Latest news with #TronoxHoldings
Yahoo
5 days ago
- Business
- Yahoo
Aristotle Small Cap Equity Strategy Sold Tronox (TROX) due to Increased Uncertainty
Aristotle Capital Boston, LLC, an investment advisor, released its 'Small Cap Equity Strategy' second quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter started with a risk-off environment from the previous quarter, but later regained momentum driven by broad-based elements. In the second quarter, the strategy delivered a return of 3.25% net of fees (3.41% gross of fees) underperforming the 8.50% total return of the Russell 2000 Index. For more information on the fund's best picks in 2025, please check its top five holdings. In its second quarter 2025 investor letter, Aristotle Capital Small Cap Equity Strategy highlighted stocks such as Tronox Holdings plc (NYSE:TROX). Tronox Holdings plc (NYSE:TROX) is a vertically integrated TiO2 pigment manufacturer. The one-month return of Tronox Holdings plc (NYSE:TROX) was 3.91%, and its shares lost 62.97% of their value over the last 52 weeks. On July 23, 2025, Tronox Holdings plc (NYSE:TROX) stock closed at $5.85 per share, with a market capitalization of $927.003 million. Aristotle Capital Small Cap Equity Strategy stated the following regarding Tronox Holdings plc (NYSE:TROX) in its second quarter 2025 investor letter: "Tronox Holdings plc (NYSE:TROX), a leading global manufacturer of titanium dioxide (TiO2) pigment, a key ingredient in paint, plastics and a variety of other industrial applications. We believe the company is well positioned to benefit from increased production volumes and product pricing driven by improving global economic conditions. However, an increasingly uncertain economic outlook as a result of the threat of increased global tariffs pushed out the expected demand recovery combined with a cyclically driven stressed balance sheet caused us to exit the position." A close-up look at specialized machinery grinding up titanium dioxide pigment into ultrafine particles used as a colorant in paints, coatings, plastics, and paper. Tronox Holdings plc (NYSE:TROX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Tronox Holdings plc (NYSE:TROX) at the end of the first quarter, which was 21 in the previous quarter. While we acknowledge the potential of Tronox Holdings plc (NYSE:TROX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In previous article, we discussed Tronox Holdings plc (NYSE:TROX) and shared that J.P. Morgan analyst Jeffrey Zekauskas upgraded his ratings from Neutral to Overweight. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
22-02-2025
- Business
- Yahoo
Tronox Holdings (NYSE:TROX) Will Pay A Dividend Of $0.125
Tronox Holdings plc's (NYSE:TROX) investors are due to receive a payment of $0.125 per share on 4th of April. This makes the dividend yield 6.4%, which will augment investor returns quite nicely. While the dividend yield is important for income investors, it is also important to consider any large share price moves, as this will generally outweigh any gains from distributions. Tronox Holdings' stock price has reduced by 36% in the last 3 months, which is not ideal for investors and can explain a sharp increase in the dividend yield. View our latest analysis for Tronox Holdings If the payments aren't sustainable, a high yield for a few years won't matter that much. Even in the absence of profits, Tronox Holdings is paying a dividend. It is also not generating any free cash flow, we definitely have concerns when it comes to the sustainability of the dividend. Analysts expect a massive rise in earnings per share in the next year. Assuming the dividend continues along recent trends, we think the payout ratio will be 50%, which makes us pretty comfortable with the sustainability of the dividend. Although the company has a long dividend history, it has been cut at least once in the last 10 years. Since 2015, the dividend has gone from $1.00 total annually to $0.50. The dividend has shrunk at around 6.7% a year during that period. A company that decreases its dividend over time generally isn't what we are looking for. Given that the track record hasn't been stellar, we really want to see earnings per share growing over time. Tronox Holdings' EPS has fallen by approximately 33% per year during the past five years. Dividend payments are likely to come under some pressure unless EPS can pull out of the nosedive it is in. It's not all bad news though, as the earnings are predicted to rise over the next 12 months - we would just be a bit cautious until this becomes a long term trend. In summary, while it is good to see that the dividend hasn't been cut, we think that at current levels the payment isn't particularly sustainable. The company seems to be stretching itself a bit to make such big payments, but it doesn't appear they can be consistent over time. Overall, the dividend is not reliable enough to make this a good income stock. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. As an example, we've identified 2 warning signs for Tronox Holdings that you should be aware of before investing. Is Tronox Holdings not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
