NYSE:TSE

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet second-rate dividend payer.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.8%

TSE

0.2%

US Chemicals

0.4%

US Market


1 Year Return

-9.6%

TSE

-2.3%

US Chemicals

13.1%

US Market

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

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


Shareholder returns

TSEIndustryMarket
7 Day-5.8%0.2%0.4%
30 Day5.6%6.2%4.0%
90 Day52.4%9.3%7.4%
1 Year-6.1%-9.6%13.1%-2.3%15.6%13.1%
3 Year-12.6%-19.1%44.3%17.4%48.2%38.6%
5 Year210.5%183.7%44.7%12.3%62.6%44.6%

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?

21.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TSE ($44.63) is trading above our estimate of fair value ($24.41)

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


Price To Earnings Ratio

PE vs Industry: TSE is poor value based on its PE Ratio (21.4x) compared to the Chemicals industry average (20.7x).

PE vs Market: TSE is poor value based on its PE Ratio (21.4x) compared to the US market (18.2x).


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 (2.5x) compared to the US Chemicals industry average (2x).


Next Steps

Future Growth

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

7.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TSE's forecast earnings growth (7.6% per year) is above the savings rate (2.7%).

Earnings vs Market: TSE's earnings (7.6% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: TSE's earnings are forecast to grow, but not significantly.

Revenue vs Market: TSE's revenue (1.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: TSE's revenue (1.2% 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 high in 3 years time (36.9%)


Next Steps

Past Performance

How has Trinseo performed over the past 5 years?

27.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TSE has high quality earnings.

Growing Profit Margin: TSE's current net profit margins (2.2%) are lower than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: TSE has become profitable over the past 5 years, growing earnings by 27% per year.

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

Earnings vs Industry: TSE had negative earnings growth (-79.2%) over the past year, making it difficult to compare to the Chemicals industry average (-21.3%).


Return on Equity

High ROE: TSE's Return on Equity (12%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Trinseo's financial position?


Financial Position Analysis

Short Term Liabilities: TSE's short term assets ($1.6B) exceeds its short term liabilities ($538.9M)

Long Term Liabilities: TSE's short term assets (1.6B) exceeds its long term liabilities (1.5B)


Debt to Equity History and Analysis

Debt Level: TSE's debt to equity ratio (163.6%) is considered high

Reducing Debt: TSE's debt to equity ratio has reduced from 289.3% to 163.6% over the past 5 years.

Debt Coverage: TSE's debt is well covered by operating cash flow (34.4%).

Interest Coverage: TSE's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet

Inventory Level: TSE has a high level of physical assets or inventory.

Debt Coverage by Assets: TSE's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

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

3.59%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years3.7%

Current dividend yield vs market & industry

Notable Dividend: TSE's dividend (3.59%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: TSE's dividend (3.59%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, TSE has been paying a dividend for less than 10 years.

Growing Dividend: TSE's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.9%), TSE's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TSE's dividends in 3 years are forecast to be well covered by earnings (20.7% payout ratio).


Next Steps

Management

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

0.3yrs

Average management tenure


CEO

Frank Bozich (59yo)

0.7yrs

Tenure

0

Mr. Frank A. Bozich has been President and Chief Executive Officer at Trinseo S.A. since March 4, 2019 and serves as Director since July 2019. Mr. Bozich serves as Director at Trinseo S.A. since March, 201 ...


Management Age and Tenure

0.3yrs

Average Tenure

49yo

Average Age

Experienced Management: TSE's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Age and Tenure

4.0yrs

Average Tenure

60yo

Average Age

Experienced Board: TSE's board of directors are considered experienced (4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$434,52016 Aug 19
Frank Bozich
EntityIndividual
Role
Chief Executive Officer
President
Shares15,000
Max PriceUS$28.97
BuyUS$218,14010 Dec 18
Barry Niziolek
EntityIndividual
Shares4,500
Max PriceUS$48.87
BuyUS$1,023,49205 Dec 18
Stephen Zide
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman
Shares20,000
Max PriceUS$52.28

Ownership Breakdown

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


Management Team

  • Dave Stasse (49yo)

    Executive VP & CFO

    • Tenure: 0.3yrs
  • Alice Heezen (49yo)

    Senior Vice President of Human Resources

    • Tenure: 1.6yrs
  • Frank Bozich (59yo)

    President

    • Tenure: 0.7yrs
  • Angelo Chaclas (55yo)

    Senior VP

    • Tenure: 0yrs
    • Compensation: US$1.27m
  • Tim Stedman (49yo)

    Senior VP of Strategy & Corporate Development

    • Tenure: 0.08yrs
    • Compensation: US$3.45m
  • Hayati Yarkadas (50yo)

    Executive Officer

    • Tenure: 4yrs
    • Compensation: US$3.55m
  • Ryan Leib (41yo)

    VP & Treasurer

    • Tenure: 0.3yrs
  • Bernard Skeete (46yo)

    VP, Controller & Principal Accounting Officer

    • Tenure: 0.3yrs
  • Lori Wilcox

    Chief Audit Executive

    • Tenure: 0.3yrs

Board Members

  • Chris Pappas (63yo)

    Director

    • Tenure: 9.1yrs
    • Compensation: US$8.67m
  • Jeff Cote (52yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$235.00k
  • Steve Zide (59yo)

    Independent Non-Executive Chairman

    • Tenure: 9.4yrs
    • Compensation: US$325.00k
  • Phil Martens (59yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$210.00k
  • Henri Steinmetz (62yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$225.30k
  • Joe Alvarado (67yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$210.00k
  • K’Lynne Johnson (51yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$210.00k
  • Pierre-Marie De Leener (61yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$210.00k
  • Don Misheff (62yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$220.00k
  • Frank Bozich (59yo)

    President

    • Tenure: 0.7yrs

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$1.762b
  • Shares outstanding: 39.48m
  • Website: https://www.trinseo.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TSENYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2014
TR5DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2014

Biography

Trinseo S.A., a materials company, manufactures and markets synthetic rubber, latex binders, and plastic products in Europe, the United States, 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 Analysis2019/11/14 00:45
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.