DB:1EC

Stock Analysis Report

Venator Materials

Executive Summary

Venator Materials PLC manufactures and markets chemical products worldwide.

Snowflake

Fundamentals

Overvalued with worrying balance sheet.


Similar Companies

Share Price & News

How has Venator Materials's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

9.0%

1EC

1.6%

DE Chemicals

1.7%

DE Market


1 Year Return

-70.3%

1EC

-1.9%

DE Chemicals

7.2%

DE Market

Return vs Industry: 1EC underperformed the German Chemicals industry which returned -1.9% over the past year.

Return vs Market: 1EC underperformed the German Market which returned 7.2% over the past year.


Shareholder returns

1ECIndustryMarket
7 Day9.0%1.6%1.7%
30 Day-15.5%3.3%2.4%
90 Day-40.4%1.3%2.3%
1 Year-70.3%-70.3%2.0%-1.9%10.6%7.2%
3 Yearn/a-2.8%-11.9%18.4%8.1%
5 Yearn/a22.2%3.5%42.3%22.9%

Price Volatility Vs. Market

How volatile is Venator Materials's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Venator Materials undervalued compared to its fair value and its price relative to the market?

0.32x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 1EC (€2.18) is trading above our estimate of fair value (€0.48)

Significantly Below Fair Value: 1EC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1EC is unprofitable, so we can't compare its PE Ratio to the Chemicals industry average.

PE vs Market: 1EC is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1EC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1EC is good value based on its PB Ratio (0.3x) compared to the DE Chemicals industry average (1.7x).


Next Steps

Future Growth

How is Venator Materials forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

74.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1EC is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 1EC is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 1EC is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 1EC's revenue (4% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: 1EC's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1EC's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has Venator Materials performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1EC is unprofitable, but has reduced losses over the past 5 years at a rate of 10.8% per year.

Accelerating Growth: Unable to compare 1EC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1EC is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-5.5%).


Return on Equity

High ROE: 1EC has a negative Return on Equity (-46.84%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: 1EC is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 1EC is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Venator Materials's financial position?


Financial Position Analysis

Short Term Liabilities: 1EC's short term assets ($1.1B) exceeds its short term liabilities ($470.0M)

Long Term Liabilities: 1EC's short term assets (1.1B) do not cover its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: 1EC's debt to equity ratio (92.3%) is considered high

Reducing Debt: Insufficient data to determine if 1EC's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 1EC has a high level of physical assets or inventory.

Debt Coverage by Assets: 1EC's debt is covered by short term assets (assets are 1.290950x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 1EC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 1EC has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Venator Materials's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage4.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 1EC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1EC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 1EC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1EC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1EC's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Venator Materials's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Simon Turner (56yo)

2.5yrs

Tenure

US$7,525,090

Compensation

Mr. Simon Turner has been the Chief Executive Officer and President at Venator Materials PLC since April 28, 2017. Mr. Turner served as the Division President of Pigments and Additives at Huntsman Internat ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Simon's total compensation is reasonable compared to companies of similar size in the German market.

Compensation vs Earnings: Simon's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

2.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: 1EC's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

2.2yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 1EC's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 1EC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$9,59116 Aug 19
Douglas Anderson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,300
Max PriceUS$1.81
BuyUS$8,26514 Aug 19
Kurt Ogden
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares5,000
Max PriceUS$1.65
BuyUS$29,73413 Aug 19
Kurt Ogden
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares15,000
Max PriceUS$1.98
BuyUS$22,10912 Aug 19
Russ Stolle
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares10,000
Max PriceUS$2.21
BuyUS$96,03508 Aug 19
Simon Turner
EntityIndividual
Role
Chief Executive Officer
President
Shares40,000
Max PriceUS$2.40
BuyUS$143,91908 Aug 19
Kathy Patrick
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares60,000
Max PriceUS$2.40
BuyUS$42,13130 May 19
Kathy Patrick
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,500
Max PriceUS$4.01
BuyUS$119,44701 Nov 18
Kathy Patrick
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$5.97

Ownership Breakdown


Management Team

  • Russ Stolle (57yo)

    Executive VP

    • Tenure: 2.8yrs
    • Compensation: US$1.79m
  • Simon Turner (56yo)

    President

    • Tenure: 2.5yrs
    • Compensation: US$7.53m
  • Kurt Ogden (51yo)

    Executive VP & CFO

    • Tenure: 2.8yrs
    • Compensation: US$1.90m
  • Stephen Ibbotson (59yo)

    VP, Corporate Controller & Principal Accounting Officer

    • Tenure: 0yrs
  • Jeffrey Schnell

    Investor Relations Director

    • Tenure: 0yrs
  • Mahomed Maiter (58yo)

    Executive Vice President of Business Operations

    • Tenure: 2.8yrs
    • Compensation: US$1.19m
  • Sean Pettey

    Assistant Secretary

    • Tenure: 0yrs
  • Karen Fenwick

    Vice President Corporate Branding & Communications

    • Tenure: 0yrs
  • Rob Portsmouth (53yo)

    Senior Vice President of EHS

    • Tenure: 1.8yrs

Board Members

  • Rob Margetts (73yo)

    Vice Chairman & Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$240.00k
  • Peter Huntsman (56yo)

    Chairman

    • Tenure: 2.5yrs
    • Compensation: US$220.00k
  • Simon Turner (56yo)

    President

    • Tenure: 2.5yrs
    • Compensation: US$7.53m
  • Daniele Ferrari (58yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$220.00k
  • Douglas Anderson (69yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$235.00k
  • Kathy Patrick (59yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$225.00k

Company Information

Venator Materials PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Venator Materials PLC
  • Ticker: 1EC
  • Exchange: DB
  • Founded: 2017
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$261.069m
  • Listing Market Cap: US$234.335m
  • Shares outstanding: 106.56m
  • Website: https://www.venatorcorp.com

Number of Employees


Location

  • Venator Materials PLC
  • Titanium House
  • Hanzard Drive
  • Stockton-On-Tees
  • County Durham
  • TS22 5FD
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VNTRNYSE (New York Stock Exchange)YesOrdinary SharesUSUSDAug 2017
1ECDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2017

Biography

Venator Materials PLC manufactures and markets chemical products worldwide. It operates through two segments, Titanium Dioxide and Performance Additives. The Titanium Dioxide segment offers titanium dioxid ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 21:54
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.