Trinseo Plc Intrinsic Value – Trinseo PLC Still Struggling Despite Recent Efforts
January 5, 2024
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Trinseo ($NYSE:TSE) PLC, formerly known as Styron, is a global materials company focused on the production of plastics, latex binders, and synthetic rubber. Despite its efforts to grow its business in 2020, Trinseo PLC has not been able to produce any success. This has led to declining sales for Trinseo PLC. The company also faced significant challenges in its production processes due to increased operational costs and supply chain disruptions. The overall uncertainty in the global economy has caused the company to reduce its 2020 guidance multiple times. Despite these challenges, Trinseo PLC has made numerous efforts to improve its operations and increase its financial performance. The company has implemented cost-saving initiatives such as consolidating production facilities and increasing the efficiency of its production processes.
In addition, Trinseo PLC has also invested in new technologies to improve its products and increase its competitive edge. Unfortunately, these efforts have not been enough to produce any success for Trinseo PLC in 2020. The company’s stock price has declined significantly over the year and it is now facing further challenges due to increasing competition from other materials suppliers. Therefore, it is clear that despite its recent efforts, Trinseo PLC is still struggling to achieve its desired results.
Stock Price
Trinseo PLC, a leading producer of plastics, latex binders and synthetic rubber, is still facing tough times despite its recent efforts. On Wednesday, the company’s stock opened at $8.2 and closed at $8.0, down by 5.0% from the last closing price of 8.4. This latest dip in stock prices further highlights the strain the company is under, with the market seemingly unconvinced that its efforts are enough to turn the situation around. The company has made various attempts to improve its performance, including the implementation of cost-cutting measures, embraced digitalization, and increased its focus on sustainability.
However, the results have been lacklustre thus far, as reflected in its continued failure to make any substantial progress in terms of revenue. It remains to be seen if Trinseo PLC will be able to make a successful turnaround, as it continues to face headwinds from volatile market conditions. Investors will no doubt be paying close attention to the company’s next move, and it is likely that only a clear strategy for growth and significant improvements in financial performance will be enough to win back the favour of the market. Live Quote…
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 |
| 3.81k | -801.6 | -6.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Trinseo Plc. More…
| Operations | Investing | Financing |
| 165.3 | -65.3 | -68.4 |
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 |
| 3.27k | 3.29k | 0.6 |
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 |
| 7.6% | 11.6% | -20.5% |
| FCF Margin | ROE | ROA |
| 1.6% | -2307.8% | -15.0% |
Analysis – Trinseo Plc Intrinsic Value
GoodWhale has conducted an analysis of the fundamentals of TRINSEO PLC. After careful consideration of the available data, our proprietary Valuation Line has determined that the fair value of the TRINSEO PLC share is $4.0. However, the stock is currently being traded on the market for $8.0, meaning it is overvalued by 100.8%. As such, GoodWhale would recommend proceeding with caution when considering investing in TRINSEO PLC at this time. More…
Peers
In the global market for specialty chemicals, Trinseo PLC competes with several large multinational companies, including Evonik Industries AG, PPG Industries Inc, and Shandong Dongyue Organosilicon Materials Co Ltd. The company has a strong presence in Europe and North America, and is expanding its operations in Asia.
– Evonik Industries AG ($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 is a multinational materials company based in Pennsylvania. As of August 2020, the company’s stock price has dropped despite several positive announcements from the company, such as a successful share repurchase program and multiple dividend increases. Investors should further analyze the company’s fundamentals, financials and industry trends before investing in Trinseo PLC. The company has a strong balance sheet with a good debt to equity ratio but an elevated price-to-earnings ratio.
Additionally, the company faces increasing competition from other players in the industry, which could impact its future growth. Investors should keep an eye on new developments within the industry, and look for possible long-term growth opportunities when considering Trinseo PLC as a potential investment.
