Tronox Sell Rating Cites Unsustainable Leverage and Margin Declines
Tronox is rated Sell due to unsustainable leverage and deteriorating margins, even though vertical integration and revenue growth are cited. Gross margins reportedly fell from 10.8% to 6.3% year over year, with EBIT remaining negative. The view also highlights limited near-term opportunities in the chemical sector amid structural market and operational challenges.