NYSE:CC

Stock Analysis Report

Executive Summary

The Chemours Company provides performance chemicals in North America, the Asia Pacific, Europe, the Middle East, Africa, and Latin America.

Rewards

Trading at 34.3% below its fair value

Earnings are forecast to grow 16.39% per year

Risk Analysis

Debt is not well covered by operating cash flow

Unstable dividend track record

Profit margins (7.2%) are lower than last year (16%)



Snowflake Analysis

Undervalued average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.6%

CC

-0.5%

US Chemicals

-0.3%

US Market


1 Year Return

-36.1%

CC

1.7%

US Chemicals

18.6%

US Market

Return vs Industry: CC underperformed the US Chemicals industry which returned -1% over the past year.

Return vs Market: CC underperformed the US Market which returned 15.5% over the past year.


Shareholder returns

CCIndustryMarket
7 Day5.6%-0.5%-0.3%
30 Day-15.1%-1.6%2.2%
90 Day13.8%4.9%5.6%
1 Year-32.8%-36.1%17.4%1.7%21.1%18.6%
3 Year-31.5%-36.4%32.6%7.6%45.6%36.2%
5 Yearn/a53.3%20.4%71.1%52.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

34.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CC ($16.68) is trading below our estimate of fair value ($25.38)

Significantly Below Fair Value: CC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CC is good value based on its PE Ratio (6.8x) compared to the Chemicals industry average (20.2x).

PE vs Market: CC is good value based on its PE Ratio (6.8x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: CC is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: CC is overvalued based on its PB Ratio (3.3x) compared to the US Chemicals industry average (2.2x).


Next Steps

Future Growth

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

16.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CC's forecast earnings growth (16.4% per year) is above the savings rate (1.7%).

Earnings vs Market: CC's earnings (16.4% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: CC's earnings are forecast to grow, but not significantly.

Revenue vs Market: CC's revenue (4.8% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: CC's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CC's Return on Equity is forecast to be very high in 3 years time (61.7%).


Next Steps

Past Performance

How has Chemours performed over the past 5 years?

35.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CC has high quality earnings.

Growing Profit Margin: CC's current net profit margins (7.2%) are lower than last year (16%).


Past Earnings Growth Analysis

Earnings Trend: CC's earnings have grown significantly by 35% per year over the past 5 years.

Accelerating Growth: CC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CC had negative earnings growth (-62.4%) over the past year, making it difficult to compare to the Chemicals industry average (-17%).


Return on Equity

High ROE: Whilst CC's Return on Equity (48.28%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Chemours's financial position?


Financial Position Analysis

Short Term Liabilities: CC's short term assets ($2.8B) exceed its short term liabilities ($1.6B).

Long Term Liabilities: CC's short term assets ($2.8B) do not cover its long term liabilities ($5.0B).


Debt to Equity History and Analysis

Debt Level: CC's debt to equity ratio (486%) is considered high.

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

Debt Coverage: CC's debt is not well covered by operating cash flow (12.4%).

Interest Coverage: CC's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet

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

Debt Coverage by Assets: CC's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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

6.00%

Current Dividend Yield


Dividend Yield vs Market

company6.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years6.3%

Current dividend yield vs market & industry

Notable Dividend: CC's dividend (6%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: CC's dividend (6%) is in the top 25% of dividend payers in the US market (3.71%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CC has been paying a dividend for less than 10 years.

Growing Dividend: CC's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41%), CC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CC's dividends in 3 years are forecast to be well covered by earnings (25.7% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Mark Vergnano (61yo)

4.4yrs

Tenure

US$8,076,729

Compensation

Mr. Mark P. Vergnano has been the Chief Executive Officer and President at The Chemours Company since July 01, 2015. Mr. Vergnano served as the Chief Executive Officer of Performance Chemicals at E. I. du  ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD8.08M) is above average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.7yrs

Average Tenure

55.5yo

Average Age

Experienced Management: CC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

4.4yrs

Average Tenure

62yo

Average Age

Experienced Board: CC's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$328,34014 Sep 19
Mark Newman
EntityIndividual
Role
Chief Operating Officer
Senior VP & COO
Shares20,000
Max PriceUS$16.42
BuyUS$25,04209 Aug 19
Mary Cranston
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,790
Max PriceUS$13.99
BuyUS$207,25707 Aug 19
David Shelton
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares15,000
Max PriceUS$13.82
BuyUS$165,24007 Aug 19
E. Snell
EntityIndividual
Role
Senior Key Executive
President of Titanium Technologies
Shares12,000
Max PriceUS$13.77
BuyUS$73,35007 Aug 19
Bradley Bell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$14.67
BuyUS$49,52507 Aug 19
Curtis Anastasio
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceUS$14.15
BuyUS$1,019,46711 Jun 19
Mark Vergnano
EntityIndividual
Role
Chief Executive Officer
President
Shares44,000
Max PriceUS$23.17
BuyUS$149,87821 May 19
Susan Kelliher
EntityIndividual
Role
Head of Human Resources
Senior Vice President of Human Resources & Health Services
Shares6,500
Max PriceUS$23.06
BuyUS$24,96621 May 19
Mary Cranston
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,044
Max PriceUS$23.91
BuyUS$120,30020 May 19
Bradley Bell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$24.06
SellUS$42,22815 Mar 19
Amy Trojanowski
EntityIndividual
Shares1,080
Max PriceUS$39.10
SellUS$2,265,37514 Mar 19
Mark Newman
EntityIndividual
Role
Chief Operating Officer
Senior VP & COO
Shares59,210
Max PriceUS$38.26
SellUS$386,60027 Feb 19
Paul Kirsch
EntityIndividual
Shares10,000
Max PriceUS$38.66

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Mark Vergnano (61yo)

    President

    • Tenure: 4.4yrs
    • Compensation: US$8.08m
  • Mark Newman (56yo)

    Senior VP & COO

    • Tenure: 0.5yrs
    • Compensation: US$2.30m
  • Susan Kelliher (52yo)

    Senior Vice President of Human Resources & Health Services

    • Tenure: 0yrs
  • Sameer Ralhan

    Senior VP

    • Tenure: 0.5yrs
  • E. Snell (62yo)

    President of Titanium Technologies

    • Tenure: 4.6yrs
    • Compensation: US$1.68m
  • Erich Parker (68yo)

    Senior VP of Corporate Communications & Chief Brand Officer

    • Tenure: 4.8yrs
  • Dave Shelton (55yo)

    Senior VP

    • Tenure: 5.1yrs
    • Compensation: US$1.75m
  • Ed Sparks (45yo)

    President of Chemical Solutions & Fluoroproducts

    • Tenure: 1.7yrs
  • Jonathan Lock

    Vice President of Corporate Development & Investor Relations

    • Tenure: 1.6yrs
  • Matthew Abbott (43yo)

    VP, Chief Accounting Officer & Controller

    • Tenure: 0.3yrs

Board Members

  • Brad Bell (66yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$250.05k
  • Dick Brown (71yo)

    Independent Chairman of the Board

    • Tenure: 4.4yrs
    • Compensation: US$340.05k
  • Curt Crawford (71yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$245.05k
  • Mary Cranston (71yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$237.55k
  • Curt Anastasio (62yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$230.05k
  • Dawn Farrell (59yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$230.05k
  • Sean Keohane (52yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$205.05k
  • Mark Vergnano (61yo)

    President

    • Tenure: 4.4yrs
    • Compensation: US$8.08m
  • Erin Kane (42yo)

    Independent Director

    • Tenure: 0.5yrs

Company Information

The Chemours Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Chemours Company
  • Ticker: CC
  • Exchange: NYSE
  • Founded: 2014
  • Industry: Diversified Chemicals
  • Sector: Materials
  • Market Cap: US$2.516b
  • Shares outstanding: 163.50m
  • Website: https://www.chemours.com

Number of Employees


Location

  • The Chemours Company
  • 1007 Market Street
  • Wilmington
  • Delaware
  • 19899
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CCNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2015
CC *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 2015
2CUDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2015
0HWGLSE (London Stock Exchange)YesCommon StockGBUSDJun 2015

Biography

The Chemours Company provides performance chemicals in North America, the Asia Pacific, Europe, the Middle East, Africa, and Latin America. It operates through three segments: Fluoroproducts, Chemical Solu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 00:49
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
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.