TRONOX HOLDINGS PLC (TROX) Stock Fundamental Analysis
NYSE:TROX - New York Stock Exchange, Inc. - GB00BJT16S69 - Common Stock - Currency: USD
TROX gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. TROX may be in some trouble as it scores bad on both profitability and health. TROX has a decent growth rate and is not valued too expensively. TROX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year TROX has reported negative net income.
In the past year TROX had a positive cash flow from operations.
In multiple years TROX reported negative net income over the last 5 years.
Each year in the past 5 years TROX had a positive operating cash flow.
1.2 Ratios
TROX has a Return On Assets of -0.79%. This is in the lower half of the industry: TROX underperforms 71.08% of its industry peers.
With a Return On Equity value of -2.73%, TROX is not doing good in the industry: 66.27% of the companies in the same industry are doing better.
TROX has a Return On Invested Capital of 3.31%. This is in the lower half of the industry: TROX underperforms 61.45% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for TROX is below the industry average of 6.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.79% | ||
| ROE | -2.73% | ||
| ROIC | 3.31% |
ROA(3y)0.64%
ROA(5y)4.29%
ROE(3y)0.68%
ROE(5y)14.69%
ROIC(3y)4.61%
ROIC(5y)5.65%
1.3 Margins
Looking at the Operating Margin, with a value of 7.12%, TROX is in line with its industry, outperforming 44.58% of the companies in the same industry.
TROX's Operating Margin has improved in the last couple of years.
The Gross Margin of TROX (16.75%) is worse than 72.29% of its industry peers.
In the last couple of years the Gross Margin of TROX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.12% | ||
| PM (TTM) | N/A | ||
| GM | 16.75% |
OM growth 3Y-26.39%
OM growth 5Y6.72%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-13.91%
GM growth 5Y-1.73%
2. Health
2.1 Basic Checks
TROX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TROX has more shares outstanding
TROX has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, TROX has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.19, we must say that TROX is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of TROX (1.19) is worse than 73.49% of its industry peers.
TROX has a Debt/Equity ratio of 1.60. This is a high value indicating a heavy dependency on external financing.
TROX's Debt to Equity ratio of 1.60 is on the low side compared to the rest of the industry. TROX is outperformed by 83.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.19 |
ROIC/WACC0.43
WACC7.61%
2.3 Liquidity
TROX has a Current Ratio of 2.47. This indicates that TROX is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of TROX (2.47) is better than 62.65% of its industry peers.
A Quick Ratio of 0.69 indicates that TROX may have some problems paying its short term obligations.
TROX's Quick ratio of 0.69 is on the low side compared to the rest of the industry. TROX is outperformed by 86.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 0.69 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 46.67% over the past year.
The Revenue has been growing slightly by 7.86% in the past year.
TROX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.08% yearly.
EPS 1Y (TTM)46.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%107.89%
Revenue 1Y (TTM)7.86%
Revenue growth 3Y-4.88%
Revenue growth 5Y3.08%
Sales Q2Q%-1.46%
3.2 Future
TROX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 152.23% yearly.
Based on estimates for the next years, TROX will show a small growth in Revenue. The Revenue will grow by 3.21% on average per year.
EPS Next Y733.17%
EPS Next 2Y281.53%
EPS Next 3Y152.23%
EPS Next 5YN/A
Revenue Next Year2.15%
Revenue Next 2Y3.93%
Revenue Next 3Y3.21%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for TROX. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 15.48, the valuation of TROX can be described as correct.
TROX's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.68. TROX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 15.48 |
4.2 Price Multiples
75.90% of the companies in the same industry are more expensive than TROX, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.78 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TROX's earnings are expected to grow with 152.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y281.53%
EPS Next 3Y152.23%
5. Dividend
5.1 Amount
TROX has a Yearly Dividend Yield of 6.19%, which is a nice return.
In the last 3 months the price of TROX has falen by -36.21%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
TROX's Dividend Yield is rather good when compared to the industry average which is at 3.28. TROX pays more dividend than 90.36% of the companies in the same industry.
TROX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
5.2 History
The dividend of TROX is nicely growing with an annual growth rate of 20.05%!
TROX has been paying a dividend for at least 10 years, so it has a reliable track record.
As TROX did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)20.05%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
The earnings of TROX are negative and hence is the payout ratio. TROX will probably not be able to sustain this dividend level.
The dividend of TROX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-166.67%
EPS Next 2Y281.53%
EPS Next 3Y152.23%
7.84
-0.24 (-2.97%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners75.22%
Inst Owner Change1.05%
Ins Owners1.45%
Ins Owner Change0%
Market Cap1.24B
Analysts77.5
Price Target14.18 (80.87%)
Short Float %6.39%
Short Ratio6.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.19% |
Yearly Dividend0.51
Dividend Growth(5Y)20.05%
DP-166.67%
Div Incr Years0
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-112.2%
Min EPS beat(2)-180.61%
Max EPS beat(2)-43.8%
EPS beat(4)0
Avg EPS beat(4)-271.77%
Min EPS beat(4)-800.28%
Max EPS beat(4)-43.8%
EPS beat(8)1
Avg EPS beat(8)-2018.28%
EPS beat(12)1
Avg EPS beat(12)-1368%
EPS beat(16)4
Avg EPS beat(16)-1022.39%
Revenue beat(2)0
Avg Revenue beat(2)-2.63%
Min Revenue beat(2)-4.96%
Max Revenue beat(2)-0.31%
Revenue beat(4)1
Avg Revenue beat(4)-2.45%
Min Revenue beat(4)-5.19%
Max Revenue beat(4)0.64%
Revenue beat(8)3
Avg Revenue beat(8)-2.77%
Revenue beat(12)4
Avg Revenue beat(12)-2.94%
Revenue beat(16)6
Avg Revenue beat(16)-2.35%
PT rev (1m)-2.96%
PT rev (3m)-17.71%
EPS NQ rev (1m)-16.45%
EPS NQ rev (3m)-18.78%
EPS NY rev (1m)-31.25%
EPS NY rev (3m)-36.97%
Revenue NQ rev (1m)-1.01%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)-0.19%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 15.48 | ||
| P/S | 0.4 | ||
| P/FCF | N/A | ||
| P/OCF | 4.13 | ||
| P/B | 0.7 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | 7.78 |
EPS(TTM)-0.08
EYN/A
EPS(NY)0.51
Fwd EY6.46%
FCF(TTM)-0.44
FCFYN/A
OCF(TTM)1.9
OCFY24.23%
SpS19.47
BVpS11.15
TBVpS9.61
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.79% | ||
| ROE | -2.73% | ||
| ROCE | 4.24% | ||
| ROIC | 3.31% | ||
| ROICexc | 3.41% | ||
| ROICexgc | 3.58% | ||
| OM | 7.12% | ||
| PM (TTM) | N/A | ||
| GM | 16.75% | ||
| FCFM | N/A |
ROA(3y)0.64%
ROA(5y)4.29%
ROE(3y)0.68%
ROE(5y)14.69%
ROIC(3y)4.61%
ROIC(5y)5.65%
ROICexc(3y)4.77%
ROICexc(5y)5.95%
ROICexgc(3y)5.01%
ROICexgc(5y)6.23%
ROCE(3y)5.88%
ROCE(5y)7.18%
ROICexcg growth 3Y-30.54%
ROICexcg growth 5Y6.2%
ROICexc growth 3Y-30.64%
ROICexc growth 5Y6.22%
OM growth 3Y-26.39%
OM growth 5Y6.72%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-13.91%
GM growth 5Y-1.73%
F-Score4
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.6 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.6 | ||
| Cap/Depr | 129.82% | ||
| Cap/Sales | 12.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.52% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 0.69 | ||
| Altman-Z | 1.19 |
F-Score4
WACC7.61%
ROIC/WACC0.43
Cap/Depr(3y)127.95%
Cap/Depr(5y)107.91%
Cap/Sales(3y)11.2%
Cap/Sales(5y)9.65%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)46.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%107.89%
EPS Next Y733.17%
EPS Next 2Y281.53%
EPS Next 3Y152.23%
EPS Next 5YN/A
Revenue 1Y (TTM)7.86%
Revenue growth 3Y-4.88%
Revenue growth 5Y3.08%
Sales Q2Q%-1.46%
Revenue Next Year2.15%
Revenue Next 2Y3.93%
Revenue Next 3Y3.21%
Revenue Next 5YN/A
EBIT growth 1Y-3.95%
EBIT growth 3Y-29.98%
EBIT growth 5Y10%
EBIT Next Year157.48%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y9.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y63.04%
OCF growth 3Y-25.99%
OCF growth 5Y-7.42%