TRINSEO PLC reports lower than expected earnings for third quarter

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Trinseo Plc Intrinsic Value – TRINSEO PLC ($NYSE:TSE), a global materials company, announced on Wednesday that their third quarter earnings fell below analysts’ expectations. Revenue for the quarter was also below expectations.

The company attributed the lower than expected results to weak demand in key markets and continued headwinds from unfavourable raw material prices. Shares of TRINSEO PLC fell following the announcement.

Earnings

TRINSEO PLC reported lower than expected earnings for the third quarter of its fiscal year 2022. The company earned a total of 5288.8 million US dollars in revenue, and 58.2 million US dollars in net income. Compared to the previous year, this represents a 9.6% increase in total revenue, and an 86.8% decrease in net income. TRINSEO PLC’s total revenue has grown from 2744.6 million US dollars to 5288.8 million US dollars over the last three years.

However, the company’s net income has fallen significantly during this time period.

Market Price

So far, media exposure has been mostly negative. However, the stock opened at $21.8 and closed at $23.8, rising by 8.6% from the previous closing price of $21.9.

VI Analysis – Trinseo Plc Intrinsic Value

TRINSEO PLC is a chemicals company with a long history and strong fundamentals. Its intrinsic value, as calculated by the VI Line app, is around $59.6 per share. However, the stock is currently trading at just $23.8, meaning it is undervalued by 60%. This presents a great opportunity for investors looking to buy a quality company at a discount.

VI 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 is a global materials company specializing in the production of plastics, latex binders, and synthetic rubber. The company’s products are used in a variety of applications, including automotive, construction, and consumer goods. Despite this, the company’s stock price has moved up in recent days, giving investors hope that the company may be turning a corner.