Chemtrade Logistics (TSE:CHE.UN)
TSX:CHE.UN
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Chemtrade Logistics
(TSX:CHE.UN)
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Rating:64Neutral
Price Target:
C$17.50
▲(18.56% Upside)
Action:Reiterated
Date:05/21/26
The score is primarily driven by solid profitability and positive free cash flow, offset by elevated leverage and earnings cyclicality. The earnings call adds a neutral-to-slightly-positive tilt with guidance maintained but notable commodity/input-cost volatility. Technicals are mixed with weak near-term momentum, while valuation is supported by the dividend and a mid-range P/E.
Positive Factors
Consistent cash generation
Chemtrade consistently generates positive operating and free cash flow, with a notable TTM rebound. Durable cash generation supports self‑funding of operations, dividend/distribution maintenance, organic growth spending and deleveraging initiatives, reducing reliance on external financing.
Negative Factors
Elevated leverage
Chemtrade's elevated debt relative to equity increases refinancing and interest rate exposure. A leveraged capital structure limits flexibility for large M&A, forces prioritization of deleveraging over opportunistic investments, and raises long‑term downside risk in cyclical downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation
Chemtrade consistently generates positive operating and free cash flow, with a notable TTM rebound. Durable cash generation supports self‑funding of operations, dividend/distribution maintenance, organic growth spending and deleveraging initiatives, reducing reliance on external financing.
Read all positive factors
Chemtrade Logistics (CHE.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.88B
Dividend Yield4.73%
Average Volume (3M)237.16K
Price to Earnings (P/E)17.9
Beta (1Y)0.74
Revenue Growth10.86%
EPS Growth-10.00%
CountryCA
Employees1,474
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)1.04
Shares Outstanding111,736,400
10 Day Avg. Volume226,508
30 Day Avg. Volume237,163
Financial Highlights & Ratios
PEG Ratio0.86
Price to Book (P/B)2.17
Price to Sales (P/S)0.84
P/FCF Ratio9.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$20.17Price Target Upside36.63% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)1.41
Revenue Forecast (FY)C$2.17B
Chemtrade Logistics Business Overview & Revenue Model
Company Description
Chemtrade Logistics Income Fund offers industrial chemicals and services in Canada, the United States, and South America. It operates through Sulphur Products & Performance chemicals (SPPC), Water Solutions & Specialty Chemicals (WSSC), and Electr...
How the Company Makes Money
Chemtrade primarily makes money by selling industrial chemicals and related services to commercial and municipal customers under supply arrangements that can include recurring/contracted volumes and pricing structures linked to input costs and mar...
Chemtrade Logistics Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Neutral
The call presented a balanced view: management maintained full-year adjusted EBITDA guidance ($485M–$525M), highlighted operational progress (ultrapure customer wins, completed turnaround, active NCIB, and water integration), and has a clear capital allocation and deleveraging plan. Offsetting these positives are significant commodity-driven headwinds — notably volatile caustic and elevated sulfur/sulfuric acid — that have materially pressured netbacks (MECU down ~USD 195 YoY) and created forecasting uncertainty. Management described mitigations (contract pass-throughs, merchant acid benefits) but acknowledged timing lags and near-term impacts (turnarounds, input-cost pass-through over multiple quarters). Overall, positives and negatives are roughly balanced.Positive Updates
Full-Year Adjusted EBITDA Guidance Maintained
Company reaffirmed full-year adjusted EBITDA guidance of $485 million to $525 million and stated guidance already incorporates higher sulfur and aluminum input costs for the Water segment.
Negative Updates
Commodity Volatility — Sulfur and Sulfuric Acid at Elevated Levels
Sulfur and sulfuric acid prices are near all-time highs due to geopolitical disruption (Iran/Middle East and Strait of Hormuz); company noted difficulty passing through rapid spikes in Water contracts with quoting/lag dynamics and expects only moderation in the back half of the year, but still above historic levels.
Read all updates
Q1-2026 Updates
Positive
Negative
Full-Year Adjusted EBITDA Guidance Maintained
Company reaffirmed full-year adjusted EBITDA guidance of $485 million to $525 million and stated guidance already incorporates higher sulfur and aluminum input costs for the Water segment.
Read all positive updates
Company Guidance
Management reiterated full‑year adjusted EBITDA guidance of $485–$525 million, noting key assumptions and sensitivities: MECU netbacks (chlorine + phosphate) are expected to be about USD 195 lower year‑over‑year, while the Northeast Asia caustic index assumption for 2026 is ~USD 415 (only ~USD 20 lower YoY) with a practical spot midpoint near USD 450 (Q1 averages were ~USD 350 before spiking toward ~USD 550); sulfur is at or near all‑time highs and, together with higher aluminum, is being passed through to customers over the next 4–6 quarters, and the company expects weaker chlorine/HCl versus last year; they also flagged a ~4‑week North Van turnaround that cost roughly $15 million of EBITDA, continue to target leverage ≤2.5x, plan ~$50 million/year organic growth spending, are pursuing NCIBs toward ~100 million outstanding units, and noted ~$25 million of 2028 convertibles (strike $12.85; soft‑call at 125% = $16.10 for 20 trading days; debenture trading ~140%).Chemtrade Logistics Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
56
Neutral
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.03B | 2.00B | 1.79B | 1.85B | 1.81B | 1.37B |
| Gross Profit | 452.05M | 460.09M | 430.55M | 420.65M | 353.90M | -3.85M |
| EBITDA | 505.08M | 523.56M | 417.42M | 562.33M | 448.99M | 92.91M |
| Net Income | 115.72M | 139.39M | 126.91M | 249.32M | 109.11M | -235.21M |
Balance Sheet | ||||||
| Total Assets | 2.58B | 2.53B | 2.28B | 2.11B | 2.16B | 2.05B |
| Cash, Cash Equivalents and Short-Term Investments | 46.50M | 27.42M | 25.50M | 21.52M | 72.57M | 13.91M |
| Total Debt | 1.29B | 1.33B | 899.26M | 863.95M | 1.04B | 1.19B |
| Total Liabilities | 1.82B | 1.76B | 1.47B | 1.40B | 1.59B | 1.67B |
| Stockholders Equity | 756.10M | 775.11M | 818.36M | 707.14M | 566.21M | 379.85M |
Cash Flow | ||||||
| Free Cash Flow | 187.68M | 178.48M | 162.00M | 235.07M | 253.75M | 132.90M |
| Operating Cash Flow | 385.84M | 355.07M | 347.80M | 401.46M | 369.19M | 219.04M |
| Investing Cash Flow | -450.13M | -428.57M | -185.80M | -118.46M | -108.88M | 96.53M |
| Financing Cash Flow | 80.75M | 76.01M | -159.30M | -333.53M | -203.00M | -314.12M |
Chemtrade Logistics Technical Analysis
Positive
14.76
Price Trends
16.25
Positive
15.75
Positive
14.41
Positive
Market Momentum
0.15
Positive
51.71
Neutral
17.75
Positive
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 14.76 is below the 20-day moving average (MA) of 17.02, below the 50-day MA of 16.25, and above the 200-day MA of 14.41, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 51.71 is Neutral, neither overbought nor oversold. The STOCH value of 17.75 is Positive, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | C$518.56M | 75.16 | 24.00% | ― | 12.16% | -19.44% | |
67 Neutral | C$6.43B | -86.02 | -1.78% | 1.87% | -1.57% | -114.04% | |
64 Neutral | C$1.88B | 17.94 | 15.37% | 4.73% | 10.86% | -10.00% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
TSE:CHE.UN
Chemtrade Logistics
16.85
6.21
58.41%
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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.