Price movement of Trinseo
Trinseo (TSE) has a market cap of $2.1 billion and rose by 0.98% to close at $44.35 per share on May 23, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were -1.2%, 2.1%, and 57.3%, respectively, as of the same day. This means that TSE is trading 1.0% above its 20-day moving average, 9.9% above its 50-day moving average, and 43.3% above its 200-day moving average.
Related ETF and peers
The Vanguard Materials ETF (VAW) invests 0.05% of its holdings in Trinseo. The ETF tracks a very broad market-cap-weighted index of US materials companies. The YTD price movement of VAW was 9.0% as of May 23, 2016.
The market caps of Trinseo’s competitors are as follows:
Barry Niziolek named as Trinseo’s CFO
Barry Niziolek has been named as Trinseo’s Executive Vice President and Chief Financial Officer, effective June 13, 2016. He will join the company’s executive leadership team.
Niziolek served as DuPont’s Vice President and Controller. During his stay at DuPont, he also functioned in various finance roles, which included CFO and Finance Director for DuPont’s Mexico operations.
Performance of Trinseo in fiscal 1Q16
Trinseo reported fiscal 1Q16 net sales of $894.1 million, a fall of 12.2% as compared to net sales of $1 billion in fiscal 1Q15. Sales from the latex, synthetic rubber, performance plastics, and basic plastics and feedstocks segments fell by 12.1%, 21.0%, 14.4%, and 8.8%, respectively, in fiscal 1Q16 over fiscal 1Q15. The company’s cost of sales as a percentage of net sales fell by 6.7%. Its operating income rose by 36.6% in fiscal 1Q16 compared to the prior year period.
Its net income and EPS (earnings per share) rose to $76.7 million and $1.56, respectively, in fiscal 1Q16. This compares to $37.7 million and $0.77, respectively, in fiscal 1Q15. It reported adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $143.2 million in fiscal 1Q16, a rise of 31.6% over fiscal 1Q15.
Trinseo’s cash and cash equivalents and inventories rose by 1.6% and 4.0%, respectively, in fiscal 1Q16 compared to fiscal 4Q15. Its current ratio rose to 2.90x, and its long-term debt-to-equity ratio fell to 3.4x in fiscal 1Q16. This compares to a current ratio and long-term debt-to-equity ratio of 2.87x and 3.7x, respectively, in fiscal 4Q15. It reported a free cash flow of $63.3 million in fiscal 1Q16, as compared to $15.8 million in fiscal 1Q15.
The company has made the following projections for fiscal 2Q16:
- adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $140 million–$150 million, excluding inventory revaluation
- Performance Materials division adjusted EBITDA of $70 million–$75 million
- Basic Plastics and Feedstocks division adjusted EBITDA of $90 million–$100 million, which is below fiscal 1Q16 due to planned styrenics turnarounds
The company has also made the following projections for fiscal 2016:
- adjusted EBITDA of $570 million–$590 million, excluding inventory revaluation—a projection includes zero or minimal impact from the fly-up styrene margin (due to sustainable, structural improvements in the styrenics and polycarbonate markets)
- adjusted EPS of $6.40–$6.70
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