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Chemours Company (CC)
NYSE:CC
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Chemours Company
(NYSE:CC)
Rating:57Neutral
Price Target:
$14.00
▲(2.41%Upside)
Positive Factors
Leadership and Risk Mitigation
The addition of new board members from Vision One and Google suggests that PFAS liability may be less of a risk or constraint for Chemours.
Long-term Growth Potential
Chemours is expected to outperform the market with attractive longer-term options in its APM and TSS businesses and cost savings in the TT business.
Regulatory and Market Opportunities
Management expects growth driven by HFOs and regulatory changes that will increase demand for their products.
Negative Factors
Earnings and Profitability Concerns
Chemours' earnings per share estimates have been revised downward, indicating potential challenges in profitability.
Liability and Constraints
Chemours has a liability-sharing deal with DuPont and Corteva, which might constrain the company.
Market Pressure
The stock has come under pressure as investors questioned the earnings trajectory in TSS.
Chemours Company (CC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.98B
Dividend Yield2.64%
Average Volume (3M)4.56M
Price to Earnings (P/E)66.4
Beta (1Y)1.76
Revenue Growth-0.68%
EPS GrowthN/A
CountryUS
Employees6,000
SectorBasic Materials
Sector Strength63
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.13
Shares Outstanding149,674,210
10 Day Avg. Volume3,821,395
30 Day Avg. Volume4,559,987
Financial Highlights & Ratios
PEG Ratio-0.99
Price to Book (P/B)3.42
Price to Sales (P/S)0.00
P/FCF Ratio-2.48
Enterprise Value/Market Cap2.97
Enterprise Value/Revenue0.26
Enterprise Value/Gross Profit5.34
Enterprise Value/Ebitda2.37
Forecast
1Y Price Target
$15.41Price Target Upside12.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Chemours Company Business Overview & Revenue Model
Company DescriptionThe Chemours Company (CC) is a global leader in chemical solutions, specializing in the production of titanium technologies, fluoroproducts, and chemical solutions. The company operates through three main segments: Titanium Technologies, which supplies titanium dioxide pigment for coatings, plastics, and laminates; Thermal & Specialized Solutions, which produces refrigerants and propellants; and Advanced Performance Materials, focused on high-performance polymers. Chemours is committed to innovation, sustainability, and operational excellence, serving a diverse range of industries including automotive, electronics, energy, and construction.
How the Company Makes MoneyChemours generates revenue primarily through the sale of its specialized chemical products across its three main business segments. The Titanium Technologies segment is a significant revenue driver, providing titanium dioxide used in a variety of applications such as coatings and plastics. The Thermal & Specialized Solutions segment contributes through the sale of refrigerants and propellants, which are essential in air conditioning and refrigeration industries. The Advanced Performance Materials segment earns by supplying high-performance polymers used in demanding applications like automotive and electronics. Chemours' revenue is bolstered by strategic partnerships and long-term supply agreements with major industrial customers, as well as its focus on innovation and sustainability that meets evolving regulatory and market demands.
Chemours Company Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 13.92%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented both positive and negative aspects. While there were strong performances in the TSS business and strategic advancements like the Navin Fluorine agreement, there were significant challenges including decreased EBITDA, pricing pressures in the TT segment, and a notable dividend reduction.Q1-2025 Updates
Positive Updates
Strong Performance in TSS Business
The TSS business exceeded expectations with a 40% year-over-year net sales increase in Opteon refrigerants driven by increased demand for blend. Margins were driven to 30% due to strong contributions from Opteon sales.
Strategic Agreement with Navin Fluorine
Chemours announced a strategic agreement with Navin Fluorine to produce Opteon 2-phase emergent cooling fluid, aimed at addressing data cooling center needs created by AI and next-generation chips.
Successful Mitigation of Tariff Impacts
Chemours has effectively mitigated tariff exposures, particularly in the TSS segment, by leveraging supply chain flexibility and sourcing strategies.
Improved Cash Flow Outlook
Operating cash outflows improved to $112 million from $290 million in the same quarter last year, with expectations for free cash flow to be solidly positive for the full year.
Negative Updates
Decreased Adjusted EBITDA and Net Income
Adjusted EBITDA decreased to $166 million from $191 million in the prior year, and Chemours reported a net loss of $4 million compared to net income of $54 million in the previous year.
Pricing Pressure in TT Segment
The TT segment faced a 4% price decline due to regional pricing dynamics and additional costs from plant downtime, leading to a 28% decrease in adjusted EBITDA.
Challenges in APM Segment
The APM segment saw a 3% decrease in net sales due to weakness in cyclical end markets and unfavorable currency movements.
Dividend Reduction
Chemours announced a 65% reduction in its quarterly dividend, reflecting a strategic shift in capital allocation priorities.
Company Guidance
During the first quarter of 2025, The Chemours Company reported a strong 40% year-over-year increase in net sales for its Opteon refrigerants, driven by heightened demand for refrigerant blends as stationary OEMs ramp up inventories in anticipation of the 2025 U.S. AMAX transition mandate. Despite experiencing a full site outage in January due to third-party utility issues, the company managed to maintain its ability to meet customer orders, thanks to a rapid recovery effort. Chemours achieved a 30% margin in TSS, aided by a 40% capacity expansion at its Corpus Christi site. In TT, a 12% sequential sales increase was noted in Western markets, with Chemours benefiting from fair trade regulations. Although facing challenges from Chinese TiO2 dumping, the company expects a reduction in Chinese production in 2025 due to regulatory pressures and overcapacity. In APM, despite market softness, the segment improved its adjusted EBITDA margin by 1 percentage point to 11%, aided by cost reductions. The company also announced a 65% reduction in its quarterly dividend to enhance balance sheet flexibility and support strategic growth initiatives.Chemours Company Financial Statement Overview
Summary
Chemours Company faces challenges in maintaining profitability and managing leverage. The income statement shows declining revenue and low profit margins, while the balance sheet highlights high leverage and low equity levels. Cash flow issues are evident with negative free cash flow growth, posing potential risks to financial stability.Income Statement
The company's revenue has shown a slight decline in the TTM compared to the previous year, with a revenue growth rate of 0.33%. Gross profit margin stands at 19.00%, and net profit margin is a low 0.53%, indicating challenges in maintaining profitability. The EBIT margin is 7.19%, while the EBITDA margin is 11.03%, reflecting modest operational efficiency.55
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 7.57, indicating significant leverage and potential financial risk. Return on equity is low at 5.35%, suggesting limited profitability relative to shareholder equity. The equity ratio is 7.83%, highlighting a low proportion of equity financing.45
Neutral
Cash Flow
The cash flow statement shows negative free cash flow growth, with free cash flow declining significantly. The operating cash flow to net income ratio is negative, indicating operational cash flow challenges. Free cash flow to net income ratio is also negative, reflecting cash flow difficulties.30
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.78B | 6.03B | 6.79B | 6.34B | 4.97B |
| Gross Profit | 1.15B | 1.31B | 1.62B | 1.38B | 1.07B |
| EBITDA | 692.00M | 197.00M | 1.20B | 1.21B | 767.00M |
| Net Income | 86.00M | -238.00M | 578.00M | 608.00M | 219.00M |
Balance Sheet | |||||
| Total Assets | 7.51B | 8.25B | 7.64B | 7.55B | 7.08B |
| Cash, Cash Equivalents and Short-Term Investments | 713.00M | 1.20B | 1.10B | 1.45B | 1.10B |
| Total Debt | 4.36B | 4.30B | 3.81B | 3.93B | 4.28B |
| Total Liabilities | 6.91B | 7.51B | 6.53B | 6.47B | 6.27B |
| Stockholders Equity | 604.00M | 737.00M | 1.11B | 1.08B | 813.00M |
Cash Flow | |||||
| Free Cash Flow | -993.00M | 186.00M | 447.00M | 543.00M | 540.00M |
| Operating Cash Flow | -633.00M | 556.00M | 754.00M | 820.00M | 807.00M |
| Investing Cash Flow | -353.00M | -229.00M | -284.00M | 220.00M | -234.00M |
| Financing Cash Flow | -36.00M | 172.00M | -685.00M | -560.00M | -449.00M |
Chemours Company Technical Analysis
Positive
13.67
Price Trends
11.52
Positive
12.24
Positive
15.39
Negative
Market Momentum
0.65
Negative
63.55
Neutral
41.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CC, the sentiment is Positive. The current price of 13.67 is above the 20-day moving average (MA) of 12.45, above the 50-day MA of 11.52, and below the 200-day MA of 15.39, indicating a neutral trend. The MACD of 0.65 indicates Negative momentum. The RSI at 63.55 is Neutral, neither overbought nor oversold. The STOCH value of 41.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CC.
Chemours Company Risk Analysis
Chemours Company disclosed 39 risk factors in its most recent earnings report. Chemours Company reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Chemours Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Neutral | $2.11B | 80.30 | 2.21% | 1.99% | -7.91% | -81.73% | |
69 Neutral | $3.02B | 30.55 | 4.32% | 3.26% | 3.58% | -5.17% | |
69 Neutral | $8.91B | 9.82 | 16.16% | 4.28% | 2.78% | 1.50% | |
57 Neutral | $1.98B | 66.42 | 4.66% | 2.64% | -0.68% | ― | |
57 Neutral | $3.23B | ― | -28.05% | 2.00% | -4.31% | -1421.83% | |
55 Neutral | $8.24B | ― | -10.58% | 2.30% | -39.34% | -500.52% | |
44 Neutral | C$967.00M | -6.65 | -13.73% | 2.47% | 17.55% | -32.57% |
* Basic Materials Sector Average
Performance Comparison
CC
Chemours Company
13.67
-8.63
-38.70%
ALB
Albemarle
75.74
-14.47
-16.04%
EMN
Eastman Chemical
78.21
-15.49
-16.53%
IOSP
Innospec
85.01
-39.35
-31.64%
AVNT
Avient
33.14
-10.24
-23.61%
SSL
Sasol
4.95
-2.36
-32.28%
Chemours Company Corporate Events
Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Chemours Company Appoints Leslie Turner to Board
Positive
Feb 11, 2025
On February 10, 2025, Chemours Company announced the appointment of Leslie M. Turner to its Board of Directors, effective February 19, 2025, increasing the board size from eleven to twelve members. Turner, with extensive experience in corporate governance and legal matters from her previous roles at Hershey and Coca-Cola, will serve on the Nominating and Corporate Governance Committee and the Compensation and Leadership Development Committee. This appointment is part of Chemours’ ongoing strategy to strengthen its board with diverse expertise to support its refreshed business strategy, ‘Pathway to Thrive,’ aimed at creating long-term shareholder value. Additionally, the company confirmed its 2025 Annual Meeting of Shareholders will be held on April 22, 2025, which marks a return to its regular meeting schedule.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.