Trecora Resources manufactures and sells various specialty petrochemical products and synthetic waxes in the United States. The company operates in two segments: Specialty Petrochemical and Specialty Synthetic Wax. The company was founded in 1967 and is based in Sugar Land, Texas.
TREC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Trecora Resources with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Trecora Resources ranked in the 42th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Trecora Resources ended up being:
Trecora Resources's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -2.45. This coverage rate is greater than that of only 13.54% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Trecora Resources experienced a tax rate of about 47% over the past twelve months; relative to its sector (Basic Materials), this tax rate is higher than 93.23% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as TREC, try PAAS, SUZ, OEC, SXC, and PPG.
SUGAR LAND, Texas, May 5, 2020 /PRNewswire/ -- Trecora Resources ("Trecora" or the "Company") (NYSE: TREC), a leading provider of specialty hydrocarbons and specialty waxes, today announced financial results for the first quarter ended March 31, 2020. "At the onset of 2019, we set our…
SUGAR LAND, Texas, April 27, 2020 /PRNewswire/ -- Trecora Resources (NYSE: TREC), a leading provider of specialty hydrocarbons and waxes, today announced the planned release of its first quarter 2020 financial results after market close on Tuesday, May 5, 2020. President and Chief…
Trecora Resources ("Trecora" or the "Company") (NYSE: TREC), a leading provider of specialty hydrocarbons and specialty waxes, today announced it has signed a multi-year extension with Martin Operating Partnership L.P. for the supply of natural gasoline.