenure: 0.9yrs

Board Members

  • Jeff Quinn (59yo)

    President

    • Tenure: 1.3yrs
    • Compensation: US$3.41m
  • Ilan Kaufthal (70yo)

    Non-Executive Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: US$518.15k
  • Sipho Nkosi (64yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$258.80k
  • Andrews Hines (78yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$293.80k
  • Peter Johnston (67yo)

    Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: US$2.06m
  • Wayne Hinman (71yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$280.11k
  • Ginger Jones (54yo)

    Director

    • Tenure: 0.9yrs
  • Mxolisi Mbuyisa Mgojo (57yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$164.89k
  • Gregory Blue (65yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$273.80k

Company Information

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


Key Information

  • Name: Tronox Holdings plc
  • Ticker: TROX
  • Exchange: NYSE
  • Founded: 2005
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: US$1.574b
  • Shares outstanding: 123.04m
  • 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
TROXNYSE (New York Stock Exchange)YesClass A Ordinary SharesUSUSDDec 2010
TX9DB (Deutsche Boerse AG)YesClass A Ordinary SharesDEEURDec 2010

Biography

Tronox Limited produces and markets titanium bearing mineral sands and titanium dioxide (TiO2) pigment in North America, Europe, South Africa, and the Asia-Pacific region. The company engages in the explor ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/03/28 00:31
End of Day Share Price2019/03/26 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


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.