TRONOX (TROX) AI Stock Analysis

• Market Cap: $885.80M
• Dividend Yield: 9.11%
• Average Volume (3M): 2.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.98
• Revenue Growth: 7.82%
• EPS Growth: 84.90%
• Country: US
• Employees: 6,500
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Chemicals
• EPS (TTM): -0.30
• Shares Outstanding: 158,462,070
• 10 Day Avg. Volume: 2,609,287
• 30 Day Avg. Volume: 2,720,539
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 5.03
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 8.66
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $11.50
• Price Target Upside: 112.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

TRONOX's moderate financial performance, characterized by steady revenue growth and improved margins, is overshadowed by weak cash flow and high debt levels. Technical analysis indicates weak momentum, while valuation metrics show a high dividend yield but a negative P/E ratio. Despite positive operational improvements highlighted in the earnings call, challenges such as cost pressures and a cautious outlook temper enthusiasm. The overall score reflects a balanced view of these factors, with financial and operational strengths weighed against debt and cash flow concerns.

Positive Factors

Cash Flow

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.

Cost Savings

Management expects significant cost savings by 2026, with improved fixed-cost utilization at other facilities and lower SG&A expenses.

Market Position

TROX is anticipated to outperform the market by benefiting from the TiO2 cycle, which is expected to grow its top line and improve earnings.

Negative Factors

Market Constraints

TROX's growth prospects are constrained by low-growth markets in North America and EMEA.

Operational Challenges

Higher mining costs and underutilization exacerbate a build-up of inventory, and a number of operational disruptions have impacted results.

Supply Growth

China's supply growth is expected to continue, limiting upside for TROX despite post-tariff benefits.

TRONOX Business Overview & Revenue Model

Company Description

Tronox Holdings plc (TROX) is a global leader in the mining, production, and marketing of inorganic minerals and chemicals, primarily titanium dioxide pigment. The company operates in the sectors of mining and chemical manufacturing, with a focus on producing high-quality titanium dioxide pigment, which is used to enhance the brightness and durability of paints, plastics, and paper. Tronox operates facilities across several countries, employing advanced technology and sustainable practices to deliver products that meet the diverse needs of its global customer base.

How the Company Makes Money

Tronox 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.

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.

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.

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
	EBIT
219.00M	186.00M	458.00M	577.00M	271.00M
	EBITDA
525.00M	458.00M	714.00M	840.00M	619.00M
	Net Income Common Stockholders
-48.00M	-316.00M	497.00M	286.00M	969.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
151.00M	273.00M	164.00M	228.00M	619.00M
	Total Assets
6.04B	6.13B	6.31B	5.99B	6.57B
	Total Debt
2.99B	2.95B	2.67B	2.66B	3.40B
	Net Debt
2.84B	2.68B	2.50B	2.43B	2.78B
	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: Negative
• Last Price: 5.41
• 50DMA: Negative
• 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 Negative. The current price of 5.41 is above the 20-day moving average (MA) of 5.39, below the 50-day MA of 6.56, and below the 200-day MA of 10.65, indicating a neutral trend. The MACD of -0.35 indicates Negative momentum. The RSI at 41.15 is Neutral, neither overbought nor oversold. The STOCH value of 48.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TROX.

TRONOX Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WLKP	73 Outperform	$833.74M	13.36	11.98%	7.93%	-4.61%	14.90%
ASIX	63 Neutral	$563.23M	12.97	5.83%	3.03%	-1.05%	-16.57%
DOW	60 Neutral	$21.17B	74.86	1.60%	9.13%	-2.08%	-76.11%
TROX	58 Neutral	$885.80M	―	-2.60%	9.11%	7.82%	84.90%
Sector *	49 Neutral	$1.95B	-1.49	-20.76%	3.74%	1.00%	-28.87%
CE	48 Neutral	$4.90B	6.84	-24.69%	4.79%	-6.03%	-177.29%
HUN	46 Neutral	$2.33B	―	-5.22%	7.50%	-1.23%	-277.52%

TRONOX Corporate Events

Tronox Declares Quarterly Cash Dividend for 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.