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Market Cap

US$4.2b

Last Updated

2021/04/09 22:04 UTC

Data Sources

Company Financials +

Executive Summary

W. R. Grace & Co., through its subsidiaries, produces and sells specialty chemicals and materials worldwide. More Details


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


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

Stable Share Price: GRA is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GRA's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

2.5%

GRA

-0.8%

US Chemicals

1.6%

US Market


1 Year Return

48.3%

GRA

54.3%

US Chemicals

55.3%

US Market

Return vs Industry: GRA underperformed the US Chemicals industry which returned 54.3% over the past year.

Return vs Market: GRA underperformed the US Market which returned 55.3% over the past year.


Shareholder returns

GRAIndustryMarket
7 Day2.5%-0.8%1.6%
30 Day2.9%3.3%4.1%
90 Day12.0%2.8%5.5%
1 Year51.9%48.3%57.7%54.3%58.1%55.3%
3 Year0.2%-5.1%42.0%20.2%63.8%53.3%
5 Year-10.8%-17.4%94.0%55.2%120.2%95.7%

Long-Term 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?

19.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GRA ($63.28) is trading below our estimate of fair value ($77.93)

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 unprofitable, so we can't compare its PE Ratio to the US Chemicals industry average.

PE vs Market: GRA 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 GRA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GRA is overvalued based on its PB Ratio (18.1x) compared to the US Chemicals industry average (2.7x).


Future Growth

How is W. R. Grace forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

55.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

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

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

Revenue vs Market: GRA's revenue (7.9% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: GRA's revenue (7.9% 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 (52.1%).


Past Performance

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

-6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRA is currently unprofitable.

Growing Profit Margin: GRA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GRA is unprofitable, and losses have increased over the past 5 years at a rate of 6.8% per year.

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

Earnings vs Industry: GRA is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (3.3%).


Return on Equity

High ROE: GRA has a negative Return on Equity (-0.72%), as it is currently unprofitable.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: GRA's short term assets ($875.3M) exceed its short term liabilities ($559.3M).

Long Term Liabilities: GRA's short term assets ($875.3M) do not cover its long term liabilities ($3.0B).


Debt to Equity History and Analysis

Debt Level: GRA's debt to equity ratio (850.1%) is considered high.

Reducing Debt: GRA's debt to equity ratio has reduced from 998% to 850.1% over the past 5 years.

Debt Coverage: GRA's debt is not well covered by operating cash flow (17.5%).

Interest Coverage: GRA is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Dividend

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

2.11%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GRA's dividend (2.09%) is higher than the bottom 25% of dividend payers in the US market (1.27%).

High Dividend: GRA's dividend (2.09%) is low compared to the top 25% of dividend payers in the US market (3.5%).


Stability and Growth of Payments

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 5 years.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: GRA's dividends in 3 years are forecast to be thoroughly covered by earnings (10.5% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Hudson La Force (55 yo)

2.42yrs

Tenure

US$5,530,024

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's total compensation ($USD5.53M) is about average for companies of similar size in the US market ($USD5.05M).

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


Leadership Team

Experienced Management: GRA's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: GRA's board of directors are considered experienced (3.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

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$4.189b
  • Shares outstanding: 66.19m
  • Website: https://www.grace.com

Number of Employees


Location

  • W. R. Grace & Co.
  • 7500 Grace Drive
  • Columbia
  • Maryland
  • 21044-4098
  • United States

Listings


Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/09 22:04
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.