Trinseo (TSE) AI Stock Analysis

• Market Cap: $118.51M
• Dividend Yield: 1.2%
• Average Volume (3M): 360.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.18
• Revenue Growth: -4.41%
• EPS Growth: 50.55%
• Country: US
• Employees: 2,950
• Sector: Basic Materials
• Sector Strength: 52
• Industry: Chemicals - Specialty
• EPS (TTM): -9.86
• Shares Outstanding: 35,481,483
• 10 Day Avg. Volume: 355,603
• 30 Day Avg. Volume: 360,775
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.04
• Price to Cash Flow (P/CF): 0.50
• P/FCF Ratio: 0.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.00
• Price Target Upside: 80.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Trinseo's overall stock score reflects significant financial challenges, including negative equity and profitability issues, which weigh heavily on the score. Technical indicators suggest bearish momentum, while valuation presents mixed signals with a high dividend yield. Strategic initiatives highlighted in the earnings call and recent financial restructuring efforts provide some optimism for future stability and recovery. The company's focus on sustainability and operational improvements are positive, but macroeconomic headwinds persist.

Trinseo Business Overview & Revenue Model

Company Description

Trinseo (TSE) is a global materials solutions provider and manufacturer of plastics, latex binders, and synthetic rubber. The company serves a wide range of industries, including automotive, consumer electronics, medical, and construction, offering products that are integral to the performance and sustainability of end products. Trinseo is known for its innovative approach in developing materials that address complex challenges and improve customer competitiveness.

How the Company Makes Money

Trinseo generates revenue primarily through the sale of its diverse product portfolio, which includes specialty plastics, latex binders, and synthetic rubber. These materials are sold to a variety of industries that utilize them in manufacturing processes and end products. The company's revenue model is heavily reliant on its ability to maintain strong relationships with key clients in sectors like automotive and consumer electronics, as well as its capacity to innovate and adapt its product offerings to meet changing industry demands. Additionally, Trinseo engages in strategic partnerships and collaborations that enhance its market position and expand its reach into new markets. Pricing of products, driven by raw material costs and market demand, also plays a significant role in its earnings.

Trinseo Financial Statement Overview

Summary

Trinseo is facing substantial financial challenges across its income statement, balance sheet, and cash flow statement. The company demonstrates declining revenues, negative profitability, and high leverage with negative equity. Liquidity issues are also apparent, with negative operating and free cash flow. Overall, the financial health is under pressure, requiring strategic interventions to improve stability and profitability.

Income Statement

Trinseo has experienced a significant decline in revenue and net income over recent years. The latest annual report shows a gross profit margin of 7.56% and a negative net profit margin of -9.92%, indicating operational difficulties. The EBIT margin is also negative at -9.92%, reflecting challenges in covering operational expenses. Overall, the income statement suggests declining profitability and growth issues.

Balance Sheet

The balance sheet reveals a negative stockholders' equity of -$619.9 million, indicating potential solvency issues. The debt-to-equity ratio cannot be calculated due to negative equity, but high leverage is evident with total debt at $277.1 million. The equity ratio is negative, further highlighting financial instability. These metrics reflect a need for capital restructuring to stabilize the financial position.

Cash Flow

Operating cash flow has deteriorated to -$14.2 million, signifying cash generation problems. The free cash flow is negative at -$77.5 million, suggesting challenges in funding operations and investments. The cash flow to net income ratios are unfavorable, highlighting inefficiencies in cash utilization. Overall, the cash flow statement points to liquidity challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.51B	3.68B	4.97B	4.83B	3.04B
	Gross Profit
265.60M	142.30M	272.30M	698.90M	315.60M
	EBIT
-46.00M	-455.40M	-126.50M	291.20M	-5.90M
	EBITDA
159.70M	-223.30M	-118.60M	593.90M	239.20M
	Net Income Common Stockholders
-348.50M	-701.30M	-428.00M	279.60M	7.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
209.80M	259.10M	211.70M	573.00M	588.70M
	Total Assets
2.64B	3.03B	3.76B	4.71B	2.85B
	Total Debt
277.10M	2.37B	2.39B	2.37B	1.22B
	Net Debt
67.30M	2.11B	2.18B	1.80B	635.70M
	Total Liabilities
3.26B	3.30B	3.34B	3.70B	2.25B
	Stockholders Equity
-619.90M	-268.00M	420.30M	1.01B	590.30M
Cash Flow		Free Cash Flow
-77.50M	79.00M	-104.70M	335.00M	173.10M
	Operating Cash Flow
-14.20M	148.70M	43.50M	452.70M	255.40M
	Investing Cash Flow
-55.10M	-31.70M	-164.00M	-1.54B	-24.20M
	Financing Cash Flow
26.40M	-66.00M	-233.70M	1.08B	-104.30M

Trinseo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE, the sentiment is Negative. The current price of 3.32 is below the 20-day moving average (MA) of 3.79, below the 50-day MA of 4.37, and below the 200-day MA of 4.17, indicating a bearish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 39.03 is Neutral, neither overbought nor oversold. The STOCH value of 20.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE.

Trinseo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMN	76 Outperform	$9.41B	10.61	16.11%	4.03%	1.91%	2.94%
DOW	61 Neutral	$21.02B	19.07	6.14%	9.38%	-3.72%	91.57%
LYB	54 Neutral	$19.35B	14.41	10.69%	8.96%	-1.46%	-36.00%
CC	53 Neutral	$1.78B	20.74	12.98%	8.42%	-4.05%	―
HUN	50 Neutral	$2.48B	―	-5.22%	7.01%	-1.23%	-277.52%
Sector *	47 Neutral	$2.44B	-2.84	-22.09%	3.51%	4.02%	-28.91%
TSE	46 Neutral	$118.51M	―	103.25%	1.20%	-4.41%	50.55%

Trinseo Corporate Events

Trinseo Announces Retirement of Two Board Members

On April 3, 2025, Pierre-Marie De Leener and Mark Tomkins, members of the Board of Directors of Trinseo PLC, announced their retirement and decision not to stand for reelection at the company’s 2025 annual general meeting. Their departure is not due to any disagreements with the company, and following their retirement, the board will reduce its size to nine members. Both directors have been acknowledged for their years of service, with Mr. De Leener serving since the company’s IPO in 2014 and Mr. Tomkins since 2019.

Trinseo Redeems Senior Notes to Enhance Stability

On March 20, 2025, Trinseo Holding S.à r.l. and Trinseo Materials Finance, Inc., subsidiaries of Trinseo PLC, redeemed all outstanding 5.125% senior notes due 2029, effectively discharging the related Indenture. This financial move, involving a total of $553,000, underscores Trinseo’s strategic financial management and may impact its financial stability and stakeholder confidence.

Trinseo Announces Results of Financial Restructuring Efforts

On January 15, 2025, Trinseo announced the expiration and final results of its private exchange offer for 5.125% senior notes due 2029, with an impressive 99.88% of the notes tendered. This move is part of a broader financial strategy that includes redemption of 5.375% senior notes due 2025, with the settlement expected on January 17, 2025, signaling a restructuring of financial obligations to enhance flexibility and financial health.