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Chemours Company (CC)
:CC
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Chemours Company
(NYSE:CC)53Neutral
Positive Factors
Financial Performance
Q4 EBITDA was $14 million above consensus estimates, indicating stronger than expected financial performance.
Market Position
A decline in Chinese competitive pressure is likely to benefit TiO2 market share in Europe, providing a tailwind for the company's operations.
Negative Factors
Earnings Guidance
The guidance for FY25 adjusted EBITDA midpoint is below estimates, indicating potential challenges for Chemours Company.
Chemours Company (CC) vs. S&P 500 (SPY)
Market Cap
$2.09B
Dividend Yield7.15%
Average Volume (3M)2.15M
Price to Earnings (P/E)24.4
Beta (1Y)1.90
Revenue Growth-4.05%
EPS GrowthN/A
CountryUS
Employees6,000
SectorBasic Materials
Sector Strength56
IndustryChemicals
Share Statistics
EPS (TTM)0.58
Shares Outstanding149,440,780
10 Day Avg. Volume2,696,894
30 Day Avg. Volume2,149,838
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.36
Price to Cash Flow (P/CF)3.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$22.00Price Target Upside55.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Chemours Company Business Overview & Revenue Model
Company DescriptionThe Chemours Company, commonly known as Chemours, is a global chemistry company that specializes in the production of titanium technologies, fluoroproducts, and chemical solutions. Established as a spin-off from DuPont in 2015, Chemours operates in various sectors including automotive, electronics, energy, and construction. The company's core products include titanium dioxide for coatings and plastics, fluoropolymers for electronics and industrial applications, and chemical intermediates for a range of industries.
How the Company Makes MoneyChemours generates revenue primarily through the sale of its diverse chemical products across its three main business segments: Titanium Technologies, Thermal & Specialized Solutions, and Advanced Performance Materials. The Titanium Technologies segment, which includes the production of titanium dioxide, is one of its largest revenue contributors, serving industries such as plastics, coatings, and laminates. Thermal & Specialized Solutions focuses on refrigerants and other fluoroproducts, catering to automotive and HVAC markets. Advanced Performance Materials, which includes fluoropolymers and other advanced materials, serves industries like electronics and semiconductors. Key factors contributing to Chemours' earnings include strategic partnerships with manufacturers, ongoing innovation in product offerings, and a global supply chain that ensures market reach and customer satisfaction.
Chemours Company Financial Statement Overview
Summary
Chemours' financials show mixed signals: improved net profit margin and reduced leverage are positive, but negative revenue growth and significant cash flow issues highlight ongoing challenges.Income Statement
The Chemours Company's revenue showed volatility, with a drop from 2022 to 2023, and a slight recovery in 2024. The gross profit margin in 2024 was approximately 19.90%, indicating healthy cost control relative to revenue. The net profit margin improved to 1.49% in 2024 from a negative margin in 2023, showing a turnaround in profitability. However, EBIT and EBITDA margins were low, reflecting operational challenges. The revenue growth rate from 2023 to 2024 was negative, showing a decline of 4.06%, indicating some market or operational difficulties.65
Positive
Balance Sheet
The company's balance sheet highlights a significant decrease in stockholders' equity from 2021 to 2024, indicating financial strain. The debt-to-equity ratio improved to 0.41 in 2024 from 5.83 in 2023, reflecting decreased leverage due to reduced debt. Return on equity was positive at 14.24% in 2024, indicating effective use of equity to generate profit despite previous losses. The equity ratio was low at 8.04% in 2024, suggesting a high reliance on debt financing.55
Neutral
Cash Flow
Chemours faced significant cash flow challenges in 2024, with a negative free cash flow. The operating cash flow to net income ratio was -7.36, indicating issues in converting income into cash. The free cash flow to net income ratio was -11.55, showing poor cash generation relative to net income. The free cash flow growth rate was sharply negative compared to positive cash flows in previous years.40
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.78B | 6.03B | 6.79B | 6.34B | 4.97B | Gross Profit |
| 1.15B | 1.31B | 1.62B | 1.38B | 1.07B | EBIT |
| 457.00M | -92.00M | 913.00M | 888.00M | 509.00M | EBITDA |
| 692.00M | 197.00M | 1.20B | 1.21B | 767.00M | Net Income Common Stockholders |
| 86.00M | -238.00M | 578.00M | 608.00M | 219.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 713.00M | 1.20B | 1.10B | 1.45B | 1.10B | Total Assets |
| 7.51B | 8.25B | 7.64B | 7.55B | 7.08B | Total Debt |
| 4.36B | 4.30B | 3.81B | 3.93B | 4.28B | Net Debt |
| 3.64B | 3.10B | 2.71B | 2.48B | 3.17B | Total Liabilities |
| 6.91B | 7.51B | 6.53B | 6.47B | 6.27B | Stockholders Equity |
| 604.00M | 737.00M | 1.11B | 1.08B | 813.00M |
| Cash Flow | Free Cash Flow | |||
| -993.00M | 186.00M | 447.00M | 543.00M | 540.00M | Operating Cash Flow |
| -633.00M | 556.00M | 754.00M | 820.00M | 807.00M | Investing Cash Flow |
| -353.00M | -229.00M | -284.00M | 220.00M | -234.00M | Financing Cash Flow |
| -36.00M | 172.00M | -685.00M | -560.00M | -449.00M |
Chemours Company Technical Analysis
Negative
14.12
Price Trends
17.21
Negative
18.23
Negative
19.49
Negative
Market Momentum
-1.10
Positive
32.49
Neutral
21.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CC, the sentiment is Negative. The current price of 14.12 is below the 20-day moving average (MA) of 15.96, below the 50-day MA of 17.21, and below the 200-day MA of 19.49, indicating a bearish trend. The MACD of -1.10 indicates Positive momentum. The RSI at 32.49 is Neutral, neither overbought nor oversold. The STOCH value of 21.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CC.
Chemours Company Risk Analysis
Chemours Company disclosed 36 risk factors in its most recent earnings report. Chemours Company reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Chemours Company Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $11.16B | 12.63 | 16.11% | 3.36% | 1.91% | 2.94% | |
65 Neutral | $26.18B | 19.34 | 19.13% | 2.33% | -4.59% | 11.09% | |
59 Neutral | $24.55B | 18.28 | 10.69% | 6.94% | -1.46% | -36.00% | |
58 Neutral | $26.59B | 24.13 | 6.14% | 7.48% | -3.72% | 91.57% | |
53 Neutral | $2.09B | 24.43 | 12.98% | 7.15% | -4.05% | ― | |
50 Neutral | $3.08B | ― | -5.22% | 5.61% | -1.23% | -277.52% | |
47 Neutral | $2.64B | -4.00 | -31.55% | 3.33% | 2.93% | -29.90% |
* Basic Materials Sector Average
Performance Comparison
CC
Chemours Company
14.12
-10.67
-43.04%
EMN
Eastman Chemical
98.79
10.12
11.41%
HUN
Huntsman
17.31
-7.70
-30.79%
LYB
LyondellBasell
77.50
-18.87
-19.58%
PPG
PPG Industries
115.48
-23.95
-17.18%
DOW
Dow Inc
37.45
-16.66
-30.79%
Chemours Company Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -14.68% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted positive achievements such as record sales in TSS and successful cost savings initiatives, but these were tempered by ongoing challenges in pricing and specific segment performances. Despite these challenges, strategic initiatives and leadership changes suggest a focus on long-term growth and operational efficiency.Highlights
Record Sales in TSS
TSS achieved a quarterly sales record driven by 23% year-over-year growth in Opteon Refrigerants. The expansion at the Corpus Christi site was completed to support market demand.
TT Transformation Plan Success
The TT Transformation Plan achieved approximately $140 million in annual savings, exceeding the initial target of $125 million. Adjusted EBITDA margins increased by 1 percentage point to 12% for the year.
Remediation of Material Weaknesses
Chemours fully remediated four material weaknesses in internal control, which were identified in early 2024.
New Executive Appointments
Damian Gumpel was appointed as President of the TT Business, and Diane Picho as Chief Enterprise Enablement Officer, enhancing the leadership team.
Positive Outlook for Opteon Growth
Continued strength in demand for Opteon Refrigerants is expected, with double-digit growth anticipated through 2025.
Lowlights
Sales Decline and Pricing Pressure
Consolidated net sales were down 5% for the full year, with a 4% pricing decrease contributing to the decline.
Challenges in APM Segment
APM sales were softer than anticipated due to weaker conditions in economically sensitive end markets. Adjusted EBITDA for the full year decreased by 41%.
Freon Pricing Weakness
Freon pricing remained soft due to elevated HFC inventory levels, impacting TSS's adjusted EBITDA margin.
Net Loss in Fourth Quarter
Chemours reported a net loss of $8 million for the fourth quarter, although this was an improvement from the previous year's loss.
Exit from Surface Protection Solutions
Chemours decided to exit the SPS Capstone business, resulting in expected revenue loss and restructuring charges.
Company Guidance
During the Chemours Company's fourth quarter 2024 earnings call, the company provided guidance for the first quarter and full year 2025. They anticipate consolidated net sales to be flat to slightly down sequentially in Q1, with a slight decrease in adjusted EBITDA due to operational headwinds, including a forced outage at their Corpus Christi site. For the full year 2025, Chemours expects adjusted EBITDA to range between $825 million and $975 million. This guidance considers potential macroeconomic impacts, with the high end assuming a favorable environment and the low end reflecting potential challenges. The company also plans to achieve at least $60 million in run rate savings by the end of 2025 as part of their ongoing cost reduction efforts. Capital expenditures are projected to be between $250 million and $300 million, and they aim to maintain positive free cash flow to cover both CapEx and dividends.Chemours Company Corporate Events
Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Chemours Company Appoints Leslie Turner to Board
Positive
Feb 11, 2025
On February 10, 2025, Chemours Company announced the appointment of Leslie M. Turner to its Board of Directors, effective February 19, 2025, increasing the board size from eleven to twelve members. Turner, with extensive experience in corporate governance and legal matters from her previous roles at Hershey and Coca-Cola, will serve on the Nominating and Corporate Governance Committee and the Compensation and Leadership Development Committee. This appointment is part of Chemours’ ongoing strategy to strengthen its board with diverse expertise to support its refreshed business strategy, ‘Pathway to Thrive,’ aimed at creating long-term shareholder value. Additionally, the company confirmed its 2025 Annual Meeting of Shareholders will be held on April 22, 2025, which marks a return to its regular meeting schedule.
Executive/Board ChangesBusiness Operations and Strategy
Chemours Appoints Google Executive to Board of Directors
Positive
Jan 7, 2025
The Chemours Company appointed Joseph D. Kava, a seasoned executive from Google, to its Board of Directors, effective January 3, 2025. Kava’s appointment is expected to enhance Chemours’ business strategy, particularly in areas of technology and sustainability, aligning with the company’s focus on advanced data center cooling solutions which are critical for AI and high-performance computing, thus potentially strengthening Chemours’ position in the tech-driven market.
Private Placements and FinancingBusiness Operations and Strategy
Chemours Company Reduces Loan Margin for Cost Efficiency
Positive
Dec 13, 2024
Chemours Company announced the successful repricing of its €415 million Euro denominated Tranche B-3 term loan facility, reducing the applicable margin from adjusted EURIBOR + 4.00% to adjusted EURIBOR + 3.25%, while maintaining the loan’s maturity date and other terms. This repricing reflects a strategic financial adjustment that may enhance the company’s cost-effectiveness and competitiveness in its industry, potentially benefiting stakeholders and shareholders by reducing financial expenses.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.