* Note: Prices are in Million (M) USD.
Description:
Tronox Holdings PLC is a premier vertically integrated producer of titanium dioxide (TiO2) pigment, strategically serving a diverse global clientele across multiple regions, including North America, Europe, and Asia Pacific. With its headquarters in Stamford, Connecticut, the company boasts a robust network of production facilities and mining operations that secure a consistent supply of high-quality TiO2 for applications in coatings, plastics, and paper. Committed to sustainability and innovation, Tronox is well-positioned to capitalize on the increasing demand for environmentally friendly and durable materials, solidifying its status as a significant player in the specialty materials market.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $0 M
Debt : $3,233 M
EBITDA : $303 M
Net Debt (Debt - Cash): $3,233 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Materials
Industry: Chemicals
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $54 M
Average Revenue: $2,047 M
Revenue Converted To Free Cash Flow (%): 2.6%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $3,074 M
Revenue 5 Years Ago (2019-12-31): $2,642 M
Total Growth over 5 Years: 16.4%
5-Year Revenue CAGR (Historical): 3.1%
Forward 5-Year CAGR (Tapered): 2.8%
Since historical Revenue CAGR is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $158 M
Share Count 5 Years Ago (2020-12-31): $145 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $-0.46
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 12.20%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-0.46
EPS is non-positive; payout ratio not meaningful. 0 point assigned.
Since Dividend Yield is greater than 5, 5 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 17 valid ROE years (max 20).Average ROE: 5.4%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $3.37
52-Week Low: $2.82
Threshold Price (15% Above 52-Week Low): $3.24
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $550 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 1% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share, latest positive annual) (2022-12-31): $1.08
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 14 points to above Tronox Holdings PLC (TROX) stock.
Last 5 Years Avg PE 13.73, Fair Value PE 12, Industry Based PE 15, Growth Based PE 15, RCFC Based PE 2.63, ROE Based PE 5.37, Risk-Free Anchored PE (25% MoS) 18.47. Based on these 7 values, average assigned is 11.74. The fair value of Tronox Holdings PLC (TROX) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
