Trinseo PLC (TSE) 10-Year Financial Performance & Capital Metrics

TSE • • Industrial / General

Basic MaterialsSpecialty ChemicalsSpecialty Polymers & PlasticsEngineered Polymers & Composites

AboutTrinseo PLC, a materials solutions provider, manufactures and sells plastics and latex binders in the United States, Europe, the Asia-Pacific, and internationally. The company operates through six segments: Engineered Materials, Latex Binders, Base Plastics, Polystyrene, Feedstocks, and Americas Styrenics. The Engineered Materials segment offers rigid compounds, including polycarbonate compounds, acrylonitrile-butadiene-styrene compounds, and PC blends to consumer electronics and medical markets for equipment housing applications; thermoplastic elastomer soft plastic compounds, such as overmolds, sealings, tubing, and films for footwear shoe sole, personal care, consumer electronics, and automotive high-end applications; and PMMA products to building and construction, automotive, medical, and consumer goods applications. The Latex Binders segment provides styrene-butadiene, styrene-acrylate, vinylidene chloride, and butadiene-methacrylate latex products for the commercial and niche carpet markets, as well as performance latex products for the adhesive, building and construction, and technical textile paper markets. The Base Plastics segment offers various compounds and blends for automotive and other applications. This segment also engages in the acrylonitrile-butadiene-styrene, styrene-acrylonitrile, and polycarbonate businesses. The Polystyrene segment provides general purpose polystyrenes and high impact polystyrene for use in appliances, food packaging and food service disposables, consumer electronics, and building and construction materials. The Feedstocks segment offers styrene monomer, a basic building block of plastics. The Americas Styrenics segment provides styrene and polystyrene. The company was incorporated in 2015 and is based in Berwyn, Pennsylvania.Show more

Revenue $3.51B -4.4%
EBITDA $164M +170.1%
Net Income -$349M +50.3%
EPS (Diluted) -9.87 +50.3%
Gross Margin 7.56% +95.3%
EBITDA Margin 4.67% +173.3%
Operating Margin -1.31% +89.4%
Net Margin -9.92% +48.0%
ROE -
ROIC -1.98% +87.1%
Debt/Equity -
Interest Coverage -0.17 +92.9%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Efficient asset utilization: 1.3x turnover

✗Weaknesses

✗Negative free cash flow
✗Weak momentum: RS Rating 2 (bottom 2%)
✗Low quality earnings: Net income not backed by cash flow
✗Trading more than 30% below 52-week high

Price & Volume

Loading chart...

Growth Metrics

Revenue CAGR

10Y-3.71%

5Y0.81%

3Y-10.05%

TTM-11.2%

Profit (Net Income) CAGR

10Y-

5Y-

3Y-

TTM16.85%

EPS CAGR

10Y-

5Y-

3Y-

TTM17.78%

ROCE

10Y Avg9.39%

5Y Avg-1.57%

3Y Avg-9.84%

Latest-2.15%

Peer Comparison

Engineered Polymers & Composites

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
WLKWestlake Corporation	11.33B	88.30	19.03	-3.24%	-8.34%	-9.63%	2.7%	0.48
CMTCore Molding Technologies, Inc.	161.9M	18.91	12.52	-15.47%	3.09%	5.19%	14.59%	0.16
LYBLyondellBasell Industries N.V.	16.38B	50.88	12.26	-1.96%	-3.69%	-11.2%	12.09%	1.03
EMNEastman Chemical Company	8.01B	70.23	9.16	2%	8.96%	14.09%	8.59%	0.86
TSETrinseo PLC	19.8M	0.55	-0.06	-4.41%	-13.15%

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	3.97B	3.72B	4.45B	4.62B	3.37B	2.74B	4.83B	4.97B	3.68B	3.51B
Revenue Growth %	-0.23%	-0.06%	0.2%	0.04%	-0.27%	-0.19%	0.76%	0.03%	-0.26%	-0.04%
Cost of Goods Sold+	3.5B	3.13B	3.79B	4.09B	3.07B	2.42B	4.13B	4.69B	3.53B	3.25B
COGS % of Revenue	0.88%	0.84%	0.85%	0.89%	0.91%	0.88%	0.86%	0.95%	0.96%	0.92%
Gross Profit+	469.1M	587.63M	654M	528.8M	300.4M	321.1M	698.9M	272.3M	142.3M	265.6M
Gross Margin %	0.12%	0.16%	0.15%	0.11%	0.09%	0.12%	0.14%	0.05%	0.04%	0.08%
Gross Profit Growth %	0.58%	0.25%	0.11%	-0.19%	-0.43%	0.07%	1.18%	-0.61%	-0.48%	0.87%
Operating Expenses+	67.8M	94M	115.3M	114.4M	157.9M	171.5M	237.5M	636.2M	597.7M	311.6M
OpEx % of Revenue	0.02%	0.03%	0.03%	0.02%	0.05%	0.06%	0.05%	0.13%	0.16%	0.09%
Selling, General & Admin	147.9M	172.1M	239M	258.5M	276.9M	227.5M	323.4M	398.8M	310.3M	327M
SG&A % of Revenue	0.04%	0.05%	0.05%	0.06%	0.08%	0.08%	0.07%	0.08%	0.08%	0.09%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	-132M	-128.2M	-123.7M	-142.6M	-119M	-56M	-85.9M	237.4M	287.4M	-15.4M
Operating Income+	401.32M	498.2M	538.7M	414.4M	142.5M	149.6M	461.4M	-363.9M	-455.4M	-46M
Operating Margin %	0.1%	0.13%	0.12%	0.09%	0.04%	0.05%	0.1%	-0.07%	-0.12%	-0.01%
Operating Income Growth %	2.57%	0.24%	0.08%	-0.23%	-0.66%	0.05%	2.08%	-1.79%	-0.25%	0.9%
EBITDA+	498.07M	594.6M	649.3M	544.6M	234M	242.2M	628.9M	-127M	-234.2M	164.2M
EBITDA Margin %	0.13%	0.16%	0.15%	0.12%	0.07%	0.09%	0.13%	-0.03%	-0.06%	0.05%
EBITDA Growth %	1.3%	0.19%	0.09%	-0.16%	-0.57%	0.04%	1.6%	-1.2%	-0.84%	1.7%
D&A (Non-Cash Add-back)	96.75M	96.4M	110.6M	130.2M	91.5M	92.6M	167.5M	236.9M	221.2M	210.2M
EBIT	297.05M	486.7M	481.2M	410.7M	139.1M	149M	429.9M	-356.7M	-444.5M	-50.5M
Net Interest Income+	-93.2M	-75M	-70.1M	-46.4M	-39.3M	-43.6M	-79.4M	-112.9M	-188.4M	-267.5M
Interest Income	0	0	0	0	0	0	0	0	0	0
Interest Expense	93.2M	74.97M	70.1M	46.4M	39.3M	43.6M	79.4M	112.9M	188.4M	267.5M
Other Income/Expense	-197.5M	-92.9M	-127.6M	-50.1M	-42.7M	-44.2M	-110.9M	-105.7M	-177.5M	-272M
Pretax Income+	203.86M	405.31M	411.1M	364.3M	99.8M	105.4M	350.5M	-469.6M	-632.9M	-318M
Pretax Margin %	0.05%	0.11%	0.09%	0.08%	0.03%	0.04%	0.07%	-0.09%	-0.17%	-0.09%
Income Tax+	70.21M	87M	82.8M	71.8M	12.7M	42.7M	70.9M	-41.6M	68.4M	30.5M
Effective Tax Rate %	0.66%	0.79%	0.8%	0.8%	0.92%	0.07%	1.26%	0.92%	1.11%	1.1%
Net Income+	133.65M	318.31M	328.3M	292.5M	92M	7.9M	440M	-430.9M	-701.3M	-348.5M
Net Margin %	0.03%	0.09%	0.07%	0.06%	0.03%	0%	0.09%	-0.09%	-0.19%	-0.1%
Net Income Growth %	2.98%	1.38%	0.03%	-0.11%	-0.69%	-0.91%	54.7%	-1.98%	-0.63%	0.5%
Net Income (Continuing)	133.65M	318.3M	328.3M	292.5M	87.1M	62.7M	279.6M	-428M	-701.3M	-348.5M
Discontinued Operations	0	0	0	0	4.9M	-54.8M	160.4M	-2.9M	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	2.73	6.70	7.30	6.69	2.26	0.20	11.12	-11.92	-19.87	-9.87
EPS Growth %	2.76%	1.45%	0.09%	-0.08%	-0.66%	-0.91%	54.6%	-2.07%	-0.67%	0.5%
EPS (Basic)	2.74	6.84	7.49	6.83	2.28	0.21	11.37	-11.92	-19.87	-9.87
Diluted Shares Outstanding	48.97M	47.48M	45M	43.7M	40.7M	38.6M	39.6M	35.9M	35.3M	35.3M
Basic Shares Outstanding	48.77M	46.51M	43.8M	42.8M	40.3M	38.3M	38.7M	35.9M	35.3M	35.3M
Dividend Payout Ratio	113.6%	0.09%	0.18%	0.23%	0.71%	7.82%	0.05%	-	-	-

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	1.29B	1.43B	1.65B	1.63B	1.49B	1.52B	1.98B	1.39B	1.19B	988.2M
Cash & Short-Term Investments	431.26M	465.11M	432.8M	452.3M	456.2M	588.7M	573M	211.7M	259.1M	209.8M
Cash Only	431.26M	465.11M	432.8M	452.3M	456.2M	588.7M	573M	211.7M	259.1M	209.8M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	494.56M	564.4M	685.5M	648.1M	570.8M	529.2M	740.2M	586M	490.8M	379.9M
Days Sales Outstanding	45.45	55.43	56.25	51.17	61.75	70.38	55.97	43.08	48.74	39.47
Inventory	353.1M	385.35M	510.4M	510.4M	438.2M	324.1M	621M	553.6M	404.7M	347.2M
Days Inventory Outstanding	36.79	44.95	49.1	45.5	52.04	48.81	54.9	43.05	41.81	39.02
Other Current Assets	10.12M	106.3M	17.5M	20.5M	25.9M	75.1M	44.3M	39.4M	39.5M	51.3M
Total Non-Current Assets+	890.87M	916.7M	1.06B	1.03B	1.27B	1.33B	2.73B	2.37B	1.84B	1.66B
Property, Plant & Equipment	518.75M	510M	627M	592.1M	697.2M	508.9M	804.3M	767.2M	709M	639.7M
Fixed Asset Turnover	7.66x	7.29x	7.09x	7.81x	4.84x	5.39x	6.00x	6.47x	5.18x	5.49x
Goodwill	31.06M	29.48M	72.5M	69M	67.7M	62.1M	710.1M	410.4M	63.8M	59.9M
Intangible Assets	158.22M	177.34M	207.5M	191.1M	191.5M	162.6M	823.8M	772M	693.9M	598.8M
Long-Term Investments	182.84M	191.42M	152.5M	179.1M	188.1M	240.1M	247.8M	255.1M	252.2M	222.6M
Other Non-Current Assets	-51.4M	-31.73M	-32.5M	-23.5M	55.7M	264.2M	70.1M	67.5M	71.9M	97.9M
Total Assets+	2.26B	2.42B	2.77B	2.73B	2.76B	2.85B	4.71B	3.76B	3.03B	2.64B
Asset Turnover	1.76x	1.53x	1.60x	1.70x	1.22x	0.96x	1.02x	1.32x	1.21x	1.33x
Asset Growth %	-0.04%	0.07%	0.14%	-0.02%	0.01%	0.03%	0.66%	-0.2%	-0.19%	-0.13%
Total Current Liabilities+	449.27M	542.17M	626.6M	537M	527.6M	533.3M	914.4M	689.4M	672.6M	720.9M
Accounts Payable	296.05M	341.9M	436.8M	319.9M	304.6M	313.9M	516.8M	365.3M	376M	220.4M
Days Payables Outstanding	30.85	39.88	42.02	28.52	36.17	47.28	45.69	28.41	38.84	24.77
Short-Term Debt	5M	5M	7M	7M	11.1M	12.2M	18.5M	16M	20.9M	210.9M
Deferred Revenue (Current)	-1000K	0	0	0	0	0	0	0	0	0
Other Current Liabilities	28.58M	29.1M	37.9M	26.9M	0	400K	0	0	0	0
Current Ratio	2.87x	2.64x	2.63x	3.04x	2.83x	2.84x	2.16x	2.02x	1.78x	1.37x
Quick Ratio	2.08x	1.93x	1.81x	2.09x	2.00x	2.24x	1.48x	1.21x	1.17x	0.89x
Cash Conversion Cycle	51.39	60.5	63.33	68.16	77.62	71.91	65.18	57.72	51.71	53.72
Total Non-Current Liabilities+	1.45B	1.42B	1.47B	1.42B	1.56B	1.72B	2.78B	2.65B	2.62B	2.54B
Long-Term Debt	1.18B	1.16B	1.17B	1.16B	1.16B	1.16B	2.31B	2.3B	2.28B	2.2B
Capital Lease Obligations	0	0	0	0	58M	65.5M	69.2M	60.2M	51.7M	53.3M
Deferred Tax Liabilities	25.76M	24.84M	49.2M	45.4M	41.5M	60.7M	103.2M	59.8M	43.5M	37.5M
Other Non-Current Liabilities	243.41M	246.2M	256.4M	214.9M	300.2M	437.3M	306.7M	228.9M	251.8M	251.6M
Total Liabilities	1.87B	1.96B	2.1B	1.96B	2.09B	2.25B	3.7B	3.34B	3.3B	3.26B
Total Debt+	1.18B	1.17B	1.17B	1.16B	1.25B	1.25B	2.41B	2.39B	2.37B	2.48B
Net Debt	776.54M	700.25M	739.2M	708.5M	789.6M	662.6M	1.84B	2.18B	2.11B	2.27B
Debt / Equity	3.04x	2.62x	1.74x	1.51x	1.86x	2.12x	2.38x	5.70x	-	-
Debt / EBITDA	2.37x	1.96x	1.81x	2.13x	5.32x	5.17x	3.83x	-	-	15.09x
Net Debt / EBITDA	1.56x	1.18x	1.14x	1.30x	3.37x	2.74x	2.92x	-	-	13.81x
Interest Coverage	4.31x	6.65x	7.68x	8.93x	3.63x	3.43x	5.81x	-3.22x	-2.42x	-0.17x
Total Equity+	389.01M	445.05M	674.8M	768.7M	668.9M	590.3M	1.01B	420.3M	-268M	-619.9M
Equity Growth %	0.21%	0.14%	0.52%	0.14%	-0.13%	-0.12%	0.72%	-0.59%	-1.64%	-1.31%
Book Value per Share	7.94	9.37	15.00	17.59	16.43	15.29	25.58	11.71	-7.59	-17.56
Total Shareholders' Equity	389.01M	445.05M	674.8M	768.7M	668.9M	590.3M	1.01B	420.3M	-268M	-619.9M
Common Stock	488K	488K	500K	500K	500K	500K	400K	400K	400K	400K
Retained Earnings	-18.29M	258.54M	527.9M	753.2M	781M	739.2M	741.8M	264.5M	-443M	-792.8M
Treasury Stock	0	-217.5M	-286.8M	-418.1M	-524.9M	-542.9M	-50M	-200M	-200M	-200M
Accumulated OCI	-149.72M	-170.15M	-145.6M	-142.3M	-162.4M	-186.1M	-147.2M	-131.3M	-129.6M	-142.1M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	353.25M	403.66M	391.3M	366.5M	322.5M	255.4M	452.7M	43.5M	125.3M	-22.8M
Operating CF Margin %	0.09%	0.11%	0.09%	0.08%	0.1%	0.09%	0.09%	0.01%	0.03%	-0.01%
Operating CF Growth %	2.01%	0.14%	-0.03%	-0.06%	-0.12%	-0.21%	0.77%	-0.9%	1.88%	-1.18%
Net Income	133.65M	318.31M	328.3M	292.5M	92M	7.9M	440M	-430.9M	-701.3M	-348.5M
Depreciation & Amortization	96.75M	96.46M	110.6M	130.2M	136M	92.6M	167.5M	236.9M	221.2M	210.2M
Stock-Based Compensation	9M	17.06M	13.8M	15.8M	13M	11.1M	15.2M	18.6M	0	0
Deferred Taxes	-77K	16.09M	14.8M	5.3M	-37.4M	7.9M	-2.1M	-93.3M	41.4M	-2.7M
Other Non-Cash Items	10.07M	25.66M	50.5M	-25.2M	-10.9M	52.3M	-144.9M	336.7M	348.3M	31.8M
Working Capital Changes	103.85M	-69.92M	-126.7M	-52.1M	129.3M	83.6M	-23M	-24.5M	215.7M	86.4M
Change in Receivables	65.12M	-96.4M	-51.8M	21.2M	66.6M	57.4M	-214.6M	129.1M	106.3M	99.5M
Change in Inventory	97.15M	-50.97M	-80.2M	-16M	70.7M	47.7M	-214.1M	31.8M	150.1M	46.4M
Change in Payables	-71.91M	57.12M	9.3M	-43.8M	-1.7M	-3.1M	313.1M	-192M	1.4M	-22.2M
Cash from Investing+	-106.67M	-117.3M	-182.6M	-118.7M	-109.3M	-24.2M	-1.54B	-164M	-31.7M	-55.1M
Capital Expenditures	-109.27M	-123.9M	-147.4M	-121.4M	-110.1M	-66.6M	-117.7M	-148.2M	-69.7M	-63.3M
CapEx % of Revenue	0.03%	0.03%	0.03%	0.03%	0.03%	0.02%	0.02%	0.03%	0.02%	0.02%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-413K	6.6M	900K	1M	100K	-15.6M	-1.53B	-800K	0	0
Cash from Financing+	-94.8M	-247.54M	-253M	-222.2M	-206.7M	-104.3M	1.08B	-233.7M	-42.6M	35M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	-27.3M	-58M	-66M	-65.7M	-61.8M	-21.9M	-47.5M	-17.9M	-1.7M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-28.2M	100K	-12.5M	-6M	-3.7M	2M	-36.3M	-3.2M	-3.3M	-700K
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	243.98M	279.79M	243.9M	245.1M	212.4M	188.8M	335M	-104.7M	55.6M	-86.1M
FCF Margin %	0.06%	0.08%	0.05%	0.05%	0.06%	0.07%	0.07%	-0.02%	0.02%	-0.02%
FCF Growth %	12.11%	0.15%	-0.13%	0%	-0.13%	-0.11%	0.77%	-1.31%	1.53%	-2.55%
FCF per Share	4.98	5.89	5.42	5.61	5.22	4.89	8.46	-2.92	1.58	-2.44
FCF Conversion (FCF/Net Income)	2.64x	1.27x	1.19x	1.25x	3.51x	32.33x	1.03x	-0.10x	-0.18x	0.07x
Interest Paid	121.2M	69.4M	63.3M	50.7M	39.7M	39.5M	62.4M	103.4M	0	0
Taxes Paid	58.2M	66.6M	75M	85.2M	66.3M	10.3M	37.2M	98.2M	0	0

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	37.65%	76.33%	58.63%	40.53%	12.8%	1.25%	54.88%	-60.12%	-920.95%	-
Return on Invested Capital (ROIC)	24.65%	32.7%	31.57%	21.5%	7.28%	8.28%	16.86%	-10.01%	-15.38%	-1.98%
Gross Margin	11.81%	15.81%	14.7%	11.44%	8.9%	11.7%	14.48%	5.48%	3.87%	7.56%
Net Margin	3.36%	8.56%	7.38%	6.33%	2.73%	0.29%	9.11%	-8.68%	-19.08%	-9.92%
Debt / Equity	3.04x	2.62x	1.74x	1.51x	1.86x	2.12x	2.38x	5.70x	-	-
Interest Coverage	4.31x	6.65x	7.68x	8.93x	3.63x	3.43x	5.81x	-3.22x	-2.42x	-0.17x
FCF Conversion	2.64x	1.27x	1.19x	1.25x	3.51x	32.33x	1.03x	-0.10x	-0.18x	0.07x
Revenue Growth	-22.54%	-6.43%	19.68%	3.93%	-27.02%	-18.65%	75.89%	2.86%	-25.98%	-4.41%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Polymer Solutions	-	-	-	-	-	-	-	-	-	1.38B
Polymer Solutions Growth	-	-	-	-	-	-	-	-	-	-
Engineered Materials	-	-	-	-	-	194.8M	755M	1.04B	788.6M	1.18B
Engineered Materials Growth	-	-	-	-	-	-	287.58%	38.33%	-24.49%	49.24%
Latex Binders	-	-	-	-	-	-	1.18B	1.26B	939.1M	954.3M
Latex Binders Growth	-	-	-	-	-	-	-	6.18%	-25.26%	1.62%
Polystyrene	-	-	-	1.02B	809.4M	698.9M	1.12B	1.09B	743.2M	-
Polystyrene Growth	-	-	-	-	-20.42%	-13.65%	60.08%	-2.30%	-32.01%	-
Feedstocks	-	294.49M	407.7M	386.6M	256.1M	136.8M	272.4M	248.5M	166M	-
Feedstocks Growth	-	-	38.44%	-5.18%	-33.76%	-46.58%	99.12%	-8.77%	-33.20%	-
Base Plastics	-	-	-	-	-	918.2M	1.5B	1.32B	-	-
Base Plastics Growth	-	-	-	-	-	-	63.13%	-11.68%	-	-
Latex	966.21M	925.34M	1.1B	1.07B	902.8M	767.1M	-	-	-	-
Latex Growth	-	-4.23%	18.56%	-2.56%	-15.55%	-15.03%	-	-	-	-
Synthetic Rubber	474.62M	450.69M	582.8M	572.5M	441.3M	319.7M	-	-	-	-
Synthetic Rubber Growth	-	-5.04%	29.31%	-1.77%	-22.92%	-27.55%	-	-	-	-
Performance Plastics	742.83M	693.43M	808.3M	1.58B	1.37B	-	-	-	-	-
Performance Plastics Growth	-	-6.65%	16.56%	95.18%	-13.40%	-	-	-	-	-
Basic Plastics	-	1.35B	1.55B	1.02B	-	-	-	-	-	-
Basic Plastics Growth	-	-	14.75%	-34.47%	-	-	-	-	-	-
Basic Plastics And Feedstocks	1.79B	-	-	-	-	-	-	-	-	-
Basic Plastics And Feedstocks Growth	-	-	-	-	-	-	-	-	-	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Europe	2.37B	2.23B	2.69B	-	-	-	-	-	-	-
Europe Growth	-	-6.06%	20.61%	-	-	-	-	-	-	-
Asia Pacific	889.45M	811.77M	1.05B	-	-	-	-	-	-	-
Asia Pacific Growth	-	-8.73%	29.52%	-	-	-	-	-	-	-
Rest Of World	157.39M	136.97M	105.1M	-	-	-	-	-	-	-
Rest Of World Growth	-	-12.98%	-23.27%	-	-	-	-	-	-	-

Frequently Asked Questions

Growth & Financials

Trinseo PLC (TSE) reported $3.13B in revenue for fiscal year 2024. This represents a 49% decrease from $6.19B in 2011.

Trinseo PLC (TSE) saw revenue decline by 4.4% over the past year.

Trinseo PLC (TSE) reported a net loss of $412.1M for fiscal year 2024.

Dividend & Returns

Yes, Trinseo PLC (TSE) pays a dividend with a yield of 8.76%. This makes it attractive for income-focused investors.

Trinseo PLC (TSE) had negative free cash flow of $96.1M in fiscal year 2024, likely due to heavy capital investments.

US Stock Screener

...

Trinseo PLC (TSE) 10-Year Financial Performance & Capital Metrics

TSE • • Industrial / General

Basic MaterialsSpecialty ChemicalsSpecialty Polymers & PlasticsEngineered Polymers & Composites

Revenue $3.51B -4.4%
EBITDA $164M +170.1%
Net Income -$349M +50.3%
EPS (Diluted) -9.87 +50.3%
Gross Margin 7.56% +95.3%
EBITDA Margin 4.67% +173.3%
Operating Margin -1.31% +89.4%
Net Margin -9.92% +48.0%
ROE -
ROIC -1.98% +87.1%
Debt/Equity -
Interest Coverage -0.17 +92.9%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Efficient asset utilization: 1.3x turnover

✗Weaknesses

✗Negative free cash flow
✗Weak momentum: RS Rating 2 (bottom 2%)
✗Low quality earnings: Net income not backed by cash flow
✗Trading more than 30% below 52-week high

Price & Volume

Loading chart...

Growth Metrics

Revenue CAGR

10Y-3.71%

5Y0.81%

3Y-10.05%

TTM-11.2%

Profit (Net Income) CAGR

10Y-

5Y-

3Y-

TTM16.85%

EPS CAGR

10Y-

5Y-

3Y-

TTM17.78%

ROCE

10Y Avg9.39%

5Y Avg-1.57%

3Y Avg-9.84%

Latest-2.15%

Peer Comparison

Engineered Polymers & Composites

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
WLKWestlake Corporation	11.33B	88.30	19.03	-3.24%	-8.34%	-9.63%	2.7%	0.48
CMTCore Molding Technologies, Inc.	161.9M	18.91	12.52	-15.47%	3.09%	5.19%	14.59%	0.16
LYBLyondellBasell Industries N.V.	16.38B	50.88	12.26	-1.96%	-3.69%	-11.2%	12.09%	1.03
EMNEastman Chemical Company	8.01B	70.23	9.16	2%	8.96%	14.09%	8.59%	0.86
TSETrinseo PLC	19.8M	0.55	-0.06	-4.41%	-13.15%

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	3.97B	3.72B	4.45B	4.62B	3.37B	2.74B	4.83B	4.97B	3.68B	3.51B
Revenue Growth %	-0.23%	-0.06%	0.2%	0.04%	-0.27%	-0.19%	0.76%	0.03%	-0.26%	-0.04%
Cost of Goods Sold+	3.5B	3.13B	3.79B	4.09B	3.07B	2.42B	4.13B	4.69B	3.53B	3.25B
COGS % of Revenue	0.88%	0.84%	0.85%	0.89%	0.91%	0.88%	0.86%	0.95%	0.96%	0.92%
Gross Profit+	469.1M	587.63M	654M	528.8M	300.4M	321.1M	698.9M	272.3M	142.3M	265.6M
Gross Margin %	0.12%	0.16%	0.15%	0.11%	0.09%	0.12%	0.14%	0.05%	0.04%	0.08%
Gross Profit Growth %	0.58%	0.25%	0.11%	-0.19%	-0.43%	0.07%	1.18%	-0.61%	-0.48%	0.87%
Operating Expenses+	67.8M	94M	115.3M	114.4M	157.9M	171.5M	237.5M	636.2M	597.7M	311.6M
OpEx % of Revenue	0.02%	0.03%	0.03%	0.02%	0.05%	0.06%	0.05%	0.13%	0.16%	0.09%
Selling, General & Admin	147.9M	172.1M	239M	258.5M	276.9M	227.5M	323.4M	398.8M	310.3M	327M
SG&A % of Revenue	0.04%	0.05%	0.05%	0.06%	0.08%	0.08%	0.07%	0.08%	0.08%	0.09%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	-132M	-128.2M	-123.7M	-142.6M	-119M	-56M	-85.9M	237.4M	287.4M	-15.4M
Operating Income+	401.32M	498.2M	538.7M	414.4M	142.5M	149.6M	461.4M	-363.9M	-455.4M	-46M
Operating Margin %	0.1%	0.13%	0.12%	0.09%	0.04%	0.05%	0.1%	-0.07%	-0.12%	-0.01%
Operating Income Growth %	2.57%	0.24%	0.08%	-0.23%	-0.66%	0.05%	2.08%	-1.79%	-0.25%	0.9%
EBITDA+	498.07M	594.6M	649.3M	544.6M	234M	242.2M	628.9M	-127M	-234.2M	164.2M
EBITDA Margin %	0.13%	0.16%	0.15%	0.12%	0.07%	0.09%	0.13%	-0.03%	-0.06%	0.05%
EBITDA Growth %	1.3%	0.19%	0.09%	-0.16%	-0.57%	0.04%	1.6%	-1.2%	-0.84%	1.7%
D&A (Non-Cash Add-back)	96.75M	96.4M	110.6M	130.2M	91.5M	92.6M	167.5M	236.9M	221.2M	210.2M
EBIT	297.05M	486.7M	481.2M	410.7M	139.1M	149M	429.9M	-356.7M	-444.5M	-50.5M
Net Interest Income+	-93.2M	-75M	-70.1M	-46.4M	-39.3M	-43.6M	-79.4M	-112.9M	-188.4M	-267.5M
Interest Income	0	0	0	0	0	0	0	0	0	0
Interest Expense	93.2M	74.97M	70.1M	46.4M	39.3M	43.6M	79.4M	112.9M	188.4M	267.5M
Other Income/Expense	-197.5M	-92.9M	-127.6M	-50.1M	-42.7M	-44.2M	-110.9M	-105.7M	-177.5M	-272M
Pretax Income+	203.86M	405.31M	411.1M	364.3M	99.8M	105.4M	350.5M	-469.6M	-632.9M	-318M
Pretax Margin %	0.05%	0.11%	0.09%	0.08%	0.03%	0.04%	0.07%	-0.09%	-0.17%	-0.09%
Income Tax+	70.21M	87M	82.8M	71.8M	12.7M	42.7M	70.9M	-41.6M	68.4M	30.5M
Effective Tax Rate %	0.66%	0.79%	0.8%	0.8%	0.92%	0.07%	1.26%	0.92%	1.11%	1.1%
Net Income+	133.65M	318.31M	328.3M	292.5M	92M	7.9M	440M	-430.9M	-701.3M	-348.5M
Net Margin %	0.03%	0.09%	0.07%	0.06%	0.03%	0%	0.09%	-0.09%	-0.19%	-0.1%
Net Income Growth %	2.98%	1.38%	0.03%	-0.11%	-0.69%	-0.91%	54.7%	-1.98%	-0.63%	0.5%
Net Income (Continuing)	133.65M	318.3M	328.3M	292.5M	87.1M	62.7M	279.6M	-428M	-701.3M	-348.5M
Discontinued Operations	0	0	0	0	4.9M	-54.8M	160.4M	-2.9M	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	2.73	6.70	7.30	6.69	2.26	0.20	11.12	-11.92	-19.87	-9.87
EPS Growth %	2.76%	1.45%	0.09%	-0.08%	-0.66%	-0.91%	54.6%	-2.07%	-0.67%	0.5%
EPS (Basic)	2.74	6.84	7.49	6.83	2.28	0.21	11.37	-11.92	-19.87	-9.87
Diluted Shares Outstanding	48.97M	47.48M	45M	43.7M	40.7M	38.6M	39.6M	35.9M	35.3M	35.3M
Basic Shares Outstanding	48.77M	46.51M	43.8M	42.8M	40.3M	38.3M	38.7M	35.9M	35.3M	35.3M
Dividend Payout Ratio	113.6%	0.09%	0.18%	0.23%	0.71%	7.82%	0.05%	-	-	-

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	1.29B	1.43B	1.65B	1.63B	1.49B	1.52B	1.98B	1.39B	1.19B	988.2M
Cash & Short-Term Investments	431.26M	465.11M	432.8M	452.3M	456.2M	588.7M	573M	211.7M	259.1M	209.8M
Cash Only	431.26M	465.11M	432.8M	452.3M	456.2M	588.7M	573M	211.7M	259.1M	209.8M
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	494.56M	564.4M	685.5M	648.1M	570.8M	529.2M	740.2M	586M	490.8M	379.9M
Days Sales Outstanding	45.45	55.43	56.25	51.17	61.75	70.38	55.97	43.08	48.74	39.47
Inventory	353.1M	385.35M	510.4M	510.4M	438.2M	324.1M	621M	553.6M	404.7M	347.2M
Days Inventory Outstanding	36.79	44.95	49.1	45.5	52.04	48.81	54.9	43.05	41.81	39.02
Other Current Assets	10.12M	106.3M	17.5M	20.5M	25.9M	75.1M	44.3M	39.4M	39.5M	51.3M
Total Non-Current Assets+	890.87M	916.7M	1.06B	1.03B	1.27B	1.33B	2.73B	2.37B	1.84B	1.66B
Property, Plant & Equipment	518.75M	510M	627M	592.1M	697.2M	508.9M	804.3M	767.2M	709M	639.7M
Fixed Asset Turnover	7.66x	7.29x	7.09x	7.81x	4.84x	5.39x	6.00x	6.47x	5.18x	5.49x
Goodwill	31.06M	29.48M	72.5M	69M	67.7M	62.1M	710.1M	410.4M	63.8M	59.9M
Intangible Assets	158.22M	177.34M	207.5M	191.1M	191.5M	162.6M	823.8M	772M	693.9M	598.8M
Long-Term Investments	182.84M	191.42M	152.5M	179.1M	188.1M	240.1M	247.8M	255.1M	252.2M	222.6M
Other Non-Current Assets	-51.4M	-31.73M	-32.5M	-23.5M	55.7M	264.2M	70.1M	67.5M	71.9M	97.9M
Total Assets+	2.26B	2.42B	2.77B	2.73B	2.76B	2.85B	4.71B	3.76B	3.03B	2.64B
Asset Turnover	1.76x	1.53x	1.60x	1.70x	1.22x	0.96x	1.02x	1.32x	1.21x	1.33x
Asset Growth %	-0.04%	0.07%	0.14%	-0.02%	0.01%	0.03%	0.66%	-0.2%	-0.19%	-0.13%
Total Current Liabilities+	449.27M	542.17M	626.6M	537M	527.6M	533.3M	914.4M	689.4M	672.6M	720.9M
Accounts Payable	296.05M	341.9M	436.8M	319.9M	304.6M	313.9M	516.8M	365.3M	376M	220.4M
Days Payables Outstanding	30.85	39.88	42.02	28.52	36.17	47.28	45.69	28.41	38.84	24.77
Short-Term Debt	5M	5M	7M	7M	11.1M	12.2M	18.5M	16M	20.9M	210.9M
Deferred Revenue (Current)	-1000K	0	0	0	0	0	0	0	0	0
Other Current Liabilities	28.58M	29.1M	37.9M	26.9M	0	400K	0	0	0	0
Current Ratio	2.87x	2.64x	2.63x	3.04x	2.83x	2.84x	2.16x	2.02x	1.78x	1.37x
Quick Ratio	2.08x	1.93x	1.81x	2.09x	2.00x	2.24x	1.48x	1.21x	1.17x	0.89x
Cash Conversion Cycle	51.39	60.5	63.33	68.16	77.62	71.91	65.18	57.72	51.71	53.72
Total Non-Current Liabilities+	1.45B	1.42B	1.47B	1.42B	1.56B	1.72B	2.78B	2.65B	2.62B	2.54B
Long-Term Debt	1.18B	1.16B	1.17B	1.16B	1.16B	1.16B	2.31B	2.3B	2.28B	2.2B
Capital Lease Obligations	0	0	0	0	58M	65.5M	69.2M	60.2M	51.7M	53.3M
Deferred Tax Liabilities	25.76M	24.84M	49.2M	45.4M	41.5M	60.7M	103.2M	59.8M	43.5M	37.5M
Other Non-Current Liabilities	243.41M	246.2M	256.4M	214.9M	300.2M	437.3M	306.7M	228.9M	251.8M	251.6M
Total Liabilities	1.87B	1.96B	2.1B	1.96B	2.09B	2.25B	3.7B	3.34B	3.3B	3.26B
Total Debt+	1.18B	1.17B	1.17B	1.16B	1.25B	1.25B	2.41B	2.39B	2.37B	2.48B
Net Debt	776.54M	700.25M	739.2M	708.5M	789.6M	662.6M	1.84B	2.18B	2.11B	2.27B
Debt / Equity	3.04x	2.62x	1.74x	1.51x	1.86x	2.12x	2.38x	5.70x	-	-
Debt / EBITDA	2.37x	1.96x	1.81x	2.13x	5.32x	5.17x	3.83x	-	-	15.09x
Net Debt / EBITDA	1.56x	1.18x	1.14x	1.30x	3.37x	2.74x	2.92x	-	-	13.81x
Interest Coverage	4.31x	6.65x	7.68x	8.93x	3.63x	3.43x	5.81x	-3.22x	-2.42x	-0.17x
Total Equity+	389.01M	445.05M	674.8M	768.7M	668.9M	590.3M	1.01B	420.3M	-268M	-619.9M
Equity Growth %	0.21%	0.14%	0.52%	0.14%	-0.13%	-0.12%	0.72%	-0.59%	-1.64%	-1.31%
Book Value per Share	7.94	9.37	15.00	17.59	16.43	15.29	25.58	11.71	-7.59	-17.56
Total Shareholders' Equity	389.01M	445.05M	674.8M	768.7M	668.9M	590.3M	1.01B	420.3M	-268M	-619.9M
Common Stock	488K	488K	500K	500K	500K	500K	400K	400K	400K	400K
Retained Earnings	-18.29M	258.54M	527.9M	753.2M	781M	739.2M	741.8M	264.5M	-443M	-792.8M
Treasury Stock	0	-217.5M	-286.8M	-418.1M	-524.9M	-542.9M	-50M	-200M	-200M	-200M
Accumulated OCI	-149.72M	-170.15M	-145.6M	-142.3M	-162.4M	-186.1M	-147.2M	-131.3M	-129.6M	-142.1M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	353.25M	403.66M	391.3M	366.5M	322.5M	255.4M	452.7M	43.5M	125.3M	-22.8M
Operating CF Margin %	0.09%	0.11%	0.09%	0.08%	0.1%	0.09%	0.09%	0.01%	0.03%	-0.01%
Operating CF Growth %	2.01%	0.14%	-0.03%	-0.06%	-0.12%	-0.21%	0.77%	-0.9%	1.88%	-1.18%
Net Income	133.65M	318.31M	328.3M	292.5M	92M	7.9M	440M	-430.9M	-701.3M	-348.5M
Depreciation & Amortization	96.75M	96.46M	110.6M	130.2M	136M	92.6M	167.5M	236.9M	221.2M	210.2M
Stock-Based Compensation	9M	17.06M	13.8M	15.8M	13M	11.1M	15.2M	18.6M	0	0
Deferred Taxes	-77K	16.09M	14.8M	5.3M	-37.4M	7.9M	-2.1M	-93.3M	41.4M	-2.7M
Other Non-Cash Items	10.07M	25.66M	50.5M	-25.2M	-10.9M	52.3M	-144.9M	336.7M	348.3M	31.8M
Working Capital Changes	103.85M	-69.92M	-126.7M	-52.1M	129.3M	83.6M	-23M	-24.5M	215.7M	86.4M
Change in Receivables	65.12M	-96.4M	-51.8M	21.2M	66.6M	57.4M	-214.6M	129.1M	106.3M	99.5M
Change in Inventory	97.15M	-50.97M	-80.2M	-16M	70.7M	47.7M	-214.1M	31.8M	150.1M	46.4M
Change in Payables	-71.91M	57.12M	9.3M	-43.8M	-1.7M	-3.1M	313.1M	-192M	1.4M	-22.2M
Cash from Investing+	-106.67M	-117.3M	-182.6M	-118.7M	-109.3M	-24.2M	-1.54B	-164M	-31.7M	-55.1M
Capital Expenditures	-109.27M	-123.9M	-147.4M	-121.4M	-110.1M	-66.6M	-117.7M	-148.2M	-69.7M	-63.3M
CapEx % of Revenue	0.03%	0.03%	0.03%	0.03%	0.03%	0.02%	0.02%	0.03%	0.02%	0.02%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-413K	6.6M	900K	1M	100K	-15.6M	-1.53B	-800K	0	0
Cash from Financing+	-94.8M	-247.54M	-253M	-222.2M	-206.7M	-104.3M	1.08B	-233.7M	-42.6M	35M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	-27.3M	-58M	-66M	-65.7M	-61.8M	-21.9M	-47.5M	-17.9M	-1.7M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-28.2M	100K	-12.5M	-6M	-3.7M	2M	-36.3M	-3.2M	-3.3M	-700K
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	243.98M	279.79M	243.9M	245.1M	212.4M	188.8M	335M	-104.7M	55.6M	-86.1M
FCF Margin %	0.06%	0.08%	0.05%	0.05%	0.06%	0.07%	0.07%	-0.02%	0.02%	-0.02%
FCF Growth %	12.11%	0.15%	-0.13%	0%	-0.13%	-0.11%	0.77%	-1.31%	1.53%	-2.55%
FCF per Share	4.98	5.89	5.42	5.61	5.22	4.89	8.46	-2.92	1.58	-2.44
FCF Conversion (FCF/Net Income)	2.64x	1.27x	1.19x	1.25x	3.51x	32.33x	1.03x	-0.10x	-0.18x	0.07x
Interest Paid	121.2M	69.4M	63.3M	50.7M	39.7M	39.5M	62.4M	103.4M	0	0
Taxes Paid	58.2M	66.6M	75M	85.2M	66.3M	10.3M	37.2M	98.2M	0	0

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	37.65%	76.33%	58.63%	40.53%	12.8%	1.25%	54.88%	-60.12%	-920.95%	-
Return on Invested Capital (ROIC)	24.65%	32.7%	31.57%	21.5%	7.28%	8.28%	16.86%	-10.01%	-15.38%	-1.98%
Gross Margin	11.81%	15.81%	14.7%	11.44%	8.9%	11.7%	14.48%	5.48%	3.87%	7.56%
Net Margin	3.36%	8.56%	7.38%	6.33%	2.73%	0.29%	9.11%	-8.68%	-19.08%	-9.92%
Debt / Equity	3.04x	2.62x	1.74x	1.51x	1.86x	2.12x	2.38x	5.70x	-	-
Interest Coverage	4.31x	6.65x	7.68x	8.93x	3.63x	3.43x	5.81x	-3.22x	-2.42x	-0.17x
FCF Conversion	2.64x	1.27x	1.19x	1.25x	3.51x	32.33x	1.03x	-0.10x	-0.18x	0.07x
Revenue Growth	-22.54%	-6.43%	19.68%	3.93%	-27.02%	-18.65%	75.89%	2.86%	-25.98%	-4.41%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Polymer Solutions	-	-	-	-	-	-	-	-	-	1.38B
Polymer Solutions Growth	-	-	-	-	-	-	-	-	-	-
Engineered Materials	-	-	-	-	-	194.8M	755M	1.04B	788.6M	1.18B
Engineered Materials Growth	-	-	-	-	-	-	287.58%	38.33%	-24.49%	49.24%
Latex Binders	-	-	-	-	-	-	1.18B	1.26B	939.1M	954.3M
Latex Binders Growth	-	-	-	-	-	-	-	6.18%	-25.26%	1.62%
Polystyrene	-	-	-	1.02B	809.4M	698.9M	1.12B	1.09B	743.2M	-
Polystyrene Growth	-	-	-	-	-20.42%	-13.65%	60.08%	-2.30%	-32.01%	-
Feedstocks	-	294.49M	407.7M	386.6M	256.1M	136.8M	272.4M	248.5M	166M	-
Feedstocks Growth	-	-	38.44%	-5.18%	-33.76%	-46.58%	99.12%	-8.77%	-33.20%	-
Base Plastics	-	-	-	-	-	918.2M	1.5B	1.32B	-	-
Base Plastics Growth	-	-	-	-	-	-	63.13%	-11.68%	-	-
Latex	966.21M	925.34M	1.1B	1.07B	902.8M	767.1M	-	-	-	-
Latex Growth	-	-4.23%	18.56%	-2.56%	-15.55%	-15.03%	-	-	-	-
Synthetic Rubber	474.62M	450.69M	582.8M	572.5M	441.3M	319.7M	-	-	-	-
Synthetic Rubber Growth	-	-5.04%	29.31%	-1.77%	-22.92%	-27.55%	-	-	-	-
Performance Plastics	742.83M	693.43M	808.3M	1.58B	1.37B	-	-	-	-	-
Performance Plastics Growth	-	-6.65%	16.56%	95.18%	-13.40%	-	-	-	-	-
Basic Plastics	-	1.35B	1.55B	1.02B	-	-	-	-	-	-
Basic Plastics Growth	-	-	14.75%	-34.47%	-	-	-	-	-	-
Basic Plastics And Feedstocks	1.79B	-	-	-	-	-	-	-	-	-
Basic Plastics And Feedstocks Growth	-	-	-	-	-	-	-	-	-	-

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Europe	2.37B	2.23B	2.69B	-	-	-	-	-	-	-
Europe Growth	-	-6.06%	20.61%	-	-	-	-	-	-	-
Asia Pacific	889.45M	811.77M	1.05B	-	-	-	-	-	-	-
Asia Pacific Growth	-	-8.73%	29.52%	-	-	-	-	-	-	-
Rest Of World	157.39M	136.97M	105.1M	-	-	-	-	-	-	-
Rest Of World Growth	-	-12.98%	-23.27%	-	-	-	-	-	-	-

Frequently Asked Questions

Growth & Financials

Trinseo PLC (TSE) reported $3.13B in revenue for fiscal year 2024. This represents a 49% decrease from $6.19B in 2011.

Trinseo PLC (TSE) saw revenue decline by 4.4% over the past year.

Trinseo PLC (TSE) reported a net loss of $412.1M for fiscal year 2024.

Dividend & Returns

Yes, Trinseo PLC (TSE) pays a dividend with a yield of 8.76%. This makes it attractive for income-focused investors.

Trinseo PLC (TSE) had negative free cash flow of $96.1M in fiscal year 2024, likely due to heavy capital investments.