TRONOX (TROX) AI Stock Analysis

• Market Cap: $700.80M
• Dividend Yield: 7.85%
• Average Volume (3M): 4.86M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.33
• Revenue Growth: -7.81%
• EPS Growth: -334.15%
• Country: US
• Employees: 6,500
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -0.46
• Shares Outstanding: 158,552,320
• 10 Day Avg. Volume: 6,385,906
• 30 Day Avg. Volume: 4,858,406
• PEG Ratio: 0.39
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.52
• P/FCF Ratio: -22.70
• Enterprise Value/Market Cap: 5.62
• Enterprise Value/Revenue: 1.39
• Enterprise Value/Gross Profit: 11.36
• Enterprise Value/Ebitda: 19.41
• 1Y Price Target: $4.97
• Price Target Upside: 11.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $5.00 ▲(12.11% Upside)

TRONOX's overall stock score is primarily influenced by its significant financial challenges, including declining revenue and profitability, high leverage, and cash flow constraints. While technical indicators suggest bullish momentum, the negative P/E ratio and challenging market conditions weigh on the valuation. The earnings call provided a mixed outlook, with positive cost-saving measures but ongoing market pressures. The high dividend yield offers some appeal to investors, but the overall financial distress necessitates caution.

Positive Factors

Rare Earth Supply Chain Development

The development of a rare earth supply chain positions Tronox for growth in a strategic market, leveraging existing capabilities and enhancing long-term competitiveness.

Cost Improvement Program

The cost improvement program enhances operational efficiency and profitability, providing a durable competitive advantage and supporting long-term financial health.

Strengthened Liquidity

Increased liquidity through strategic financing enhances financial flexibility, enabling Tronox to navigate market challenges and invest in growth opportunities.

Negative Factors

High Leverage

High leverage poses financial risks, limiting Tronox's ability to invest in growth and potentially impacting long-term financial stability.

Declining Revenue

Declining revenue reflects market challenges and competitive pressures, indicating potential difficulties in maintaining market position and profitability.

Cash Flow Constraints

Cash flow constraints limit Tronox's ability to fund operations and strategic initiatives, impacting long-term growth and financial health.

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 sale of titanium dioxide pigments, which account for a significant portion of its income. The company benefits from a vertically integrated model, allowing it to control costs and improve margins by processing its own raw materials. Key revenue streams include sales to various end markets such as paints, coatings, and plastics, which are driven by demand in construction, automotive, and consumer goods sectors. Additionally, TRONOX produces and sells zircon, contributing to its revenue diversification. Significant partnerships with major industrial players and a focus on sustainable practices enhance its market position and profitability.

TRONOX Financial Statement Overview

Summary

TRONOX is experiencing significant financial challenges. The income statement shows declining revenue and profitability, with negative margins indicating operational inefficiencies. The balance sheet reveals high leverage and poor returns on equity, suggesting financial instability. Cash flow metrics highlight cash generation issues and liquidity concerns. Overall, the company is in financial distress, requiring strategic measures to improve financial health.

Income Statement

TRONOX's income statement reveals significant challenges, with a notable decline in revenue growth rate of -27.24% TTM, indicating a contraction in sales. The gross profit margin has decreased to 14.04% TTM, reflecting reduced profitability. The net profit margin is negative at -8.48% TTM, highlighting ongoing losses. EBIT and EBITDA margins have also deteriorated, with EBIT margin turning negative. These factors suggest declining operational efficiency and profitability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.94 TTM, indicating significant leverage and potential financial risk. Return on equity is negative at -14.30% TTM, reflecting poor returns for shareholders. The equity ratio stands at 24.77% TTM, suggesting moderate reliance on equity financing. Overall, the balance sheet indicates financial instability and high leverage.

Cash Flow

Cash flow analysis reveals a concerning decline in free cash flow growth rate of -7.26% TTM, indicating cash flow challenges. The operating cash flow to net income ratio is 0.15 TTM, showing limited cash generation relative to net income. The free cash flow to net income ratio is negative, reflecting cash flow deficits. These metrics suggest cash flow constraints and potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.84B	3.07B	2.85B	3.45B	3.57B	2.76B
Gross Profit	347.00M	515.00M	462.00M	832.00M	895.00M	621.00M
EBITDA	203.00M	525.00M	473.00M	714.00M	840.00M	597.00M
Net Income	-324.00M	-48.00M	-316.00M	497.00M	286.00M	969.00M
Balance Sheet
Total Assets	6.30B	6.04B	6.13B	6.31B	5.99B	6.57B
Cash, Cash Equivalents and Short-Term Investments	185.00M	151.00M	273.00M	164.00M	228.00M	648.00M
Total Debt	3.41B	2.99B	2.95B	2.67B	2.66B	3.40B
Total Liabilities	4.71B	4.25B	4.15B	3.90B	3.94B	4.70B
Stockholders Equity	1.56B	1.76B	1.94B	2.36B	1.99B	1.70B
Cash Flow
Free Cash Flow	-369.00M	-70.00M	-77.00M	170.00M	468.00M	160.00M
Operating Cash Flow	21.00M	300.00M	184.00M	598.00M	740.00M	355.00M
Investing Cash Flow	-372.00M	-343.00M	-255.00M	-415.00M	-269.00M	-229.00M
Financing Cash Flow	371.00M	-71.00M	176.00M	-250.00M	-877.00M	214.00M

TRONOX Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.46
• 50DMA: Positive
• 100DMA: Positive
• 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 4.46 is above the 20-day moving average (MA) of 4.04, above the 50-day MA of 3.70, and below the 200-day MA of 4.70, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 60.21 is Neutral, neither overbought nor oversold. The STOCH value of 46.05 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	67 Neutral	$677.07M	13.77	9.61%	9.72%	-0.82%	-20.35%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ASIX	59 Neutral	$439.23M	8.50	6.62%	3.91%	-5.05%	35.01%
LXU	58 Neutral	$626.64M	-828.30	-0.13%	―	12.49%	95.48%
TROX	57 Neutral	$700.80M	-2.18	-18.65%	7.85%	-7.81%	-334.15%
HUN	54 Neutral	$1.75B	-5.65	-10.65%	8.16%	-3.46%	-191.77%
BAK	47 Neutral	$1.08B	-1.20	―	―	-10.68%	36.31%

TRONOX Corporate Events

Tronox Declares Quarterly Cash Dividend Announcement

On October 29, 2025, Tronox Holdings plc announced that its Board of Directors declared a quarterly cash dividend of $0.05 per share. This dividend is scheduled to be paid on January 6, 2026, to shareholders who are recorded by the close of business on November 10, 2025. This announcement reflects Tronox’s ongoing commitment to returning value to its shareholders and may enhance its attractiveness to investors, reinforcing its position in the titanium dioxide industry.

Tronox Closes $400 Million Senior Secured Notes Offering

On September 26, 2025, Tronox Incorporated, a subsidiary of Tronox Holdings plc, successfully closed an offering of $400 million in senior secured notes due 2030. This financial maneuver is designed to strengthen the company’s capital structure, with the notes being guaranteed by Tronox and its restricted subsidiaries. The issuance of these notes, which are not registered under the Securities Act, provides Tronox with strategic financial flexibility, allowing for potential redemptions and adjustments based on market conditions and company performance. This move may impact Tronox’s operational strategies and its positioning within the industry, offering stakeholders insights into the company’s financial planning and risk management.

Tronox Announces Senior Secured Notes Offering

On September 15, 2025, Tronox Incorporated, a subsidiary of Tronox Holdings plc, announced an offering of senior secured notes due in 2030. The proceeds from this offering are intended to repay existing borrowings under the company’s credit facilities and cover related fees and expenses, with any remaining funds used for general corporate purposes. The notes will be offered to qualified institutional buyers and certain offshore investors, but will not be registered under the Securities Act, limiting their sale in the United States. This move is part of Tronox’s financial strategy to manage its debt and optimize its capital structure.