NYSE:GRA

Stock Analysis Report

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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 mediocre 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 not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: GRA's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

-3.4%

GRA

-1.3%

US Chemicals

2.3%

US Market


1 Year Return

-11.9%

GRA

22.3%

US Chemicals

23.8%

US Market

Return vs Industry: GRA underperformed the US Chemicals industry which returned 22.2% over the past year.

Return vs Market: GRA underperformed the US Market which returned 23.7% over the past year.


Shareholder returns

GRAIndustryMarket
7 Day-3.4%-1.3%2.3%
30 Day10.5%3.8%4.8%
90 Day25.5%14.6%14.5%
1 Year-9.8%-11.9%25.2%22.3%26.6%23.8%
3 Year-13.6%-18.0%23.0%-0.2%45.0%35.4%
5 Year-0.08%-24.9%114.8%66.3%126.2%101.0%

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?

302.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GRA ($61.1) is trading above our estimate of fair value ($58.33)

Significantly Below Fair Value: GRA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GRA is poor value based on its PE Ratio (302.9x) compared to the US Chemicals industry average (32.9x).

PE vs Market: GRA is poor value based on its PE Ratio (302.9x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: GRA is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: GRA is overvalued based on its PB Ratio (12.8x) compared to the US Chemicals industry average (2.6x).


Next Steps

Future Growth

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

66.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRA's forecast earnings growth (66.5% per year) is above the savings rate (2%).

Earnings vs Market: GRA's earnings (66.5% per year) are forecast to grow faster than the US market (21.6% per year).

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

Revenue vs Market: GRA's revenue (6.4% per year) is forecast to grow slower than the US market (10.6% per year).

High Growth Revenue: GRA's revenue (6.4% 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 (60.9%).


Next Steps

Past Performance

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

-1.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRA has a large one-off loss of $83.8M impacting its September 30 2020 financial results.

Growing Profit Margin: GRA's current net profit margins (0.8%) are lower than last year (11.3%).


Past Earnings Growth Analysis

Earnings Trend: GRA's earnings have declined by 1.7% 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 (-94%) over the past year, making it difficult to compare to the Chemicals industry average (-16.3%).


Return on Equity

High ROE: GRA's Return on Equity (3.5%) 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 ($833.6M) exceed its short term liabilities ($495.2M).

Long Term Liabilities: GRA's short term assets ($833.6M) do not cover its long term liabilities ($2.8B).


Debt to Equity History and Analysis

Debt Level: GRA's debt to equity ratio (626.5%) is considered high.

Reducing Debt: GRA's debt to equity ratio has reduced from 866.1% to 626.5% over the past 5 years.

Debt Coverage: GRA's debt is not well covered by operating cash flow (19.1%).

Interest Coverage: GRA's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

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

1.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GRA's dividend (1.96%) is higher than the bottom 25% of dividend payers in the US market (1.38%).

High Dividend: GRA's dividend (1.96%) is low compared to the top 25% of dividend payers in the US market (3.85%).


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 (580%), 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 (19% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Hudson La Force (55 yo)

2.17yrs

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 ($USD5.53M) is about average for companies of similar size in the US market ($USD5.01M).

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

NamePositionTenureCompensationOwnership
Hudson La Force
President2.17yrsUS$5.53m0.17%
$ 6.9m
William Dockman
Senior VP & CFO2.67yrsUS$1.95m0.017%
$ 672.6k
Elizabeth Brown
Senior VP & Chief Human Resources Officer6yrsUS$1.67m0.031%
$ 1.2m
Keith Cole
Senior Vice President of Government Relationsno dataUS$1.63m0.023%
$ 918.4k
Jeremy Rohen
Vice President of Corporate Development & Investor Relations2.75yrsno datano data
Cheree Johnson
Chief Ethics & Compliance Officerno datano datano data
Richards Badmington
Vice President of Corporate Communications8.08yrsno datano data
Sandra Wisniewski
President of Grace Materials Technologies3.75yrsno datano data
Samuel Mills
Senior Vice President of Integrated Supply Chain1yrno datano data
Elyse Filon
VP & Treasurer8.92yrsno datano data
Thomas Petti
President of Refining Technologiesno datano datano data
Laura Schwinn
President of Specialty Catalysts2.17yrsno datano data

2.8yrs

Average Tenure

58yo

Average Age

Experienced Management: GRA's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hudson La Force
President2.17yrsUS$5.53m0.17%
$ 6.9m
Henry Slack
Independent Director1.67yrsUS$186.26k0.0058%
$ 232.9k
Mark Tomkins
Independent Director14.33yrsUS$228.01k0.035%
$ 1.4m
Christopher Steffen
Independent Non-Executive Chairman1.17yrsUS$258.98k0.036%
$ 1.4m
Robert Cummings
Independent Director6yrsUS$210.01k0.029%
$ 1.2m
Shlomo Yanai
Independent Director2.67yrsUS$210.01k0.0080%
$ 323.1k
Diane Gulyas
Independent Director6yrsUS$225.01k0.020%
$ 802.8k
Julie Fasone-Holder
Independent Director4.17yrsUS$217.51k0.010%
$ 414.9k

3.7yrs

Average Tenure

67.5yo

Average Age

Experienced Board: GRA's board of directors are considered experienced (3.7 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$4.044b
  • 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

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/23 23:10
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.