Loading...

W. R. Grace

NYSE:GRA
Snowflake Description

Reasonable growth potential with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GRA
NYSE
$5B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

W. R. Grace & Co. produces and sells specialty chemicals and materials worldwide. The last earnings update was 48 days ago. More info.


Add to Portfolio Compare Print
GRA Share Price and Events
7 Day Returns
2.6%
NYSE:GRA
0.8%
US Chemicals
1.4%
US Market
1 Year Returns
2%
NYSE:GRA
-9.4%
US Chemicals
4.9%
US Market
GRA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
W. R. Grace (GRA) 2.6% 5.3% -1.7% 2% 5.1% -21.5%
US Chemicals 0.8% 3.6% -3.8% -9.4% 26.1% 6.6%
US Market 1.4% 3.8% 3.5% 4.9% 44.8% 40.1%
1 Year Return vs Industry and Market
  • GRA outperformed the Chemicals industry which returned -9.4% over the past year.
  • GRA underperformed the Market in United States of America which returned 4.9% over the past year.
Price Volatility
GRA
Industry
5yr Volatility vs Market

Value

 Is W. R. Grace undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of W. R. Grace to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for W. R. Grace.

NYSE:GRA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:GRA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.88
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.875 (1 + (1- 21%) (40.21%))
1.103
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.103 * 5.96%)
9.3%

Discounted Cash Flow Calculation for NYSE:GRA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for W. R. Grace is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:GRA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.3%)
2019 235.16 Analyst x5 215.15
2020 291.98 Analyst x5 244.39
2021 358.00 Analyst x1 274.15
2022 411.87 Est @ 15.05% 288.56
2023 458.63 Est @ 11.35% 293.97
2024 498.84 Est @ 8.77% 292.53
2025 533.53 Est @ 6.96% 286.25
2026 563.88 Est @ 5.69% 276.78
2027 590.95 Est @ 4.8% 265.38
2028 615.65 Est @ 4.18% 252.94
Present value of next 10 years cash flows $2,690.09
NYSE:GRA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $615.65 × (1 + 2.73%) ÷ (9.3% – 2.73%)
$9,622.06
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $9,622.06 ÷ (1 + 9.3%)10
$3,953.21
NYSE:GRA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $2,690.09 + $3,953.21
$6,643.29
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $6,643.29 / 66.91
$99.28
NYSE:GRA Discount to Share Price
Calculation Result
Value per share (USD) From above. $99.28
Current discount Discount to share price of $74.92
= -1 x ($74.92 - $99.28) / $99.28
24.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price W. R. Grace is available for.
Intrinsic value
25%
Share price is $74.92 vs Future cash flow value of $99.28
Current Discount Checks
For W. R. Grace to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • W. R. Grace's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • W. R. Grace's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for W. R. Grace's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are W. R. Grace's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:GRA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.22
NYSE:GRA Share Price ** NYSE (2019-06-25) in USD $74.92
United States of America Chemicals Industry PE Ratio Median Figure of 68 Publicly-Listed Chemicals Companies 18.02x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.73x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of W. R. Grace.

NYSE:GRA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:GRA Share Price ÷ EPS (both in USD)

= 74.92 ÷ 2.22

33.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • W. R. Grace is overvalued based on earnings compared to the US Chemicals industry average.
  • W. R. Grace is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does W. R. Grace's expected growth come at a high price?
Raw Data
NYSE:GRA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 33.76x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
24.5%per year
United States of America Chemicals Industry PEG Ratio Median Figure of 49 Publicly-Listed Chemicals Companies 1.36x
United States of America Market PEG Ratio Median Figure of 2,133 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NYSE:GRA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 33.76x ÷ 24.5%

1.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • W. R. Grace is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on W. R. Grace's assets?
Raw Data
NYSE:GRA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $5.20
NYSE:GRA Share Price * NYSE (2019-06-25) in USD $74.92
United States of America Chemicals Industry PB Ratio Median Figure of 94 Publicly-Listed Chemicals Companies 2.02x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.79x
NYSE:GRA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:GRA Share Price ÷ Book Value per Share (both in USD)

= 74.92 ÷ 5.20

14.41x

* Primary Listing of W. R. Grace.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • W. R. Grace is overvalued based on assets compared to the US Chemicals industry average.
X
Value checks
We assess W. R. Grace's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check)
  5. W. R. Grace has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
24.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is W. R. Grace expected to grow at an attractive rate?
  • W. R. Grace's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • W. R. Grace's earnings growth is expected to exceed the United States of America market average.
  • W. R. Grace's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:GRA Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:GRA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 24.5%
NYSE:GRA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 4.3%
United States of America Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 11.8%
United States of America Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:GRA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:GRA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,426 1
2022-12-31 2,315 1
2021-12-31 2,240 538 383 6
2020-12-31 2,148 499 334 11
2019-12-31 2,046 441 292 11
NYSE:GRA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 1,970 324 149
2018-12-31 1,932 342 168
2018-09-30 1,872 286 -25
2018-06-30 1,806 298 7
2018-03-31 1,750 372 12
2017-12-31 1,717 319 11
2017-09-30 1,698 327 152
2017-06-30 1,673 271 145
2017-03-31 1,634 229 140
2016-12-31 1,599 312 107
2016-09-30 1,583 325 117
2016-06-30 1,577 418 110

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • W. R. Grace's earnings are expected to grow significantly at over 20% yearly.
  • W. R. Grace's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:GRA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from W. R. Grace Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GRA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 5.72 5.72 5.72 1.00
2020-12-31 5.09 5.15 5.00 3.00
2019-12-31 4.38 4.60 3.98 3.00
NYSE:GRA Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.22
2018-12-31 2.49
2018-09-30 -0.36
2018-06-30 0.10
2018-03-31 0.18
2017-12-31 0.16
2017-09-30 2.22
2017-06-30 2.11
2017-03-31 2.01
2016-12-31 1.53
2016-09-30 1.66
2016-06-30 1.55

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • W. R. Grace is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess W. R. Grace's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
W. R. Grace has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare W. R. Grace's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • W. R. Grace's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • W. R. Grace's 1-year earnings growth exceeds its 5-year average (1149.6% vs -28%)
  • W. R. Grace's earnings growth has exceeded the US Chemicals industry average in the past year (1149.6% vs 9.2%).
Earnings and Revenue History
W. R. Grace's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from W. R. Grace Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:GRA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 1,970.10 148.70 313.70 65.00
2018-12-31 1,932.10 167.60 307.00 62.70
2018-09-30 1,871.60 -24.50 293.30 61.30
2018-06-30 1,806.20 6.80 287.40 59.60
2018-03-31 1,750.00 11.90 274.70 57.10
2017-12-31 1,716.50 11.20 274.00 56.30
2017-09-30 1,697.80 151.50 303.90 54.10
2017-06-30 1,672.80 145.30 304.80 52.20
2017-03-31 1,633.80 139.50 305.10 51.00
2016-12-31 1,598.60 107.00 271.80 51.60
2016-09-30 1,582.60 117.20 303.90 47.10
2016-06-30 1,577.30 109.70 307.30 46.80
2016-03-31 1,594.00 104.20 314.40 46.70
2015-12-31 1,628.20 124.00 318.90 47.10
2015-09-30 2,007.50 112.00 456.50 54.40
2015-06-30 2,464.70 152.80 533.70 63.10
2015-03-31 2,895.50 256.40 604.20 71.10
2014-12-31 1,757.30 117.00 415.10 51.30
2014-09-30 3,215.60 290.50 529.10 78.00
2014-06-30 3,130.50 293.00 511.10 72.50
2014-03-31 3,095.30 247.10 509.20 68.80
2013-12-31 3,060.70 256.10 505.70 65.20
2013-09-30 3,081.80 60.70 585.90 65.10
2013-06-30 3,087.10 59.20 604.60 65.50
2013-03-31 3,111.00 38.20 613.10 64.90
2012-12-31 3,155.50 40.00 635.20 64.50
2012-09-30 3,183.30 263.80 614.70 67.30
2012-06-30 3,270.90 269.60 630.40 68.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst W. R. Grace made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • W. R. Grace used its assets less efficiently than the US Chemicals industry average last year based on Return on Assets.
  • W. R. Grace has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess W. R. Grace's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
W. R. Grace has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is W. R. Grace's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up W. R. Grace's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • W. R. Grace is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • W. R. Grace's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of W. R. Grace's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from W. R. Grace Company Filings, last reported 2 months ago.

NYSE:GRA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 353.80 1,985.70 203.40
2018-12-31 337.00 1,984.00 200.50
2018-09-30 280.20 1,986.50 150.70
2018-06-30 294.90 1,986.60 131.50
2018-03-31 245.90 1,546.50 149.90
2017-12-31 263.30 1,544.40 152.80
2017-09-30 397.00 1,570.90 175.70
2017-06-30 405.60 1,603.00 161.80
2017-03-31 395.70 1,560.70 76.40
2016-12-31 372.40 1,587.30 90.60
2016-09-30 494.60 1,596.70 204.40
2016-06-30 489.00 1,597.10 194.30
2016-03-31 394.80 1,593.80 414.50
2015-12-31 212.50 2,173.40 231.30
2015-09-30 257.40 2,222.00 331.10
2015-06-30 385.30 2,226.40 366.90
2015-03-31 368.20 2,237.70 326.80
2014-12-31 369.00 2,018.80 557.50
2014-09-30 524.40 2,029.10 608.00
2014-06-30 570.80 1,075.20 283.90
2014-03-31 571.40 1,070.50 422.90
2013-12-31 571.20 1,248.50 964.80
2013-09-30 611.90 1,119.70 1,554.70
2013-06-30 534.10 1,096.30 1,442.40
2013-03-31 411.60 1,086.50 1,319.80
2012-12-31 319.80 1,096.10 1,336.90
2012-09-30 402.20 1,076.50 1,251.20
2012-06-30 288.60 1,041.80 1,111.40
  • W. R. Grace's level of debt (561.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (187.4% vs 561.2% today).
  • Debt is not well covered by operating cash flow (16.3%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.7x coverage).
X
Financial health checks
We assess W. R. Grace's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. W. R. Grace has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.44%
Current annual income from W. R. Grace dividends. Estimated to be 1.46% next year.
If you bought $2,000 of W. R. Grace shares you are expected to receive $29 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • W. R. Grace's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • W. R. Grace's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:GRA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 54 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:GRA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1.13 3.00
2020-12-31 1.12 5.00
2019-12-31 1.05 5.00
NYSE:GRA Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-25 1.080 1.464
2019-02-07 1.080 1.403
2018-10-24 0.960 1.473
2018-07-26 0.960 1.362
2018-04-25 0.960 1.324
2018-02-08 0.960 1.472
2017-10-25 0.840 1.158
2017-07-27 0.840 1.186
2017-04-26 0.840 1.186
2017-02-23 0.840 1.209
2017-02-08 0.840 1.174
2016-11-03 0.680 0.994
2016-10-26 0.680 1.008
2016-08-04 0.680 0.921
2016-08-01 0.680 0.901
2016-01-26 0.680 0.915

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, W. R. Grace has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but W. R. Grace only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of W. R. Grace's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.2x coverage).
X
Income/ dividend checks
We assess W. R. Grace's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can W. R. Grace afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. W. R. Grace has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Hudson La Force
COMPENSATION $2,867,727
AGE 53
TENURE AS CEO 0.6 years
CEO Bio

Mr. Hudson La Force, III, CPA, serves as the President and Chief Operating Officer at W. R. Grace & Co. since February 4, 2016 and has been its Chief Executive Officer since November 8, 2018. As Chief Operating Officer, Mr. La Force is responsible for Grace’s Catalysts Technologies and Materials Technologies business segments and Grace’s global manufacturing and supply chain operations. Mr. La Force served as the Chief Financial Officer of W.R. Grace & Co. from April 1, 2008 to February 11, 2016 and served as its Senior Vice President until February 4, 2016. He focused on improving the company’s profitability, cash flow and return on invested capital. During his tenure as Chief Financial Officer, gross margins increased eight percentage points, Adjusted EBITDA margins increased 11 percentage points, free cash flow increased nearly three times and return on invested capital increased 11 percentage points. Mr. La Force was deeply involved in Grace’s internal transformation into a fully-integrated global operating company and its external transformation into two industry-leading public companies in February 2016. Mr. La Force served as the Principal Accounting Officer of W.R. Grace & Co. until February 8, 2012. He served as Chief Financial Officer and Vice President of GCP Applied Technologies Inc. until February 3, 2016. He joined Grace from the U.S. Department of Education, where he served as its Chief Operating Officer and Senior Counselor to the Secretary with responsibilities for finance, human capital, information technology, risk management and other management functions. In this role, he was also responsible for driving execution of the department’s strategic goals, strengthening its performance accountability systems and implementing a number of other significant management and operational reforms. Mr. La Force also served as a member of the President’s Management Council. Prior to entering public service in 2005, he was with Dell Inc. for eight years, where he held general management and financial leadership positions. Before entering public service in 2005, he held general management and financial leadership positions with Dell, Inc., Allied Signal, Inc. (now Honeywell), Emerson Electric Co., and Arthur Andersen & Co. From 2002 to 2005, Mr. La Force served as a General Manager at Dell, leading a $500 million business unit through a period of double-digit sales growth, triple-digit earnings growth and significant operational change. He joined Dell as the Senior Financial Executive for Dell’s $3 billion United States consumer business. Prior to joining Dell in 1997, Mr. La Force served in a variety of increasingly responsible financial positions at Honeywell and Emerson Electric Co. He began his career as a Certified Public Accountant in the audit and business advisory practice of Arthur Andersen & Co. He has been a Director at W. R. Grace & Co. since November 02, 2017. He serves as a Director of Filtration Group Corporation and KIPP DC. Mr. La Force serves as a Member of Board of Directors at Madison Industries and served as its Member of Advisory Board. He served as Director of GCP Applied Technologies Inc. until February 3, 2016. He is a Certified Public Accountant. Mr. La Force holds an MBA from the Kellogg School of Management at Northwestern University and a Bachelor’s Degree from Baylor University graduating summa cum laude

CEO Compensation
  • Hudson's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Hudson's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the W. R. Grace management team in years:

3.3
Average Tenure
58.5
Average Age
  • The tenure for the W. R. Grace management team is about average.
Management Team

Hudson La Force

TITLE
CEO, President
COMPENSATION
$3M
AGE
53
TENURE
0.6 yrs

Mark Shelnitz

TITLE
Senior VP
COMPENSATION
$1M
AGE
59
TENURE
14.2 yrs

Liz Brown

TITLE
Senior VP & Chief Human Resources Officer
COMPENSATION
$1M
AGE
54
TENURE
4.4 yrs

Keith Cole

TITLE
Senior Vice President of Government Relations
COMPENSATION
$1M
AGE
59

Bill Dockman

TITLE
Senior VP & Chief Financial Officer
AGE
58
TENURE
1.1 yrs

Jeremy Rohen

TITLE
Vice President of Corporate Development & Investor Relations
TENURE
1.2 yrs

Rich Badmington

TITLE
Vice President of Corporate Communications
AGE
63
TENURE
6.5 yrs

Sandra Wisniewski

TITLE
President of Grace Materials Technologies
TENURE
2.2 yrs

Elyse Filon

TITLE
VP & Treasurer
TENURE
7.3 yrs

Al Beninati

TITLE
President of Specialty Catalysts
Board of Directors Tenure

Average tenure and age of the W. R. Grace board of directors in years:

3.5
Average Tenure
62
Average Age
  • The tenure for the W. R. Grace board of directors is about average.
Board of Directors

Fred Festa

TITLE
Non-Executive Chairman
COMPENSATION
$7M
AGE
58
TENURE
11.4 yrs

Hudson La Force

TITLE
CEO, President
COMPENSATION
$3M
AGE
53
TENURE
1.6 yrs

Mark Tomkins

TITLE
Independent Director
COMPENSATION
$207K
AGE
63
TENURE
12.8 yrs

Diane Gulyas

TITLE
Independent Director
COMPENSATION
$203K
AGE
61
TENURE
4.4 yrs

Julie Fasone-Holder

TITLE
Director
COMPENSATION
$197K
AGE
65
TENURE
2.6 yrs

Jeff Quinn

TITLE
Independent Director
COMPENSATION
$195K
AGE
59
TENURE
6.6 yrs

Bob Cummings

TITLE
Independent Director
COMPENSATION
$190K
AGE
67
TENURE
4.4 yrs

Shlomo Yanai

TITLE
Independent Director
COMPENSATION
$169K
AGE
66
TENURE
1.1 yrs

Kathy Reiland

TITLE
Director
AGE
43
TENURE
0.1 yrs

Hank Slack

TITLE
Director
AGE
68
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
27. Dec 18 Buy 40 North Management LLC Company 24. Dec 18 27. Dec 18 233,720 $61.94 $14,186,085
26. Dec 18 Buy 40 North Management LLC Company 24. Dec 18 26. Dec 18 172,634 $60.44 $10,406,986
21. Dec 18 Buy 40 North Management LLC Company 19. Dec 18 21. Dec 18 893,304 $61.80 $54,545,146
19. Dec 18 Buy 40 North Management LLC Company 19. Dec 18 19. Dec 18 20,000 $61.11 $1,222,120
18. Dec 18 Buy 40 North Management LLC Company 14. Dec 18 18. Dec 18 779,664 $61.18 $47,186,439
13. Dec 18 Buy 40 North Management LLC Company 11. Dec 18 13. Dec 18 237,822 $61.40 $14,585,804
10. Dec 18 Buy 40 North Management LLC Company 06. Dec 18 10. Dec 18 501,025 $61.60 $30,587,377
X
Management checks
We assess W. R. Grace's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. W. R. Grace has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is W. R. Grace & Co. (NYSE:GRA) A High Quality Stock To Own?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for W? … The Key Takeaway Return on equity is one way we can compare the business quality of different companies. … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

Evaluating W. R. Grace & Co.’s (NYSE:GRA) Investments In Its Business

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it. … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Is W. R. Grace & Co. (NYSE:GRA) Potentially Undervalued?

(NYSE:GRA), which is in the chemicals business, and is based in United States,. … As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. … Grace’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Simply Wall St -

What Are Analysts Saying About W. R. Grace & Co.'s (NYSE:GRA) Future?

Grace & Co.'s (NYSE:GRA) earnings update on 31 December 2018,R … the consensus outlook from analysts appear highly confident,. … as a 82% rise in profits is expected in the upcoming year,

Simply Wall St -

Those Who Purchased W. R. Grace Shares Five Years Ago Have A 26% Loss To Show For It

By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … This change in EPS is remarkably close to the 5.7% average annual decrease in the share price. … Rather, the share price change has reflected changes in earnings per share.

Simply Wall St -

A Closer Look At W. R. Grace & Co.'s (NYSE:GRA) Impressive ROE

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Grace has a return on equity of 49% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity.

Simply Wall St -

Why W. R. Grace & Co.’s (NYSE:GRA) Return On Capital Employed Looks Uninspiring

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Need To Know: W R Grace & Co (NYSE:GRA) Insiders Have Been Buying Shares

So we'll take a look at whether insiders have been buying or selling shares in W R Grace & Co (NYSE:GRA). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … We generally consider it a positive if insiders have been buying on market, even above the current price.

Simply Wall St -

How Should Investors Feel About W R Grace & Co's (NYSE:GRA) CEO Pay?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Fred Festa's Compensation Compare With Similar Sized Companies. … As you can see, Fred Festa is paid more than the median CEO pay at companies of a similar size, in the same market.

Simply Wall St -

How Has W R Grace & Co's (NYSE:GRA) Earnings Fared Against The Long Term Trend

Improvement in profitability and outperformance against the industry can be important characteristics in a stock for some investors. … Below, I will assess W R Grace & Co's (NYSE:GRA) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … GRA's trailing twelve-month earnings (from 30 June 2018) of US$6.80m has.

Simply Wall St -

Company Info

Description

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 Technologies segment offers fluid catalytic cracking (FCC) catalysts for the production of transportation fuels, such as gasoline and diesel fuels, and petrochemicals; FCC additives; and methanol-to-olefins catalysts for the conversion of methanol into petrochemical feeds, including ethylene and propylene. This segment also provides hydro processing catalysts used in process reactors to upgrade heavy oils into lighter products; polyolefin catalysts and chemical catalyst supports for the production of polypropylene and polyethylene thermoplastic resins; and chemical catalysts, as well as gas-phase polypropylene process technology to manufacture polypropylene products. The Grace Materials Technologies segment offers silica-based and silica-alumina-based materials for use in coatings, consumer, pharmaceutical, and chemical process. W. R. Grace & Co. was founded in 1854 and is headquartered in Columbia, Maryland.

Details
Name: W. R. Grace & Co.
GRA
Exchange: NYSE
Founded: 1854
$5,013,212,763
66,914,212
Website: http://www.grace.com
Address: W. R. Grace & Co.
7500 Grace Drive,
Columbia,
Maryland, 21044,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE GRA Common Stock New York Stock Exchange US USD 02. Jan 1992
DB GRA Common Stock Deutsche Boerse AG DE EUR 02. Jan 1992
Number of employees
Current staff
Staff numbers
3,900
W. R. Grace employees.
Industry
Specialty Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/25 23:38
End of day share price update: 2019/06/25 00:00
Last estimates confirmation: 2019/06/24
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.