NYSE:GRA

Stock Analysis Report

Executive Summary

W. R. Grace & Co. produces and sells specialty chemicals and materials worldwide.

Snowflake

Fundamentals

Proven track record with reasonable growth potential.


Similar Companies

Share Price & News

How has W. R. Grace's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.5%

GRA

-0.9%

US Chemicals

0.07%

US Market


1 Year Return

3.9%

GRA

-3.9%

US Chemicals

8.9%

US Market

Return vs Industry: GRA exceeded the US Chemicals industry which returned -3.9% over the past year.

Return vs Market: GRA underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

GRAIndustryMarket
7 Day0.5%-0.9%0.07%
30 Day-2.4%-2.4%-0.3%
90 Day-13.1%-4.0%-1.6%
1 Year5.4%3.9%10.3%-3.9%11.3%8.9%
3 Year0.2%-3.8%39.6%13.0%46.3%36.8%
5 Year-7.4%-28.5%43.1%11.1%62.1%44.3%

Price Volatility Vs. Market

How volatile is W. R. Grace's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is W. R. Grace undervalued compared to its fair value and its price relative to the market?

27.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GRA ($66.01) is trading below our estimate of fair value ($91.09)

Significantly Below Fair Value: GRA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GRA is poor value based on its PE Ratio (23.7x) compared to the Chemicals industry average (19.6x).

PE vs Market: GRA is poor value based on its PE Ratio (23.7x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: GRA is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: GRA is overvalued based on its PB Ratio (11.6x) compared to the US Chemicals industry average (2x).


Next Steps

Future Growth

How is W. R. Grace forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

20.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRA's forecast earnings growth (20.8% per year) is above the savings rate (2.7%).

Earnings vs Market: GRA's earnings (20.8% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GRA's revenue (4.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: GRA's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GRA's Return on Equity is forecast to be very high in 3 years time (62.1%).


Next Steps

Past Performance

How has W. R. Grace performed over the past 5 years?

-21.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GRA's earnings have declined by -21.6% per year over the past 5 years.

Accelerating Growth: GRA's earnings growth over the past year (2636.8%) exceeds its 5-year average (-21.6% per year).

Earnings vs Industry: GRA earnings growth over the past year (2636.8%) exceeded the Chemicals industry -2.9%.


Return on Equity

High ROE: Whilst GRA's Return on Equity (47.97%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: GRA has a higher Return on Assets than the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: GRA has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is W. R. Grace's financial position?


Financial Position Analysis

Short Term Liabilities: GRA's short term assets ($1.0B) exceeds its short term liabilities ($679.5M)

Long Term Liabilities: GRA's short term assets (1.0B) do not cover its long term liabilities (2.7B)


Debt to Equity History and Analysis

Debt Level: GRA's debt to equity ratio (512.8%) is considered high

Reducing Debt: GRA's debt to equity ratio has increased from 190.4% to 512.8% over the past 5 years.

Debt Coverage: GRA's debt is not well covered by operating cash flow (18.5%).

Interest Coverage: GRA's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: GRA's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is W. R. Grace's current dividend yield, its reliability and sustainability?

1.64%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years1.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GRA's dividend (1.64%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: GRA's dividend (1.64%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

Growing Dividend: GRA'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 (36.7%), GRA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GRA's dividends in 3 years are forecast to be well covered by earnings (18.8% payout ratio).


Next Steps

Management

What is the CEO of W. R. Grace's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Hudson La Force (54yo)

0.9yrs

Tenure

US$2,867,727

Compensation

Mr. Hudson La Force, III, CPA, serves as the President and Chief Executive Officer at W. R. Grace & Co. and served as its Chief Operating Officer since November 8, 2018. As Chief Operating Officer, Mr. La  ...


CEO Compensation Analysis

Compensation vs. Market: Hudson has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

3.6yrs

Average Tenure

59.5yo

Average Age

Experienced Management: GRA's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

62yo

Average Age

Experienced Board: GRA's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$1,847,85427 Aug 19
40 North Management LLC
EntityCompany
Shares28,487
Max PriceUS$65.00
BuyUS$6,892,37022 Aug 19
40 North Management LLC
EntityCompany
Shares106,608
Max PriceUS$64.87
BuyUS$6,240,15119 Aug 19
40 North Management LLC
EntityCompany
Shares96,576
Max PriceUS$64.97
BuyUS$18,450,10214 Aug 19
40 North Management LLC
EntityCompany
Shares288,827
Max PriceUS$64.91
BuyUS$68,21005 Aug 19
William Dockman
EntityIndividual
Role
Chief Financial Officer
Senior VP & Chief Financial Officer
Shares1,000
Max PriceUS$68.21
BuyUS$276,16001 Aug 19
Hudson La Force
EntityIndividual
Role
Chief Executive Officer
President
Shares4,000
Max PriceUS$69.04
BuyUS$14,186,08527 Dec 18
40 North Management LLC
EntityCompany
Shares233,720
Max PriceUS$61.94
BuyUS$10,406,98626 Dec 18
40 North Management LLC
EntityCompany
Shares172,634
Max PriceUS$60.44
BuyUS$54,545,14621 Dec 18
40 North Management LLC
EntityCompany
Shares893,304
Max PriceUS$61.80
BuyUS$1,222,12019 Dec 18
40 North Management LLC
EntityCompany
Shares20,000
Max PriceUS$61.11
BuyUS$47,186,43918 Dec 18
40 North Management LLC
EntityCompany
Shares779,664
Max PriceUS$61.18
BuyUS$14,585,80413 Dec 18
40 North Management LLC
EntityCompany
Shares237,822
Max PriceUS$61.40
BuyUS$30,587,37710 Dec 18
40 North Management LLC
EntityCompany
Shares501,025
Max PriceUS$61.60

Ownership Breakdown


Management Team

  • Keith Cole (60yo)

    Senior Vice President of Government Relations

    • Tenure: 0yrs
    • Compensation: US$1.25m
  • Mark Shelnitz (60yo)

    Senior VP

    • Tenure: 14.5yrs
    • Compensation: US$1.41m
  • Hudson La Force (54yo)

    President

    • Tenure: 0.9yrs
    • Compensation: US$2.87m
  • Jeremy Rohen

    Vice President of Corporate Development & Investor Relations

    • Tenure: 1.5yrs
  • Bill Dockman (59yo)

    Senior VP & Chief Financial Officer

    • Tenure: 1.4yrs
  • Elyse Filon

    VP & Treasurer

    • Tenure: 7.7yrs
  • Rich Badmington (64yo)

    Vice President of Corporate Communications

    • Tenure: 6.8yrs
  • Al Beninati

    President of Specialty Catalysts

    • Tenure: 0yrs
  • Liz Brown (55yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 4.8yrs
    • Compensation: US$1.12m
  • Sandra Wisniewski

    President of Grace Materials Technologies

    • Tenure: 2.5yrs

Board Members

  • Jeff Quinn (60yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$194.66k
  • Hank Slack (69yo)

    Independent Director

    • Tenure: 0.4yrs
  • Mark Tomkins (64yo)

    Independent Director

    • Tenure: 13.1yrs
    • Compensation: US$206.99k
  • Fred Festa (59yo)

    Non-Executive Chairman

    • Tenure: 11.8yrs
    • Compensation: US$6.54m
  • Kathy Reiland (44yo)

    Independent Director

    • Tenure: 0.4yrs
  • Bob Cummings (68yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$189.99k
  • Diane Gulyas (62yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$203.07k
  • Julie Fasone-Holder (66yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$196.74k
  • Hudson La Force (54yo)

    President

    • Tenure: 0.9yrs
    • Compensation: US$2.87m

Company Information

W. R. Grace & Co.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: W. R. Grace & Co.
  • Ticker: GRA
  • Exchange: NYSE
  • Founded: 1854
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$4.405b
  • Shares outstanding: 66.74m
  • Website: https://www.grace.com

Number of Employees


Location

  • W. R. Grace & Co.
  • 7500 Grace Drive
  • Columbia
  • Maryland
  • 21044
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GRANYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1992
GRADB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

W. R. Grace & Co. produces and sells specialty chemicals and materials worldwide. It operates through two segments, Grace Catalysts Technologies and Grace Materials Technologies. The Grace Catalysts Techno ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:35
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.