Tronox Holdings (NYSE:TROX) - Share price, News & Analysis

TROX fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	4/6
Past Performance	1/6
Financial Health	4/6
Dividends	3/6

TROX Stock Overview

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

Rewards

Trading at 83.3% below our estimate of its fair value

Earnings are forecast to grow 30.94% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Large one-off items impacting financial results

Profit margins (7.8%) are lower than last year (32.7%)

+ 1 more risk

Tronox Holdings Competitors

Kronos Worldwide

NYSE:KRO

US$2.2b

Rio Tinto Group

LSE:RIO

UK£95.0b

Solvay

ENXTBR:SOLB

€9.5b

Huntsman

NYSE:HUN

US$7.7b

Price History & Performance

Summary of all time highs, changes and price drops for Tronox Holdings
Historical stock prices
Current Share Price	US$18.45
52 Week High	US$26.33
52 Week Low	US$15.54
Beta	2.13
1 Month Change	0.16%
3 Month Change	-12.56%
1 Year Change	-21.42%
3 Year Change	99.03%
5 Year Change	18.96%
Change since IPO	14.60%

Recent News & Updates

May 16

Tronox Is Going To Be Quite Resilient To A Commodity Reversal

More than 10% capacity increases incoming in 2022, recovering the year from factory downtime in the first quarter. Pricing continues to be the main driver of growing revenues, and it is staying ahead of input costs handily. We think that Tronox resists a commodity reversal because of its housing connection, a market we continue to be quite bullish on. Being vertically integrated, especially with respect to Titanium, advantages them strategically, and we think their mid-cycle position isn't reflected in the multiple.

Shareholder Returns

	TROX	US Chemicals	US Market
7D	4.4%	6.2%	5.9%
1Y	-21.4%	0.2%	-10.2%

Return vs Industry: TROX underperformed the US Chemicals industry which returned -3.1% over the past year.

Return vs Market: TROX underperformed the US Market which returned -15.1% over the past year.

Price Volatility

Is TROX's price volatile compared to industry and market?
TROX volatility
TROX Average Weekly Movement	7.9%
Chemicals Industry Average Movement	7.1%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: TROX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: TROX's weekly volatility (8%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	6,500	John Romano	https://www.tronox.com

Tronox Holdings plc operates as a vertically integrated manufacturer of TiO2 pigment in North America, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates titanium-bearing mineral sand mines; and engages in beneficiation and smelting operations. It offers TiO2 pigment; ultrafine specialty TiO2; zircon; feedstock; pig iron; titanium tetrachloride; and other products.

Tronox Holdings Fundamentals Summary

How do Tronox Holdings's earnings and revenue compare to its market cap?
TROX fundamental statistics
Market Cap	US$2.87b
Earnings (TTM)	US$283.00m
Revenue (TTM)	US$3.65b

10.2x

P/E Ratio

0.8x

P/S Ratio

Is TROX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
TROX income statement (TTM)
Revenue	US$3.65b
Cost of Revenue	US$2.73b
Gross Profit	US$921.00m
Other Expenses	US$638.00m
Earnings	US$283.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	1.82
Gross Margin	25.26%
Net Profit Margin	7.76%
Debt/Equity Ratio	120.6%

How did TROX perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

22%

Payout Ratio

Valuation

Is Tronox Holdings undervalued compared to its fair value and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: TROX ($18.45) is trading below our estimate of fair value ($110.66)

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 Price-To-Earnings Ratio (10.2x) compared to the US Chemicals industry average (16.9x).

PE vs Market: TROX is good value based on its Price-To-Earnings Ratio (10.2x) compared to the US market (15.2x).

Price to Earnings Growth Ratio

PEG Ratio: TROX is good value based on its PEG Ratio (0.3x)

Price to Book Ratio

PB vs Industry: TROX is good value based on its Price-To-Book Ratio (1.4x) compared to the US Chemicals industry average (2.2x).

Future Growth

How is Tronox Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

30.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: TROX's forecast earnings growth (30.9% per year) is above the savings rate (1.9%).

Earnings vs Market: TROX's earnings (30.9% per year) are forecast to grow faster than the US market (13% per year).

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

Revenue vs Market: TROX's revenue (5% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: TROX's revenue (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 high in 3 years time (23%)

Past Performance

How has Tronox Holdings performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

63.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TROX has a large one-off loss of $124.0M impacting its March 31 2022 financial results.

Growing Profit Margin: TROX's current net profit margins (7.8%) are lower than last year (32.7%).

Past Earnings Growth Analysis

Earnings Trend: TROX has become profitable over the past 5 years, growing earnings by 63.2% per year.

Accelerating Growth: TROX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TROX had negative earnings growth (-70.4%) over the past year, making it difficult to compare to the Chemicals industry average (30.2%).

Return on Equity

High ROE: TROX's Return on Equity (13.8%) is considered low.

Financial Health

How is Tronox Holdings's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: TROX's short term assets ($2.2B) exceed its short term liabilities ($923.0M).

Long Term Liabilities: TROX's short term assets ($2.2B) do not cover its long term liabilities ($3.2B).

Debt to Equity History and Analysis

Debt Level: TROX's net debt to equity ratio (106.9%) is considered high.

Reducing Debt: TROX's debt to equity ratio has reduced from 266.8% to 120.6% over the past 5 years.

Debt Coverage: TROX's debt is well covered by operating cash flow (30.9%).

Interest Coverage: TROX's interest payments on its debt are well covered by EBIT (4.7x coverage).

Balance Sheet

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.71%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TROX's dividend (2.71%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: TROX's dividend (2.71%) is low compared to the top 25% of dividend payers in the US market (4.01%).

Stability and Growth of Payments

Stable Dividend: TROX's dividend payments have been volatile in the past 10 years.

Growing Dividend: TROX's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (22%), TROX's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (16.3%), TROX's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

1.8yrs

Average management tenure

CEO

John Romano (56 yo)

1.42yrs

Tenure

US$5,080,235

Compensation

Mr. John D. Romano has been a Director at Tronox Holdings plc since March 18, 2021 and has been its Co-Chief Executive Officer since March 18, 2021 and served as its Interim Co-Chief Executive Officer sinc...

CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD5.08M) is about average for companies of similar size in the US market ($USD6.86M).

Compensation vs Earnings: John's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: TROX's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: TROX's board of directors are considered experienced (3.2 years average tenure).

Ownership

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

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/27 00:00
End of Day Share Price	2022/05/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31