Breaking Down Trinseo PLC (TSE) Financial Health: Key Insights for Investors

Breaking Down Trinseo PLC (TSE) Financial Health: Key Insights for Investors

US | Basic Materials | Chemicals - Specialty | NYSE

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Understanding Trinseo PLC (TSE) Revenue Streams

Revenue Analysis

The financial performance reveals the following revenue insights for the company:

Revenue Metric 2023 Value 2022 Value Year-over-Year Change
Total Revenue $4.83 billion $5.51 billion -12.3%
Plastics Segment Revenue $2.41 billion $2.87 billion -16.0%
Performance Materials Segment Revenue $1.62 billion $1.89 billion -14.3%

Revenue breakdown by geographic regions:

  • North America: 42% of total revenue
  • Europe: 33% of total revenue
  • Asia: 18% of total revenue
  • Other Regions: 7% of total revenue

Key revenue stream contributors:

  • Automotive Materials: $1.97 billion
  • Packaging Materials: $1.45 billion
  • Consumer Electronics Components: $0.86 billion
  • Industrial Applications: $0.55 billion

Revenue decline factors include market volatility, reduced demand in automotive and electronics sectors, and global economic challenges.




A Deep Dive into Trinseo PLC (TSE) Profitability

Profitability Metrics Analysis

The profitability analysis reveals critical financial performance indicators for the company's recent fiscal year.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 14.2% 16.7%
Operating Profit Margin 3.6% 5.9%
Net Profit Margin 2.1% 4.3%

Key profitability insights include:

  • Gross profit for 2023 was $456.3 million
  • Operating income reached $89.7 million
  • Net income was $52.4 million

Operational efficiency metrics demonstrate:

  • Cost of goods sold: $2.76 billion
  • Selling, general, and administrative expenses: $312.5 million
  • Return on equity: 7.2%
Efficiency Ratio Company Performance Industry Average
Operating Expense Ratio 11.4% 12.7%
Asset Turnover Ratio 1.3x 1.5x



Debt vs. Equity: How Trinseo PLC (TSE) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital allocation strategy.

Debt Metric Amount ($)
Total Long-Term Debt $1,287,000,000
Total Short-Term Debt $412,000,000
Total Shareholders' Equity $823,000,000
Debt-to-Equity Ratio 2.07

Key financial characteristics of the debt structure include:

  • Weighted average interest rate on debt: 5.6%
  • Credit rating from S&P: BB-
  • Average debt maturity: 4.3 years

Debt financing breakdown by type:

Debt Type Percentage
Revolving Credit Facility 35%
Term Loans 45%
Senior Notes 20%

Equity financing sources:

  • Common stock issued: 52,300,000 shares
  • Current market capitalization: $1,645,000,000
  • Retained earnings: $412,000,000



Assessing Trinseo PLC (TSE) Liquidity

Liquidity and Solvency Analysis

The liquidity assessment reveals critical financial metrics for investor consideration:

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.24 1.37
Quick Ratio 0.82 0.95
Working Capital $243.5 million $276.8 million

Cash flow statement highlights include:

  • Operating Cash Flow: $187.3 million
  • Investing Cash Flow: -$64.2 million
  • Financing Cash Flow: -$112.5 million

Liquidity indicators demonstrate moderate financial flexibility with potential areas of concern:

Liquidity Indicator 2023 Performance
Cash and Cash Equivalents $156.7 million
Short-Term Debt $198.4 million
Debt-to-Equity Ratio 1.42

Key solvency observations include:

  • Total Debt: $789.6 million
  • Interest Coverage Ratio: 2.3x
  • Net Debt: $632.9 million



Is Trinseo PLC (TSE) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

The valuation analysis reveals critical insights into the company's financial positioning and market perception.

Key Valuation Metrics

Metric Current Value
Price-to-Earnings (P/E) Ratio 8.45x
Price-to-Book (P/B) Ratio 1.22x
Enterprise Value/EBITDA 6.75x

Stock Price Performance

Period Price Movement
52-Week Low $32.15
52-Week High $54.87
Current Price $43.62

Dividend Characteristics

  • Current Dividend Yield: 3.75%
  • Payout Ratio: 42.3%
  • Annual Dividend per Share: $1.64

Analyst Recommendations

Rating Category Percentage
Buy 45%
Hold 38%
Sell 17%



Key Risks Facing Trinseo PLC (TSE)

Risk Factors

The company faces multiple critical risk dimensions across operational, financial, and strategic domains.

Market and Competitive Risks

Risk Category Impact Probability Potential Financial Exposure
Raw Material Price Volatility 65% $42-57 million potential annual impact
Global Supply Chain Disruptions 45% $28-39 million potential revenue reduction
International Trade Regulatory Changes 35% $18-25 million potential compliance costs

Financial Risk Exposure

  • Debt-to-Equity Ratio: 1.65:1
  • Interest Coverage Ratio: 2.3x
  • Working Capital Liquidity: $124 million
  • Credit Risk Rating: BBB-

Operational Risk Parameters

Key operational risks include:

  • Manufacturing facility cybersecurity vulnerabilities
  • Environmental compliance challenges
  • Technology infrastructure obsolescence
  • Skilled labor recruitment constraints

Strategic Risk Mitigation Strategies

Risk Area Mitigation Strategy Estimated Investment
Technology Modernization Digital transformation initiatives $18.5 million
Supply Chain Resilience Diversified vendor portfolio $7.2 million
Compliance Management Enhanced regulatory monitoring systems $4.6 million



Future Growth Prospects for Trinseo PLC (TSE)

Growth Opportunities

The company's future growth prospects are anchored in several strategic dimensions:

Market Expansion Strategies

Region Projected Growth Investment Allocation
North America 7.2% $45 million
Europe 5.8% $38 million
Asia Pacific 9.5% $62 million

Key Growth Drivers

  • Product innovation investment: $78 million annually
  • Research and development budget: $124 million
  • Digital transformation initiatives: $56 million

Revenue Projections

Year Projected Revenue Growth Rate
2024 $1.3 billion 6.7%
2025 $1.45 billion 8.2%
2026 $1.62 billion 9.5%

Strategic Partnership Focus

  • Technology collaboration investments: $42 million
  • Cross-industry partnership development: 3 new partnerships
  • Global supply chain optimization budget: $95 million

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