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.
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