Tronox (NYSE:TROX) is currently priced at approximately $5.70, but analysts rate it as an unattractive buy due to significant concerns regarding its financial performance. The company reported a decline in revenue, averaging -5.6% annually over the past three years, while its quarterly revenue decreased 4.7% in the most recent quarter.
Financially, Tronox is struggling, with a debt of $3.1 billion and a market capitalization of $898 million, resulting in a debt-to-equity ratio of 384.7%. Its operating income margin is just 6.7%, significantly lower than the S&P 500’s 13.2%. Furthermore, the stock has seen steep declines during economic downturns, including a 61.2% drop from its peak in 2021.
Overall, Tronox has been classified as very weak across key performance indicators: growth, profitability, financial stability, and downturn resilience, reinforcing the view that it is a bad stock to buy.
