Tronox stock hits 52-week low at $10.68 amid market challenges

Published 13/12/2024, 07:58 am
TROX
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In a challenging market environment, shares of Tronox Limited (NYSE:TROX), a global mining and inorganic chemicals company, have touched a 52-week low, dipping to $10.68. With a beta of 1.58 indicating higher volatility than the broader market, the stock currently offers a notable 4.55% dividend yield. According to InvestingPro analysis, the company has maintained dividend payments for 13 consecutive years. This latest price level reflects a significant downturn from the stock's performance over the past year, with Tronox experiencing a particularly steep six-month decline of 42.8%. Investors are closely monitoring the stock as it navigates through the pressures of industry-specific headwinds and broader economic factors that have contributed to its recent decline. InvestingPro analysis, which includes 8 additional key insights and a comprehensive Fair Value assessment, suggests the stock is currently trading slightly above its Fair Value. The 52-week low serves as a critical indicator for both the company and investors, as they assess the potential for recovery or further adjustments in strategy in response to the market's valuation of the company's prospects.

In other recent news, TRONOX reported its third-quarter 2024 adjusted EBITDA at $143 million, falling short of both the Bloomberg consensus and its own guidance midpoint of approximately $155 million. This underperformance was due to weaker-than-expected Titanium Dioxide volumes, which decreased by 7% compared to the forecasted 2-4% sequential downturn, and Zircon volumes, which declined by 12%. Despite this, TRONOX's pricing remained stable, with a sequential increase of 1%.

For the fourth quarter, the company has set a lower EBITDA guidance midpoint at $124 million, with Titanium Dioxide volumes projected to fall by 10-15% sequentially. However, Zircon sales are expected to remain unchanged. In terms of future expectations, the company's outlook for 2025 assumes a macroeconomic recovery and benefits from Chinese anti-dumping duties, as stated by Goldman Sachs (NYSE:GS).

In terms of financial performance, TRONOX saw an increase in revenue to $804 million, marking a 21% rise from the previous year, despite a decline in demand. However, a net loss of $25 million was reported, along with an adjusted diluted loss per share of $0.13. The company maintains a robust balance sheet with $668 million in available liquidity and a net debt of $2.7 billion. These are the recent developments at TRONOX Holdings Plc.

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