Tronox HoldingsTROX -2.19%61 Gross Margin % is 5.79% as of Mar. 2026, which is 71% below its 10-year median of 20.04. GuruFocus rates TROX with a GF Score™ of 61/100 and a GF Value™ of $10.64 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,565 Chemicals companies, Tronox Holdings ranks worse than 87.6% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Tronox Holdings had a gross margin of 5.79% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Tronox Holdings Gross Margin % Related Terms
Tronox Holdings Gross Margin % Historical Data
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The historical data trend for Tronox Holdings's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TROX vs GPRE, REX, ASPI: Gross Margin % Comparison
For the Chemicals subindustry, Tronox Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Tronox Holdings Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Tronox Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tronox Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Tronox Holdings (TROX) has a Gross Margin % of 5.79% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tronox Holdings and its competitors. This is 71% below median its historical median of 20.04. Over the past decade, Tronox Holdings' Gross Margin % has ranged from 7.33 to 27.38. According to the industry distribution chart, Tronox Holdings ranks #1371 out of 1565 companies in the Chemicals industry, placing it in the top 87.6%.
Is Tronox Holdings' Gross Margin % too high?
Tronox Holdings' current Gross Margin % of 5.79% is 71% below median its 10-year median of 20.04. Over the past 10 years, this metric has ranged from a low of 7.33 to a high of 27.38. The Chemicals industry median Gross Margin % is 23.38. Tronox Holdings' value of 5.79% is 75.2% below this industry median. Based on the distribution chart, Tronox Holdings ranks #1371 out of 1565 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Tronox Holdings has a GF Score™ of 61/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tronox Holdings' Gross Margin % compare to GPRE and REX?
According to the Chemicals industry distribution chart, Tronox Holdings ranks #1371 out of 1565 companies for Gross Margin %. This places Tronox Holdings in the lower half of its industry. The industry median Gross Margin % is 23.38. Tronox Holdings' value of 5.79% is 75.2% below this benchmark. Historically, Tronox Holdings' own Gross Margin % has ranged from 7.33 to 27.38 over the past decade. While the company's 10-year median is 20.04 vs. the industry median of 23.38, Tronox Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Chemicals company?
The median Gross Margin % among Chemicals companies is 23.38, based on 1,565 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tronox Holdings's current Gross Margin % of 5.79% is 75.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Tronox Holdings and its competitors. For the Chemicals industry, the median Gross Margin % is 23.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tronox Holdings's current Gross Margin % is 5.79%, which is 71% below median its own 10-year median of 20.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tronox Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tronox Holdings (TROX) is currently considered Possible Value Trap. The stock's GF Value™ is $10.64, compared to a current price of $6.69 — trading 37.1% below its estimated fair value. The current Gross Margin % is 5.79%, which is 71% below median its 10-year median of 20.04 and 75.2% below the Chemicals industry median of 23.38. Tronox Holdings' overall GF Score™ is 61/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Tronox Holdings (TROX), the current Gross Margin % is 5.79% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tronox Holdings (TROX) Overvalued in 2026?
Based on GuruFocus' analysis, Tronox Holdings stock appears to be undervalued.
The current stock price of $6.69 is trading 37.1% below its estimated GF Value™ of $10.64.
GuruFocus considers Tronox Holdings to be Possible Value Trap.
Key valuation signals for TROX:
Gross Margin %: 5.79% (71% below median its 10-year median of 20.04)
GF Value™: $10.64 vs. price of $6.69 (37.1% below fair value)
Industry Position: 75.2% below the Chemicals median (#1371 of 1565)
No single metric tells the full story. See the TROX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tronox Holdings PLC is a vertically integrated manufacturer of TiO2 pigment. It operates titanium-bearing mineral sand mines and beneficiation and smelting operations in Australia & South Africa to produce feedstock materials that can be processed into TiO2 for pigment, high-purity titanium chemicals, including titanium tetrachloride, and ultrafine TiO2 used in certain specialty applications. TiO2 and titanium feedstock, are used to produce paints and coatings, as well as plastics, paper, and printing ink. It has three pigment production facilities in the United States, the Netherlands, and Western Australia and three mining operations in Western Australia and South Africa. Europe, the Middle East, and Africa regions contribute the majority of revenue.
61GF Score
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