Trinseo is a leading global materials company and manufacturer of plastics, latex and rubber, used in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. The company was founded in 2010 and is based in Berwyn, Pennsylvania.
TSE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Trinseo SA. To summarize, we found that Trinseo SA ranked in the 13th 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 Trinseo SA ended up being:
The company's compound free cash flow growth rate over the past 5.25 years comes in at -0.04%; that's greater than merely 19.4% of US stocks we're applying DCF forecasting to.
Trinseo SA's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.74. This coverage rate is greater than that of just 21.79% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Trinseo SA experienced a tax rate of about 39% over the past twelve months; relative to its sector (Basic Materials), this tax rate is higher than 89.56% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Trinseo SA? See DD, GGB, LYB, SQM, and STLD.
Trinseo (NYSE: TSE), a global materials solutions provider and manufacturer of plastics, latex binders, and synthetic rubber, today announced that it will host a conference call to discuss its fourth quarter and full year 2020 financial results on Thursday, February 4 at 10 a.m. Eastern Time.