W. R. Grace
Market Cap
US$3.1b
Last Updated
2020/08/14 12:15 UTC
Data Sources
Company Financials +
Executive Summary
W. R. Grace & Co., through its subsidiaries, produces and sells specialty chemicals and materials worldwide.
Rewards
Risk Analysis
+ 1 more risk
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-1.6%
GRA
2.5%
US Chemicals
0.5%
US Market
1 Year Return
-28.5%
GRA
9.9%
US Chemicals
18.7%
US Market
Return vs Industry: GRA underperformed the US Chemicals industry which returned 9.9% over the past year.
Return vs Market: GRA underperformed the US Market which returned 18.7% over the past year.
Shareholder returns
| GRA | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.6% | 2.5% | 0.5% |
| 30 Day | -8.9% | 4.4% | 4.9% |
| 90 Day | -1.0% | 25.8% | 19.8% |
| 1 Year | -27.5%-28.5% | 12.4%9.9% | 21.2%18.7% |
| 3 Year | -28.7%-31.7% | 28.6%4.5% | 46.2%36.8% |
| 5 Year | -38.0%-52.8% | 65.0%29.2% | 85.3%65.1% |
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
3 days ago | Simply Wall St
Is W. R. Grace & Co. (NYSE:GRA) Potentially Undervalued?2 weeks ago | Simply Wall St
Is W. R. Grace & Co. (NYSE:GRA) Trading At A 36% Discount?3 months ago | Simply Wall St
An Intrinsic Calculation For W. R. Grace & Co. (NYSE:GRA) Suggests It's 45% UndervaluedValuation
Is W. R. Grace undervalued compared to its fair value and its price relative to the market?
6.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: GRA ($46.29) is trading below our estimate of fair value ($49.47)
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 (51.3x) compared to the US Chemicals industry average (27.7x).
PE vs Market: GRA is poor value based on its PE Ratio (51.3x) compared to the US market (19.1x).
Price to Earnings Growth Ratio
PEG Ratio: GRA is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: GRA is overvalued based on its PB Ratio (8.9x) compared to the US Chemicals industry average (2.2x).
Next Steps
Future Growth
How is W. R. Grace forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
41.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: GRA's forecast earnings growth (41.8% per year) is above the savings rate (2.2%).
Earnings vs Market: GRA's earnings (41.8% per year) are forecast to grow faster than the US market (24.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: GRA's revenue (5.9% per year) is forecast to grow slower than the US market (9.5% per year).
High Growth Revenue: GRA's revenue (5.9% 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 (54.7%).
Next Steps
Past Performance
How has W. R. Grace performed over the past 5 years?
0.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: GRA has a large one-off loss of $35.8M impacting its June 30 2020 financial results.
Growing Profit Margin: GRA's current net profit margins (3.3%) are lower than last year (9.3%).
Past Earnings Growth Analysis
Earnings Trend: GRA's earnings have grown by 0.7% per year over the past 5 years.
Accelerating Growth: GRA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: GRA had negative earnings growth (-67.8%) over the past year, making it difficult to compare to the Chemicals industry average (-20.5%).
Return on Equity
High ROE: GRA's Return on Equity (16.6%) is considered low.
Next Steps
Financial Health
How is W. R. Grace's financial position?
Financial Position Analysis
Short Term Liabilities: GRA's short term assets ($1.7B) exceed its short term liabilities ($1.4B).
Long Term Liabilities: GRA's short term assets ($1.7B) do not cover its long term liabilities ($2.8B).
Debt to Equity History and Analysis
Debt Level: GRA's debt to equity ratio (778.4%) is considered high.
Reducing Debt: GRA's debt to equity ratio has increased from 582% to 778.4% over the past 5 years.
Debt Coverage: GRA's debt is not well covered by operating cash flow (15.9%).
Interest Coverage: GRA's interest payments on its debt are well covered by EBIT (3.6x coverage).
Balance Sheet
Next Steps
Dividend
What is W. R. Grace current dividend yield, its reliability and sustainability?
2.59%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: GRA's dividend (2.59%) is higher than the bottom 25% of dividend payers in the US market (1.59%).
High Dividend: GRA's dividend (2.59%) is low compared to the top 25% of dividend payers in the US market (4.31%).
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: With its high payout ratio (126.2%), GRA's dividend payments are not 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 (23.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.5yrs
Average management tenure
CEO
Hudson La Force (55 yo)
1.75yrs
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 ($USD5.69M).
Compensation vs Earnings: Hudson's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.75yrs | US$5.53m | 0.17% $ 5.2m | |
| Senior VP & CFO | 2.25yrs | US$1.95m | 0.017% $ 509.5k | |
| Senior VP | 15.33yrs | US$2.81m | 0.12% $ 3.7m | |
| Senior VP & Chief Human Resources Officer | 5.58yrs | US$1.67m | 0.031% $ 943.4k | |
| Senior Vice President of Government Relations | no data | US$1.63m | 0.023% $ 696.1k | |
| Vice President of Corporate Development & Investor Relations | 2.33yrs | no data | no data | |
| Vice President of Corporate Communications | 7.67yrs | no data | no data | |
| President of Grace Materials Technologies | 3.33yrs | no data | no data | |
| VP & Treasurer | 8.5yrs | no data | no data | |
| President of Refining Technologies | no data | no data | no data | |
| President of Specialty Catalysts | 1.75yrs | no data | no data | |
| VP, Associate General Counsel & Assistant Secretary | 15.58yrs | no data | no data |
4.5yrs
Average Tenure
60yo
Average Age
Experienced Management: GRA's management team is considered experienced (4.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.75yrs | US$5.53m | 0.17% $ 5.2m | |
| Independent Director | 1.25yrs | US$186.26k | 0.0058% $ 176.5k | |
| Independent Director | 13.92yrs | US$228.01k | 0.032% $ 978.6k | |
| Independent Director | 1.25yrs | no data | no data | |
| Independent Non-Executive Chairman | 0.75yr | US$258.98k | 0.036% $ 1.1m | |
| Independent Director | 5.58yrs | US$210.01k | 0.029% $ 886.1k | |
| Independent Director | 2.25yrs | US$210.01k | 0.0080% $ 244.8k | |
| Independent Director | 5.58yrs | US$225.01k | 0.020% $ 608.2k | |
| Independent Director | 3.75yrs | US$217.51k | 0.010% $ 314.4k |
2.8yrs
Average Tenure
67yo
Average Age
Experienced Board: GRA's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
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$3.064b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| GRA | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1992 |
| GRA | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1992 |
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/08/14 12:15 |
| End of Day Share Price | 2020/08/13 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.