At the current price of $15, what are market expectations regarding Tronox Holdings plc’s future operating performance? To achieve average annual stock market performance of 9.0% over the next 6 years, Tronox Holdings plc shares will need to reach $25. To achieve Upper quartile performance, Tronox Holdings plc’s stock price will need to reach $30 by 2029.
Executive Summary
- Price Target Research identifies Tronox Holdings plc as having: above average expected growth, below average financial strength, very low profitability, and low stability.
- Low valuation, average shareholder returns. Current valuation levels are below average relative to the Tronox Holdings plc Peer Group. Recent market returns have tracked the Tronox Holdings plc Peer Group. Total shareholder returns expected to equal the overall equity market. Based on current investor expectations, Tronox Holdings plc shares should reach a level of $21 by 2029 — an 8.4% per year total shareholder return. A 2029 stock price of $25 would reflect median performance and a price of $30 would be required to reach upper quartile performance.
- Tronox Holdings plc’s past growth is modestly above average. Historical growth has been high relative to the Tronox Holdings plc Peer Group and forecasted growth is relatively high. EPS Growth, and Revenue Growth have lagged. These factors have negatively affected market perceptions of Tronox Holdings plc. Tronox Holdings plc’s historical income statement growth and balance sheet growth have diverged. Revenue growth has paralleled asset growth; earnings growth has fallen short of equity growth driving erosion in return on equity. Tronox Holdings plc’s consensus growth expectations are in line with past growth.
- Asset Turnover, and Return on Equity are group lagging. These factors have negatively affected market perceptions of Tronox Holdings plc. The company has normal cash needs.
- Tronox Holdings plc’s risk profile is neutral. Overall variability has been only average with only average revenue variability, very high E.P.S. variability, Financial Strength is only average and earnings’ expectations are very low. The debt/capital ratio has been relatively steady.
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