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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
The Chemours Company (XNYS:CC) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
CC
Name:
THE CHEMOURS COMPANY (XNYS:CC)
Sector:
- 104000.00K
Industry:
Specialty Chemicals
CEO:
Mr. Mark Vergnano
Total Employees:
6,400
Our Technological Advancement Rating
Our Rating:
A
Technological advancement compared to industry is 69.06% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF THE CHEMOURS COMPANY(CC) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND SPECIALTY CHEMICALS INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
33.24
One Month Price Target:
$33.58
Six Month Price Target :
$35.26
Likely Price in One Year's Time:
Ticker:
$37.27
Likely Trading Range Today Under (Normal Volatility)
$33.07
Price Upper limit ($) :
$33.54
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$30.48
This week:
$27.07
This month :
$20.9
Other Primary facts
Market Cap:
5.11B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
155.14M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
23.53%
-22.79%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$46.03
$40.08
$20.45
$26.40
Medium risk (<10%) entry points
Buy Call
Sell Call
$38.14
Buy Put:
Sell Put:
$36.87
$28.33
$29.61
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
CC
Sharpe Ratio:
4.29%
Comparison:
CC, is amongst the top 20% stocks with highest risk-adjusted returns
Sharpe ratio is 102.66% higher than the industry
& ratio is 88.34% higher than the market/S&P 500 average
Average Returns/Yield of
CC
Daily returns:
0.19%
Weekly returns:
0.93%
Monthly returns:
3.72%
Yearly returns:
24.57%
Comparison of returns:
Average annual returns/yield (last 3 years) is 81.91% above industry average
Classification:
CC, is amongst the top 20% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.38
Statistical test of Returns:
CC has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
4.13%
Weekly Volatility:
9.24%
Monthly Volatility:
18.48%
Yearly Volatility:
64.01%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.03%
Volatility in last five trading days has been -75.04% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-8.30%
Weekly VaR:
-18.56%
Monthly VaR:
-37.12%
How Much Can the price of
CC
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-31%
Worst case (decline):
>85%
This translates to price declining to:
$23.04
This translates to price declining to:
$4.99
Severe Crash Probability
Risk of crash in next 6/12 months: Very high (>70%)
What is Value at Risk (VaR)?
Risk Fundamentals
CC is a 161.97% riskier investment compared to the market/S&P 500 & is 124.43% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 22.93% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
CC
Beta in relation to market/S&P 500--1.80
Expected beta in 1 year's time:
1.043
Expected beta in 3 year's time:
1.474
Unlevered (debt free) Beta:
0.463
Beta in relation to Nasdaq (XNAS):
1.188
Beta in relation to all global stocks::
1.273
Beta Comparison & Analysis
Beta of competitors/peers::
1.464
Beta is 23.23% higher than peers
Average Industry Beta:
1.164
Beta is 54.98% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
22.10%
Sustainable growth rate is -23.50% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.292
Alpha is 117.08% above industry average alpha yield
Alpha is 1858% higher than market/& is unsustainably high
Analysis of Cost of Capital of
CC
Equity cost of capital:
0.155
Equity cost of capital is 39.41% above industry mean WACC
Unlevered (without debt) cost of capital:
3.98%
Before-tax cost of debt:
4.45%
After-tax cost of debt:
3.52%
Overall debt rating:
Lower BB medium grade (Fifth highest grade)
Weighted average cost of capital (WACC):
3.52%
WACC is 10.24% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$43.02
Revenue growth rate per share of (3Y):
4.42
Annual revenue growth rate is 44.60% above the industry average
EPS:
$4.48
Expected Annual growth rate of EPS (3Y):
0.00%
-
Free cash flow (FCF) per share:
$2.93
Balance sheet equity growth per share: 18.77%
Equity growth rate per share is 79.50% higher than the industry
Debt per share
$24.99
EBITDA per share
$8.64
Valuation Analysis Today of
CC
P/E Ratio:
6.21
P/E Ratio of Competitors/Peers:
33.27
P/E ratio is -81.34% lower than main peers & is -83.43% lower than the industry
Stock price/value with industry average P/E ratio: $167.82
CC is -80.19% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $19.54
Present value of the expected future dividends only: $6.45
P/S (Price to Sales ratio):
0.77
Price to sales ratio is -72.00% below the industry mean
P/B (Price to book value ratio):
4.42
Price to free cash flow: 11.36
-
Net income growth rate (3Y):
-34.51%
Net income growth rate is -37.58% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 5.35%
Dividend yeild: 3.01%
Previous Dividend: $0.25
Previous adjusted dividend: $0.25
Previous Dividend: $1.00
-
-
Average dividend payment (long-term): $0.25
Average dividend increase/decrease (growth rate) % per period: 0.00%
Expected next dividend payment date: 13/09/2022
Expected next dividend record date: 15/08/2022
Expected next dividend declaration date: 26/07/2022
Previous dividend payment date: 15/06/2022
Previous dividend record date: 16/05/2022
Previous dividend declaration date: 27/04/2022
Dividend History:
2022-05-13--$0.25
2021-11-12--$0.25
2021-05-14--$0.25
2022-02-24--$0.25
2021-08-13--$0.25
2021-02-25--$0.25
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
332.50%
Net debt to equity ratio:
240.91%
Debt to assets ratio:
51.53%
Net debt to assets ratio:
37.33%
Debt-to-asset ratio is -4.76% below industry average
Ability to repay debt:
Interest coverage ratio:
7.62
Interest coverage ratio is -63.76% less than industry average
Looking forward:
Debt growth rate:
-2.35%
Annual debt growth is -101% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.18%
Analysis of Key Statistics
Correlation of price movement with the market:
0.637
Statistical significance of correlation:
CC has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.58
Stock price is 9.88% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.58
Correlation of price movement with Nasdaq (^IXIC):
0.013
Covariance of price movement with the market:
0.031
Kurtosis
5.322
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.306
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
CC
Gross Profit Margin Ratio:
94%
Operating Profit Margin Ratio:
12.72%
Operating profit margin is -104.52% lower than the industry
Net Profit Margin Ratio:
94%
Effective Tax Rate:
12.84%
Effective tax rate is -28.52% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
64.07%
Return on equity (ROE) is 122.87% higher than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
9.93%
Return on assets (ROA) is 278.06% higher than the industry
Financial Leverage:
2.1x
Current Ratio:
1.91
Current ratio is -28.70% below industry average
Cash Conversion Cycle (days):
-30.8
Cash conversion cycle is -149.99% below industry average
The remaining useful life of property plant & equipment is: 11.9 years
Stock based compensation to net income ratio:
1.34%
In-depth Efficiency Analysis
Revenue generated per employee:
1.0M
Each employee generates 39% more revenue than industry average revenue per employee
EBITDA generated per employee:
209.5K
Each employee generates 112% more EBITDA than industry average revenue per employee
Profit generated per employee:
116.7K
Each employee generates 267% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 16.3K
Each employee generates -56% less free cash flow than industry average revenue per employee
Assets/Capital per employee
645.5K
Each employee generates -56% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 15.05%
Growth rate in R&D investment/expenditure is 43.99% higher than the industry
Competitors/Peer firms of
CC
ELEMENT SOLUTIONS INC (XNYS:ESI)
ASHLAND INC. (XNYS:ASH)
National Steel Company (XNYS:SID)
EAGLE MATERIALS INC. (XNYS:EXP)
AVIENT CORPORATION (XNYS:AVNT)
KINROSS GOLD CORPORATION (XNYS:KGC)
UNITED STATES STEEL CORPORATION (XNYS:X)
UNIVAR SOLUTIONS INC. (XNYS:UNVR)
SUMMIT MATERIALS, INC. (XNYS:SUM)
Current Analyst Ratings
Strong buy�13%
Buy�17%
Hold�4%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
6.67B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
5.10B
1.57B
113.00M
-
596.00M
-
12.00M
721.00M
-
176.00M
308.00M
1.34B
849.00M
747.00M
857.00M
110.00M
747.00M
Statement of Cash Flow
Date:
Period:
74.00M
Differed Income Tax :
19.00M
Stock Based Compensation :
10.00M
Change in Working Capital :
- 337000.00K
Accounts Receivables:
-
Other Working Capital:
-
Other Non-Cash Items:
2.00M
Net Cash Provided by Operating Activities:
2.00M
Investments in PP&E:
- 106000.00K
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
1.15B
-
1.15B
1.01B
1.17B
68.00M
3.39B
3.36B
102.00M
5.00M
170.00M
149.00M
349.00M
4.13B
-
7.52B
1.17B
77.00M
48.00M
-
530.00M
1.78B
3.88B
653.00M
4.58B
-
6.36B
2.00M
1.94B
- 339000.0K
-
March 31, 2022 at 6:00:00 AM
5.83B
1.17B
7.52B
-
3.95B
2.8B
-
- 4000.00K
- 110000.00K
- 7000.00K
-
- 144000.00K
- 40000.00K
2.00M
- 189000.00K
- 9000.00K
- 306000.00K
1.25B
1.55B
2.00M
- 106000.00K
- 104000.00K
Our Proprietary Portfolio Rating
Our Rating:
B
Price Forecast/Expected Price in Next 5 Years of
CC
2023
2024
2025
2026
2027
$37.46
$75.69
$84.87
$95.16
$106.70