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 Analysis

Reasonable growth potential and slightly overvalued.


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

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


Market Performance


7 Day Return

-3.5%

TROX

-4.4%

US Chemicals

-2.0%

US Market


1 Year Return

-32.1%

TROX

-33.8%

US Chemicals

-15.1%

US Market

Return vs Industry: TROX underperformed the US Chemicals industry which returned 1.6% over the past year.

Return vs Market: TROX underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

TROXIndustryMarket
7 Day-3.5%-4.4%-2.0%
30 Day8.3%-24.7%-19.7%
90 Day60.8%-31.1%-23.2%
1 Year-31.2%-32.1%-29.5%-33.8%-13.4%-15.1%
3 Year104.7%96.1%-12.7%-29.6%10.9%3.7%
5 Year-36.8%-49.5%-3.5%-24.5%28.4%14.4%

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 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: TROX ($12.53) is trading below our estimate of fair value ($58.9)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TROX is overvalued based on its PB Ratio (2.3x) compared to the US Chemicals industry average (2.2x).


Next Steps

Future Growth

How is Tronox forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TROX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

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

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

Revenue vs Market: TROX's revenue (13.9% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: TROX's revenue (13.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TROX's Return on Equity is forecast to be low in 3 years time (16.4%).


Next Steps

Past Performance

How has Tronox performed over the past 5 years?

27.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TROX is currently unprofitable.

Growing Profit Margin: TROX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TROX is unprofitable, but has reduced losses over the past 5 years at a rate of 27.7% per year.

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

Earnings vs Industry: TROX is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-17%).


Return on Equity

High ROE: TROX has a negative Return on Equity (3.48%), as it is currently unprofitable.


Next Steps

Financial Health

How is Tronox's financial position?


Financial Position Analysis

Short Term Liabilities: TROX's short term assets ($2.5B) exceed its short term liabilities ($300.0M).

Long Term Liabilities: TROX's short term assets ($2.5B) do not cover its long term liabilities ($3.5B).


Debt to Equity History and Analysis

Debt Level: TROX's debt to equity ratio (366.7%) is considered high.

Reducing Debt: TROX's debt to equity ratio has increased from 99.1% to 366.7% over the past 5 years.


Balance Sheet

Inventory Level: TROX has a high level of physical assets or inventory.

Debt Coverage by Assets: TROX's debt is not covered by short term assets (assets are 0.8x debt).


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: TROX has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: TROX has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

1.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TROX's dividend (1.44%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: TROX's dividend (1.44%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

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

Growing Dividend: TROX has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: TROX's dividends in 3 years are forecast to be thoroughly covered by earnings (10.4% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Jeff Quinn (59yo)

1.25s

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

Compensation vs Market: Jeff's total compensation ($USD3.41M) is about average for companies of similar size in the US market ($USD3.86M).

Compensation vs Earnings: Jeff's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Jeffry Quinn
President1.25yrsUS$3.41mno data
Timothy Carlson
Senior VP & CFO2.42yrsUS$4.30mno data
Jean-François Turgeon
Executive VP & COO2.17yrsUS$5.90mno data
Willem van Niekerk
Senior Vice President of Strategy6.75yrsUS$4.31mno data
Todd Putnam
Chief Information Officer2.08yrsno datano data
Brennen Arndt
Senior Vice President of Investor Relations1.17yrsno datano data
Jeffrey Neuman
Senior VP0.92yrno datano data
Melissa Zona
Vice President of Corporate Communications & Public Relations1.17yrsno datano data
John Romano
Senior VP & Chief Commercial Officer8.08yrsUS$2.03mno data
Chuck Mancini
Senior VP of Organizational Effectiveness & Chief of Staffno datano datano data

2.1yrs

Average Tenure

53.5yo

Average Age

Experienced Management: TROX's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffry Quinn
President1.25yrsUS$3.41mno data
Ilan Kaufthal
Non-Executive Chairman of the Board1.75yrsUS$518.15kno data
Sipho Nkosi
Director6.75yrsUS$258.80kno data
Andrews Hines
Director6.75yrsUS$293.80kno data
Peter Johnston
Non-Executive Director6.58yrsUS$2.06mno data
Wayne Hinman
Director6.75yrsUS$280.11kno data
Ginger Jones
Director0.92yrno datano data
Mxolisi Mbuyisa Mgojo
Director2.75yrsUS$164.89kno data
Gregory Blue
Director6.75yrsUS$273.80kno data

6.8yrs

Average Tenure

65yo

Average Age

Experienced Board: TROX's board of directors are considered experienced (6.8 years average tenure).


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Insufficient data to determine if shareholders have been 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: 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 exploration, mining, and beneficiation of mineral sands deposits. It also produces titanium feedstock products, including chloride slag, slag fines, rutile, synthetic rutile, leucoxene, titanium slag, and ilmenite, as well as co-products, such as pig iron and zircon; and supplies and markets TiO2 used in the manufacture of paint and other coatings, plastics, and paper, as well as various other applications under the TRONOX brand name. The company 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 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.