Chemtura CorpFind Ratings Reports
CHEMTURA CORP's gross profit margin for the first quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. CHEMTURA CORP has average liquidity. Currently, the Quick Ratio is 1.22 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 5.11% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q1 FY16||Q1 FY15|
|Net Sales ($mil)||414.0||438.0|
|Net Income ($mil)||-96.0||20.0|
|Balance Sheet||Q1 FY16||Q1 FY15|
|Cash & Equiv. ($mil)||194.0||245.0|
|Total Assets ($mil)||2269.0||2443.0|
|Total Debt ($mil)||514.0||558.0|
|Profitability||Q1 FY16||Q1 FY15|
|Gross Profit Margin||29.23||22.37|
|Return on Assets||0.88||31.8|
|Return on Equity||1.96||85.09|
|Debt||Q1 FY16||Q1 FY15|
|Share Data||Q1 FY16||Q1 FY15|
|Shares outstanding (mil)||63.96||67.1|
|Div / share||0.0||0.0|
|Book value / share||15.1||13.7|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||420421.0||460585.0|
BUY. CHEMTURA CORP's P/E ratio indicates a significant premium compared to an average of 24.44 for the Chemicals industry and a significant premium compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 1.82 indicates a discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 5.91. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.
|CHMT 131.14||Peers 24.44||CHMT 16.92||Peers 15.53|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
CHMT is trading at a significant premium to its peers.
Average. 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 valuation on par to its peers.
|CHMT 13.37||Peers 19.75||CHMT NM||Peers 2.43|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
CHMT is trading at a discount to 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.
CHMT's negative PEG ratio makes this valuation measure meaningless.
|CHMT 1.82||Peers 5.91||CHMT -97.76||Peers 43.16|
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.
|CHMT 1.02||Peers 2.18||CHMT -16.95||Peers -6.08|
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