Trinseo, a chemicals company specializing in latex and plastics products, is facing non-compliance issues with the New York Stock Exchange (NYSE) due to low market capitalization and share price thresholds.
The company operates in the basic materials sector and has seen its revenue decline by 6.5% over the past three years, making it challenging for Trinseo’s financial health. Despite this, the company remains committed to rectifying its share price issue within six months and submitting a compliance plan for market capitalization within 45 days.
Trinseo generates significant revenue from its Polymer Solutions segment, which is primarily used in automotive, building, and construction applications. However, the company’s financial metrics reveal operational inefficiencies, high debt levels, and low profitability.
Analysts have set a target price of $1.13, indicating a cautious outlook on Trinseo’s stock. The RSI suggests the stock is oversold, but institutional ownership remains high at 74.65%.
Investors should be aware of the risks associated with Trinseo’s stock, including excessive debt and volatility. Regulatory changes in the chemicals industry could also impact the company’s performance.
Key statistics:
– Market capitalization: $22.74 million
– Revenue growth rate (3 years): -6.5%
– Operating margin: -4.09%
– Net margin: -13.15%
– Debt-to-equity ratio: -3
– Altman Z-Score: 0.61
Source: https://www.gurufocus.com/news/4069228/trinseo-tse-faces-nyse-noncompliance-notice-over-market-capitalization