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CC

Chemours NYSE:CC Stock Report

Last Price

US$37.19

Market Cap

US$5.8b

7D

3.3%

1Y

18.5%

Updated

18 Aug, 2022

Data

Company Financials +
CC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health4/6
Dividends3/6

CC Stock Overview

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

The Chemours Company Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Chemours
Historical stock prices
Current Share PriceUS$37.19
52 Week HighUS$44.95
52 Week LowUS$22.56
Beta1.82
1 Month Change9.80%
3 Month Change-8.85%
1 Year Change18.48%
3 Year Change180.68%
5 Year Change-21.69%
Change since IPO85.67%

Recent News & Updates

Aug 08
Here's Why Chemours (NYSE:CC) Has Caught The Eye Of Investors

Here's Why Chemours (NYSE:CC) Has Caught The Eye Of Investors

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...

Jul 23
Is Now The Time To Look At Buying The Chemours Company (NYSE:CC)?

Is Now The Time To Look At Buying The Chemours Company (NYSE:CC)?

While The Chemours Company ( NYSE:CC ) might not be the most widely known stock at the moment, it saw a decent share...

Jul 21

Chemours Company - 'Hold' Was The Right Call - Moving To 'Buy'

I was somewhat uncertain about my "HOLD" stance in my last article, given on how much of a tear Chemours was. However, the past 2 months have vindicated the stance. Chemours is down more than 2X the S&P 500 in the same timeframe. While this is short, it shows us that the market believed the company mispriced. At this valuation, things are looking better. I'll update my Chemours thesis and show you what I think of the company. My articles on Chemours Company (CC) is part of SA's current sole coverage on the company. Very few contributors seem to be following this business, which can be considered a bit of a shame. My article 2 pieces ago specifically guided for a "HOLD" with a $25 PT. Imagine my surprise when only a few days later, my price alert went off and the company dropped below $25/share. I bought a few shares and kept an eye on the company. There's no doubt that Chemours remains a very volatile business. But as with other chemical businesses I invest in, this might eventually be enough to give us an upside here. Let us see, therefore, what a 16%+ drop does to the appeal of Chemours Company. Revisiting Chemours Company Chemours will continue to be a play on volatile commodity pricing that's influenced by macro as well as the overall uncertainty and pricing levels and impacts that we're currently seeing. In my last article, I pointed out a recent price drop on Chemours, that would be followed by yet another price drop only a short time later. While 4Q21 results weren't exactly bad, 1Q22 were actually fairly positive. These results saw sales increases and fundamental strength in the entire portfolio. With GAAP EPS more than doubling YoY, and EBITDA up 50%+ on an adjusted basis, investors could be excused for expecting Chemours to continue to outperform here. I maintain my stance that for the most part, Chemours is positive here. There are risks to any company - CC included - but focusing on these comes at a cost of ignoring what is obviously a significant potential long-term positive in terms of demand. Chemical companies have seen these sort of positive demand trends for over a year now. Companies, CC included, have been able to push price increases in order to retain their margins and offset the cost increases that we're currently seeing across the entire market. Chemours Opteon Applications (CC IR) What has happened in Ukraine - but for CC, I see this as a net positive. Moving into a more pressured environment with more tightness on the availability side, companies like Chemours are like as not to see improved levels and trends here. I believe that as we move into a higher rate and pressured environment, it's companies like this that will shine. The favorable pricing dynamic we're seeing is one that I expect will continue going forward, and what we saw in terms of EBITDA will only continue. We could see this in the last quarter, with the current pricing momentum essentially meaning that Chemours dictates the pricing and can charge a hefty premium for what it sells. This fact continues to outweigh the higher variable input costs, hailing from a mix of feedstock price inflation, operating costs, labor costs, and logistical costs. Chemours Opteon (CC IR) The company also managed to greatly improve its net debt, which is now solidly below 2x in terms of TTM net leverage, and gross debt of around $2.6B, with an ending cash balance of $1.145B, and total liquidity inclusive of debt and revolvers at almost $2B. Chemours has no need to tap debt or equity in the near future from a cash point of view. Chemours 1Q22 Highlights (CC IR) The company saw excellent performance across the board from its various segments. We could point to its Titanium technologies segment, which saw an almost 30% YoY sales increase, but the true stars of the quarter were the thermal and specialized solutions segment. Thermal and specialized solutions saw 40% net sales growth, with again, strong pricing and market dynamics and over 11% EBITDA margin increase despite feedstock pricing, energy pricing, and logistics. The company fully expects the upside to continue, with normal seasonal sales patterns for the business. For Advanced performance materials, the company delivered record sales with double-digit sales increases and pricing pushes, similar trends to the other segments. Adjusted EBITDA margins rose by 6%, again despite headwinds, and these markets are expected to remain strong as well. All of these trends were so good that the company bumped its guidance, to where the only way it comes in at the low end of the assumption range, is if the supply chain conditions materially continue to deteriorate across the board, or if we see even higher spiking energy costs for the company - or if China shutdowns last significantly longer. If any of the upside assumptions, such as recovery, starts materializing, CC expects an EPS that trends slightly north of $5.5 and over half a billion in free cash flow with adjusted EBITDA of over $1.5B. Chemours shareholder rewarding policy comes into focus here. Unfortunately, the company is not big on bumping its dividend. Instead, the majority of FCF goes to Shareholders in the form of buybacks up to $750M until 2025. The yield for the company, despite drops, is no higher than 2.95% here. This is low no matter how you slice it, given that there are EU chemical companies with better fundamentals that come higher than 5% here. That makes investing in a company with a lower yield a little tricky, despite Chemours being a "good" business. Let's look at some valuations and trends for this company and see what we want to get a decent upside going. The Chemours Company - Valuation and target There is no doubt to my mind that there is plenty of upside to be had for Chemours. I haven't had a heavy position in the company for many years, but at this valuation, which is now back down to less than 7.5X, it's time to seriously start considering Chemours. Some data. If you invested during the COVID-19 crash, your current RoR for Chemours would be nearly 250%. That's from the company trading at a P/E below 5X. Below 7.5X is therefore low, but not record-low as such. Still, the company isn't expecting the sort of 2019-2020 earnings deterioration that caused the decline in share price. Instead, forecasts and company guidance are expecting the company's earnings to grow by almost 35% in this fiscal, followed by another 8% and 14% for 2023 and 2024E, respectively. Add to this that Chemours, unlike what you might expect, actually has a decent trend of beating estimates. Chemours Company Forecast Accuracy (FAST Graphs) For this reason, I view it as plausible that the company might actually deliver much better results than we expect them to do. Even if they do not, and results are more moderated or towards the negative, you'll still have bought one of the world's more significant refrigeration gas/product companies at what can only be described as a significant discount.

Shareholder Returns

CCUS ChemicalsUS Market
7D3.3%1.5%1.4%
1Y18.5%-0.9%-8.4%

Return vs Industry: CC exceeded the US Chemicals industry which returned -1.9% over the past year.

Return vs Market: CC exceeded the US Market which returned -9% over the past year.

Price Volatility

Is CC's price volatile compared to industry and market?
CC volatility
CC Average Weekly Movement6.4%
Chemicals Industry Average Movement6.6%
Market Average Movement7.6%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.1%

Stable Share Price: CC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CC's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20146,400Mark Newmanhttps://www.chemours.com

The Chemours Company provides performance chemicals in North America, the Asia Pacific, Europe, the Middle East, Africa, and Latin America. It operates through four segments: Titanium Technologies, Thermal & Specialized Solutions, Advanced Performance Materials, and Chemical Solutions. The Titanium Technologies segment provides TiO2 pigment under the Ti-Pure and BaiMax brands for delivering whiteness, brightness, opacity, and protection in various of applications, such as architectural and industrial coatings, flexible and rigid plastic packaging, polyvinylchloride, laminate papers used for furniture and building materials, coated paper, and coated paperboard used for packaging.

The Chemours Company Fundamentals Summary

How do Chemours's earnings and revenue compare to its market cap?
CC fundamental statistics
Market CapUS$5.77b
Earnings (TTM)US$881.00m
Revenue (TTM)US$6.93b

6.5x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CC income statement (TTM)
RevenueUS$6.93b
Cost of RevenueUS$5.13b
Gross ProfitUS$1.80b
Other ExpensesUS$921.00m
EarningsUS$881.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)5.68
Gross Margin25.99%
Net Profit Margin12.71%
Debt/Equity Ratio297.4%

How did CC perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

18%

Payout Ratio