Trinseo Plc Intrinsic Value – TRINSEO PLC Reports Fourth Quarter 2022 Earnings Results on February 8, 2023.
February 23, 2023
Earnings Overview
On February 8, 2023, TRINSEO PLC ($NYSE:TSE) reported its financial results for the fourth quarter of the fiscal year ending December 31, 2022. Total revenue for the quarter was USD -365.3 million, a decrease of 395.1% year-on-year. Meanwhile, net income for the quarter amounted to USD 975.2 million, down 24.9% from the same quarter in the previous year.
Transcripts Simplified
Trinseo PLC has taken steps to reduce costs and expose itself less to cyclical commodity markets, expecting to realize $60 million of annual profitability improvement by 2023. They have restructured the organization with 3 new key positions, acquired two businesses to expand offerings, completed ERP implementation, and grown their products containing recycled materials. They also set several sustainability goals, including reducing carbon emissions and achieving gender balance in the workforce, while achieving a 74% Triple Zero award rate.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Trinseo Plc. More…
| Total Revenues | Net Income | Net Margin |
| 4.97k | -430.9 | -2.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Trinseo Plc. More…
| Operations | Investing | Financing |
| 43.5 | -164 | -233.7 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Trinseo Plc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.76k | 3.34k | 19.89 |
Key Ratios Snapshot
Some of the financial key ratios for Trinseo Plc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.6% | 11.6% | -7.2% |
| FCF Margin | ROE | ROA |
| -2.1% | -31.9% | -5.9% |
Market Price
When the markets opened that day, TRINSEO PLC stock was priced at $29.3, but it closed at $29.2, meaning a slight drop of 1.3% from its previous closing price of 29.6. As a result, the stock’s reaction was weak and it closed lower than its opening price. The poor performance was mainly due to the increase in costs during the quarter and the decrease in operating income. The company also experienced a decrease in demand for its products and services. This led to a decrease in turnover and a drop in their profit margins.
However, despite these financial headwinds, TRINSEO PLC remains committed to its long-term vision and continues to invest in research and development. At the same time, the company is continuing to improve its operational efficiency by investing in new technology and equipment. As such, TRINSEO PLC expects to turn around its performance in the coming quarters and return to growth. Live Quote…
Analysis – Trinseo Plc Intrinsic Value
GoodWhale has assessed the value of TRINSEO PLC after analyzing its fundamentals. Our proprietary Valuation Line calculates the intrinsic value of TRINSEO PLC’s share at $55.3. However, the current market price for the stock is only $29.2. This implies that the stock is currently undervalued by 47.2%. This could mean that there is a potential opportunity for investors to buy the stock at a discounted price and benefit from any future increase in its value if the company performs well. More…
Peers
In the global market for specialty chemicals, Trinseo PLC competes with several large multinational companies, including Evonik Industries AG, PPG Industries Inc, and Shandong Dongyue Organosilicon Materials Co Ltd. The company has a strong presence in Europe and North America, and is expanding its operations in Asia.
– Evonik Industries AG ($OTCPK:EVKIF)
Evonik Industries AG is a German chemical company with a market cap of 9.4 billion as of 2022. The company’s return on equity is 8.43%. Evonik Industries AG produces a wide range of chemicals and materials, including polymers, performance materials, and health and nutrition products. The company has over 33,000 employees and operates in more than 100 countries.
– PPG Industries Inc ($NYSE:PPG)
PPG Industries, Inc., is an American Fortune 500 company and global supplier of paints, coatings, and specialty materials. It was founded in 1883 by John Pitcairn as the Pittsburgh Plate Glass Company. The company produces coatings for automotive, aerospace, construction, and industrial applications. PPG’s headquarters are located in Pittsburgh, Pennsylvania.
– Shandong Dongyue Organosilicon Materials Co Ltd ($SZSE:300821)
Shandong Dongyue Organosilicon Materials Co., Ltd. engages in the research and development, production, and sale of organosilicon products. It operates through the following segments: Organosilicon, Electronic Grade, and Organic Silicon. The Organosilicon segment produces and sells dimethyl disilane, hexamethyldisilane, trimethylsilane, tetramethylsilane, and methylchlorosilane. The Electronic Grade segment produces and sells electronic grade silicon materials. The Organic Silicon segment produces and sells cyclic polydimethylsiloxane, functional fluids, and intermediates. The company was founded on December 28, 2001 and is headquartered in Zibo, China.
Summary
TRINSEO PLC reported a decrease in revenue and net income for their fourth quarter of fiscal year 2022, ending December 31, 2022, compared to the same period the previous year. The decrease in revenue was 395.1%, and net income decreased by 24.9%. Investors should take this information into consideration, as changes in revenue and net income can have a great impact on stock prices and investment returns. While there could be numerous factors affecting the company’s results, investors should be aware of comments from company executives and any new developments that could potentially influence their decision to buy, hold, or sell stocks of TRINSEO PLC.
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