Chemtura Corp

Find Ratings Reports
CHMT : NYSE : Basic Materials
$29.70 | %
Today's Range: 29.46 - 30.82
Avg. Daily Volume: 428,200
08/26/16 - 4:02 PM ET

Financial Analysis


CHEMTURA CORP's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. CHEMTURA CORP has average liquidity. Currently, the Quick Ratio is 1.32 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.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.12% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)441.0464.0
EBITDA ($mil)79.067.0
EBIT ($mil)57.044.0
Net Income ($mil)34.019.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)186.0309.0
Total Assets ($mil)2221.02449.0
Total Debt ($mil)476.0517.0
Equity ($mil)963.0974.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin27.4424.57
EBITDA Margin17.9114.43
Operating Margin12.939.48
Sales Turnover0.760.79
Return on Assets1.5730.91
Return on Equity3.6377.72
Debt Q2 FY16 Q2 FY15
Current Ratio2.682.81
Debt/Capital0.330.35
Interest Expense8.08.0
Interest Coverage7.135.5


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)63.2167.81
Div / share0.00.0
EPS0.530.26
Book value / share15.2414.36
Institutional Own % n/a n/a
Avg Daily Volume412470.0447272.0

Valuation


BUY. CHEMTURA CORP's P/E ratio indicates a significant premium compared to an average of 24.64 for the Chemicals industry and a significant premium compared to the S&P 500 average of 25.30. To use another comparison, its price-to-book ratio of 2.05 indicates a discount versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 5.74. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CHMT 65.00 Peers 24.64   CHMT 15.26 Peers 15.64

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CHMT 14.72 Peers 20.67   CHMT NM Peers 1.67

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CHMT 2.05 Peers 5.74   CHMT -94.77 Peers 91.83

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 1.16 Peers 2.26   CHMT -11.89 Peers -7.46

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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