Want to see TSE:CHE.UN full AI Analyst Report?
Top Page
Chemtrade Logistics
(TSX:CHE.UN)
Select Model
Select Model
Rating:70Outperform
Price Target:
C$18.50
▲(22.44% Upside)
Action:Upgraded
Date:08/17/26
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.
Positive Factors
Strong Cash Generation
Substantial operating and free cash flow gives Chemtrade internal funding for maintenance, growth projects and distributions. This supports financial resilience and reduces reliance on external capital, although conversion can vary with working capital and timing.
Negative Factors
Elevated Leverage
Higher leverage reduces financial flexibility in a cyclical chemicals business and increases the importance of sustained cash generation. It may constrain shareholder distributions and investment options until debt metrics improve, particularly during weaker operating periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Substantial operating and free cash flow gives Chemtrade internal funding for maintenance, growth projects and distributions. This supports financial resilience and reduces reliance on external capital, although conversion can vary with working capital and timing.
Read all positive factors
Chemtrade Logistics (CHE.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.64B
Dividend Yield4.93%
Average Volume (3M)242.05K
Price to Earnings (P/E)10.8
Beta (1Y)0.69
Revenue Growth12.36%
EPS Growth20.53%
CountryCA
Employees1,552
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)1.33
Shares Outstanding112,160,940
10 Day Avg. Volume213,424
30 Day Avg. Volume242,046
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$19.17Price Target Upside26.85% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)1.39
Revenue Forecast (FY)C$2.23B
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), ...
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 s...
Chemtrade Logistics Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Neutral
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.Positive Updates
Sulphur Pricing at Near All-Time Highs but Expected to Peak
Management stated sulphur prices have jumped to near all-time highs and their expectation is that sulphur is at or near a peak and will fall. Contracts for Water Solutions are being renewed with annual fixed prices based on current high raw-material levels, which should protect margins as sulphur normalizes.
Negative Updates
Sulphur-Driven Margin Pressure in Water Solutions
Sharp rise in sulphur to near all-time highs has created margin pressure for Water Solutions due to repricing lags; management acknowledged ongoing pressure with contracts repriced on high raw-material profiles and timing of maximum margin impact uncertain.
Read all updates
Q2-2026 Updates
Positive
Negative
Sulphur Pricing at Near All-Time Highs but Expected to Peak
Management stated sulphur prices have jumped to near all-time highs and their expectation is that sulphur is at or near a peak and will fall. Contracts for Water Solutions are being renewed with annual fixed prices based on current high raw-material levels, which should protect margins as sulphur normalizes.
Read all positive 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
Income Statement
74
Positive
Balance Sheet
60
Neutral
Cash Flow
71
Positive
| 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 | 540.97M | 518.45M | 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
Negative
15.11
Price Trends
15.86
Negative
16.09
Negative
15.51
Negative
Market Momentum
-0.37
Positive
36.34
Neutral
23.88
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 15.11 is above the 20-day moving average (MA) of 15.06, below the 50-day MA of 15.86, and below the 200-day MA of 15.51, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 36.34 is Neutral, neither overbought nor oversold. The STOCH value of 23.88 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | C$1.64B | 10.83 | 19.27% | 4.93% | 12.36% | 20.53% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
50 Neutral | C$6.93B | 54.94 | 3.54% | 1.19% | 18.11% | -70.04% | |
49 Neutral | C$461.63M | 6.31 | 11.79% | 6.53% | 10.52% | -53.33% |
* Basic Materials Sector Average
TSE:CHE.UN
Chemtrade Logistics
14.41
2.14
17.40%
TSE:MX
Methanex
86.08
32.88
61.79%
TSE:IFOS
Itafos
2.39
-0.31
-11.48%
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.