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. While CC is still in line with the averages on profitability rating, there are concerns on its financial health. CC is valued quite cheap, while showing a decent growth score. This is a good combination! Finally CC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CC was profitable.
In the past year CC has reported a negative cash flow from operations.
Of the past 5 years CC 4 years were profitable.
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 comparable to the rest of the industry.
CC's Return On Equity of 14.40% is amongst the best of the industry. CC outperforms 83.53% of its industry peers.
CC has a Return On Invested Capital of 5.42%. This is comparable to the rest of the industry: CC outperforms 58.82% of 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 of 1.50%. This is comparable to the rest of the industry: CC outperforms 43.53% of its industry peers.
CC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.90%, CC is in line with its industry, outperforming 47.06% of the companies in the same industry.
In the last couple of years the Operating Margin of CC has remained more or less at the same level.
CC has a worse Gross Margin (19.90%) than 63.53% of its industry peers.
CC's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for CC has been reduced compared to 5 years ago.
CC has a worse debt/assets ratio than last year.
2.2 Solvency
CC has an Altman-Z score of 1.67. This is a bad value and indicates that CC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CC (1.67) is comparable to the rest of the industry.
CC has a Debt/Equity ratio of 6.71. This is a high value indicating a heavy dependency on external financing.
CC has a Debt to Equity ratio of 6.71. This is amonst the worse of the industry: CC underperforms 90.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.71 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.67 |
ROIC/WACC0.68
WACC7.91%
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.
The Current ratio of CC (1.68) is worse than 60.00% of its industry peers.
A Quick Ratio of 0.86 indicates that CC may have some problems paying its short term obligations.
CC has a Quick ratio of 0.86. This is in the lower half of the industry: CC underperforms 67.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
CC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -59.93%.
The earnings per share for CC have been decreasing by -13.51% on average. This is quite bad
CC shows a decrease in Revenue. In the last year, the revenue decreased by -4.05%.
CC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.91% yearly.
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
CC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.30% yearly.
The Revenue is expected to grow by 3.60% on average over the next years.
EPS Next Y66.46%
EPS Next 2Y53.92%
EPS Next 3Y38.3%
EPS Next 5YN/A
Revenue Next Year1.96%
Revenue Next 2Y3.19%
Revenue Next 3Y3.6%
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
Based on the Price/Earnings ratio of 11.67, the valuation of CC can be described as reasonable.
Based on the Price/Earnings ratio, CC is valued cheaper than 87.06% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, CC is valued rather cheaply.
CC is valuated cheaply with a Price/Forward Earnings ratio of 7.01.
92.94% of the companies in the same industry are more expensive than CC, based on the Price/Forward Earnings ratio.
CC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 7.01 |
4.2 Price Multiples
CC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CC is cheaper than 78.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.26 |
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 38.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y53.92%
EPS Next 3Y38.3%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.15%, CC is a good candidate for dividend investing.
The stock price of CC dropped by -32.76% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.34, CC pays a better dividend. On top of this CC pays more dividend than 91.76% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, CC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.15% |
5.2 History
The dividend of CC has a limited annual growth rate of 0.25%.
CC has paid a dividend for at least 10 years, which is a reliable track record.
CC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)0.25%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
CC pays out 170.11% of its income as dividend. 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 2Y53.92%
EPS Next 3Y38.3%
14.12
+0.13 (+0.93%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners86.05%
Inst Owner Change2.81%
Ins Owners0.3%
Ins Owner Change9.77%
Market Cap2.11B
Analysts72.63
Price Target24.38 (72.66%)
Short Float %5.22%
Short Ratio4.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.15% |
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)-7.36%
PT rev (3m)-6.88%
EPS NQ rev (1m)-48.23%
EPS NQ rev (3m)-52.25%
EPS NY rev (1m)-8.38%
EPS NY rev (3m)-14.33%
Revenue NQ rev (1m)-4.14%
Revenue NQ rev (3m)-4.28%
Revenue NY rev (1m)-2.33%
Revenue NY rev (3m)-2.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 7.01 | ||
| P/S | 0.36 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.49 | ||
| P/tB | 3.8 | ||
| EV/EBITDA | 7.26 |
EPS(TTM)1.21
EY8.57%
EPS(NY)2.01
Fwd EY14.26%
FCF(TTM)-6.64
FCFYN/A
OCF(TTM)-4.24
OCFYN/A
SpS38.7
BVpS4.04
TBVpS3.71
PEG (NY)0.18
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 | 1.67 |
F-Score4
WACC7.91%
ROIC/WACC0.68
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 Y66.46%
EPS Next 2Y53.92%
EPS Next 3Y38.3%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.05%
Revenue growth 3Y-3.05%
Revenue growth 5Y0.91%
Sales Q2Q%2.42%
Revenue Next Year1.96%
Revenue Next 2Y3.19%
Revenue Next 3Y3.6%
Revenue Next 5YN/A
EBIT growth 1Y591.4%
EBIT growth 3Y-12.49%
EBIT growth 5Y0.99%
EBIT Next Year117.32%
EBIT Next 3Y43.89%
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