TROX : NYSE : Basic Materials
$9.13 -0.48 | -4.99%
Today's Range: 8.86 - 9.58
Avg. Daily Volume: 1,136,500
08/31/16 - 4:02 PM ET

Financial Analysis


TRONOX LTD's gross profit margin for the second quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. Even though sales decreased, the net income has increased. TRONOX LTD has average liquidity. Currently, the Quick Ratio is 1.11 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 35.78% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)537.0617.0
EBITDA ($mil)69.065.0
EBIT ($mil)7.0-12.0
Net Income ($mil)-50.0-119.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)191.0210.0
Total Assets ($mil)4893.05592.0
Total Debt ($mil)3055.03134.0
Equity ($mil)874.01361.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin20.6715.24
EBITDA Margin12.8410.53
Operating Margin1.3-1.94
Sales Turnover0.430.33
Return on Assets-5.94-9.6
Return on Equity-33.29-39.45
Debt Q2 FY16 Q2 FY15
Current Ratio2.252.74
Debt/Capital0.780.7
Interest Expense47.054.0
Interest Coverage0.15-0.22


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)116.19115.64
Div / share0.050.25
EPS-0.42-1.03
Book value / share7.5211.77
Institutional Own % n/a n/a
Avg Daily Volume1148435.01226355.0

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 1.17 indicates a significant discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 5.83. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, TRONOX LTD proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
TROX NM Peers 25.17   TROX 3.73 Peers 15.92

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

TROX's P/E is negative making this valuation measure meaningless.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

TROX is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
TROX NM Peers 21.01   TROX NA Peers 1.78

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

TROX's ratio is negative making this valuation measure meaningless.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
TROX 1.17 Peers 5.83   TROX 46.47 Peers 89.08

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

TROX is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, TROX is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
TROX 0.48 Peers 2.34   TROX 15.89 Peers -7.38

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

TROX is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

TROX has a sales growth rate that significantly exceeds its peers.

 

 

Latest Stock Upgrades/Downgrades