NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$2.6b

Last Updated

2021/05/07 22:18 UTC

Data Sources

Company Financials +

Executive Summary

Trinseo S.A., a materials company, manufactures and markets synthetic rubber, latex binders, and plastic products in the United States, Europe, the Asia-Pacific, and internationally. More Details


Snowflake Analysis

Adequate balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Trinseo's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TSE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: TSE's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

10.0%

TSE

4.1%

US Chemicals

-0.3%

US Market


1 Year Return

232.3%

TSE

63.5%

US Chemicals

50.2%

US Market

Return vs Industry: TSE exceeded the US Chemicals industry which returned 66.6% over the past year.

Return vs Market: TSE exceeded the US Market which returned 51.8% over the past year.


Shareholder returns

TSEIndustryMarket
7 Day10.0%4.1%-0.3%
30 Day6.7%7.4%2.2%
90 Day22.1%15.1%3.8%
1 Year244.3%232.3%67.0%63.5%52.7%50.2%
3 Year0.4%-10.5%50.7%28.0%63.4%53.1%
5 Year82.5%56.0%112.3%70.5%129.6%104.0%

Long-Term Price Volatility Vs. Market

How volatile is Trinseo's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

22.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TSE ($68.13) is trading above our estimate of fair value ($24.88)

Significantly Below Fair Value: TSE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TSE is good value based on its PE Ratio (22.6x) compared to the US Chemicals industry average (27.6x).

PE vs Market: TSE is poor value based on its PE Ratio (22.6x) compared to the US market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TSE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TSE is overvalued based on its PB Ratio (3.9x) compared to the US Chemicals industry average (2.8x).


Future Growth

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

2.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if TSE's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if TSE'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: TSE's revenue (2.5% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: TSE's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TSE's Return on Equity is forecast to be low in 3 years time (18.1%).


Past Performance

How has Trinseo performed over the past 5 years?

-32.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TSE has a large one-off loss of $68.3M impacting its March 31 2021 financial results.

Growing Profit Margin: TSE's current net profit margins (3.5%) are higher than last year (0.6%).


Past Earnings Growth Analysis

Earnings Trend: TSE's earnings have declined by 32.4% per year over the past 5 years.

Accelerating Growth: TSE's earnings growth over the past year (481.4%) exceeds its 5-year average (-32.4% per year).

Earnings vs Industry: TSE earnings growth over the past year (481.4%) exceeded the Chemicals industry 3.3%.


Return on Equity

High ROE: TSE's Return on Equity (17.1%) is considered low.


Financial Health

How is Trinseo's financial position?


Financial Position Analysis

Short Term Liabilities: TSE's short term assets ($2.2B) exceed its short term liabilities ($677.6M).

Long Term Liabilities: TSE's short term assets ($2.2B) exceed its long term liabilities ($2.1B).


Debt to Equity History and Analysis

Debt Level: TSE's debt to equity ratio (234.5%) is considered high.

Reducing Debt: TSE's debt to equity ratio has reduced from 284.7% to 234.5% over the past 5 years.

Debt Coverage: TSE's debt is not well covered by operating cash flow (16.1%).

Interest Coverage: TSE's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


Dividend

What is Trinseo current dividend yield, its reliability and sustainability?

0.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TSE's dividend (0.47%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: TSE's dividend (0.47%) is low compared to the top 25% of dividend payers in the US market (3.42%).


Stability and Growth of Payments

Stable Dividend: TSE is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: TSE is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: TSE is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TSE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Frank Bozich (60 yo)

2.17yrs

Tenure

US$6,869,598

Compensation

Mr. Frank A. Bozich has been President and Chief Executive Officer at Trinseo S.A. since March 4, 2019. Mr. Bozich serves as Director at Trinseo S.A. since March 2019 until 2019. Mr. Bozich served as the C...


CEO Compensation Analysis

Compensation vs Market: Frank's total compensation ($USD6.87M) is about average for companies of similar size in the US market ($USD5.41M).

Compensation vs Earnings: Insufficient data to compare Frank's compensation with company performance.


Leadership Team

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


Board Members

Experienced Board: TSE's board of directors are not considered experienced ( 2.7 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: TSE 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.


Top Shareholders

Company Information

Trinseo S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Trinseo S.A.
  • Ticker: TSE
  • Exchange: NYSE
  • Founded: 2010
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: US$2.635b
  • Shares outstanding: 38.38m
  • Website: https://www.trinseo.com

Number of Employees


Location

  • Trinseo S.A.
  • 1000 Chesterbrook Boulevard
  • Suite 300
  • Berwyn
  • Pennsylvania
  • 19312
  • United States

Listings


Biography

Trinseo S.A., a materials company, manufactures and markets synthetic rubber, latex binders, and plastic products in the United States, Europe, the Asia-Pacific, and internationally. The company operates t...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/07 22:18
End of Day Share Price2021/05/07 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.