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

High growth potential and fair value.

Risks

  • Tronox Holdings has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

9.1%

NYSE:TROX

1.8%

US Chemicals

1.1%

US Market


1 Year Return

-26.3%

NYSE:TROX

-12.8%

US Chemicals

2.1%

US Market

TROX underperformed the Chemicals industry which returned -11.8% over the past year.

TROX underperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

TROXIndustryMarket
7 Day9.1%1.8%1.1%
30 Day27.9%3.5%3.7%
90 Day-14.3%0.8%2.3%
1 Year-24.9%-26.3%0.9%-12.8%4.4%2.1%
3 Year17.2%12.6%43.5%17.0%47.0%37.4%
5 Year-55.7%-64.3%36.8%6.7%61.6%43.8%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Tronox Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

Tronox Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Tronox Holdings is loss making, we can't compare its value to the US Chemicals industry average.

Tronox Holdings is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Tronox Holdings, we can't assess if its growth is good value.


Price Based on Value of Assets

Tronox Holdings is good value based on assets compared to the US Chemicals industry average.


Next Steps

Future Growth

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

105.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Tronox Holdings's revenue is expected to grow by 13.5% yearly, however this is not considered high growth (20% yearly).

Tronox Holdings's earnings are expected to grow significantly at over 20% yearly.

Tronox Holdings's revenue growth is expected to exceed the United States of America market average.

Tronox Holdings's earnings growth is expected to exceed the United States of America market average.

Tronox Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Tronox Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Tronox Holdings performed over the past 5 years?

41.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Tronox Holdings does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Tronox Holdings's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Tronox Holdings's 1-year growth to the US Chemicals industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Tronox Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

Tronox Holdings used its assets less efficiently than the US Chemicals industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Tronox Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Tronox Holdings's financial position?


Financial Position Analysis

Tronox Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Tronox Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Tronox Holdings's level of debt (346.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (103.6% vs 346.2% today).


Balance Sheet

High level of physical assets or inventory.

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.

Whilst loss making Tronox Holdings has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Tronox Holdings has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 23.1% per year.


Next Steps

Dividend

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

1.99%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Tronox Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Tronox Holdings's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

Tronox Holdings has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Tronox Holdings has only been paying a dividend for 7 years, and since then dividends per share have fallen.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (9.1x coverage).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Jeff Quinn (60yo)

1.8yrs

Tenure

US$23,779,256

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

Jeff's remuneration is higher than average for companies of similar size in United States of America.

Jeff's compensation has increased whilst company is loss making.


Management Age and Tenure

2.6yrs

Average Tenure

54.5yo

Average Age

The tenure for the Tronox Holdings management team is about average.


Board Age and Tenure

1.0yrs

Average Tenure

63yo

Average Age

The average tenure for the Tronox Holdings board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Tronox Holdings individual insiders 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


Management Team

  • Jeff Quinn (60yo)

    Chairman

    • Tenure: 1.8yrs
    • Compensation: US$23.78m
  • Jeff Neuman

    Senior VP

    • Tenure: 1.4yrs
    • Compensation: US$2.72m
  • Chuck Mancini

    Senior Vice President of Organizational Effectiveness

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

    Chief Information Officer

    • Tenure: 2.6yrs
  • Brennen Arndt

    Senior Vice President of Investor Relations

    • Tenure: 1.7yrs
  • Tim Carlson (54yo)

    Senior VP & CFO

    • Tenure: 2.9yrs
    • Compensation: US$2.12m
  • John Romano (54yo)

    Executive VP and Chief Commercial & Strategy Officer

    • Tenure: 8.6yrs
    • Compensation: US$2.65m
  • Jean-François Turgeon (53yo)

    Executive VP & COO

    • Tenure: 2.7yrs
    • Compensation: US$2.66m
  • Willem van Niekerk (60yo)

    Senior Vice President of Business Transformation

    • Tenure: 7.3yrs
    • Compensation: US$4.31m
  • Melissa Zona

    Vice President of Corporate Communications & Public Relations

    • Tenure: 1.7yrs

Board Members

  • Jeff Quinn (60yo)

    Chairman

    • Tenure: 1.8yrs
    • Compensation: US$23.78m
  • Ilan Kaufthal (71yo)

    Lead Independent Director

    • Tenure: 0.5yrs
    • Compensation: US$522.15k
  • Sipho Nkosi (65yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$233.50k
  • Andy Hines (79yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$268.50k
  • Peter Johnston (68yo)

    Independent Director

    • Tenure: 7.1yrs
    • Compensation: US$228.61k
  • Steve Jones (58yo)

    Independent Director

    • Tenure: 0.5yrs
  • Wayne Hinman (72yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$258.51k
  • Ginger Jones (55yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$152.84k
  • Vanessa Guthrie (57yo)

    Independent Director

    • Tenure: 0.5yrs
  • Moazzam Khan (61yo)

    Director

    • Tenure: 0.4yrs

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$1.378b
  • Shares outstanding: 141.88m
  • 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 Analysis2019/09/17 00:54
End of Day Share Price2019/09/16 00:00
Earnings2019/06/30
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.