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Trinseo (TSE)
NYSE:TSE
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Trinseo
(NYSE:TSE)
44Neutral
Trinseo (TSE) vs. S&P 500 (SPY)
Market Cap
$142.24M
Dividend Yield1%
Average Volume (3M)326.27K
Price to Earnings (P/E)―
Beta (1Y)2.18
Revenue Growth-4.41%
EPS Growth50.55%
CountryUS
Employees2,950
SectorBasic Materials
Sector Strength61
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-9.86
Shares Outstanding35,648,026
10 Day Avg. Volume193,403
30 Day Avg. Volume326,271
Financial Highlights & Ratios
PEG RatioN/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 Ratio0.00
Enterprise Value/Market Cap17.21
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit9.22
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.00Price Target Upside75.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Trinseo Business Overview & Revenue Model
Company DescriptionTrinseo PLC, a materials solutions provider, manufactures and sells plastics and latex binders in the United States, Europe, the Asia-Pacific, and internationally. The company operates through six segments: Engineered Materials, Latex Binders, Base Plastics, Polystyrene, Feedstocks, and Americas Styrenics. The Engineered Materials segment offers rigid compounds, including polycarbonate compounds, acrylonitrile-butadiene-styrene compounds, and PC blends to consumer electronics and medical markets for equipment housing applications; thermoplastic elastomer soft plastic compounds, such as overmolds, sealings, tubing, and films for footwear shoe sole, personal care, consumer electronics, and automotive high-end applications; and PMMA products to building and construction, automotive, medical, and consumer goods applications. The Latex Binders segment provides styrene-butadiene, styrene-acrylate, vinylidene chloride, and butadiene-methacrylate latex products for the commercial and niche carpet markets, as well as performance latex products for the adhesive, building and construction, and technical textile paper markets. The Base Plastics segment offers various compounds and blends for automotive and other applications. This segment also engages in the acrylonitrile-butadiene-styrene, styrene-acrylonitrile, and polycarbonate businesses. The Polystyrene segment provides general purpose polystyrenes and high impact polystyrene for use in appliances, food packaging and food service disposables, consumer electronics, and building and construction materials. The Feedstocks segment offers styrene monomer, a basic building block of plastics. The Americas Styrenics segment provides styrene and polystyrene. The company was incorporated in 2015 and is based in Berwyn, Pennsylvania.
How the Company Makes MoneyTrinseo 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.40
Negative
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.30
Negative
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.35
Negative
| 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
Neutral
3.99
Price Trends
4.07
Negative
4.44
Negative
4.26
Negative
Market Momentum
0.01
Negative
56.58
Neutral
86.51
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE, the sentiment is Neutral. The current price of 3.99 is above the 20-day moving average (MA) of 3.50, below the 50-day MA of 4.07, and below the 200-day MA of 4.26, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 56.58 is Neutral, neither overbought nor oversold. The STOCH value of 86.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE.
Trinseo Risk Analysis
Trinseo disclosed 36 risk factors in its most recent earnings report. Trinseo 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
Trinseo Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $2.26B | 63.52 | 3.02% | 1.73% | -5.31% | -74.42% | |
62 Neutral | $24.71B | 18.48 | 19.13% | 2.47% | -7.67% | -0.73% | |
58 Neutral | $2.49B | 23.79 | 5.10% | 3.70% | -4.29% | -74.85% | |
56 Neutral | $1.85B | 21.62 | 12.98% | 8.08% | -4.05% | ― | |
49 Neutral | $1.95B | -1.49 | -20.76% | 3.74% | 1.00% | -28.87% | |
47 Neutral | $2.20B | ― | -28.05% | 2.00% | -4.31% | -1421.83% | |
44 Neutral | $142.24M | ― | 103.25% | 1.00% | -4.41% | 50.55% |
* Basic Materials Sector Average
Performance Comparison
TSE
Trinseo
3.99
1.20
43.01%
IOSP
Innospec
90.02
-30.17
-25.10%
OLN
Olin
21.65
-30.53
-58.51%
PPG
PPG Industries
108.77
-20.63
-15.94%
SSL
Sasol
3.45
-3.29
-48.81%
CC
Chemours Company
12.20
-12.62
-50.85%
Trinseo Earnings Call Summary
Earnings Call Date:Feb 12, 2025
(Q4-2024)
| % Change Since: -16.18%|
Next Earnings Date:May 07, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a challenging year with significant macroeconomic headwinds impacting key markets. However, Trinseo showcased strong internal improvements and strategic moves, such as safety achievements, reduction in energy intensity, and growth in recycled content products. Despite a slower start anticipated for 2025, the company remains focused on strategic partnerships and market recovery.Q4-2024 Updates
Positive Updates
Safety Achievements
Nineteen production and recycling facilities, all global R&D teams, and two site service teams received a triple zero award for zero recordable injuries, zero spills, and zero process safety events for the entire year.
Reduction in Energy Intensity and Maintenance CapEx
Compared to the first half of 2022, energy intensity decreased by approximately 45% and maintenance CapEx decreased by more than 35%.
Growth in Recycled Content Products
Sales of recycled content containing product offerings increased 47% versus the prior year and now represent 4% of the total company variable margin.
Positive Free Cash Flow
The fourth quarter saw the highest quarter of free cash flow generation in over two years with $64 million.
Strategic Agreement with Deepak Nitrite Limited
Agreement to supply a Polycarbonate license and production equipment to Deepak for $52 million, marking the start of a strategic partnership.
Negative Updates
Market Challenges
Geopolitical uncertainty, elevated inflation, and high interest rates adversely affected major markets like auto, building and construction, especially in Europe and China.
Negative Timing Impacts
Falling raw material prices led to significant negative timing impacts in the Polymer Solutions segment and at America's Styrenics, impacting fourth-quarter adjusted EBITDA.
Slower Start to 2025
Q1 of 2025 is expected to be slower than usual with continued weaknesses in automotive and building and construction end markets.
Challenges in Polycarbonate Operations
Exiting unprofitable polycarbonate production at Stad, Germany, due to unprofitability despite having valuable polycarbonate technology.
Company Guidance
During the Trinseo Fourth Quarter and Full Year 2024 Financial Results Conference Call, the company offered guidance for the upcoming quarter and year. They expect the first quarter of 2025 to improve sequentially from the fourth quarter of 2024, with an adjusted EBITDA projected between $60 million and $80 million, including a one-time $26 million contribution from a Polycarbonate technology license agreement with Deepak Nitrite Limited. Despite ongoing geopolitical uncertainties and demand weaknesses in key markets such as automotive and construction, Trinseo remains optimistic about its strategic initiatives and cost-cutting measures. Notably, the company highlighted a significant reduction in energy intensity by approximately 45% and a decrease in maintenance capital expenditure by over 35%. Additionally, they reported a 47% increase in sales of recycled content products, reflecting their commitment to sustainability. Overall, Trinseo is focused on executing transformation strategies to position itself favorably for an eventual market recovery.Trinseo Corporate Events
Executive/Board ChangesShareholder Meetings
Trinseo Announces Retirement of Two Board Members
Neutral
Apr 4, 2025
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.
Private Placements and FinancingBusiness Operations and Strategy
Trinseo Redeems Senior Notes to Enhance Stability
Positive
Mar 20, 2025
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.
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.