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

Fundamentals

Mediocre balance sheet 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

2.9%

TROX

0.2%

US Chemicals

0.4%

US Market


1 Year Return

-5.7%

TROX

-2.3%

US Chemicals

13.1%

US Market

Return vs Industry: TROX underperformed the US Chemicals industry which returned -2.3% over the past year.

Return vs Market: TROX underperformed the US Market which returned 13.1% over the past year.


Shareholder returns

TROXIndustryMarket
7 Day2.9%0.2%0.4%
30 Day38.7%6.2%4.0%
90 Day45.1%9.3%7.4%
1 Year-4.0%-5.7%13.1%-2.3%15.6%13.1%
3 Year14.8%10.9%44.3%17.4%48.2%38.6%
5 Year-43.2%-53.8%44.7%12.3%62.6%44.6%

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 ($11.01) is trading below our estimate of fair value ($29.46)

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 (2x).


Next Steps

Future Growth

How is Tronox Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

11.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if TROX's forecast earnings growth is above the savings rate (2.7%).

Earnings vs Market: Insufficient data to determine if TROX's earnings are forecast to grow faster than the US market

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

Revenue vs Market: TROX's revenue (11.3% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: TROX's revenue (11.3% 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 (36.2%)


Next Steps

Past Performance

How has Tronox Holdings performed over the past 5 years?

45.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TROX has a high level of non-cash earnings.

Growing Profit Margin: TROX's current net profit margins (-5%) are lower than last year (-0.1%).


Past Earnings Growth Analysis

Earnings Trend: TROX is unprofitable, but has reduced losses over the past 5 years at a rate of 45.9% 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 (-21.3%).


Return on Equity

High ROE: TROX has a negative Return on Equity (-11.04%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tronox Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: TROX's short term assets ($2.1B) exceeds its short term liabilities ($629.0M)

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 (378.9%) is considered high

Reducing Debt: TROX's debt to equity ratio has increased from 110.9% to 378.9% 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 0.7x 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: 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, even with free cash flow being positive and shrinking by -26.5% per year.


Next Steps

Dividend

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

1.63%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Tronox Holdings before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: TROX's dividend (1.63%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: TROX's dividend (1.63%) 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 (11% payout ratio).


Next Steps

Management

What is the CEO of Tronox Holdings's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Jeff Quinn (60yo)

1.9yrs

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 ($USD7.94M) is above average for companies of similar size in the US market ($USD3.98M).

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


Management Age and Tenure

2.8yrs

Average Tenure

54.5yo

Average Age

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


Board Age and Tenure

4.4yrs

Average Tenure

63yo

Average Age

Experienced Board: TROX's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$30,39216 Aug 19
Jeffrey Neuman
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares4,000
Max PriceUS$7.60
BuyUS$43,98508 Aug 19
Wayne Hinman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$8.80
BuyUS$55,02513 Jun 19
Wayne Hinman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$11.04
BuyUS$99,99605 Jun 19
Timothy Carlson
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares9,615
Max PriceUS$10.40
BuyUS$49,94905 Jun 19
Jeffrey Neuman
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares4,812
Max PriceUS$10.38
BuyUS$100,32004 Jun 19
Jeffry Quinn
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares9,600
Max PriceUS$10.45

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.3%.


Management Team

  • Jeff Quinn (60yo)

    Chairman

    • Tenure: 1.9yrs
    • Compensation: US$7.94m
  • Jeff Neuman

    Senior VP

    • Tenure: 1.6yrs
    • Compensation: US$2.72m
  • Chuck Mancini

    Senior Vice President of Organizational Effectiveness

    • Tenure: 0yrs
  • Todd Putnam (55yo)

    Chief Information Officer

    • Tenure: 2.8yrs
  • Brennen Arndt

    Senior Vice President of Investor Relations

    • Tenure: 1.8yrs
  • Tim Carlson (54yo)

    Senior VP & CFO

    • Tenure: 3.1yrs
    • Compensation: US$2.12m
  • John Romano (54yo)

    Executive VP and Chief Commercial & Strategy Officer

    • Tenure: 8.8yrs
    • Compensation: US$2.65m
  • Jean-François Turgeon (53yo)

    Executive VP & COO

    • Tenure: 2.8yrs
    • Compensation: US$2.66m
  • Willem van Niekerk (60yo)

    Senior Vice President of Business Transformation

    • Tenure: 7.4yrs
    • Compensation: US$4.31m
  • Melissa Zona

    Senior VP of External Affairs & Chief Sustainability Officer

    • Tenure: 0.2yrs

Board Members

  • Jeff Quinn (60yo)

    Chairman

    • Tenure: 1.9yrs
    • Compensation: US$7.94m
  • Ilan Kaufthal (71yo)

    Lead Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$522.15k
  • Sipho Nkosi (65yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$233.50k
  • Andy Hines (79yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$268.50k
  • Peter Johnston (68yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$228.61k
  • Steve Jones (58yo)

    Independent Director

    • Tenure: 0.7yrs
  • Wayne Hinman (72yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$258.51k
  • Ginger Jones (55yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$152.84k
  • Vanessa Guthrie (57yo)

    Independent Director

    • Tenure: 0.7yrs
  • Moazzam Khan (61yo)

    Director

    • Tenure: 0.6yrs

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$1.562b
  • Shares outstanding: 141.89m
  • 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.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 01:05
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
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.