Wednesday, October 28, 2020

Commercialization of Perovskite Solar Cells

The Swedish construction company Skanska is evaluating the use of perovskite solar cells (PSCs), manufactured by the Polish company Saule Technologies, in its construction projects.  Read more about this evaluation by going to these Skanska websites (click here and here). 

Potential commercialization of PSCs seem to have taken a substantial step forward in the current period, due likely to developments substantially advancing successes in PSCs’ use in generating electricity.   Other PSCs developers, besides Saule, such as the British company Oxford PV, the Chinese company Microquanta Semiconductor, and  the Japanese company Sekisui, are targeting near-term commercialization (in the next year of two) by experimenting with pilot production facilities and field testing of PSCs withstanding of adverse conditions. 

My reading of current Internet information on PSC commercialization is that it is very unlikely that PSCs will replace silicon solar cells anytime soon, if ever, on roof tops and in solar panel farms.   However, because PSCs have characteristics such as being a flexible film and relatively easy and cheap to make, architects, designers, and contractors are likely to find excellent, productive ways of using them in and around homes, offices, and other buildings.   Information at the Skanska websites (links given above) providing how Skanska is planning to use PSCs gives credence to this reading.

  

Wednesday, October 21, 2020

Chemical Company Financial Data and Correlations Between the Data

The table below shows eleven sets of performance data for thirty-one chemical companies.  

Price is a recent share price.  p/e is share price divided by share earnings.  % yield is the dividend yield.  The price/cash column shows how much an investor is paying for an additional dollar of cash flow.   Lower values are better for the investor.  Roe, gpm, and npm stand for return on equity (roe), gross profit margin (gpm), and net profit margin (npm).  LT debt/eqty% is the company’s long term (LT) debt as percentage of the company equity.  This measurement reflects debt burden – the higher the value, the higher the debt burden.  Sales/empl is the sales revenue per employee (in millions).  This value can indicate companies operating more efficiently when values are higher.  Shares are the number of company shares (in billions).  And revs is the company’s sales revenues (in billions). 


company

price

p/e

% yield

price /cash

roe

gpm

npm

LT debt /eqty %

sales/ empl in million $

shares in billion

revs in billion $

basf

15.7

48.8

5.95

7.36

2.61

25.7

1.9

44

0.572

3.67

66.5

Dow

49.9

-

5.86

29.92

-13

13.2

-4.92

130

1.1

0.741

43

LyondellBasell Industries

78.3

12.7

5.45

5.45

22.5

13

6.81

186

1.6

0.336

34.7

Linde

232

55.4

1.65

17.92

4.71

42.2

8.3

24

0.34

0.525

28.2

DuPont

59.9

-

2.03

31.31

-6.6

34.5

-12.5

42

0.591

0.734

21.5

Nutrien

40.7

27.8

4.48

8.19

3.58

25.6

4.06

48

1.2

0.569

20

Braskem

8.35

-

5.39

23.94

-

12

-20.9

-

-

0.172

15.5

PPG Industries

137

29.6

1.61

17.81

-

4.76

7.87

-

0.289

0.236

15.1

Ecolab

204

45.5

0.92

22.92

18.6

42.1

9.96

115

0.266

0.285

14.9

Corteva

33.6

53.8

1.55

18.88

1.86

40.1

3.4

4

0.669

0.749

13.8

Mitsui Chemicals

12.1

22.1

3.79

5.45

4.31

21.6

2.35

63

0.647

0.196

12.7

DSM

42.2

41.1

1.63

20.82

8.26

-

7.45

48

0.474

0.69

10.1

Eastman Chemical

87.2

20.6

3.05

8.53

9.71

23.3

6.72

90

0.6

0.135

9.3

Mosaic

19.2

-

1.04

-

-12

7.6

-12.1

53

0.688

0.379

8.9

Air Products & Chemicals

296

34.6

1.8

22.87

16.6

34.4

22.33

63

0.506

0.221

8.9

Westlake Chemical

71

23.2

1.54

7.6

6.68

14.1

5.69

63

0.805

0.128

8.1

Tosoh

16.9

12.6

3.56

5.92

8.13

24.3

6.37

5

0.523

0.318

7.4

Huntsman

24.6

73.5

2.63

7.81

2.76

17.8

1.63

48

0.618

0.221

6.8

Celanese

119

22.5

2.06

11.64

24.1

23.3

11.51

120

0.735

0.118

6.3

Olin

18.1

-

4.53

4.76

-9.4

6.96

-4.14

186

0.866

0.158

6.1

Chemours

23.1

-

4.41

14.39

-16

18.3

-2.28

659

0.734

0.164

5.5

FMC

108

25.6

1.63

20.15

19.7

44.9

11.93

107

0.721

0.13

4.6

CF Industires

28.9

16.6

4.16

4.06

12.7

23.3

12.13

138

1.42

0.214

4.6

Albemarle

94.6

22.5

1.66

14.3

11.2

33.3

11.6

78

0.563

0.106

3.6

Cabot

41.1

39.8

3.42

6.99

5.84

19.5

2.73

125

0.618

0.565

3.3

Ashland

74.7

-

1.49

13.08

-15

31.8

-20

51

0.495

0.065

2.5

WR Grace

46.8

51.1

2.61

13.42

16.6

37.2

3.21

577

0.454

0.066

2

Stepan

115

23.7

0.97

13.97

12.7

18.8

7.81

21

0.791

0.022

1.9

Kraton

31

4.87

-

4.97

22

24

12.27

93

0.841

0.032

1.8

Mineral Technologies

58.2

16.7

0.35

8.45

8.58

24.9

7.24

46

0.459

0.034

1.8

Kronos Worldwide

14.2

22.6

5.05

12.18

8.73

21.7

4.51

56

0.735

0.116

1.7

average

 

31.1

2.9

13.5

6.2

24.1

3.3

113

0.697

0.390

12.6

Perhaps the most valuable data in the table above are the averages for each data set.   These averages could serve as good benchmarks in comparing a chemical company to its peers.

From the data in the columns above, I used Excel to compute correlation values between each data set.  Presented here are the correlations between all possible pairs of data.  Red indicates negative correlations.


between share price and:

between p/e and:

between % yield and:

between price/cash and:

p/e

15%

% yield

-15%

price/ cash

-21%

roe

-20%

% yield

-48%

price/cash

40%

roe

-19%

gpm

33%

price/ cash

39%

roe

-44%

gpm

-39%

npm

-23%

roe

38%

gpm

34%

npm

-24%

LT debt/ eqty %

-2%

gpm

44%

npm

-34%

LT debt/ eqty %

25%

sales/ empl

-33%

npm

50%

LT debt/eqty %

11%

sales/ empl

59%

shares

2%

LT debt/ eqty %

-14%

sales/empl

-44%

shares

37%

revs

19%

sales/ empl

-34%

shares

34%

revs

50%

shares

-16%

revs

26%

revs

1%

 

between roe and:

between gpm and:

between npm and:

gpm

33%

npm

31%

LT debt/ eqty %

-9%

npm

83%

LT debt/ eqty %

-6%

sales/ empl

1%

LT debt/ eqty %

-11%

sales/ empl

-37%

shares

-9%

sales/ empl

-17%

shares

6%

revs

-13%

shares

-17%

revs

-5%

revs

-17%


It is interesting that a company’s stock sales price show a 50% correlation with net profit margin.  Also return of equity shows a very high 83% correlation with net profit margin.   This suggests the value of net profit margin as a measurement for good company financial performance, which is not surprising.