NYSE:PQG

Stock Analysis Report

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Executive Summary

PQ Group Holdings Inc. provides specialty catalysts, materials, chemicals, and services in the United States, the Netherlands, the United Kingdom, and internationally. More Details


Snowflake Analysis

Moderate growth potential with questionable track record.


Similar Companies

Share Price & News

How has PQ Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PQG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.2%

PQG

-5.4%

US Chemicals

-5.3%

US Market


1 Year Return

-29.4%

PQG

1.4%

US Chemicals

10.4%

US Market

Return vs Industry: PQG underperformed the US Chemicals industry which returned 2.7% over the past year.

Return vs Market: PQG underperformed the US Market which returned 12% over the past year.


Shareholder returns

PQGIndustryMarket
7 Day-8.2%-5.4%-5.3%
30 Day14.2%-0.9%-2.1%
90 Day-5.8%2.4%1.7%
1 Year-29.4%-29.4%3.8%1.4%12.9%10.4%
3 Year-27.0%-27.0%9.0%-11.4%34.3%25.4%
5 Yearn/a53.3%17.5%73.7%54.3%

Price Volatility Vs. Market

How volatile is PQ Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PQ Group Holdings undervalued compared to its fair value and its price relative to the market?

36.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PQG ($11.56) is trading above our estimate of fair value ($10.62)

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


Price To Earnings Ratio

PE vs Industry: PQG is poor value based on its PE Ratio (36.5x) compared to the US Chemicals industry average (25.3x).

PE vs Market: PQG is poor value based on its PE Ratio (36.5x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: PQG is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: PQG is good value based on its PB Ratio (0.9x) compared to the US Chemicals industry average (1.9x).


Next Steps

Future Growth

How is PQ Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

30.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PQG's forecast earnings growth (30.9% per year) is above the savings rate (2.2%).

Earnings vs Market: PQG's earnings (30.9% per year) are forecast to grow faster than the US market (22% per year).

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

Revenue vs Market: PQG's revenue is expected to decline over the next 3 years (-1.8% per year).

High Growth Revenue: PQG's revenue is forecast to decline over the next 3 years (-1.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PQG's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has PQ Group Holdings performed over the past 5 years?

44.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PQG has high quality earnings.

Growing Profit Margin: PQG's current net profit margins (2.9%) are lower than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: PQG's earnings have grown significantly by 44.2% per year over the past 5 years.

Accelerating Growth: PQG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PQG had negative earnings growth (-51.6%) over the past year, making it difficult to compare to the Chemicals industry average (-19.3%).


Return on Equity

High ROE: PQG's Return on Equity (2.4%) is considered low.


Next Steps

Financial Health

How is PQ Group Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: PQG's short term assets ($647.5M) exceed its short term liabilities ($227.7M).

Long Term Liabilities: PQG's short term assets ($647.5M) do not cover its long term liabilities ($2.3B).


Debt to Equity History and Analysis

Debt Level: PQG's debt to equity ratio (106.4%) is considered high.

Reducing Debt: Insufficient data to determine if PQG's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: PQG's debt is not well covered by operating cash flow (15.6%).

Interest Coverage: PQG's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet


Next Steps

Dividend

What is PQ Group Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PQG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PQG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PQG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PQG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PQG's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Belgacem Chariag (58 yo)

2.17yrs

Tenure

US$5,463,523

Compensation

Mr. Belgacem Chariag is President, Chief Executive Officer and Director at PQ Group Holdings Inc. since August 9, 2018. He serves as Chairman od the Board at PQ Group Holdings Inc since December 2019. Mr. ...


CEO Compensation Analysis

Compensation vs Market: Belgacem's total compensation ($USD5.46M) is about average for companies of similar size in the US market ($USD4.53M).

Compensation vs Earnings: Belgacem's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Belgacem Chariag
Chairman2.17yrsUS$5.46m0.22%
$ 3.6m
Michael Crews
Executive VP & CFO5.17yrsUS$2.41m0.14%
$ 2.3m
Joseph Koscinski
Secretary4.83yrsUS$1.45m0.061%
$ 1.0m
Scott Randolph
VP & President of Performance Materials3.83yrsUS$1.89m0.11%
$ 1.9m
Raymond Kolberg
VP & President of Catalystsno dataUS$1.53m0.050%
$ 820.7k
Ufuk Senturk
Vice President of R&D and Technology1.75yrsno datano data
William Sichko
Chief Administrative Officer15.75yrsno data0.57%
$ 9.4m
Nahla Azmy
Vice President of Investor Relations & Financial Communicationsno datano datano data
Wendy Graham
Vice President of Marketing & Commercial Strategy1.58yrsno datano data
Kurt Bitting
VP & President of Refining Services1.58yrsno data0.055%
$ 904.3k
Albert Beninati
VP & President of Performance Chemicals0.83yrno data0.022%
$ 364.2k

2.2yrs

Average Tenure

56yo

Average Age

Experienced Management: PQG's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Belgacem Chariag
Chairman2.17yrsUS$5.46m0.22%
$ 3.6m
Christopher Behrens
Independent Director1.75yrsno datano data
Timothy Walsh
Lead Independent Directorno datano datano data
Gregory Brenneman
Independent Director6.75yrsno datano data
Andrew Currie
Independent Director12.75yrsno datano data
Kyle Vann
Independent Director6.75yrsUS$250.01k0.064%
$ 1.0m
Martin Craighead
Independent Director3.25yrsUS$250.01k0.042%
$ 690.6k
Robert Coxon
Independent Director13.75yrsUS$265.01k0.085%
$ 1.4m
Mark McFadden
Independent Director4yrsno datano data
Jonny Ginns
Independent Director10.75yrsno data0.018%
$ 288.8k
Susan Ward
Director0.25yrno data0.011%
$ 176.2k

5.4yrs

Average Tenure

59yo

Average Age

Experienced Board: PQG's board of directors are considered experienced (5.4 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

PQ Group Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PQ Group Holdings Inc.
  • Ticker: PQG
  • Exchange: NYSE
  • Founded: 1831
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$1.650b
  • Shares outstanding: 136.05m
  • Website: https://www.pqcorp.com

Number of Employees


Location

  • PQ Group Holdings Inc.
  • 300 Lindenwood Drive
  • Valleybrooke Corporate Center
  • Malvern
  • Pennsylvania
  • 19355-1740
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PQGNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 2017
PQGDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2017

Biography

PQ Group Holdings Inc. provides specialty catalysts, materials, chemicals, and services in the United States, the Netherlands, the United Kingdom, and internationally. The company operates through four seg ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 00:43
End of Day Share Price2020/10/30 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.