TRONOX (TROX) AI Stock Analysis

• Market Cap: $890.56M
• Dividend Yield: 8.59%
• Average Volume (3M): 2.39M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.93
• Revenue Growth: 4.15%
• EPS Growth: 57.25%
• Country: US
• Employees: 6,500
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals
• EPS (TTM): -0.15
• Shares Outstanding: 158,462,500
• 10 Day Avg. Volume: 2,129,685
• 30 Day Avg. Volume: 2,391,565
• PEG Ratio: 0.10
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.74
• Enterprise Value/Market Cap: 4.27
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 7.95
• Enterprise Value/Ebitda: 1.92
• 1Y Price Target: $8.06
• Price Target Upside: 38.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 54 Neutral
• Price Target: $5.50 ▼(-5.50%Downside)

Tronox's overall score is primarily impacted by financial challenges and valuation concerns. However, positive technical signals and corporate events provide some support, and strategic improvements may enhance future performance.

Positive Factors

Analyst Upgrade

Analyst upgrades Tronox to Overweight from Neutral, reflecting a belief in the company's potential for growth and recovery.

Cost/Benefit Opportunities

Tronox has cost/benefit opportunities totaling about $230 million that could reduce earnings risk and potentially lead to earnings growth.

Tariffs Impact

Tronox is expected to benefit from tariffs placed on Chinese titanium dioxide exports, potentially leading to market share gains and price improvements.

Negative Factors

Demand Environment

The demand environment remains challenged owing to weak US housing, soft China construction markets, and listless demand in Europe.

High Costs

High costs are moving more slowly through TROX's P&L, posing significant risk to future earnings and cash flows.

Pricing Competition

Pricing remains difficult even in tariff-protected areas owing to the soft demand and fierce competition.

TRONOX Business Overview & Revenue Model

Company Description

Tronox 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 Money

Tronox generates revenue primarily through the production and sale of titanium dioxide pigment, which is used to impart whiteness, brightness, and opacity to products such as paints, coatings, and plastics. The company operates through several integrated facilities that include mining, beneficiation, and production processes. Tronox's revenue streams are diversified across different geographic regions, targeting markets in North America, Europe, Asia-Pacific, and Africa. Additionally, Tronox derives income from the sale of co-products from its mining operations, such as zircon, rutile, and ilmenite, which are used in various industrial applications. Strategic partnerships and joint ventures with other industry players also contribute to its revenue by enhancing operational efficiencies and expanding market reach.

TRONOX Financial Statement Overview

Summary

TRONOX's financial performance is under pressure with negative net income, high leverage, and declining revenues. Despite positive operating cash flow, significant financial challenges persist, requiring strategic improvements.

Income Statement

TRONOX's income statement reveals a challenging financial environment. The TTM (Trailing-Twelve-Months) shows a negative net income, indicating profitability issues. Gross profit margin stands at 15.74%, and net profit margin is negative, reflecting cost pressures and inefficiencies. Revenue has decreased from the previous year, highlighting growth challenges. EBIT and EBITDA margins are also under pressure, indicating operational difficulties.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.85, indicating significant leverage. Return on equity is negative due to net losses, which is concerning for shareholders. The equity ratio is 27.59%, suggesting moderate financial stability. The company needs to manage its debt levels carefully to avoid financial strain.

Cash Flow

Cash flow analysis shows a negative free cash flow, indicating potential liquidity issues. The operating cash flow to net income ratio is negative due to net losses, and free cash flow to net income ratio is also negative. These metrics highlight cash management challenges, although operating cash flow remains positive, providing some relief.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.07B	2.85B	3.45B	3.57B	2.76B
Gross Profit	515.00M	462.00M	832.00M	895.00M	621.00M
EBITDA	525.00M	473.00M	714.00M	840.00M	619.00M
Net Income	-48.00M	-316.00M	497.00M	286.00M	969.00M
Balance Sheet
Total Assets	6.04B	6.13B	6.31B	5.99B	6.57B
Cash, Cash Equivalents and Short-Term Investments	151.00M	273.00M	164.00M	228.00M	619.00M
Total Debt	2.99B	2.95B	2.67B	2.66B	3.40B
Total Liabilities	4.25B	4.15B	3.90B	3.94B	4.70B
Stockholders Equity	1.76B	1.94B	2.36B	1.99B	1.70B
Cash Flow
Free Cash Flow	-70.00M	-77.00M	170.00M	468.00M	160.00M
Operating Cash Flow	300.00M	184.00M	598.00M	740.00M	355.00M
Investing Cash Flow	-343.00M	-255.00M	-415.00M	-269.00M	-229.00M
Financing Cash Flow	-71.00M	176.00M	-250.00M	-877.00M	214.00M

TRONOX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.82
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TROX, the sentiment is Positive. The current price of 5.82 is above the 20-day moving average (MA) of 5.52, above the 50-day MA of 5.47, and below the 200-day MA of 8.15, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 51.86 is Neutral, neither overbought nor oversold. The STOCH value of 68.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TROX.

TRONOX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WLKP	72 Outperform	$775.95M	14.97	10.22%	8.54%	-6.76%	-3.19%
ASIX	70 Outperform	$588.00M	7.26	11.26%	2.92%	6.03%	5079.05%
DOW	59 Neutral	$17.72B	75.91	-5.59%	10.98%	-2.82%	-186.06%
CE	56 Neutral	$6.25B	6.84	-26.94%	2.56%	-5.98%	-183.27%
TROX	54 Neutral	$890.56M	―	-8.44%	8.59%	4.15%	57.25%
HUN	53 Neutral	$1.89B	―	-4.46%	9.19%	0.02%	-43.65%
Sector *	44 Neutral	AU$1.51B	-6.04	-41.37%	3.88%	-3.45%	-43.04%

TRONOX Corporate Events

Tronox Shareholders Approve Key Governance Proposals

On May 7, 2025, Tronox Holdings plc held its Annual General Meeting of Shareholders, where key decisions were made regarding the company’s governance and financial practices. Shareholders voted on several proposals, including the election of directors, approval of executive compensation, and the appointment of auditors. The meeting underscored strong shareholder support for the company’s current leadership and strategic direction, with most proposals receiving overwhelming approval. These decisions are likely to reinforce Tronox’s operational stability and enhance its industry positioning.

Tronox Declares Quarterly Dividend for Shareholders

On May 7, 2025, Tronox Holdings plc announced that its Board of Directors declared a quarterly cash dividend of $0.125 per share, payable on July 2, 2025, to shareholders recorded by May 19, 2025. This announcement underscores Tronox’s commitment to returning value to its shareholders and may enhance its attractiveness to investors, reinforcing its position as a leading player in the titanium dioxide market.