Tronox Holdings Intrinsic Stock Value – TRONOX HOLDINGS Reports Fourth Quarter 2022 Earnings Results on February 16 2023
March 21, 2023
Earnings Overview
On February 16, 2023, TRONOX HOLDINGS ($NYSE:TROX) reported its financial results for the fourth quarter of 2022, with total revenue of -$15.0 million, a decrease of 118.1% from the prior year. The company’s net income also decreased by 26.6%, to $649.0 million.
Transcripts Simplified
Tronox Holdings achieved an adjusted EBITDA of $875 million and an adjusted EBITDA margin in the mid-20s in 2022, despite a 34% decline in TiO2 volume and a 44% decline in zircon volume in the fourth quarter, due to prudent management of production and cost structure. The company invested $428 million in ongoing key capital projects, including Project newTRON and mining expansion projects, and generated $170 million of free cash flow in the year. Tronox also returned approximately $137 million to shareholders and was negatively impacted on the cost side by the fire at KZN In Sight and historic flooding in Australia.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Tronox Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 3.45k | 497 | 16.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Tronox Holdings. More…
| Operations | Investing | Financing |
| 598 | -415 | -250 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Tronox Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.31k | 3.9k | 14.7 |
Key Ratios Snapshot
Some of the financial key ratios for Tronox Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.3% | 66.8% | 12.3% |
| FCF Margin | ROE | ROA |
| 4.9% | 11.5% | 4.2% |
Price History
TRONOX HOLDINGS announced its fourth quarter 2022 earnings results on Thursday, February 16, 2023. The company’s stock opened at $14.4 and closed at $15.7 on the day that the results were released. This was a decrease of 3.3% from the previous closing price of $16.2. The company’s CEO, Tom Casey, issued a statement expressing satisfaction with the company’s financial performance in the fourth quarter, and noting that TRONOX HOLDINGS is well-positioned to take advantage of macroeconomic trends and capitalize on new opportunities. Live Quote…
Analysis – Tronox Holdings Intrinsic Stock Value
At GoodWhale, we recently conducted an analysis of TRONOX HOLDINGS‘s wellbeing in order to assess the intrinsic value of its stock. Utilizing our proprietary Valuation Line, we determined that the intrinsic value of TRONOX HOLDINGS share is around $16.4. Currently, TRONOX HOLDINGS stock is traded at $15.7, indicating a fair price that is slightly undervalued by 4.1%. As a result, those looking to invest in TRONOX HOLDINGS might find now to be a great time to do so. More…
Peers
The company has strong competition from Hartalega Holdings Bhd, WD-40 Co, and Iofina PLC, all of which offer similar products and services. Despite the strong competition, Tronox Holdings PLC has managed to remain a leader in its industry thanks to its commitment to innovation and customer service.
– Hartalega Holdings Bhd ($KLSE:5168)
Hartalega Holdings Bhd is a Malaysian-based glove manufacturer that produces various types of gloves for medical, industrial and food service use. As of 2023, the company has a market capitalization of 5.33 billion and a Return on Equity (ROE) of 9.26%, indicating that the company is generating a good return on its investments. The company has been able to achieve such high returns due to its efficient operations, management and sales strategies. Its ability to remain competitive in the market has made it one of the leading glove manufacturers in Malaysia.
– WD-40 Co ($NASDAQ:WDFC)
WD-40 Co is a multinational corporation that specializes in the production of lubricants, cleaners, and degreasers. It has a current market cap of 2.37 billion, making it one of the largest publicly traded companies in its industry. WD-40 Co’s return on equity over the last year has been 26.96%, indicating that the company is efficiently utilizing its assets to generate a return on investment. This high return on equity and sizable market cap are indicative of WD-40 Co’s strong and profitable operations.
– Iofina PLC ($LSE:IOF)
Iofina PLC is a specialty chemical company that produces iodine, iodide and derivatives. The company has a market capitalization of 47.01M as of 2023 and a return on equity of 9.17%. This market capitalization indicates that the company has a large presence in the market, and a return on equity of 9.17% shows that it is making a good return on its investments. The company is well-positioned to continue to grow and expand its business.
Summary
TRONOX HOLDINGS reported fourth quarter 2022 earnings results on February 16 2023, with total revenue of USD -15.0 million, representing a decrease of 118.1% year-over-year. Net income decreased by 26.6%, amounting to USD 649.0 million. As a result, the company’s stock price dropped the same day.
Investors should consider the current financial situation of TRONOX HOLDINGS when making their decision to invest in the company, as the past financial performance does not guarantee future success. Investors should also research the company’s long-term strategy and performance in order to make an informed decision.
