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

Undervalued second-rate dividend payer.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: TROX's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

9.7%

TROX

-1.4%

US Chemicals

1.5%

US Market


1 Year Return

61.1%

TROX

23.8%

US Chemicals

22.8%

US Market

Return vs Industry: TROX exceeded the US Chemicals industry which returned 23.8% over the past year.

Return vs Market: TROX exceeded the US Market which returned 22.8% over the past year.


Shareholder returns

TROXIndustryMarket
7 Day9.7%-1.4%1.5%
30 Day14.7%6.2%5.0%
90 Day70.0%17.6%15.2%
1 Year66.7%61.1%26.7%23.8%25.6%22.8%
3 Year-7.9%-13.7%26.9%3.0%47.3%37.5%
5 Year472.8%397.3%126.0%74.6%133.4%107.3%

Long-Term 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?

36.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TROX ($16.51) is trading below our estimate of fair value ($26.11)

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


Price To Earnings Ratio

PE vs Industry: TROX is good value based on its PE Ratio (2.6x) compared to the US Chemicals industry average (32.7x).

PE vs Market: TROX is good value based on its PE Ratio (2.6x) compared to the US market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: TROX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TROX is good value based on its PB Ratio (1.5x) compared to the US Chemicals industry average (2.6x).


Next Steps

Future Growth

How is Tronox Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-56.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TROX's earnings are forecast to decline over the next 3 years (-56.5% per year).

Earnings vs Market: TROX's earnings are forecast to decline over the next 3 years (-56.5% per year).

High Growth Earnings: TROX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TROX's revenue (6.5% per year) is forecast to grow slower than the US market (10.5% per year).

High Growth Revenue: TROX's revenue (6.5% 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 (18%).


Next Steps

Past Performance

How has Tronox Holdings performed over the past 5 years?

69.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TROX has a large one-off loss of $47.0M impacting its September 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 69.5% 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 (-16.3%).


Return on Equity

High ROE: Whilst TROX's Return on Equity (55.27%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Tronox Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: TROX's short term assets ($2.6B) exceed its short term liabilities ($764.0M).

Long Term Liabilities: TROX's short term assets ($2.6B) do not cover its long term liabilities ($4.0B).


Debt to Equity History and Analysis

Debt Level: TROX's debt to equity ratio (208.9%) is considered high.

Reducing Debt: TROX's debt to equity ratio has reduced from 238.3% to 208.9% over the past 5 years.

Debt Coverage: TROX's debt is not well covered by operating cash flow (9.4%).

Interest Coverage: TROX's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Next Steps

Dividend

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

1.70%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TROX's dividend (1.7%) is higher than the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: TROX's dividend (1.7%) is low compared to the top 25% of dividend payers in the US market (3.86%).


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 low payout ratio (3.9%), TROX's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TROX's dividends in 3 years are forecast to be well covered by earnings (15.5% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

John Romano (55 yo)

0.083

Tenure

US$2,322,104

Compensation

Mr. John D. Romano serves as Interim Co-Chief Executive Officer of Tronox Holdings plc since December 27, 2020. He has been Executive Vice President and Chief Commercial and Strategy Officer at Tronox Hold...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD2.32M) is below average for companies of similar size in the US market ($USD3.86M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Romano
Interim Co-CEO0.083yrUS$2.32m0.26%
$ 6.3m
Jean-François Turgeon
Interim Co-CEO0.083yrUS$2.49m0.25%
$ 6.0m
Jeffry Quinn
Chairman0.083yrUS$7.26m0.17%
$ 4.0m
Timothy Carlson
Senior VP & CFO4.25yrsUS$2.08m0.11%
$ 2.7m
Willem van Niekerk
Senior Vice President of Technology & Saudi Arabia0.75yrUS$1.95m0.21%
$ 5.1m
Todd Putnam
Chief Information Officer3.92yrsno datano data
Jennifer Guenther
Vice President of Investor Relations0.75yrno datano data
Jeffrey Neuman
Senior VP2.75yrsUS$2.72m0.021%
$ 487.8k
Raoul Mancini
Senior VP & Chief Human Resources Officer0.92yrno data0.11%
$ 2.7m
Melissa Zona
Senior VP of External Affairs & Chief Sustainability Officer1.33yrsno datano data
John Srivisal
Senior VP of Business Development & Finance3yrsno datano data
Emad AlJunaidi
Chief Procurement Officer2yrsno datano data

1.1yrs

Average Tenure

55.5yo

Average Age

Experienced Management: TROX's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ilan Kaufthal
Interim Independent Chairman & Lead Independent Director0.083yrUS$345.18k0.14%
$ 3.4m
Sipho Nkosi
Independent Director8.58yrsUS$266.64k0.069%
$ 1.6m
Peter Johnston
Independent Director8.42yrsUS$273.93k0.063%
$ 1.5m
Stephen Jones
Independent Director1.83yrsUS$256.44k0.011%
$ 261.9k
Mutlaq Al Morished
Director1.75yrsUS$222.52kno data
Ginger Jones
Independent Director2.75yrsUS$287.99k0.031%
$ 735.0k
Vanessa Guthrie
Independent Director1.83yrsUS$253.39k0.011%
$ 261.9k
Talal Bin Ali Al-Shair
Director Emeritus1.75yrsno datano data
Moazzam Khan
Director1.75yrsUS$222.52k0.022%
$ 524.3k

1.8yrs

Average Tenure

63yo

Average Age

Experienced Board: TROX's board of directors are not considered experienced ( 1.8 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$2.370b
  • Shares outstanding: 143.56m
  • 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 Analysis2021/01/22 00:11
End of Day Share Price2021/01/21 00:00
Earnings2020/09/30
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.