Tronox Holdings plc Ordinary Shares (UK) (TROX) : juste valeur

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Tronox makes titanium dioxide pigment, the white opacifier used in paints, coatings, plastics and paper, and it also produces zircon and other mineral sands from its own mines. The structural case rests on that vertical integration: owning the ilmenite and zircon feedstock insulates it somewhat from the raw-material squeeze that hits pigment producers without mines. The near-term driver is cyclical recovery in TiO2 pricing and volumes, which the 18.7% revenue growth suggests is underway, though the business is still unprofitable at the operating line with a 5.6% gross margin and a -2.0% operating margin. The stock trades at a forward P/E of 21.8 against a trailing figure that is zero because earnings are negative, so the multiple depends entirely on margins turning positive. With a market cap of about $554M, a 42/100 score, no index membership and a -41.3% ROE, this is a small, distressed-looking cyclical that merits a deeper look only if you have a view on TiO2 pricing and the balance sheet.