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TRONOX Ltd (TROX)
NYSE:TROX
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TRONOX
(NYSE:TROX)
51Neutral
Positive Factors
Debt Reduction
The closure of the Botlek facility is expected to drive a $50 million increase in free cash flow in 2025, aiding in reducing debt.
Facility Closure
The permanent idling of TROX's Botlek facility will result in a tighter supply and demand environment, leading to a notable improvement in future cash flow.
Negative Factors
Market Constraints
TROX's growth prospects are constrained by low-growth markets in North America and EMEA.
Supply Growth
China's supply growth is expected to continue, limiting upside for TROX despite post-tariff benefits.
TRONOX (TROX) vs. S&P 500 (SPY)
Market Cap
$1.12B
Dividend Yield7.03%
Average Volume (3M)2.19M
Price to Earnings (P/E)―
Beta (1Y)1.99
Revenue Growth7.82%
EPS Growth84.90%
CountryUS
Employees6,500
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)-0.30
Shares Outstanding157,938,050
10 Day Avg. Volume1,691,039
30 Day Avg. Volume2,187,430
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.37
Price to Cash Flow (P/CF)3.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.64Price Target Upside87.62% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
TRONOX Business Overview & Revenue Model
Company DescriptionTronox Holdings plc operates as a vertically integrated manufacturer of TiO2 pigment in North America, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates titanium-bearing mineral sand mines; and engages in beneficiation and smelting operations. It offers TiO2 pigment; ultrafine specialty TiO2; zircon; feedstock; pig iron; titanium tetrachloride; and other products. The company's products are used for the manufacture of paints, coatings, plastics, and paper, as well as various other applications. Tronox Holdings plc is based in Stamford, Connecticut.
How the Company Makes MoneyTronox generates revenue primarily through the sale of titanium dioxide pigment, which is its core product. The pigment is widely used in various industries, including coatings, plastics, and paper, due to its ability to provide opacity, brightness, and whiteness. Tronox's revenue model is built on long-term supply agreements and strategic partnerships with companies in these industries, ensuring a consistent demand for its products. Additionally, Tronox benefits from its vertically integrated operations, owning and operating its own mines and production facilities, which helps control costs and stabilize supply chains. The company's earnings are further supported by its diverse geographic presence, allowing it to capitalize on regional market demands and economic conditions.
TRONOX Financial Statement Overview
Summary
TRONOX shows a moderate financial position with steady revenue growth and improved profitability margins. However, challenges in generating free cash flow and a reliance on debt remain concerns.Income Statement
TRONOX's recent financial performance shows a mixed picture. The gross profit margin for 2024 is approximately 16.76%, indicating moderate efficiency in production. However, the net profit margin stands at 6.51%, showing significant improvement from a negative net income in 2023. Revenue growth is modest at 7.89% from 2023 to 2024, reflecting steady but slow growth. EBIT and EBITDA margins are 7.12% and 6.21% respectively, suggesting room for improvement in operational efficiency.65
Positive
Balance Sheet
The debt-to-equity ratio has improved to 0.13 in 2024, suggesting better leverage management compared to the prior year. Return on equity for 2024 is 11.36%, indicating decent profitability relative to equity. However, the equity ratio is 29.17%, which might be considered low, indicating a higher reliance on debt financing.60
Neutral
Cash Flow
TRONOX's cash flow reveals challenges in generating free cash flow, with a negative free cash flow for 2024. The free cash flow to net income ratio is negative, pointing to potential issues in converting profits into cash. Operating cash flow to net income ratio is 1.50, suggesting that the company generates adequate cash from its operations relative to its net income.50
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.66B | 3.07B | 2.85B | 3.45B | 3.57B | 2.76B | Gross Profit |
| 957.00M | 515.00M | 462.00M | 832.00M | 895.00M | 621.00M | EBIT |
| 644.00M | 219.00M | 186.00M | 458.00M | 577.00M | 271.00M | EBITDA |
| 869.00M | 525.00M | 458.00M | 714.00M | 840.00M | 619.00M | Net Income Common Stockholders |
| 585.00M | -48.00M | -316.00M | 497.00M | 286.00M | 969.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 151.00M | 151.00M | 273.00M | 164.00M | 228.00M | 619.00M | Total Assets |
| 6.04B | 6.04B | 6.13B | 6.31B | 5.99B | 6.57B | Total Debt |
| 2.99B | 2.99B | 2.95B | 2.67B | 2.66B | 3.40B | Net Debt |
| 2.84B | 2.84B | 2.68B | 2.50B | 2.43B | 2.78B | Total Liabilities |
| 4.25B | 4.25B | 4.15B | 3.90B | 3.94B | 4.70B | Stockholders Equity |
| 1.76B | 1.76B | 1.94B | 2.36B | 1.99B | 1.70B |
| Cash Flow | Free Cash Flow | ||||
| 260.00M | -70.00M | -77.00M | 170.00M | 468.00M | 160.00M | Operating Cash Flow |
| 616.00M | 300.00M | 184.00M | 598.00M | 740.00M | 355.00M | Investing Cash Flow |
| -354.00M | -343.00M | -255.00M | -415.00M | -269.00M | -229.00M | Financing Cash Flow |
| -447.00M | -71.00M | 176.00M | -250.00M | -877.00M | 214.00M |
TRONOX Technical Analysis
Negative
7.27
Price Trends
8.43
Negative
9.64
Negative
11.94
Negative
Market Momentum
-0.30
Negative
43.14
Neutral
49.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TROX, the sentiment is Negative. The current price of 7.27 is above the 20-day moving average (MA) of 7.22, below the 50-day MA of 8.43, and below the 200-day MA of 11.94, indicating a neutral trend. The MACD of -0.30 indicates Negative momentum. The RSI at 43.14 is Neutral, neither overbought nor oversold. The STOCH value of 49.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TROX.
TRONOX Risk Analysis
TRONOX disclosed 40 risk factors in its most recent earnings report. TRONOX reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TRONOX Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $881.18M | 10.22 | 10.61% | 6.23% | 13.24% | ― | |
61 Neutral | $604.95M | 13.96 | 5.83% | 2.83% | -1.05% | -16.57% | |
60 Neutral | $484.97M | 4.58 | 10.95% | 1.84% | 9.53% | ― | |
55 Neutral | $2.85B | 27.21 | 5.10% | 3.23% | -4.29% | -74.85% | |
53 Neutral | $2.14B | 24.15 | 12.98% | 7.23% | -4.05% | ― | |
51 Neutral | $1.12B | ― | -2.60% | 7.03% | 7.82% | 84.90% | |
47 Neutral | $2.71B | -3.60 | -20.77% | 3.28% | 3.41% | -27.70% |
* Basic Materials Sector Average
Performance Comparison
TROX
TRONOX
7.27
-9.37
-56.31%
KRO
Kronos Worldwide
7.79
-3.66
-31.97%
OLN
Olin
25.25
-32.32
-56.14%
VHI
Valhi
17.08
0.15
0.89%
CC
Chemours Company
14.29
-10.63
-42.66%
ASIX
AdvanSix
23.06
-4.88
-17.47%
TRONOX Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -24.82% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
Tronox Holdings plc demonstrated strong revenue growth and operational improvements, particularly in sustainability and safety. However, the company faced financial challenges, including a net loss, cash flow deficit, and increased debt. The outlook for 2025 appears cautious, with expectations of continued cost improvements but ongoing pricing pressures and mining cost challenges.Highlights
Increased Revenue and Sales Volumes
Tronox Holdings plc generated $3.1 billion in revenue for the year, marking an 8% increase compared to the prior year, driven by higher TiO2 and zircon sales volumes.
Sustainability Initiatives
40% of power in South Africa was converted to solar, avoiding $17 million of additional electricity costs and reducing greenhouse gas emissions.
Safety Improvements
The company reported a 23% reduction in total recordable injuries in 2024.
Cost Improvement Program
Identified $125 to $175 million of additional cost improvement opportunities achievable by the end of 2026.
Improved Operational Performance
Reported a 37% year-on-year improvement in fourth-quarter adjusted EBITDA due to lower production costs.
Lowlights
Net Loss Reported
Reported a net loss attributable to Tronox Holdings plc of $48 million for the year.
Free Cash Flow Deficit
Free cash flow for the year was a use of $70 million.
Increased Debt Levels
Ended the year with total debt of $2.9 billion, with a net leverage ratio of 4.8 times.
Mining Cost Challenges
Expected $50 to $60 million in higher mining production costs due to transitioning out of older mines.
Pricing Pressure
Faced competitive pricing dynamics, resulting in a decline in average selling prices for TiO2 and zircon.
Company Guidance
During the Tronox Holdings plc Q4 2024 earnings call, the company provided guidance for 2025, projecting revenues between $3 to $3.4 billion and adjusted EBITDA in the range of $525 to $625 million. The guidance considers several factors, including market recovery pace, competitive dynamics, and new mine extensions. The company expects price and volume improvements, especially in pigment and zircon markets, with a stronger second half anticipated due to reducing pricing headwinds and increasing volumes. Tronox aims to achieve $125 to $175 million in sustainable run-rate cost improvements by the end of 2026, focusing on operational excellence, technology, and supply chain enhancements. Challenges include a $50 to $60 million increase in mining costs due to mine transitions and a planned outage impacting Q1. Despite these, Tronox is committed to maintaining its dividend, investing in value creation projects, and paying down debt to strengthen its financial position.TRONOX Corporate Events
Dividends
Tronox Declares Quarterly Cash Dividend for 2025
Positive
Feb 19, 2025
On February 18, 2025, Tronox Holdings plc announced that its Board of Directors declared a quarterly cash dividend of $0.125 per share, payable on April 4, 2025, to shareholders of record by March 3, 2025. This financial move underscores Tronox’s commitment to providing returns to its shareholders and highlights its stable financial standing in the titanium dioxide industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.