I am slightly bearish on Tronox Holdings (TROX). The company's revenue is declining, and EBITDA is shrinking substantially, primarily due to higher production costs. As a result, the operating income margin is compressing. At the same time, its financial leverage is increasing. I believe that the relative undervalued status, compared to its peers, is justified.
My concerns regarding TROX
One of the aspects that worries me about TROX is the 8% decline in revenue on a YOY basis. In Q2 2019, the company reported revenue on a pro forma basis for $827 million,