Chemtrade Logistics (CHE.UN) AI Stock Analysis

• Market Cap: C$1.49B
• Dividend Yield: 4.8%
• Average Volume (3M): 237.16K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.97
• Revenue Growth: 10.20%
• EPS Growth: -11.22%
• Country: CA
• Employees: 1,474
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.39
• Shares Outstanding: 111,984,430
• 10 Day Avg. Volume: 226,508
• 30 Day Avg. Volume: 237,163
• PEG Ratio: -0.21
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 8.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$19.33
• Price Target Upside: 35.08% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: C$14.50 ▲(1.33% Upside)

Chemtrade Logistics' overall stock score is driven by strong earnings call results and fair valuation, offset by mixed financial performance and technical indicators. The company's record-breaking EBITDA and strategic acquisitions provide a positive outlook, but high leverage and cash flow challenges need to be addressed for long-term stability.

Positive Factors

Revenue Growth

Chemtrade's double-digit revenue growth indicates strong demand for its products and services, enhancing its market position and supporting long-term financial stability.

Strategic Acquisitions

Successful integration of acquisitions like Thatcher Group and Polytec enhances Chemtrade's product offerings and market reach, supporting sustainable growth.

Strong Balance Sheet

A strong balance sheet with low leverage and high liquidity provides Chemtrade with financial flexibility to invest in growth opportunities and weather economic downturns.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting Chemtrade's ability to invest in growth or manage economic challenges.

Cash Flow Challenges

Challenges in cash flow generation may hinder Chemtrade's ability to fund operations and growth initiatives, affecting long-term financial health.

Chlorine Price Softness

Continued softness in chlorine prices could pressure margins in the Electrochemicals segment, impacting profitability and cash flow.

Chemtrade Logistics Business Overview & Revenue Model

Company Description

Chemtrade Logistics (CHE.UN) is a leading provider of industrial chemicals, services, and logistics solutions, primarily serving the North American market. The company operates in sectors such as water treatment, specialty chemicals, and oil and gas. Chemtrade's core products include sulfuric acid, sodium hydroxide, and various other chemicals, alongside logistics services that encompass transportation and storage solutions for bulk chemicals.

How the Company Makes Money

Chemtrade generates revenue through the production and sale of a diverse range of industrial chemicals and specialty products. Its primary revenue streams come from the sale of chemicals used in various applications, including water treatment, mining, and manufacturing. The company also earns income from logistics services, which involve the transportation, storage, and handling of chemicals. Key partnerships with industrial clients in sectors like utilities, mining, and oil and gas facilitate long-term contracts that provide stable revenue. Additionally, Chemtrade benefits from economies of scale and operational efficiencies, allowing it to maintain competitive pricing and secure ongoing business with established customers.

Chemtrade Logistics Financial Statement Overview

Summary

Chemtrade Logistics shows solid revenue growth and stable profitability in its income statement. However, high leverage and cash flow challenges indicate financial risks that need addressing for long-term stability.

Income Statement

Chemtrade Logistics shows a solid performance in its income statement with a consistent revenue growth rate of 2.65% in TTM, following a slight decline in the previous year. The gross profit margin remains stable at around 24%, indicating effective cost management. The net profit margin has improved slightly to 7.30% in TTM, reflecting better profitability. However, the EBIT margin has slightly decreased, suggesting some operational challenges. Overall, the income statement reflects a positive growth trajectory with room for improvement in operational efficiency.

Balance Sheet

The balance sheet of Chemtrade Logistics indicates a high debt-to-equity ratio of 1.25 in TTM, which is a concern for financial stability. However, the company has improved its return on equity to 16.96%, showing effective use of equity to generate profits. The equity ratio stands at 32.57%, suggesting a moderate level of financial leverage. While the company has made progress in improving equity returns, the high leverage remains a potential risk.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth by 28.24% in TTM, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is 0.49, suggesting that cash generation is not fully aligned with reported profits. Despite these challenges, the free cash flow to net income ratio of 0.51 indicates that the company is still able to convert a significant portion of its profits into cash. Overall, the cash flow position shows some weaknesses that need to be addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.88B	1.79B	1.85B	1.81B	1.37B	1.38B
Gross Profit	456.24M	430.55M	420.65M	353.90M	-3.85M	33.73M
EBITDA	433.76M	417.42M	562.33M	448.99M	92.91M	119.51M
Net Income	129.12M	126.91M	249.32M	109.11M	-235.21M	-167.48M
Balance Sheet
Total Assets	2.23B	2.28B	2.11B	2.16B	2.05B	2.50B
Cash, Cash Equivalents and Short-Term Investments	20.08M	25.50M	21.52M	72.57M	13.91M	12.51M
Total Debt	1.03B	899.26M	863.95M	1.04B	1.19B	1.38B
Total Liabilities	1.50B	1.47B	1.40B	1.59B	1.67B	1.89B
Stockholders Equity	725.88M	818.36M	707.14M	566.21M	379.85M	605.82M
Cash Flow
Free Cash Flow	130.68M	162.00M	235.07M	253.75M	132.90M	184.87M
Operating Cash Flow	338.24M	347.80M	401.46M	369.19M	219.04M	261.95M
Investing Cash Flow	-207.56M	-185.80M	-118.46M	-108.88M	96.53M	-74.79M
Financing Cash Flow	-145.63M	-159.30M	-333.53M	-203.00M	-314.12M	-187.86M

Chemtrade Logistics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CHE.UN, the sentiment is Positive. The current price of 14.31 is above the 20-day moving average (MA) of 13.98, above the 50-day MA of 13.55, and above the 200-day MA of 11.27, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 59.55 is Neutral, neither overbought nor oversold. The STOCH value of 89.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CHE.UN.

Chemtrade Logistics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHE.UN	69 Neutral	C$1.49B	12.11	14.30%	4.80%	10.20%	-11.22%
MX	66 Neutral	$3.82B	11.00	9.35%	2.04%	-0.65%	46.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Chemtrade Logistics Corporate Events

Chemtrade Logistics Reports Record-Breaking Earnings

Chemtrade Logistics’ recent earnings call painted a picture of robust financial health and strategic progress. The company reported record-breaking EBITDA and growth across its major segments, despite facing challenges such as increased corporate costs and chlorine pricing issues. The sentiment throughout the call was optimistic, underpinned by strategic acquisitions and a strong financial position, aligning with Chemtrade’s Vision 2030.