GICS Sector : Basic Materials
Tronox Holdings plc operates as a vertically integrated manufacturer of TiO2 pigment in North America, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific.The company operates titanium-bearing mineral sand mines; and engages in beneficiation and smelting operations.It offers TiO2 pigment; ultrafine specialty TiO2; zircon; feedstock; pig iron; titanium tetrachloride; and other products.
Tronox's financial performance is expected to be impacted by near-term headwinds, including reduced asset utilization and FX volatility, with Q1 EBITDA guidance reflecting a range of temporary challenges. The company's actual EPS came out at '-0.6', relative to estimates at '-0.43', indicating a challenging quarter. Analysts estimate next year's revenue growth at 5.6%, which may be a positive catalyst for the stock. With a current P/S Ratio of 0.51, the market is pricing in relatively low revenue growth expectations.
Publication Date: Feb -20
Despite near-term challenges, Tronox remains confident in its ability to generate positive free cash flow for the full year 2026, driven by cost improvement initiatives and a focus on preserving liquidity. The company's guidance assumes positive EBITDA of $350-400 million, including $55-65 million in Q1 EBITDA. According to John Romano, "We're cautiously optimistic about the market fundamentals, with TiO2 prices improving and our actions on inventory, cost, and portfolio rationalization designed to counterbalance near-term headwinds and support cash generation."
Tronox expects TiO2 volumes to be relatively flat sequentially in Q1, with growth in all regions except Asia, and TiO2 pricing to be up approximately 2-4% sequentially. The company also expects zircon volumes to mirror the solid performance in the fourth quarter, with zircon pricing stabilizing in Q1 and a potential price increase in Q2. The industry is facing a supply-demand imbalance, which is expected to drive a market recovery.
With a current EV/EBITDA ratio of 14.53, the market is pricing in a relatively high multiple for Tronox's EBITDA. However, the company's focus on generating positive free cash flow and reducing debt may be a positive catalyst for the stock. Tronox is targeting $100 million working capital improvement and expects to claw back some of the working capital usage in the second half of the year. The company's Free Cash Flow Yield is currently at -33.49%, indicating a challenging cash flow environment.
Tronox is targeting $125 million to $175 million in sustainable cost improvement, which is higher than the initial target of $25 million to $35 million. The company is making good progress on this initiative and is confident that it will achieve its target. The cost improvement program is expected to drive earnings growth and support cash generation.
Tronox Holdings PLC (NYSE:TROX) Receives Average Recommendation of “Hold” from Analysts
Feb -27
Tronox Holdings PLC $TROX Shares Purchased by Counterpoint Mutual Funds LLC
Feb -24
Tronox Holdings plc (TROX) Q4 2025 Earnings Call Transcript
Feb -19
Tronox (TROX) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates
Feb -19
Tronox (TROX) Reports Q4 Loss, Misses Revenue Estimates
Feb -18
Tronox Reports Fourth Quarter and Full Year 2025 Financial Results
Feb -18
Tronox Declares First Quarter 2026 Dividend
Feb -11
Tronox Holdings PLC (NYSE:TROX) Given Average Rating of “Hold” by Analysts
Feb -02
Tronox Holdings plc's Titanium Dioxide segment growth is driven by increasing demand from the coatings and plastics industries, supported by infrastructure development and urbanization in emerging markets. Additionally, the company's cost leadership, vertical integration, and strategic acquisitions contribute to its growth, with an expected 8% growth rate.
Tronox Holdings plc's 'Other' segment growth is driven by increasing demand for titanium dioxide in emerging markets, expansion into new geographies, and strategic acquisitions. Additionally, the company's focus on operational efficiency, cost savings, and product innovation also contribute to its growth.
Tronox Holdings plc's Zircon segment growth is driven by increasing demand from ceramics and foundry markets, coupled with supply constraints and rising prices. Additionally, the company's vertical integration, cost savings initiatives, and strategic acquisitions contribute to its growth momentum, resulting in a 6% growth rate.
A pigment used in coatings, plastics, and paper to provide opacity and brightness.
A mineral used in ceramics, foundry, and refractory applications.
A raw material used in the production of titanium dioxide.
A mixture of minerals used in various industrial applications.
Tronox Holdings plc operates in the mining and manufacturing of titanium dioxide pigment, which has few substitutes. However, the company faces competition from other titanium dioxide producers, which could lead to a moderate threat of substitutes.
Tronox Holdings plc has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are essential to its customers' production processes, making it difficult for customers to switch suppliers.
Tronox Holdings plc relies on a few key suppliers for raw materials, which gives these suppliers some bargaining power. However, the company's large scale of operations and diversified supply chain mitigate this risk.
The titanium dioxide industry has high barriers to entry, including significant capital requirements and environmental regulations. This makes it difficult for new entrants to join the market, reducing the threat of new entrants.
The titanium dioxide industry is highly competitive, with several large players competing for market share. This intense rivalry leads to pricing pressure and high marketing expenses for Tronox Holdings plc.
| Value | |
|---|---|
| Debt Weight | 59.53% |
| Debt Cost | 3.95% |
| Equity Weight | 40.47% |
| Equity Cost | 13.43% |
| WACC | 7.78% |
| Leverage | 147.11% |
Value: 6.8
Growth: 5.8
Quality: 7.1
Yield: 5.0
Momentum: 3.5
Volatility: 7.3
1-Year Total Return ->
Value: 6.2
Growth: 6.4
Quality: 5.8
Yield: 3.0
Momentum: 2.5
Volatility: 7.7
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Value: 5.0
Growth: 4.1
Quality: 4.8
Yield: 3.0
Momentum: 1.0
Volatility: 9.0
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Value: 7.5
Growth: 1.4
Quality: 2.3
Yield: 9.0
Momentum: 0.0
Volatility: 4.3
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Value: 9.0
Growth: 3.0
Quality: 1.4
Yield: 8.0
Momentum: 0.0
Volatility: 1.3
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Value: 9.4
Growth: 3.1
Quality: 3.2
Yield: 2.0
Momentum: 1.0
Volatility: 3.0
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