CHEMOURS CO/THE (CC) Stock Fundamental Analysis
NYSE:CC - New York Stock Exchange, Inc. - US1638511089 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to CC. CC was compared to 85 industry peers in the Chemicals industry. There are concerns on the financial health of CC while its profitability can be described as average. CC may be a bit undervalued, certainly considering the very reasonable score on growth Finally CC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CC had positive earnings in the past year.
CC had a negative operating cash flow in the past year.
CC had positive earnings in 4 of the past 5 years.
Of the past 5 years CC 4 years had a positive operating cash flow.
1.2 Ratios
CC has a Return On Assets (1.16%) which is in line with its industry peers.
CC's Return On Equity of 14.40% is amongst the best of the industry. CC outperforms 82.35% of its industry peers.
CC has a Return On Invested Capital (5.42%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.16% | ||
| ROE | 14.4% | ||
| ROIC | 5.42% |
ROA(3y)1.94%
ROA(5y)3.39%
ROE(3y)11.39%
ROE(5y)23.47%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CC has a Profit Margin (1.50%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CC has declined.
The Operating Margin of CC (7.90%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CC has remained more or less at the same level.
CC's Gross Margin of 19.90% is on the low side compared to the rest of the industry. CC is outperformed by 64.71% of its industry peers.
In the last couple of years the Gross Margin of CC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.9% | ||
| PM (TTM) | 1.5% | ||
| GM | 19.9% |
OM growth 3Y-9.74%
OM growth 5Y0.08%
PM growth 3Y-46.26%
PM growth 5YN/A
GM growth 3Y-2.93%
GM growth 5Y0.69%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CC is destroying value.
CC has more shares outstanding than it did 1 year ago.
CC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.63, we must say that CC is in the distress zone and has some risk of bankruptcy.
CC has a Altman-Z score of 1.63. This is comparable to the rest of the industry: CC outperforms 45.88% of its industry peers.
CC has a Debt/Equity ratio of 6.71. This is a high value indicating a heavy dependency on external financing.
CC's Debt to Equity ratio of 6.71 is on the low side compared to the rest of the industry. CC is outperformed by 90.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.63 |
ROIC/WACC0.7
WACC7.69%
2.3 Liquidity
CC has a Current Ratio of 1.68. This is a normal value and indicates that CC is financially healthy and should not expect problems in meeting its short term obligations.
CC's Current ratio of 1.68 is in line compared to the rest of the industry. CC outperforms 42.35% of its industry peers.
CC has a Quick Ratio of 1.68. This is a bad value and indicates that CC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of CC (0.86) is worse than 65.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
The earnings per share for CC have decreased strongly by -59.93% in the last year.
Measured over the past years, CC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -13.51% on average per year.
Looking at the last year, CC shows a decrease in Revenue. The Revenue has decreased by -4.05% in the last year.
The Revenue has been growing slightly by 0.91% on average over the past years.
EPS 1Y (TTM)-59.93%
EPS 3Y-32.82%
EPS 5Y-13.51%
EPS Q2Q%-64.52%
Revenue 1Y (TTM)-4.05%
Revenue growth 3Y-3.05%
Revenue growth 5Y0.91%
Sales Q2Q%2.42%
3.2 Future
The Earnings Per Share is expected to grow by 38.39% on average over the next years. This is a very strong growth
CC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.69% yearly.
EPS Next Y56.43%
EPS Next 2Y49.37%
EPS Next 3Y38.39%
EPS Next 5YN/A
Revenue Next Year2.36%
Revenue Next 2Y3.23%
Revenue Next 3Y3.69%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.39, the valuation of CC can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CC indicates a rather cheap valuation: CC is cheaper than 84.71% of the companies listed in the same industry.
CC is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.00 indicates a rather cheap valuation of CC.
CC's Price/Forward Earnings ratio is rather cheap when compared to the industry. CC is cheaper than 95.29% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CC to the average of the S&P500 Index (21.32), we can say CC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CC is valued a bit cheaper than the industry average as 72.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.72 |
4.3 Compensation for Growth
CC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CC's earnings are expected to grow with 38.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y49.37%
EPS Next 3Y38.39%
5. Dividend
5.1 Amount
CC has a Yearly Dividend Yield of 8.80%, which is a nice return.
In the last 3 months the price of CC has falen by -41.44%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.98, CC pays a better dividend. On top of this CC pays more dividend than 90.59% of the companies listed in the same industry.
CC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.8% |
5.2 History
The dividend of CC has a limited annual growth rate of 0.25%.
CC has been paying a dividend for at least 10 years, so it has a reliable track record.
As CC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)0.25%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
170.11% of the earnings are spent on dividend by CC. This is not a sustainable payout ratio.
The dividend of CC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP170.11%
EPS Next 2Y49.37%
EPS Next 3Y38.39%
11.36
+0.34 (+3.09%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners86.05%
Inst Owner Change-0.01%
Ins Owners0.3%
Ins Owner Change9.77%
Market Cap1.70B
Analysts73.68
Price Target24.07 (111.88%)
Short Float %5.94%
Short Ratio4.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.8% |
Yearly Dividend0.99
Dividend Growth(5Y)0.25%
DP170.11%
Div Incr Years0
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.3%
Min EPS beat(2)-8.2%
Max EPS beat(2)36.8%
EPS beat(4)2
Avg EPS beat(4)15.75%
Min EPS beat(4)-35.5%
Max EPS beat(4)69.9%
EPS beat(8)4
Avg EPS beat(8)21.62%
EPS beat(12)7
Avg EPS beat(12)14.17%
EPS beat(16)10
Avg EPS beat(16)12.99%
Revenue beat(2)1
Avg Revenue beat(2)0.22%
Min Revenue beat(2)-0.64%
Max Revenue beat(2)1.08%
Revenue beat(4)1
Avg Revenue beat(4)-1.21%
Min Revenue beat(4)-2.88%
Max Revenue beat(4)1.08%
Revenue beat(8)3
Avg Revenue beat(8)-1.58%
Revenue beat(12)7
Avg Revenue beat(12)0.26%
Revenue beat(16)9
Avg Revenue beat(16)0.55%
PT rev (1m)-1.26%
PT rev (3m)-8.84%
EPS NQ rev (1m)-5.17%
EPS NQ rev (3m)-51.46%
EPS NY rev (1m)-6.02%
EPS NY rev (3m)-19.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.72%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)-2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 6 | ||
| P/S | 0.29 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.81 | ||
| P/tB | 3.06 | ||
| EV/EBITDA | 6.72 |
EPS(TTM)1.21
EY10.65%
EPS(NY)1.89
Fwd EY16.66%
FCF(TTM)-6.64
FCFYN/A
OCF(TTM)-4.24
OCFYN/A
SpS38.7
BVpS4.04
TBVpS3.71
PEG (NY)0.17
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.16% | ||
| ROE | 14.4% | ||
| ROCE | 8% | ||
| ROIC | 5.42% | ||
| ROICexc | 6.19% | ||
| ROICexgc | 6.25% | ||
| OM | 7.9% | ||
| PM (TTM) | 1.5% | ||
| GM | 19.9% | ||
| FCFM | N/A |
ROA(3y)1.94%
ROA(5y)3.39%
ROE(3y)11.39%
ROE(5y)23.47%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-17.6%
ROICexcg growth 5Y-0.48%
ROICexc growth 3Y-17.16%
ROICexc growth 5Y0.07%
OM growth 3Y-9.74%
OM growth 5Y0.08%
PM growth 3Y-46.26%
PM growth 5YN/A
GM growth 3Y-2.93%
GM growth 5Y0.69%
F-Score4
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.71 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.35 | ||
| Cap/Depr | 119.6% | ||
| Cap/Sales | 6.23% | ||
| Interest Coverage | 1.71 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 1.63 |
F-Score4
WACC7.69%
ROIC/WACC0.7
Cap/Depr(3y)115.21%
Cap/Depr(5y)103.29%
Cap/Sales(3y)5.63%
Cap/Sales(5y)5.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-59.93%
EPS 3Y-32.82%
EPS 5Y-13.51%
EPS Q2Q%-64.52%
EPS Next Y56.43%
EPS Next 2Y49.37%
EPS Next 3Y38.39%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.05%
Revenue growth 3Y-3.05%
Revenue growth 5Y0.91%
Sales Q2Q%2.42%
Revenue Next Year2.36%
Revenue Next 2Y3.23%
Revenue Next 3Y3.69%
Revenue Next 5YN/A
EBIT growth 1Y591.4%
EBIT growth 3Y-12.49%
EBIT growth 5Y0.99%
EBIT Next Year106.78%
EBIT Next 3Y37.08%
EBIT Next 5YN/A
FCF growth 1Y-633.87%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-213.85%
OCF growth 3YN/A
OCF growth 5YN/A