Chemtrade Logistics (CHE.UN) AI Stock Analysis

• Market Cap: C$1.25B
• Dividend Yield: 6.23%
• Average Volume (3M): 145.97K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.06
• Revenue Growth: 2.31%
• EPS Growth: -37.58%
• Country: CA
• Employees: 1,474
• Sector: Basic Materials
• Sector Strength: 71
• Industry: Chemicals
• EPS (TTM): 0.42
• Shares Outstanding: 112,961,180
• 10 Day Avg. Volume: 133,173
• 30 Day Avg. Volume: 145,970
• PEG Ratio: 1.85
• Price to Book (P/B): 1.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.17
• 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$13.50
• Price Target Upside: 21.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 70 Outperform
• Price Target: C$12.00 ▲(8.40%Upside)

Chemtrade Logistics scores well with a strong financial performance and attractive valuation, supported by a low P/E ratio and high dividend yield. However, technical indicators suggest potential overbought conditions, which may lead to short-term volatility. The absence of recent earnings call data and corporate events limits additional insight into the company’s current strategic direction.

Positive Factors

Currency Impact

The stronger USD is beneficial, with each $0.01 USD appreciation adding $3-4M to earnings.

Financial Performance

CHE continues to deliver more robust earnings and appears inexpensive with ample free cash flow to pursue ongoing buybacks and other initiatives.

Pricing Strategy

CHE's earnings are more robust than some investors remember, benefiting from better pricing strategies and fewer unplanned outages.

Negative Factors

Chlorine Market

Chlorine is showing weakness, and there is likely some downtick in chlorate due to more closed pulp mills.

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 Electrochemicals (EC) segments. The SPPC segment removes and/or produces, and markets merchant, regenerated, and ultra-pure sulphuric acid, sodium hydrosulphite, elemental sulphur, liquid sulphur dioxide, hydrogen sulphide, sodium bisulphite, and sulphides. This segment also offers industrial services, such as processing by-products and waste streams. Its WSSC segment manufactures and markets various inorganic coagulants used in water treatment, including aluminum sulphate, aluminum chlorohydrate, polyaluminum chloride, and ferric sulphate; and a range of specialty chemicals, such as sodium nitrite and phosphorus pentasulphide. The EC segment manufactures and markets sodium chlorate and chlor-alkali products, including caustic soda, chlorine, and hydro-chloric acid for the pulp and paper, oil and gas, and water treatment industries. Chemtrade Logistics Income Fund was founded in 2001 and is headquartered in Toronto, Canada.

How the Company Makes Money

Chemtrade Logistics generates revenue through the manufacturing and distribution of industrial chemicals and services. The company operates through several segments, including Sulphur Products & Performance Chemicals (SPPC), Water Solutions & Specialty Chemicals (WSSC), and Electrochemicals (EC). Revenue streams primarily come from selling chemicals and providing related logistics and services. Chemtrade's financial performance is influenced by factors such as commodity prices, supply and demand dynamics, and long-term contracts with key customers. Significant partnerships with major industrial players ensure a stable demand for its products and services, contributing to consistent earnings.

Chemtrade Logistics Financial Statement Overview

Summary

Chemtrade Logistics demonstrates solid financial performance with consistent revenue growth, healthy profitability margins, and effective cash flow management. The company's moderate leverage and improving equity position support its financial health, though attention to debt levels and cash management remains crucial to sustaining future growth. Overall, the company is well-positioned within the chemicals industry, with strengths in operational efficiency and shareholder returns.

Income Statement

Chemtrade Logistics shows a strong income statement with consistent revenue growth, evidenced by a 2.70% increase from 2024 to 2025. Gross profit margin is healthy at 23.8%, and there's a steady net profit margin of 7.3%. The company also maintains a solid EBIT margin of 14.3% and an EBITDA margin of 23.8%, indicating good operational efficiency. However, historical fluctuations in net income and past negative figures are areas of concern.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.25, which is manageable but should be monitored. The equity ratio stands at 34.9%, showing a balanced capital structure. Return on equity is at 16.9%, indicating effective use of shareholder funds. While leverage is moderate, the company should be cautious of increasing liabilities relative to equity.

Cash Flow

Cash flow analysis reveals a positive trajectory with a free cash flow growth rate of 12.45% from 2024 to TTM. The operating cash flow to net income ratio is robust at 2.66, suggesting strong cash generation relative to earnings. The free cash flow to net income ratio is also healthy at 1.36. Despite these strengths, the company must maintain careful management of cash flows to support ongoing investments and debt service.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.84B	1.79B	1.85B	1.81B	1.37B	1.38B
Gross Profit	436.65M	430.55M	420.65M	353.90M	-3.85M	33.73M
EBITDA	436.02M	417.42M	562.33M	445.83M	92.91M	119.51M
Net Income	134.02M	126.91M	249.32M	109.11M	-235.21M	-167.48M
Balance Sheet
Total Assets	2.28B	2.28B	2.11B	2.16B	2.05B	2.50B
Cash, Cash Equivalents and Short-Term Investments	25.50M	25.50M	21.52M	72.57M	13.91M	12.51M
Total Debt	899.26M	899.26M	863.95M	1.04B	1.19B	1.38B
Total Liabilities	1.47B	1.47B	1.40B	1.59B	1.67B	1.89B
Stockholders Equity	818.36M	818.36M	707.14M	566.21M	379.85M	605.82M
Cash Flow
Free Cash Flow	182.11M	162.00M	235.07M	253.75M	132.90M	184.87M
Operating Cash Flow	357.02M	347.80M	401.46M	369.19M	219.04M	261.95M
Investing Cash Flow	-174.91M	-185.80M	-118.46M	-108.88M	96.53M	-74.79M
Financing Cash Flow	-181.57M	-159.30M	-333.53M	-203.00M	-314.12M	-187.86M

Chemtrade Logistics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 11.07 is above the 20-day moving average (MA) of 11.03, above the 50-day MA of 10.62, and above the 200-day MA of 10.26, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 59.38 is Neutral, neither overbought nor oversold. The STOCH value of 53.77 is Neutral, 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	70 Outperform	C$1.25B	9.75	17.46%	6.23%	2.31%	-37.58%
Sector *	44 Neutral	C$982.42M	-6.71	-13.24%	2.54%	17.20%	-32.72%
MEOH		$2.33B	10.40	10.56%	2.15%	―	―