Chemtura Corp

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CHMT : NYSE : Basic Materials
$33.15 0.0 | 0.0%
Today's Range: 33.15 - 33.25
Avg. Daily Volume: 447500.0
03/01/17 - 3:59 PM ET

Financial Analysis


CHEMTURA CORP's gross profit margin for the third quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. 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, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.54% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)414.0444.0
EBITDA ($mil)85.077.0
EBIT ($mil)64.055.0
Net Income ($mil)25.031.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)202.0317.0
Total Assets ($mil)2226.02387.0
Total Debt ($mil)479.0517.0
Equity ($mil)983.0968.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin30.1926.35
EBITDA Margin20.5317.34
Operating Margin15.4612.39
Sales Turnover0.750.76
Return on Assets1.332.38
Return on Equity2.9579.85
Debt Q3 FY16 Q3 FY15
Current Ratio2.772.64
Debt/Capital0.330.35
Interest Expense8.07.0
Interest Coverage8.07.86


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)62.9867.17
Div / share0.00.0
EPS0.390.45
Book value / share15.6114.41
Institutional Own % n/a n/a
Avg Daily Volume459234.0965093.0

Valuation


BUY. CHEMTURA CORP's P/E ratio indicates a significant premium compared to an average of 38.55 for the Chemicals industry and a significant premium compared to the S&P 500 average of 26.53. To use another comparison, its price-to-book ratio of 2.12 indicates a discount versus the S&P 500 average of 2.96 and a significant discount versus the industry average of 6.19. 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 78.81 Peers 38.55   CHMT 16.50 Peers 16.01

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 14.24 Peers 21.12   CHMT 17.36 Peers 1.78

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.

 

Premium. 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 trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CHMT 2.12 Peers 6.19   CHMT -95.56 Peers -14.38

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 1.25 Peers 2.37   CHMT -8.00 Peers -2.81

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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