Catching the Wave: The Chemours Co's Stock's Dramatic 32% Leap in 90 Days

The Chemours Co (CC, Financial) has experienced a notable uptick in its stock performance, with a market capitalization now standing at $4.78 billion. The current price of $32.17 reflects a significant 8.72% gain over the past week and an even more impressive 32.41% gain over the past three months. When compared to the GF Value of $34.02, The Chemours Co is currently deemed to be Fairly Valued, a shift from its previous status of Modestly Undervalued when the GF Value was at $35.1. This change in valuation suggests that the stock price is aligning more closely with the company's intrinsic value as perceived by the market.

Introduction to The Chemours Co

The Chemours Co, operating within the chemicals industry, is a global provider of specialized chemical solutions. Its products serve a diverse range of markets, including coatings, plastics, refrigeration, and air conditioning. The company's primary operating segments are Titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials. The Titanium Technologies segment, known for producing TiO2 pigment, contributes the majority of the company's revenue, primarily from North America. This segment's products are essential for delivering whiteness, brightness, and durability in various applications. 1750159538335674368.png

Assessing Profitability

The Chemours Co's Profitability Rank stands at 6/10, indicating a moderate level of profitability within the industry. The company's Operating Margin is currently at -2.00%, which, while negative, is better than 17.44% of 1,525 companies in the same sector. The ROE (Return on Equity) is at -29.72%, surpassing 5.94% of its peers, and the ROA (Return on Assets) at -3.99% is better than 14.37% of the industry. The ROIC (Return on Invested Capital) stands at -2.33%, which is more favorable than 17.06% of competitors. Over the past decade, The Chemours Co has maintained profitability for 8 years, outperforming 42.94% of 1,495 companies. 1750159556308267008.png

Growth Trajectory

The company's Growth Rank is 5/10, reflecting an average growth trajectory. The 3-Year Revenue Growth Rate per Share is 8.60%, which is better than 46.38% of 1,451 companies in the same industry. The 5-Year Revenue Growth Rate per Share is 4.10%, surpassing 38.37% of 1,350 companies. However, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is estimated at -1.05%, which is still better than 20.53% of 151 companies. The 3-Year EPS without NRI Growth Rate is a robust 22.90%, outperforming 64.01% of 1,256 companies, while the 5-Year EPS without NRI Growth Rate is at -0.80%, which is better than 25.86% of 959 companies. 1750159573286809600.png

Notable Shareholders

Among the notable shareholders of The Chemours Co, Ray Dalio (Trades, Portfolio) holds 258,935 shares, representing a 0.17% stake in the company. Paul Tudor Jones (Trades, Portfolio) follows with 219,049 shares, accounting for a 0.15% share, and Jim Simons (Trades, Portfolio) holds 185,900 shares, which equates to a 0.13% stake. These prominent investors' involvement provides a layer of confidence in the company's potential and strategic direction.

Competitive Landscape

In comparison to its competitors, The Chemours Co holds its ground with a market cap of $4.78 billion. Cabot Corp (CBT, Financial) has a market cap of $4.12 billion, Balchem Corp (BCPC, Financial) stands at $4.58 billion, and H.B. Fuller Co (FUL, Financial) is valued at $4.21 billion. These companies represent the closest market capitalization within the chemicals industry, providing a context for The Chemours Co's market position.

Conclusion

In summary, The Chemours Co's stock performance has been robust, with a 32.41% gain over the past three months, reflecting a positive market sentiment. The company is currently Fairly Valued according to the GF Value, indicating that its stock price is in line with its intrinsic value. The Chemours Co maintains a solid market position with its specialized chemical products and has demonstrated a consistent ability to remain profitable over the years. While its growth rates are average, the company's profitability metrics, particularly the 3-Year EPS Growth Rate, are commendable. The involvement of notable shareholders such as Ray Dalio (Trades, Portfolio), Paul Tudor Jones (Trades, Portfolio), and Jim Simons (Trades, Portfolio) adds a layer of credibility to the company's prospects. When placed alongside its competitors, The Chemours Co's market cap signifies its competitive stance within the industry. Investors may find The Chemours Co an interesting case of a company that has managed to navigate the complexities of the chemical sector while providing value to its shareholders.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.