Trinseo (TSE) AI Stock Analysis

• Market Cap: $89.16M
• Dividend Yield: 1.56%
• Average Volume (3M): 263.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.92
• Revenue Growth: -7.97%
• EPS Growth: 13.42%
• Country: US
• Employees: 2,950
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -2.12
• Shares Outstanding: 35,952,576
• 10 Day Avg. Volume: 300,349
• 30 Day Avg. Volume: 263,361
• 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: 28.39
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 10.68
• Enterprise Value/Ebitda: 18.38
• 1Y Price Target: $3.25
• Price Target Upside: 31.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 45 Neutral
• Price Target: $2.50 ▲(0.81% Upside)

Trinseo's overall stock score is primarily impacted by its weak financial performance, with negative profitability and cash flow issues. The technical analysis and valuation also reflect challenges, although the earnings call provides some hope for stabilization through cost-saving measures and strategic initiatives. However, significant risks remain due to demand decline and pricing pressures.

Trinseo Business Overview & Revenue Model

Company Description

Trinseo 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 Money

Trinseo generates revenue primarily through the sale of its materials and specialty products across multiple industries. The company operates through several segments, including Feedstocks, Base Plastics, and Specialty Plastics, each contributing to its overall revenue. Key revenue streams include the production and sale of styrenic polymers, synthetic rubber, and latex binders. Additionally, Trinseo benefits from strategic partnerships with major manufacturers and suppliers, which enhance its supply chain effectiveness and market reach. The company also focuses on sustainability initiatives, which not only align with market trends but can also open new revenue opportunities through eco-friendly product offerings and innovations.

Trinseo Financial Statement Overview

Summary

Trinseo is facing significant financial challenges, including declining revenues, negative profitability margins, and substantial leverage. The income statement, balance sheet, and cash flow all reflect financial distress, with negative net profit margins, negative equity, and negative free cash flow.

Income Statement

Trinseo's income statement reveals significant challenges. The TTM (Trailing-Twelve-Months) data shows a gross profit margin of 7.99% and a negative net profit margin of -10.37%. The company has experienced declining revenue, with a TTM revenue of $3.394 billion compared to $3.515 billion in the previous year, indicating a negative revenue growth rate. Negative EBIT and EBITDA margins further highlight operational difficulties.

Balance Sheet

The balance sheet indicates financial distress, with a negative stockholders' equity of -$679.2 million in the TTM period, resulting in a negative equity ratio. The debt-to-equity ratio is not calculable due to negative equity, suggesting high leverage and potential solvency issues. Return on equity is also negative due to the company's net losses.

Cash Flow

Trinseo's cash flow statement reflects a challenging situation. The TTM free cash flow is negative at -$4.447 million, although it has improved from the previous year's -$77.5 million. Operating cash flow is negative, indicating difficulties in generating cash from operations. The operating cash flow to net income ratio is negative, further emphasizing cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.26B	3.51B	3.68B	4.97B	4.83B	3.04B
Gross Profit	237.00M	265.60M	142.30M	272.30M	698.90M	315.60M
EBITDA	137.70M	177.50M	-223.30M	-118.60M	593.90M	239.20M
Net Income	-389.70M	-348.50M	-701.30M	-428.00M	279.60M	7.90M
Balance Sheet
Total Assets	2.63B	2.64B	3.03B	3.76B	4.71B	2.85B
Cash, Cash Equivalents and Short-Term Investments	137.00M	209.80M	259.10M	211.70M	573.00M	588.70M
Total Debt	2.56B	2.48B	2.37B	2.39B	2.41B	1.25B
Total Liabilities	3.38B	3.26B	3.30B	3.34B	3.70B	2.25B
Stockholders Equity	2.63B	-619.90M	-268.00M	420.30M	1.01B	590.30M
Cash Flow
Free Cash Flow	42.00M	-77.50M	79.00M	-104.70M	335.00M	173.10M
Operating Cash Flow	93.90M	-14.20M	148.70M	43.50M	452.70M	255.40M
Investing Cash Flow	-52.61M	-55.10M	-31.70M	-164.00M	-1.54B	-24.20M
Financing Cash Flow	90.79M	26.40M	-66.00M	-233.70M	1.08B	-104.30M

Trinseo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.48
• 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 TSE, the sentiment is Negative. The current price of 2.48 is above the 20-day moving average (MA) of 2.46, below the 50-day MA of 2.52, and below the 200-day MA of 3.61, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 48.79 is Neutral, neither overbought nor oversold. The STOCH value of 52.43 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
SSL	72 Outperform	4.03B	10.89	4.44%	―	-6.73%	―
PPG	63 Neutral	23.39B	18.43	13.34%	2.65%	-10.59%	-7.79%
IOSP	63 Neutral	1.93B	102.90	1.49%	2.10%	-5.45%	-87.13%
OLN	54 Neutral	2.75B	-197.85	-0.73%	3.34%	1.49%	-105.20%
CC	51 Neutral	2.34B	-5.60	-177.22%	4.31%	2.48%	-459.90%
TSE	45 Neutral	$89.16M	―	103.25%	1.56%	-7.97%	13.42%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Trinseo Corporate Events

Trinseo Shareholders Approve Key Proposals at AGM

On June 25, 2025, Trinseo PLC held its Annual General Meeting of Shareholders, where approximately 85.5% of the shares entitled to vote were represented. During the meeting, shareholders approved several key proposals, including the election of nine directors, the advisory approval of executive compensation, and the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025. Additionally, shareholders granted the Board authority to issue shares and opt out of statutory pre-emption rights, approved the price range for re-issuance of treasury shares, amended the Omnibus Incentive Plan, and approved the forfeiture of certain options by executive officers. These approvals are expected to impact Trinseo’s governance and financial strategies moving forward.