Trinseo (TSE) AI Stock Analysis

• Market Cap: $22.74M
• Dividend Yield: 6.34%
• Average Volume (3M): 562.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.19
• Revenue Growth: -11.20%
• EPS Growth: 17.76%
• Country: US
• Employees: 2,950
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -2.41
• Shares Outstanding: 35,993,587
• 10 Day Avg. Volume: 776,182
• 30 Day Avg. Volume: 562,944
• PEG Ratio: 0.01
• Price to Book (P/B): -0.29
• Price to Sales (P/S): 0.05
• P/FCF Ratio: -2.32
• Enterprise Value/Market Cap: 112.37
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 13.19
• Enterprise Value/Ebitda: 24.72
• 1Y Price Target: $1.00
• Price Target Upside: 1.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): -8.68
• Revenue Forecast (FY): $3.44B

• Rating: 44 Neutral
• Price Target: $0.68 ▼(-31.31% Downside)

Trinseo's overall stock score reflects significant financial and operational challenges. The most impactful factors are the weak financial performance and bearish technical indicators. Valuation concerns are heightened by a negative P/E ratio and suspended dividends. While the earnings call and corporate events suggest potential improvements, they are overshadowed by current financial difficulties.

Positive Factors

Free Cash Flow Improvement

Improved free cash flow indicates better cash generation ability, enhancing financial flexibility and supporting long-term investments.

Growth in High-Margin Products

Increased sales of high-margin products can drive profitability and strengthen market position in competitive sectors.

Restructuring for Profitability

Strategic restructuring efforts aim to streamline operations and enhance profitability, positioning the company for long-term success.

Negative Factors

Declining Revenue

A declining revenue trend reflects market challenges and may hinder growth prospects if not addressed effectively.

High Debt Levels

High debt levels can limit financial flexibility and increase risk, impacting the company's ability to invest in growth opportunities.

Negative Profit Margins

Negative profit margins highlight operational inefficiencies and may affect the company's ability to sustain long-term profitability.

Trinseo Business Overview & Revenue Model

Company Description

Trinseo (TSE) is a global materials company and manufacturer of plastics, latex binders, and synthetic rubber. The company operates primarily in the plastics and rubber sectors, providing innovative solutions that cater to various industries including automotive, electronics, consumer goods, and construction. Trinseo's core products include styrenics, polycarbonate, and specialty polymers, which are designed to enhance performance and sustainability in applications ranging from packaging to automotive components.

How the Company Makes Money

Trinseo generates revenue through the sale of its diverse product portfolio, primarily focusing on specialty plastics and rubber solutions. The company's revenue model is driven by both volume sales and strategic pricing of its materials. Key revenue streams include the production and sale of styrene-based products, polycarbonate resins, and engineered materials, which are essential in sectors such as automotive and consumer goods. Additionally, Trinseo has established significant partnerships with major manufacturers and distributors, enhancing its market reach and operational efficiencies. The company also benefits from ongoing investments in research and development to innovate and expand its product offerings, contributing to its competitive edge and profitability.

Trinseo Financial Statement Overview

Summary

Trinseo faces significant financial challenges, particularly in terms of profitability and balance sheet stability. The income statement reflects declining revenues and negative margins, while the balance sheet shows a concerning level of debt relative to equity. However, the cash flow statement provides some optimism, with improved free cash flow generation.

Income Statement

Trinseo's income statement reveals significant challenges, with a declining revenue trend and negative profit margins. The TTM data shows a gross profit margin of 6.18% and a net profit margin of -13.15%, indicating profitability issues. Revenue has decreased by 3.82% compared to the previous period, reflecting a challenging market environment. The negative EBIT and EBITDA margins further highlight operational inefficiencies.

Balance Sheet

The balance sheet shows a concerning financial structure, with a negative stockholders' equity and a high debt-to-equity ratio of -0.29 in the TTM period. This indicates potential solvency issues. The return on equity is positive at 56.63%, but this is due to the negative equity, which is not a sustainable situation. The equity ratio is also negative, reflecting a weak financial position.

Cash Flow

Trinseo's cash flow statement shows some positive aspects, with a significant improvement in free cash flow growth at 226.32% in the TTM period. The operating cash flow to net income ratio is 0.13, indicating some ability to generate cash from operations despite net losses. The free cash flow to net income ratio of 1.53 suggests that the company is generating cash flow that exceeds its net losses, which is a positive sign.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.13B	3.51B	3.68B	4.97B	4.83B	2.74B
Gross Profit	193.80M	265.60M	142.30M	272.30M	698.90M	321.10M
EBITDA	103.40M	159.70M	-223.30M	-119.80M	597.40M	241.60M
Net Income	-412.10M	-348.50M	-701.30M	-430.90M	440.00M	7.90M
Balance Sheet
Total Assets	2.49B	2.64B	3.03B	3.76B	4.71B	2.85B
Cash, Cash Equivalents and Short-Term Investments	112.10M	209.80M	259.10M	211.70M	573.00M	588.70M
Total Debt	2.58B	2.48B	2.37B	2.39B	2.41B	1.25B
Total Liabilities	3.35B	3.26B	3.30B	3.34B	3.70B	2.25B
Stockholders Equity	-861.60M	-619.90M	-268.00M	420.30M	1.01B	590.30M
Cash Flow
Free Cash Flow	-96.10M	-86.10M	55.60M	-104.70M	335.00M	188.80M
Operating Cash Flow	-39.90M	-22.80M	125.30M	43.50M	452.70M	255.40M
Investing Cash Flow	-56.20M	-55.10M	-31.70M	-164.00M	-1.54B	-24.20M
Financing Cash Flow	41.70M	35.00M	-42.60M	-233.70M	1.08B	-104.30M

Trinseo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

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 0.99 is above the 20-day moving average (MA) of 0.79, below the 50-day MA of 1.31, and below the 200-day MA of 2.67, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 28.71 is Positive, neither overbought nor oversold. The STOCH value of 11.13 is Positive, 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
PRM	70 Neutral	$3.57B	57.32	7.39%	―	19.12%	―
SXT	63 Neutral	$4.07B	29.29	12.31%	1.75%	4.25%	56.51%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HWKN	58 Neutral	$2.68B	32.20	17.49%	0.52%	11.86%	1.99%
CC	49 Neutral	$1.92B	―	-69.74%	3.96%	2.12%	-579.74%
KRO	47 Neutral	$536.15M	―	-5.00%	3.91%	<0.01%	-143.88%
TSE	44 Neutral	$22.74M	―	―	6.34%	-11.20%	17.76%

Trinseo Corporate Events

Trinseo Announces Restructuring Plan for Polystyrene Operations

On December 5, 2025, Trinseo PLC announced a restructuring plan to close its polystyrene production operations in Schkopau, Germany, and consolidate activities in Tessenderlo, Belgium. This move is expected to result in pre-tax restructuring charges of $30 million to $40 million and aims to improve annual profitability by approximately $10 million starting in 2026, with completion anticipated by the end of 2028.

Trinseo Announces Restructuring Plan in Italy

On October 2, 2025, Trinseo announced a restructuring plan to close its MMA and ACH production operations in Italy, aiming to streamline its production network and improve profitability by sourcing MMA feedstock from third-party producers. The plan is expected to result in annualized profitability improvement of $20 million by 2026, with pre-tax restructuring charges estimated between $80 million and $100 million. Additionally, Trinseo is considering closing its polystyrene production facility in Germany, potentially improving profitability by $10 million annually. The company also suspended its quarterly dividend to save $1.5 million annually, reflecting ongoing challenges in the European chemical industry.

Trinseo Suspends Quarterly Dividend to Save Costs

Trinseo‘s Board of Directors has decided to indefinitely suspend the company’s quarterly dividend of $0.01 per share. This action is expected to save the company approximately $1.5 million annually, impacting its financial strategy and potentially affecting shareholder returns.