Chemtrade Logistics AI Stock Analysis
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Chemtrade Logistics (CHE.UN) AI Stock Analysis
Chemtrade Logistics
(TSX:CHE.UN)
The score is driven primarily by improved fundamentals and strong cash generation, tempered by leverage and cyclicality risk. Valuation is supportive (moderate P/E and strong dividend yield), and technicals are moderately positive with price above key moving averages. The latest earnings call adds both upside (ultrapure ramp, stronger acid/regen) and near-term risk from the need to make up a first-half EBITDA shortfall plus capex/timing uncertainty.
Chemtrade Logistics (CHE.UN) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 1.64B
- Dividend Yield
- 4.89%
- Average Volume (3M)
- 196.08K
- Price to Earnings (P/E)
- 11.0
- Beta (1Y)
- 0.71
- Revenue Growth
- 12.36%
- EPS Growth
- 20.53%
- Country
- Canada
- Employees
- 1,552
- Sector
- Basic Materials
- Sector Strength
- 61
- Industry
- Chemicals - Specialty
Chemtrade Logistics Business Overview & Revenue Model
Company Description
Chemtrade Logistics Income Fund supplies industrial chemicals and specialized services throughout Canada, the United States, and South America. The company operates across three distinct divisions: Sulphur Products & Performance Chemicals (SPPC), Wat...
How the Company Makes Money
Chemtrade makes money by producing, processing, marketing, and distributing industrial chemicals and related services under contract and spot sales arrangements, depending on the product line and market. A major earnings driver is the sulfur and sulf...
Chemtrade Logistics Earnings Call Summary
The call balanced positive operational and strategic developments (ultrapure ramp to advanced chipmakers, strong acid and regen performance, contract pricing dynamics protecting Water margins as sulphur normalizes, and a defined North Vancouver CapEx plan) against near-term headwinds (sulphur-driven margin pressure, H1 EBITDA down $15M–$20M, judicial review risks affecting North Van timing, higher leverage after an acquisition and caustic price volatility). Management provided concrete mitigation steps (contract repricing, detailed engineering and permitting, phased capex aligned with turnarounds) and reiterated a path to H2 recovery, but execution and timing risks remain.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management reiterated guidance for adjusted EBITDA (a non‑IFRS measure they may refer to as “EBITDA”) to be roughly flat with last year, noting the first half of 2026 trailed 2025 by about $15–20 million and must be recovered in H2; they highlighted segment dynamics with acid and Regen outperformance and EC/chlor‑alkali normalization expected to close much of the gap. They disclosed North Vancouver capital needs in a broad ~$75–125 million range (also referenced as $75–105m earlier), planned to be deployed over roughly four years with heavier spend in 2028 and 2030 (and potential 2028 timing risk depending on an injunction hearing expected in 2027 with a decision ~4–6 months later); the biennial North Van turnaround (~$7 million) is not expected next year. Other quantified items: Ultrapure is ramping to supply two fabs in 2H26 and Cairo is qualified to two advanced‑node chipmakers with fills into 2027–28, caustic prices jumped roughly $150/ton (from ≈$350/ton to ≈$500/ton in May) with a modest recovery expected, and leverage sits at ~2.5x (post‑Polytech) so NCIB buybacks remain calibrated to that target.
Chemtrade Logistics Financial Statement Overview
Summary
Operating performance and cash generation are solid (healthy TTM margins, revenue up ~4%, and strong operating cash flow with ~$219M TTM free cash flow). The main offset is balance-sheet risk: leverage remains elevated for a cyclical chemicals business (debt ~1.6x equity) and profitability has shown cyclical volatility versus unusually strong 2023 levels.
Income Statement
74PositiveBalance Sheet
60NeutralCash Flow
71Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.12B | 2.00B | 1.79B | 1.85B | 1.81B | 1.37B |
| Gross Profit | 428.76M | 460.09M | 430.55M | 420.65M | 353.90M | -3.85M |
| EBITDA | 539.77M | 514.25M | 417.42M | 562.33M | 448.99M | 92.91M |
| Net Income | 148.93M | 139.39M | 126.91M | 249.32M | 109.11M | -235.21M |
Balance Sheet | ||||||
| Total Assets | 2.65B | 2.53B | 2.28B | 2.11B | 2.16B | 2.05B |
| Cash, Cash Equivalents and Short-Term Investments | 44.50M | 27.42M | 25.50M | 21.52M | 72.57M | 13.91M |
| Total Debt | 1.30B | 1.20B | 899.26M | 863.95M | 1.04B | 1.19B |
| Total Liabilities | 1.84B | 1.76B | 1.47B | 1.40B | 1.59B | 1.67B |
| Stockholders Equity | 805.70M | 775.11M | 818.36M | 707.14M | 566.21M | 379.85M |
Cash Flow | ||||||
| Free Cash Flow | 218.91M | 178.48M | 162.00M | 235.07M | 253.75M | 132.90M |
| Operating Cash Flow | 394.37M | 355.07M | 347.80M | 401.46M | 369.19M | 219.04M |
| Investing Cash Flow | -424.43M | -428.57M | -185.80M | -118.46M | -108.88M | 96.53M |
| Financing Cash Flow | 52.11M | 76.01M | -159.30M | -333.53M | -203.00M | -314.12M |
Chemtrade Logistics Technical Analysis
Price Trends
Market Momentum
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 14.61 is below the 20-day moving average (MA) of 14.70, below the 50-day MA of 14.61, and below the 200-day MA of 15.48, indicating a bearish trend. The MACD of 0.00 indicates Positive momentum. The RSI at 46.86 is Neutral, neither overbought nor oversold. The STOCH value of 31.72 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
Overall Rating
TSE:MX75Outperform- TSE:CHE.UN70Outperform
TSE:IFOS54Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TSE:MX | 75Outperform | CAD 7.74B | 15.05 | 14.07% | 1.02% | 31.38% | 44.50% |
| TSE:CHE.UN | 70Outperform | CAD 1.65B | 10.98 | 19.27% | 4.89% | 12.36% | 20.53% |
| Sector * | 61Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
| TSE:IFOS | 54Neutral | CAD 329.18M | 12.61 | 4.12% | ― | 5.77% | -86.18% |
* Basic Materials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:CHE.UN | Chemtrade Logistcs | 14.61 | 1.27 | 9.53% | |
| TSE:MX | Methanex | 100.51 | 51.08 | 103.33% | |
| TSE:IFOS | Itafos Inc | 1.63 | -1.74 | -51.63% |
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.
Date of analysis: Aug 17, 2026