Fact based stock research
Trinseo (NYSE:TSE)

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How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Trinseo stock research in summary

trinseo.com

ANALYSIS: With an Obermatt Combined Rank of 21 (worse than 79% compared with investment alternatives), Trinseo (Commodity Chemicals, USA) shares have lower financial characteristics compared with similar stocks. Shares of Trinseo are a good value (attractively priced) with a consolidated Value Rank of 91 (better than 91% of alternatives) but show below-average growth (Growth Rank of 13), and are riskily financed (Safety Rank of 21), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 21, is a sell recommendation based on Trinseo's financial characteristics. As the company Trinseo's key financial metrics exhibit good value (Obermatt Value Rank of 91) but low growth (Obermatt Growth Rank of 13) and risky financing practices (Obermatt Safety Rank of 21), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 91% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	91
Growth Rank	13
Safety Rank	21
Combined Rank	21

Country	USA
Industry	Commodity Chemicals
Index	Dividends USA, SDG 12, SDG 13, SDG 14, SDG 17, SDG 7
Size class	X-Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Trinseo

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	98	99	90	91
GROWTH
GROWTH	88	59	1	13
SAFETY
SAFETY	42	47	21	21
SENTIMENT
SENTIMENT	n/a	11	10	^new
360° VIEW
360° VIEW	n/a	49	4	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Trinseo is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	98	99	90	91
GROWTH
GROWTH	88	59	1	13
SAFETY
SAFETY	42	47	21	21
COMBINED
COMBINED	97	85	14	21

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of Trinseo the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 91 (better than 91% compared with alternatives) for 2024, Trinseo shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Trinseo. Price-to-Sales is 100 which means that the stock price compared with what market professionals expect for future sales is lower than for 100% of comparable companies, indicating a good value for Trinseo's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 91% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 100. Compared with other companies in the same industry, dividend yields of Trinseo are expected to be higher than for 56% of all competitors (a Dividend Yield rank of 56). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 91, is a buy recommendation based on Trinseo's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Trinseo based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	91	95	97	100
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	95	91	91	91
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	56	54	86	100
DIVIDEND YIELD
DIVIDEND YIELD	90	97	67	56
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	98	99	90	91

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Trinseo; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 13 (better than 13% compared with alternatives), Trinseo shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Trinseo. Sales Growth has a rank of 51, which means that, currently, professionals expect the company to grow more than 51% of its competitors. Profit Growth with a rank of 52 is also above average. But Capital Growth has only a rank of 14, and Stock Returns with 7 are also below-average. Stock returns for Trinseo have recently been below 93% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 13, is a sell recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for Trinseo. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	78	8	35	51
PROFIT GROWTH
PROFIT GROWTH	67	90	1	52
CAPITAL GROWTH
CAPITAL GROWTH	n/a	95	1	14
STOCK RETURNS
STOCK RETURNS	86	33	3	7
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	88	59	1	13

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Trinseo.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 21 (better than 21% compared with alternatives), the company Trinseo has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Trinseo is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Trinseo and the other two below average. Refinancing is at 100, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 100% of its competitors. But Leverage is high with a rank of 1, meaning the company has an above-average debt-to-equity ratio. It has more debt than 99% of its competitors. Liquidity is also on the riskier side with a rank of 14, meaning the company generates less profit to service its debt than 86% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 21 (worse than 79% compared with alternatives), Trinseo has a financing structure that is significantly riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Trinseo are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Trinseo and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	2	24	6	1
REFINANCING
REFINANCING	98	83	100	100
LIQUIDITY
LIQUIDITY	23	35	8	14
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	42	47	21	21

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Trinseo and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	2	5	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	30	75	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	100	18	^new
MARKET PULSE
MARKET PULSE	n/a	6	9	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	11	10	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Trinseo.
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