NYSE:TROX

Stock Analysis Report

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Executive Summary

Tronox Holdings plc operates as a vertically integrated manufacturer of TiO2 pigment in South and Central America, Europe, the Middle East, Africa, and the Asia Pacific. More Details


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


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

6.1%

TROX

-1.2%

US Chemicals

-2.4%

US Market


1 Year Return

11.0%

TROX

9.8%

US Chemicals

18.2%

US Market

Return vs Industry: TROX matched the US Chemicals industry which returned 11.3% over the past year.

Return vs Market: TROX underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

TROXIndustryMarket
7 Day6.1%-1.2%-2.4%
30 Day0.3%-0.5%4.2%
90 Day24.2%5.3%6.3%
1 Year14.6%11.0%12.3%9.8%20.9%18.2%
3 Year-63.5%-65.6%15.6%-6.1%41.2%31.8%
5 Year81.9%51.3%63.6%25.7%84.8%63.9%

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 ($9.38) is trading below our estimate of fair value ($26.4)

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


Price To Earnings Ratio

PE vs Industry: TROX is poor value based on its PE Ratio (148.6x) compared to the US Chemicals industry average (28x).

PE vs Market: TROX is poor value based on its PE Ratio (148.6x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: TROX is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: TROX is overvalued based on its PB Ratio (2.2x) compared to the US Chemicals industry average (2.1x).


Next Steps

Future Growth

How is Tronox Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

80.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TROX's forecast earnings growth (80.4% per year) is above the savings rate (2.2%).

Earnings vs Market: TROX's earnings (80.4% per year) are forecast to grow faster than the US market (22.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TROX's revenue (4.7% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: TROX's revenue (4.7% 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 (25.7%)


Next Steps

Past Performance

How has Tronox Holdings performed over the past 5 years?

55.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TROX has a large one-off loss of $106.0M impacting its June 30 2020 financial results.

Growing Profit Margin: TROX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TROX has become profitable over the past 5 years, growing earnings by 55.8% per year.

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

Earnings vs Industry: TROX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (-18.6%).


Return on Equity

High ROE: TROX's Return on Equity (2.6%) is considered low.


Next Steps

Financial Health

How is Tronox Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: TROX's short term assets ($2.5B) exceed its short term liabilities ($727.0M).

Long Term Liabilities: TROX's short term assets ($2.5B) do not cover its long term liabilities ($4.0B).


Debt to Equity History and Analysis

Debt Level: TROX's debt to equity ratio (485.7%) is considered high.

Reducing Debt: TROX's debt to equity ratio has increased from 205.6% to 485.7% over the past 5 years.

Debt Coverage: TROX's debt is not well covered by operating cash flow (11.2%).

Interest Coverage: TROX's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Next Steps

Dividend

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

2.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TROX's dividend (2.99%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: TROX's dividend (2.99%) is low compared to the top 25% of dividend payers in the US market (4.66%).


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: With its high payout ratio (364.5%), TROX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TROX's dividends in 3 years are forecast to be well covered by earnings (20.6% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Jeff Quinn (61 yo)

2.83yrs

Tenure

US$7,263,598

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 ($USD7.26M) is above average for companies of similar size in the US market ($USD4.44M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeffry Quinn
Chairman2.83yrsUS$7.26m0.17%
$ 2.3m
Timothy Carlson
Senior VP & CFO4yrsUS$2.08m0.11%
$ 1.5m
Jean-François Turgeon
Executive VP & COO3.08yrsUS$2.49m0.25%
$ 3.4m
Willem van Niekerk
Senior Vice President of Technology & Saudi Arabia0.50yrUS$1.95m0.21%
$ 2.9m
John Romano
Executive VP and Chief Commercial & Strategy Officer9.67yrsUS$2.32m0.26%
$ 3.6m
Todd Putnam
Chief Information Officer3.67yrsno datano data
Jennifer Guenther
Vice President of Investor Relations0.50yrno datano data
Jeffrey Neuman
Senior VP2.5yrsUS$2.72m0.021%
$ 277.2k
Raoul Mancini
Senior VP & Chief Human Resources Officer0.67yrno data0.11%
$ 1.5m
Melissa Zona
Senior VP of External Affairs & Chief Sustainability Officer1.08yrsno datano data
John Srivisal
Senior VP of Business Development & Finance2.75yrsno datano data
Emad AlJunaidi
Chief Procurement Officer1.75yrsno datano data

2.6yrs

Average Tenure

55.5yo

Average Age

Experienced Management: TROX's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffry Quinn
Chairman2.83yrsUS$7.26m0.17%
$ 2.3m
Ilan Kaufthal
Lead Independent Director1.58yrsUS$345.18k0.14%
$ 1.9m
Sipho Nkosi
Independent Director8.33yrsUS$266.64k0.069%
$ 927.1k
Peter Johnston
Independent Director8.17yrsUS$273.93k0.063%
$ 854.2k
Stephen Jones
Independent Director1.58yrsUS$256.44k0.011%
$ 148.8k
Mutlaq Al Morished
Director1.5yrsUS$222.52kno data
Ginger Jones
Independent Director2.5yrsUS$287.99k0.031%
$ 417.6k
Vanessa Guthrie
Independent Director1.58yrsUS$253.39k0.011%
$ 148.8k
Talal Bin Ali Al-Shair
Director Emeritus1.5yrsno datano data
Moazzam Khan
Director1.5yrsUS$222.52k0.022%
$ 297.9k

1.6yrs

Average Tenure

62.5yo

Average Age

Experienced Board: TROX's board of directors are not considered experienced ( 1.6 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

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


Key Information

  • Name: Tronox Holdings plc
  • Ticker: TROX
  • Exchange: NYSE
  • Founded: 2018
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: US$1.346b
  • Shares outstanding: 143.52m
  • 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 operates as a vertically integrated manufacturer of TiO2 pigment in South and Central America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates titanium-beari ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 00:45
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
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.