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Chemours Company (CC)
NYSE:CC
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Chemours Company
(NYSE:CC)
49Neutral
Positive Factors
EBITDA growth
Analyst expects solid EBITDA growth as strength in TSS offsets a tough TiO2 market.
Long-term outlook
There is greater confidence in the long-term outlook for TSS and reiteration of an outperform rating on Chemours.
Regulatory changes
Management expects growth driven by regulatory changes that will increase demand for their products.
Negative Factors
Demand trends
Weak demand trends pose a challenge for the Advanced Performance Materials segment, with recovery not expected until late 2025.
Earnings trajectory
The stock has come under pressure as investors questioned the earnings trajectory in TSS.
EBITDA 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
$1.76B
Dividend Yield8.49%
Average Volume (3M)3.50M
Price to Earnings (P/E)57.2
Beta (1Y)1.87
Revenue Growth-0.68%
EPS GrowthN/A
CountryUS
Employees6,000
SectorBasic Materials
Sector Strength60
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.13
Shares Outstanding149,674,210
10 Day Avg. Volume4,400,969
30 Day Avg. Volume3,497,150
Financial Highlights & Ratios
PEG Ratio0.75
Price to Book (P/B)2.74
Price to Sales (P/S)0.00
P/FCF Ratio-1.67
Enterprise Value/Market Cap3.00
Enterprise Value/Revenue0.23
Enterprise Value/Gross Profit4.60
Enterprise Value/Ebitda2.76
Forecast
1Y Price Target
$15.32Price Target Upside34.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
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 presents a mixed financial situation. While there are improvements in profitability and reduced leverage, significant challenges remain with revenue growth and cash flow generation. The company needs to enhance operational efficiency to stabilize its financial health.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
11.42
Price Trends
12.60
Negative
15.00
Negative
16.97
Negative
Market Momentum
-0.28
Negative
44.35
Neutral
59.12
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 11.42 is below the 20-day moving average (MA) of 11.85, below the 50-day MA of 12.60, and below the 200-day MA of 16.97, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 44.35 is Neutral, neither overbought nor oversold. The STOCH value of 59.12 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 39 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 (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $3.55B | 35.87 | 4.32% | 2.72% | 3.58% | -5.17% | |
68 Neutral | $9.56B | 10.54 | 16.16% | 3.98% | 2.78% | 1.50% | |
66 Neutral | $2.26B | 85.67 | 2.21% | 1.71% | -7.91% | -81.73% | |
51 Neutral | $7.24B | ― | -10.58% | 2.61% | -39.34% | -500.52% | |
49 Neutral | $1.99B | -1.09 | -21.26% | 3.60% | 1.47% | -31.20% | |
49 Neutral | $1.76B | 57.24 | 4.66% | 8.49% | -0.68% | ― | |
47 Neutral | $2.40B | ― | -28.05% | 2.00% | -4.31% | -1421.83% |
* Basic Materials Sector Average
Performance Comparison
CC
Chemours Company
11.42
-16.47
-59.05%
ALB
Albemarle
61.08
-64.24
-51.26%
EMN
Eastman Chemical
80.81
-16.66
-17.09%
IOSP
Innospec
87.78
-42.16
-32.45%
AVNT
Avient
38.03
-6.66
-14.90%
SSL
Sasol
3.81
-3.53
-48.09%
Chemours Company Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: -5.62%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented both positive and negative aspects. While there were strong performances in the TSS business and strategic advancements like the Navin Fluorine agreement, there were significant challenges including decreased EBITDA, pricing pressures in the TT segment, and a notable dividend reduction.Q1-2025 Updates
Positive Updates
Strong Performance in TSS Business
The TSS business exceeded expectations with a 40% year-over-year net sales increase in Opteon refrigerants driven by increased demand for blend. Margins were driven to 30% due to strong contributions from Opteon sales.
Strategic Agreement with Navin Fluorine
Chemours announced a strategic agreement with Navin Fluorine to produce Opteon 2-phase emergent cooling fluid, aimed at addressing data cooling center needs created by AI and next-generation chips.
Successful Mitigation of Tariff Impacts
Chemours has effectively mitigated tariff exposures, particularly in the TSS segment, by leveraging supply chain flexibility and sourcing strategies.
Improved Cash Flow Outlook
Operating cash outflows improved to $112 million from $290 million in the same quarter last year, with expectations for free cash flow to be solidly positive for the full year.
Negative Updates
Decreased Adjusted EBITDA and Net Income
Adjusted EBITDA decreased to $166 million from $191 million in the prior year, and Chemours reported a net loss of $4 million compared to net income of $54 million in the previous year.
Pricing Pressure in TT Segment
The TT segment faced a 4% price decline due to regional pricing dynamics and additional costs from plant downtime, leading to a 28% decrease in adjusted EBITDA.
Challenges in APM Segment
The APM segment saw a 3% decrease in net sales due to weakness in cyclical end markets and unfavorable currency movements.
Dividend Reduction
Chemours announced a 65% reduction in its quarterly dividend, reflecting a strategic shift in capital allocation priorities.
Company Guidance
During the first quarter of 2025, The Chemours Company reported a strong 40% year-over-year increase in net sales for its Opteon refrigerants, driven by heightened demand for refrigerant blends as stationary OEMs ramp up inventories in anticipation of the 2025 U.S. AMAX transition mandate. Despite experiencing a full site outage in January due to third-party utility issues, the company managed to maintain its ability to meet customer orders, thanks to a rapid recovery effort. Chemours achieved a 30% margin in TSS, aided by a 40% capacity expansion at its Corpus Christi site. In TT, a 12% sequential sales increase was noted in Western markets, with Chemours benefiting from fair trade regulations. Although facing challenges from Chinese TiO2 dumping, the company expects a reduction in Chinese production in 2025 due to regulatory pressures and overcapacity. In APM, despite market softness, the segment improved its adjusted EBITDA margin by 1 percentage point to 11%, aided by cost reductions. The company also announced a 65% reduction in its quarterly dividend to enhance balance sheet flexibility and support strategic growth initiatives.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.
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.