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Chemtura Corp
CHMT : NYSE : Basic Materials

$22.80 -0.60 | -2.56%
Today's Range: 22.75 - 23.50
Avg. Daily Volume: 1,178,800
04/23/14 - 4:02 PM ET

Financial Analysis


CHEMTURA CORP's gross profit margin for the fourth quarter of its fiscal year 2013 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. CHEMTURA CORP has strong liquidity. Currently, the Quick Ratio is 1.87 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 5.93% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY13 Q4 FY12
Net Sales ($mil)544.0533.0
EBITDA ($mil)58.050.0
EBIT ($mil)34.029.0
Net Income ($mil)-21.020.0


Balance Sheet Q4 FY13 Q4 FY12
Cash & Equiv. ($mil)549.0363.0
Total Assets ($mil)2704.03030.0
Total Debt ($mil)898.0876.0
Equity ($mil)998.01061.0


Profitability Q4 FY13 Q4 FY12
Gross Profit Margin24.4523.08
EBITDA Margin10.669.38
Operating Margin6.255.44
Sales Turnover0.830.72
Return on Assets-6.543.33
Return on Equity-2.29.7
Debt Q4 FY13 Q4 FY12
Current Ratio3.063.15
Debt/Capital0.470.45
Interest Expense15.017.0
Interest Coverage2.271.71


Share Data Q4 FY13 Q4 FY12
Shares outstanding (mil)96.598.0
Div / share0.00.0
EPS0.130.19
Book value / share10.3410.83
Institutional Own % n/a n/a
Avg Daily Volume1034360.0936682.0

Valuation


SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. To use another comparison, its price-to-book ratio of 2.44 indicates valuation on par with the S&P 500 average of 2.56 and a significant discount versus the industry average of 4.21. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, CHEMTURA CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CHMT NM Peers 21.54   CHMT 30.79 Peers 16.31

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

CHMT's P/E is negative making this valuation measure meaningless.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

CHMT is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CHMT 15.28 Peers 19.15   CHMT NA Peers 1.32

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

CHMT is trading at a valuation on par with its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CHMT 2.44 Peers 4.21   CHMT -122.33 Peers 68.96

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

CHMT is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, CHMT is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CHMT 1.09 Peers 2.45   CHMT 1.59 Peers 3.97

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

CHMT is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

CHMT significantly trails its peers on the basis of sales growth

 

 

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