Chemtrade Logistics (TSE:CHE.UN)
TSX:CHE.UN
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Chemtrade Logistics
(TSX:CHE.UN)
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Rating:63Neutral
Price Target:
C$18.50
▲(25.34% Upside)
Action:ReiteratedDate:04/15/26
The score is driven by improved underlying financial performance and cash generation plus supportive valuation (low-teens P/E and ~4.8% yield), partially offset by higher balance-sheet leverage, a weak technical setup (below key moving averages with low RSI), and earnings-call guidance pointing to notable near-term cyclical and turnaround-related pressure before expected H2 2026 improvement.
Positive Factors
Consistent cash generation
Sustained operating cash flow and a meaningful step-up in free cash flow provide ongoing internal funding for sustaining capex, debt service and selective growth projects. This cash-generation profile reduces reliance on external financing and supports durable operational flexibility across cycles.
Negative Factors
Higher leverage
A materially higher leverage profile constrains financial flexibility and increases sensitivity to demand or margin shocks. Elevated debt amplifies cashflow pressure during downturns, limits strategic optionality and raises refinancing risk over the medium term absent sustained deleveraging.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation
Sustained operating cash flow and a meaningful step-up in free cash flow provide ongoing internal funding for sustaining capex, debt service and selective growth projects. This cash-generation profile reduces reliance on external financing and supports durable operational flexibility across cycles.
Read all positive factors
Chemtrade Logistics (CHE.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.93B
Dividend Yield4.73%
Average Volume (3M)237.16K
Price to Earnings (P/E)11.0
Beta (1Y)0.73
Revenue Growth11.79%
EPS Growth13.26%
CountryCA
Employees1,474
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)0.34
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$20.00Price Target Upside35.50% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.37
Revenue Forecast (FY)C$2.16B
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:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational narrative — 2025 was a record year with clear improvements in Regen acid reliability, progress on Cairo and Tulsa facility qualifications, and enhanced reporting transparency with the water chemicals segment split. Near-term challenges were highlighted, including sulphur-driven margin percentage pressure, temporary softness in caustic spot prices, heavier 2026 turnarounds (including a Q2 North impact), and a one-time reporting delay tied to the Polytec acquisition. Management expects many headwinds to normalize or recover in the second half of 2026, and sustaining/growth CapEx frameworks were clarified for modeling.Positive Updates
Record 2025 Performance
Company reported 2025 as a record year for Chemtrade, with management thanking employees for strong results and signalling overall strong full-year performance.
Negative Updates
Sulphur Cost Spike and Margin Pressure
Significant sulphur cost escalation in 2025 pressured SWC segment margins (margin percentage reduced even as management sought to protect EBITDA); management noted margin percentage tends to fall when raw material costs spike.
Read all updates
Q4-2025 Updates
Positive
Negative
Record 2025 Performance
Company reported 2025 as a record year for Chemtrade, with management thanking employees for strong results and signalling overall strong full-year performance.
Read all positive updates
Company Guidance
Management's 2026 guidance emphasized several quantified assumptions: caustic soda pricing was assumed around US$450 (Q1 spot was weaker but a rebound is expected in H2), the SWC segment referenced a 2025 EBITDA margin of about 23% (with margins under pressure from elevated sulphur costs), growth CapEx was discussed in the roughly $35–$55 million range (management clarified the $35–$50M discussed excludes any North Vancouver rezoning spend), sustenance CapEx is typically $120–$130 million, LTIP expense guidance is $22–$28 million (with 2025 at the higher end), and seasonal/operational dynamics point to Q2–Q3 as the strongest quarters (Q1 and Q4 weakest) alongside heavier SWC turnarounds in 2026 and a planned Cairo sales ramp in the second half.Chemtrade Logistics Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
56
Neutral
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.00B | 1.79B | 1.85B | 1.81B | 1.37B |
| Gross Profit | 460.09M | 430.55M | 420.65M | 353.90M | -3.85M |
| EBITDA | 523.56M | 417.42M | 562.33M | 448.99M | 92.91M |
| Net Income | 139.39M | 126.91M | 249.32M | 109.11M | -235.21M |
Balance Sheet | |||||
| Total Assets | 2.53B | 2.28B | 2.11B | 2.16B | 2.05B |
| Cash, Cash Equivalents and Short-Term Investments | 27.42M | 25.50M | 21.52M | 72.57M | 13.91M |
| Total Debt | 1.33B | 899.26M | 863.95M | 1.04B | 1.19B |
| Total Liabilities | 1.76B | 1.47B | 1.40B | 1.59B | 1.67B |
| Stockholders Equity | 775.11M | 818.36M | 707.14M | 566.21M | 379.85M |
Cash Flow | |||||
| Free Cash Flow | 178.48M | 162.00M | 235.07M | 253.75M | 132.90M |
| Operating Cash Flow | 355.07M | 347.80M | 401.46M | 369.19M | 219.04M |
| Investing Cash Flow | -428.57M | -185.80M | -118.46M | -108.88M | 96.53M |
| Financing Cash Flow | 76.01M | -159.30M | -333.53M | -203.00M | -314.12M |
Chemtrade Logistics Technical Analysis
Negative
14.76
Price Trends
15.69
Negative
15.15
Negative
13.74
Positive
Market Momentum
-0.02
Positive
41.91
Neutral
35.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CHE.UN, the sentiment is Negative. The current price of 14.76 is below the 20-day moving average (MA) of 15.99, below the 50-day MA of 15.69, and above the 200-day MA of 13.74, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 41.91 is Neutral, neither overbought nor oversold. The STOCH value of 35.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$621.50M | 75.16 | 24.00% | ― | 12.16% | -19.44% | |
67 Neutral | C$6.76B | -86.02 | 3.23% | 1.87% | -1.57% | -114.04% | |
63 Neutral | C$1.93B | 11.01 | 18.28% | 4.73% | 11.79% | 13.26% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
TSE:CHE.UN
Chemtrade Logistics
17.30
8.24
90.93%
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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.