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.


Snowflake Analysis

Reasonable growth potential second-rate 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.8%

CC

13.1%

US Chemicals

12.5%

US Market


1 Year Return

-74.7%

CC

-31.8%

US Chemicals

-12.7%

US Market

Return vs Industry: CC underperformed the US Chemicals industry which returned -31.8% over the past year.

Return vs Market: CC underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

CCIndustryMarket
7 Day15.8%13.1%12.5%
30 Day-36.0%-17.7%-14.7%
90 Day-47.4%-29.9%-21.5%
1 Year-73.1%-74.7%-22.3%-31.8%-10.9%-12.7%
3 Year-72.8%-75.1%-8.9%-26.5%12.6%5.4%
5 Yearn/a2.1%-20.2%31.9%17.5%

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?

48.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CC ($9.51) is trading below our estimate of fair value ($18.39)

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


Price To Earnings Ratio

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

PE vs Market: CC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CC is overvalued based on its PB Ratio (2.3x) compared to the US Chemicals industry average (1.3x).


Next Steps

Future Growth

How is Chemours forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

89.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: CC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CC's is expected to become profitable in the next 3 years.

Revenue vs Market: CC's revenue (3.2% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CC's revenue (3.2% 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 (48.1%).


Next Steps

Past Performance

How has Chemours performed over the past 5 years?

31.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CC is currently unprofitable.

Growing Profit Margin: CC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CC is unprofitable, but has reduced losses over the past 5 years at a rate of 31.1% per year.

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

Earnings vs Industry: CC is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-7.2%).


Return on Equity

High ROE: CC has a negative Return on Equity (-7.48%), as it is currently unprofitable.


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 ($1.5B).

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 (590.1%) is considered high.

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


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).


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: CC has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: CC has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

10.52%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CC's dividend (10.52%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: CC's dividend (10.52%) is in the top 25% of dividend payers in the US market (5.49%)


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 5 years.


Current Payout to Shareholders

Dividend Coverage: CC is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: CC's dividends in 3 years are forecast to be well covered by earnings (30.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Mark Vergnano (61yo)

4.67s

Tenure

US$7,695,644

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 ($USD7.70M) is above average for companies of similar size in the US market ($USD4.58M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Vergnano
President4.67yrsUS$7.70m0.46% $7.2m
Sameer Ralhan
Senior VP0.75yrUS$1.74m0.15% $2.4m
Mark Newman
Senior VP & COO0.75yrUS$2.75m0.081% $1.3m
David Shelton
Senior VP5.33yrsUS$1.68m0.067% $1.0m
E. Snell
President of Titanium Technologies4.83yrsUS$1.75m0.087% $1.3m
Edwin Sparks
President of Chemical Solutions & Fluoroproducts1.92yrsUS$1.58m0.0050% $78.8k
Matthew Abbott
VP, Chief Accounting Officer & Controller0.58yrno data0.013% $207.8k
Jonathan Lock
Vice President of Corporate Development & Investor Relations1.83yrsno datano data
Erich Parker
Senior VP of Corporate Communications & Chief Brand Officer5yrsno data0.027% $426.9k
Susan Kelliher
Senior Vice President of Human Resources & Health Servicesno datano data0.0080% $125.4k

1.9yrs

Average Tenure

55yo

Average Age

Experienced Management: CC's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mark Vergnano
President4.67yrsUS$7.70m0.46% $7.2m
Bradley Bell
Independent Director4.67yrsUS$265.00k0.012% $194.0k
Richard Brown
Independent Chairman of the Board4.67yrsUS$355.00k0.012% $190.1k
Curtis Crawford
Independent Director4.67yrsUS$260.00k0.000050% $779.8
Mary Cranston
Independent Director4.67yrsUS$260.00k0.0017% $27.0k
Curtis Anastasio
Independent Director4.67yrsUS$245.00k0.0038% $59.0k
Dawn Farrell
Independent Director5.17yrsUS$245.00kno data
Sean Keohane
Independent Director1.83yrsUS$245.00kno data
Erin Kane
Independent Director0.75yrUS$195.00kno data

4.7yrs

Average Tenure

62yo

Average Age

Experienced Board: CC's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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:
  • Industry: Diversified Chemicals
  • Sector: Materials
  • Market Cap: US$1.560b
  • Shares outstanding: 164.01m
  • Website: https://www.chemours.com

Number of Employees


Location

  • The Chemours Company
  • 1007 Market Street
  • Wilmington
  • Delaware
  • 19801
  • 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
2CUBRSE (Berne Stock Exchange)YesCommon StockCHCHFJun 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 Solutions, and Titanium Technologies. The Fluoroproducts segment offers fluorochemicals, including refrigerants, foam blowing agents, and propellants under the Freon and Opteon brand names; and fluoropolymers, such as industrial resins, specialty products, and coatings under the Teflon, Viton, Krytox, and Nafion brands. The Chemical Solutions segment provides industrial chemicals, including sodium and hydrogen cyanide, glycolic acid, vazo, and aniline for gold and silver production, oil and gas, water treatment, electronics, and automotive industries. The Titanium Technologies segment manufactures and sells titanium dioxide pigments under the Ti-Pure and BaiMax brands for applications in architectural and industrial coatings, flexible and rigid plastic packaging, polyvinylchloride, laminate papers used for furniture and building materials, and coated papers and paperboards used for packaging. The Chemours Company is headquartered in Wilmington, Delaware. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 04:28
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.