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 fair value.


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


Market Performance


7 Day Return

18.4%

TROX

2.0%

US Chemicals

2.4%

US Market


1 Year Return

-65.9%

TROX

-28.6%

US Chemicals

-10.0%

US Market

Return vs Industry: TROX underperformed the US Chemicals industry which returned -33.1% over the past year.

Return vs Market: TROX underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

TROXIndustryMarket
7 Day18.4%2.0%2.4%
30 Day-16.9%-13.9%-11.0%
90 Day-56.8%-26.0%-19.4%
1 Year-65.1%-65.9%-23.9%-28.6%-8.1%-10.0%
3 Year-69.3%-70.7%-6.5%-24.4%17.3%9.6%
5 Year-73.9%-78.8%3.0%-19.7%36.1%21.1%

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

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: TROX ($4.84) is trading below our estimate of fair value ($28.05)

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 good value based on its PB Ratio (0.9x) compared to the US 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?

69.7%

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 (1.7%).

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 (4.9% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: TROX's revenue (4.9% 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 high in 3 years time (23.7%)


Next Steps

Past Performance

How has Tronox Holdings performed over the past 5 years?

49.9%

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 49.9% 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 (-11.3%).


Return on Equity

High ROE: TROX has a negative Return on Equity (-11.14%), as it is currently unprofitable.


Next Steps

Financial Health

How is Tronox Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: TROX's short term assets ($2.1B) exceed its short term liabilities ($702.0M).

Long Term Liabilities: TROX's short term assets ($2.1B) do not cover its long term liabilities ($3.7B).


Debt to Equity History and Analysis

Debt Level: TROX's debt to equity ratio (331.1%) is considered high.

Reducing Debt: TROX's debt to equity ratio has increased from 134.3% to 331.1% 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 TROX has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: TROX is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 14.9% per year.


Next Steps

Dividend

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

5.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TROX's dividend (5.79%) is higher than the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: TROX's dividend (5.79%) is in the top 25% of dividend payers in the US market (5.66%)


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 8 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 (13.8% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Jeff Quinn (60yo)

2.33s

Tenure

US$7,938,022

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 ($USD7.94M) is above average for companies of similar size in the US market ($USD3.25M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeffry Quinn
Chairman2.33yrsUS$7.94m0.12% $816.4k
Timothy Carlson
Senior VP & CFO3.5yrsUS$2.12m0.12% $781.0k
Jean-François Turgeon
Executive VP & COO3.25yrsUS$2.66m0.24% $1.7m
Jeffrey Neuman
Senior VP2yrsUS$2.72m0.021% $141.0k
John Romano
Executive VP and Chief Commercial & Strategy Officer9.17yrsUS$2.65m0.26% $1.7m
Todd Putnam
Chief Information Officer3.17yrsno datano data
Brennen Arndt
Senior Vice President of Investor Relations2.25yrsno datano data
Raoul Mancini
Senior VP & Chief Human Resources Officer0.17yrno data0.18% $1.2m
Willem van Niekerk
Senior Vice President of Business Transformation7.83yrsUS$4.31m0.20% $1.4m
Melissa Zona
Senior VP of External Affairs & Chief Sustainability Officer0.58yrno datano data

2.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: TROX's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffry Quinn
Chairman2.33yrsUS$7.94m0.12% $816.4k
Ilan Kaufthal
Lead Independent Director1.08yrsUS$522.15k0.14% $964.9k
Sipho Nkosi
Independent Director7.83yrsUS$233.50k0.067% $454.3k
Andrews Hines
Independent Director7.83yrsUS$268.50k0.11% $770.5k
Peter Johnston
Independent Director7.67yrsUS$228.61k0.062% $417.2k
Stephen Jones
Independent Director1.08yrsno datano data
Wayne Hinman
Independent Director7.83yrsUS$258.51k0.11% $740.6k
Ginger Jones
Independent Director2yrsUS$152.84k0.029% $195.1k
Vanessa Guthrie
Independent Director1.08yrsno datano data
Moazzam Khan
Director1yrno data0.00068% $4.6k

1.5yrs

Average Tenure

63yo

Average Age

Experienced Board: TROX's board of directors are not considered experienced ( 1.5 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: TROX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.8%.


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$677.320m
  • Shares outstanding: 142.00m
  • 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 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. It mines and processes titanium ore, zircon, and other minerals; and manufactures titanium dioxide pigments that add brightness and durability to paints, plastics, paper, and other everyday products. The company was founded in 2005 and 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 Analysis2020/04/08 10:45
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
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.