Tronox Holdings plc (TROX) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA above its 5-year median

Tronox's EV/EBITDA of 24.5 is above its 5-year median of 9.3.

P/B below the industry

Tronox's price-to-book of 0.40 is below the Chemicals and Allied Products median of 1.25.

Trading below fair value

The share price of $2.82 is below our fair value estimate of $12.93.

Margin of safety over 20%

The price is 78.2% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -5.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 12.0% over the last twelve months; the Chemicals and Allied Products median is 8.2%.

Guidance issued

The latest outlook (Q3 2026 Adjusted EBITDA, Aug 6, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 6.8% over the last twelve months, against 12.2% a year earlier.

Return on equity under 15%

Return on equity was -37.6% over the last twelve months and averaged -1.7% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -2.9%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Tronox's return on equity of -37.6% is below the Chemicals and Allied Products median of -0.8%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin below its 5-year average

Net margin was -15.9% over the last twelve months, against a 5-year average of -1.3%.

Net margin below the industry

Tronox's net margin of -15.9% is below the Chemicals and Allied Products median of -0.4%.

High debt

Debt is 285% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 196% five years ago to 285%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals 6.9% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense -0.7 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 2.52 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is 0.69; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Tronox paid dividends worth 5.3% of the share price over the last twelve months.

Yield above Treasuries

The 5.3% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Tronox yields 5.3%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 8 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.