Kuraray (OTC:KURRY) Stock, Quote.Headers.trade-ideas

KURARAY CO LTD

Kuraray Co Ltd manufactures and sells specialty chemicals, fiber, and resin. The firm organizes itself into six segments based on product type. The Vinyl Acetate segment, which generates the most revenue of any segment, sells plastic films and resins for use in the food packaging and electronics industries. The Isoprene segment sells isoprene chemicals, thermoplastic elastomers, and liquid rubber. The Functional Materials segment sells dental materials, while the Fibers and Textiles segment sells fibers for cement and concrete, industrial products for automobiles, and hook and loop fasteners for clothing. The other two segments are Trading, and Other. The majority of revenue comes from Asia.

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Kuraray Co Ltd

The chemical industry exhibits promising prospects, bolstered by robust demand across various sectors and the integration of emerging technologies. Therefore, quality chemical stocks Fuchs SE (FUPBY), Mitsubishi Chemical Group (MTLHY), and Kuraray Co. (KURRY) rated an A (Strong Buy) in our proprietary rating system, could be wise portfolio additions now. Read on… Due to robust demand across multiple key industries, the chemical industry is on track for remarkable growth. As the industry seems to be in a bright spot, loading up on fundamentally robust chemical stocks Fuchs SE (<a href="https://stocknews.com/stock/FUPBY/">FUPBY</a>), Mitsubishi Chemical Group Corporation (<a href="https://stocknews.com/stock/MTLHY/">MTLHY</a>), and Kuraray Co., Ltd. (<a href="https://stocknews.com/stock/KURRY/">KURRY</a>) with an overall rating of A (Strong Buy) in our proprietary <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> system, could be wise.
Before we delve into the fundamentals of these stocks, let's briefly discuss the factors influencing the chemical industry's upward trajectory.
Recognized as a bedrock of American manufacturing, the chemical industry generates a vast portfolio of end-products, ranging from everyday consumer essentials to key components for manufacturing and construction operations. Consequently, its impact is significant from both micro and macroeconomic perspectives.
The U.S. chemical industry contributes over a quarter to the <a href="https://www.cisa.gov/sites/default/files/2023-02/chemical_sector_profile_final_508_2022_0.pdf">country's GDP</a>, and its omnipresent influence underpins production across the entire commercial and household goods spectrum, making it indispensable for economic growth.
In response to the escalating race in global biomanufacturing, the chemical industry's prospects are shored up by initiatives from the U.S. government to fortify domestic manufacturing of products such as plastics, <a href="https://www.spokesman.com/stories/2023/mar/22/biden-administration-plans-to-spur-biological-prod/">chemicals</a>, foods, and fuels using biological processes.
Significant strides are also expected in leveraging advanced technologies, anticipated to redefine the industry landscape. ABI Research forecasts chemical industries to spend <a href="https://blog.business.moglix.com/unlocking-the-digital-potential-of-the-chemical-industry/">$4.4 billion on these technologies by 2023</a>, which would snowball to $7.4 billion by 2031, specifically on digitalization of plant operations.
These technologies promise to inaugurate material advancements and cost-effective formulations, elevate supply chain efficiencies, and galvanize sustainability endeavors. The global chemical market is anticipated to reach $6.85 trillion by 2027, growing at a <a href="https://www.thebusinessresearchcompany.com/report/chemicals-global-market-report">CAGR of 7.8%</a>.
In light of these encouraging trends, let's look at the fundamentals of the three best <a href="https://stocknews.com/category/chemicals/">Chemicals</a> stocks, beginning with number 3.
Stock #3: Fuchs SE (<a href="https://stocknews.com/stock/FUPBY/">FUPBY</a>)
Headquartered in Mannheim, Germany, FUPBY develops, produces, and sells lubricants and related specialties in Europe, the Middle East, Africa, the Asia Pacific, and North and South America.
On September 14, FUPBY opened a new manufacturing facility in Ba Ria-Vung Tau, Vietnam. The company, which has maintained a significant presence in Vietnam since 2013, bolstered its potential in the quickly-growing region by investing approximately €9 million ($9.66 million) in the high-tech plant.
This strategic expansion is expected to empower FUPBY Vietnam to satisfy the escalating demand for lubricants in the area more effectively and to adapt swiftly to the local market requirements. Additionally, the inauguration of this high-tech factory signals FUPBY's plans to broaden and diversify its product portfolio in Vietnam, a move coherently reflecting the robust growth opportunities inherent to the country's market.
FUPBY pays an annual dividend of $0.29 per share, translating to a dividend yield of 2.99%. Its four-year average yield is 2.77%. Its dividend payments have grown at CAGRs of 3.9% and 1.7% over the past three and five years, respectively.
FUPBY's trailing-12-month ROCE, ROTC, and <a href="https://www.investopedia.com/terms/r/return_on_total_assets.asp">ROTA</a> are 15.30%, 12.04%, and 10.85% are 80.5%, 115.1%, and 171.2% higher than the industry averages of 8.48%, 5.60%, and 4%, respectively. Its trailing-12-month asset turnover ratio of 1.42x is 96.5% higher than the industry average of 0.72x.
FUPBY's sales revenue increased 6.5% year-over-year to €886 million ($950.86 million) in the fiscal second quarter that ended June 30, 2023. Its gross profit grew 8.8% from the prior-year quarter to €285 million ($305.86 million), while its EBIT rose 11.5% year-over-year to €97 million ($104.10 million). Also, the company's earnings per share increased 11.4% from the year-ago value to €0.49.
The consensus revenue and EPS estimates of $3.96 billion and $0.59 for the fiscal year ending December 2023 represent 9.9% and 20.1% improvements year-over-year. The company surpassed consensus revenue estimates in each of the trailing four quarters, which is impressive.
FUPBY's shares have gained 49.4% over the past year to close the last trading session at $9.85. Over the past three months, the stock gained 2.8%.
FUPBY's strong fundamentals are reflected in its POWR Ratings. It has an overall rating of A, which equates to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
It has an A grade for Stability and a B for Quality. Within the 83-stock <a href="https://stocknews.com/category/chemicals/">Chemicals</a> industry, it is ranked #5.
<a href="https://stocknews.com/stock/FUPBY/">Click here</a> to see FUPBY's ratings for Growth, Value, Momentum, and Sentiment.
Stock #2: Mitsubishi Chemical Group Corporation (<a href="https://stocknews.com/stock/MTLHY/">MTLHY</a>)
Headquartered in Tokyo, Japan, MTLHY provides performance products, chemicals, industrial materials and gases, health care products, and other products internationally. It is also involved in environmental and recycling-related activities and provides warehousing and semiconductor-related services.
On September 1, MTLHY acquired ISCC PLUS certification, an international certification system for sustainable products that assures that recycled raw materials and biomass raw materials are properly managed in the supply chain, including product manufacturing.
MTLHY pays an annual dividend of $1.10 per share, translating to a dividend yield of 3.23%. Its four-year average yield is 4.37%.
MTLHY's trailing-12-month asset turnover ratio of 0.78x is 7.4% higher than the 0.72x industry average. Also, its trailing-12-month EBIT and EBITDA margins of 6.99% and 12.90% are 25.5% and 8.8% higher than its five-year average of 5.57% and 11.85%, respectively.
During the fiscal first quarter that ended June 30, 2023, MTHLY's net sales stood at ¥1.06 trillion ($7.22 billion), while its operating income stood at ¥69.74 billion ($474.61 million), up 2.6% year-over-year. Its net income grew 4.7% year-over-year to ¥55.82 billion ($379.88 million). The company's earnings per share stood at ¥28.61.
In addition, as of June 30, 2023, its assets stood at ¥5.99 trillion ($40.78 billion), compared to ¥5.77 trillion ($39.29 billion) as of March 31, 2023.
Analysts expect MTLHY's revenue for the fiscal year ending March 2024 to grow significantly year-over-year to $30.34 billion. For the fiscal second quarter ending September 2023, its revenue is expected to come at $7.54 billion.
The stock has gained 39.7% over the past year to close the last trading session at $33.97. Over the past six months, it gained 21.5%.
MTLHY's POWR Ratings reflect this promising outlook. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
MTLHY also has an A grade for Value and Stability and a B for Quality. Within the same industry, it is ranked #4.
To see additional POWR Ratings for Growth, Momentum, and Sentiment for MTLHY, <a href="https://stocknews.com/stock/MTLHY/">click here</a>.
Stock #1: Kuraray Co., Ltd. (<a href="https://stocknews.com/stock/KURRY/">KURRY</a>)
Headquartered in Tokyo, Japan, KURRY engages in the manufacture and sale of chemicals. It operates through five business segments: Vinyl Acetate segment; Isoprene segment; Functional Materials segment; Textile segment; and Trading segment.
On August 9, KURRY paid its shareholders ¥25 per share dividends. It pays an annual dividend of $1.04 per share, translating to a dividend yield of 2.93%. Its four-year average yield is 3.74%.
On the same date, the company announced its decision to boost ethylene vinyl alcohol copolymer (EVAL) production in the U.S. and Europe. A total of 5,000 tons/year will be added to the capacity of U.S. and European bases of operation in 2024, with another 5,000 tons/year to be added in 2026. The 10,000-tons/year total capacity increase would boost global production capacity from 103,000 tons/year to 113,000 tons/year.
Its trailing-12-month gross profit and EBITDA margins of 32.18% and 20.66% are 13.9% and 19.5% higher than the industry averages of 28.25% and 17.29%, respectively. Its trailing-12-month ROTC and ROTA of 5.70% and 4.13% are 1.8% and 3.3% higher than the industry averages of 5.60% and 4%, respectively.
For the fiscal second quarter of 2023, KURRY's net sales stood at ¥381 billion ($2.60 billion), up 6.4% year-over-year. Its gross profit and operating income stood at ¥119.83 billion ($815.44 million) and ¥40.97 billion ($278.80 million), up 8.2% and 7.6% from the year-ago quarter, respectively.
Its net income stood at ¥22.04 billion ($149.99 million). For the same quarter, net cash provided by operating activities grew % year-over-year to ¥57.62 billion ($392.08 million).
KURRY's revenue for the fiscal third quarter ending September 2023 is expected to come at $1.42 billion, up 6.4% year-over-year, whereas, for the fiscal year ending December 2023, it is expected to increase 185.2% year-over-year to $5.50 billion.
The stock gained 58.4% over the past year to close its last trading session at $35.41. Over the past three months, the stock gained 25.1%.
KURRY's robust prospects are reflected in its POWR Ratings. The stock has an overall A rating, equating to a Strong Buy in our proprietary rating system.
KURRY has an A grade for Stability and a B for Growth and Value. It is ranked #3 within the Chemicals industry.
<a href="https://stocknews.com/stock/KURRY/">Click here</a> for the additional POWR Ratings for KURRY (Momentum, Sentiment, and Quality).
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<hr />
MTLHY shares were trading at $33.97 per share on Tuesday morning, up $1.50 (+4.62%). Year-to-date, MTLHY has gained 36.32%, versus a 16.19% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Sristi Suman Jayaswal</h2> <img src='https:/wp-content/uploads/2022/11/Sristi-Suman-Jayaswal_Headshot3.jpg' style="float:left; padding:5px;width:125px;">The stock market dynamics sparked Sristi's interest during her school days, which led her to become a financial journalist. Investing in undervalued stocks with solid long-term growth prospects is her preferred strategy.

Having earned a master's degree in Accounting and Finance, Sristi hopes to deepen her investment research experience and better guide investors.<a href="https://stocknews.com/authors/?author=sristi-sumanjayaswal">More...</a>The post <a href=https://stocknews.com/news/mtlhy-kurry-fupby-3-chemical-stocks-with-strong-buy-signals/>3 Chemical Stocks With Strong 'Buy' Signals</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Chemical Stocks With Strong 'Buy' Signals

With its robust demand and contributions to various sectors, the chemical industry is poised for sustained growth. Hence, fundamentally sound chemical stocks Oil-Dri (ODC), Akzo Nobel (AKZOY), Kuraray (KURRY), and ChromaDex (CDXC), with massive growth potential, might be solid buys. Continue reading... The chemicals industry is anticipated to remain strong in the foreseeable future, thanks to its diverse applications, evolution of consumer preferences, and incorporation of cutting-edge technologies. So, investors could consider investing in quality chemical stocks Oil-Dri Corporation of America (<a href="https://stocknews.com/stock/ODC/">ODC</a>), Akzo Nobel N.V. (<a href="https://stocknews.com/stock/AKZOY/">AKZOY</a>), Kuraray Co., Ltd. (<a href="https://stocknews.com/stock/KURRY/">KURRY</a>), and ChromaDex Corporation (<a href="https://stocknews.com/stock/CDXC/">CDXC</a>), which are poised for enormous growth.
The chemical industry plays a vital role in various sectors, such as agriculture, healthcare, manufacturing, and construction, leading to consistent demand for chemical products. Moreover, the growing demand from applications like packaging and the automobile industry is expected to be a major driver of market expansion.
Last year, the global chemicals market was valued at $4726.1 billion, contributing 4.6% to the global GDP.
Looking ahead, The Global Market Model's recent forecast for the chemical industry indicates sustained growth over the next decade, with a projected <a href="https://www.globenewswire.com/news-release/2023/06/06/2683143/0/en/Chemical-Industry-Forecast-2023-2032-Insights-Into-Market-Size-Growth-Rate-And-Drivers-By-The-Global-Market-Model.html">CAGR of 8.8%</a> until 2032.
In addition, the specialty chemicals market is on the rise, driven by greater demand for pharmaceuticals, food additives, and flavors and fragrances. Also, the surging demand for specialty fueled by advancements in process technology and trade liberalization is driving the specialty chemical market.
Besides, changing consumer preferences for unique flavors and culinary experiences, along with the popularity of processed foods, are boosting market growth, especially in developed nations.
As a result, the global specialty chemicals market is expected to grow at a <a href="https://www.grandviewresearch.com/industry-analysis/specialty-chemicals-market">CAGR of 5.1%</a> from 2023 to 2030.
Furthermore, Artificial intelligence (AI) is significantly impacting the chemical industry by transforming value chain management, driving innovation, enhancing productivity, and providing new opportunities for industry growth.
The United States wields significant influence in the AI sector due to its high investment attractiveness and continues to dominate the industry in terms of both transaction share and overall funding.
The global artificial intelligence (AI) in the chemicals market is expected to be worth around $16.94 billion by 2032, with a remarkable <a href="https://www.precedenceresearch.com/artificial-intelligence-in-the-chemical-market">CAGR of 31.9%</a>.
Given the industry tailwinds, it's time to examine the fundamentals of the top four stocks to watch in the <a href="https://stocknews.com/category/chemicals/">Chemicals</a> industry, starting with the third in line.
Stock #4: Oil-Dri Corporation of America (<a href="https://stocknews.com/stock/ODC/">ODC</a>) 
ODC develops, manufactures, and markets sorbent products in the United States and internationally. It operates in two segments, Retail and Wholesale Products Group; and Business to Business Products Group.
Over the past three years, ODC has experienced remarkable expansion, with <a href="https://www.investopedia.com/terms/e/ebit.asp">EBIT</a> and EBITDA growing at a CAGR of 63.8% and 33.1%. Additionally, its normalized net income and EPS have exhibited a CAGR of 57.8% and 9.2% during the same period.
On October 4, ODC declared quarterly cash dividends of $0.29 per share of the Company's Common Stock and $0.218 per share of the Company's Class B Stock, payable on November 24, 2023.  The Company has paid cash dividends continuously since 1974 and has increased dividends annually for twenty consecutive years.
The company pays an annual dividend of $1.16, which translates to a yield of 2.07% at the current price level. It has a four-year average dividend yield of 3.04%.
ODC's net sales increased 15.3% year-over-year to $107.39 million in the fiscal fourth quarter, which ended July 31, 2023. Its gross profit rose 74.1% from the previous-year quarter to $30.43 million and operating income grew 96% year-over-year to $12.71 million.
Its net income came in at $11.92 million, up 129.7% from the previous-year quarter. Also, its net income share rose 116.9% year-over-year to $1.67,
The stock has gained 90.1% over the past year and 35.4% over the past six months to close the last trading session at $62.08.
ODC's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect this promising outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted optimally.
ODC also has a B grade for Growth, Stability, and Sentiment. It is ranked #6 in the 83-stock <a href="https://stocknews.com/category/chemicals/">Chemicals</a> industry.
To access ODC's additional POWR Ratings for Momentum, Value, and Quality, click <a href="https://stocknews.com/stock/ODC/">here</a>.
Stock #3: Akzo Nobel N.V. (<a href="https://stocknews.com/stock/AKZOY/">AKZOY</a>) 
Headquartered in Amsterdam, the Netherlands, AKZOY engages in the production and sale of paints and coatings worldwide. It offers decorative paints, a range of mixing machines, color concepts for the building and renovation industry, and specialty coatings.
AKZOY's revenue has grown at a CAGR of 7.9% over the past three years. Its EBIT and EBITDA have shown impressive growth, expanding at 6.9% and 5.6% CAGR over the past five years.
On September 28, AKZOY showcased sustainable paints and coatings solutions for green buildings at the International Greenbuild Conference in Washington, D.C. The company emphasized the importance of circularity and discussed its innovations with other sustainability experts. AKZOY is actively involved in green building initiatives and is a member of various green building councils.
AKZOY pays $0.31 as dividends annually, which translates to a yield of 1.41% on the current market price. Its four-year average dividend yield is 3.44%.
AKZOY's revenue for the fiscal third quarter ended September 30, amounted to €2.74 billion ($2.90 billion). Its gross profit increased 14.7% year-over-year to €1.12 million ($1.19 billion). Additionally, its adjusted EPS from continuing operations came in at €0.99.
AKZOY's EPS for the fiscal year 2023 is expected to increase 51.2% year-over-year to $1.32. Its revenue for the current year is estimated to be $11.33 billion.
Over the past year, the stock has gained 5.1% to close the last trading session at $22.50.
AKZOY's POWR Ratings reflect solid prospects. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.
It has an A grade for Growth and Stability and a B for Quality.  It is ranked #5 in the same industry.
Beyond what we stated above, we have also given AKZOY grades for Value, Momentum, Sentiment, and Quality. Get access to all the ratings <a href="https://stocknews.com/stock/AKZOY/">here</a>.
Stock #2: Kuraray Co., Ltd. (<a href="https://stocknews.com/stock/KURRY/">KURRY</a>) 
Headquartered in Tokyo, Japan, KURRY engages in the manufacture and sale of chemicals. It operates through five business segments: Vinyl Acetate segment; Isoprene segment; Functional Materials segment; Textile segment; and Trading segment.
KURRY has seen impressive growth in the past three years, as its EBIT and EBITDA have surged at a CAGR of 25.2% and 14.7%. Moreover, its revenue and normalized net income also grew at a CAGR of 12.3% and 27.5% over the past three years.
On October 6, KURRY announced the development of PVA hydrogel microcarriers for cell cultures in regenerative medicine. These microcarriers provide a damage-resistant, debris-free, and efficient environment for cell growth in bioreactors.
The product will be available from January 2024 in Japan and the United States. This development addresses the need for suitable microcarriers in regenerative medicine, where strict standards for foreign matter exclusion and stem cell proliferation are essential.
On August 9, KURRY announced its decision to boost ethylene vinyl alcohol copolymer (EVAL) production in the U.S. and Europe. A total of 5,000 tons/year will be added to the capacity of U.S. and European bases of operation in 2024, with another 5,000 tons/year to be added in 2026. The 10,000-tons/year total capacity increase would boost global production capacity from 103,000 tons/year to 113,000 tons/year.
With a four-year average dividend yield of 3.73%, the company pays an annual dividend of $1.04, which translates to a yield of 2.99% on the prevailing price level.
In the fiscal second quarter of 2023 that ended June 30, 2023, KURRY's net sales stood at ¥381 billion ($2.55 billion), up 6.4% year-over-year. Its gross profit and operating income stood at ¥119.83 billion ($801.98 million) and ¥40.97 billion ($274.20 million), up 8.2% and 7.6% from the year-ago quarter, respectively. Its net income stood at ¥22.04 billion ($147.50 million).
Analysts expect KURRY's revenue to rise 3.8% year-over-year to $1.38 billion in the fiscal third quarter that ended September 2023.
The stock gained 68.3% over the past year to close its last trading session at $34.61. Over the past nine months, the stock has returned 24.7%.
KURRY's robust prospects are reflected in its POWR Ratings. The stock has an overall A rating, equating to a Strong Buy in our proprietary rating system.
KURRY has an A grade for Stability and a B for Growth and Value. It is ranked #4 within the same industry.
In addition to the POWR Ratings stated above, one can access KURRY's Momentum, Sentiment, and Quality ratings <a href="https://stocknews.com/stock/KURRY/">here</a>.
Stock #1: ChromaDex Corporation (<a href="https://stocknews.com/stock/CDXC/">CDXC</a>) 
CDXC is dedicated to healthy aging product development. Its segments include Consumer products; Ingredients; and Analytical Reference Standards and Services. The company researches NAD+, produces dietary supplements with proprietary ingredients, and supplies these ingredients to consumer product manufacturers.
CDXC's revenue and total assets have shown strong growth, with 13.9% and 8.2% CAGRs over the past three years.
On October 26, CDXC announced that the company and Zesty Paws were teaming up to introduce a new pet supplement called Healthy Aging NAD+ Precursor, which contains CDXC's Niagen. This product aims to promote metabolic health, cellular energy, and repair for dogs, targeting the growing longevity market.
On August 8, CDXC announced that it had chosen iHerb as its global retail partner to distribute Tru Niagen. iHerb, known for its extensive international presence, operates in over 180 countries, with 90% of its sales coming from overseas customers.
This strategic partnership is expected to accelerate the global expansion of Tru Niagen, leveraging iHerb's broad international customer base and positioning CDXC for significant financial growth.
During the second quarter that ended June 30, 2023, CDXC's net sales increased 21.5% year-over-year to $20.32 million. Its gross profit grew 23% from the year-ago quarter to $12.36 million. In addition, the company's adjusted EBITDA came in at $218 thousand, compared to a loss of $4.64 million in the previous year's period.
The company's revenue for the fiscal third quarter that ended September 2023 is expected to increase 19.4% year-over-year to $20.74 million. The company has surpassed the EPS estimates in each of the trailing four quarters.
The stock has gained marginally over the past five days, closing the last trading session at $1.32.
CDXC's solid outlook is reflected in its POWR Ratings. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
CDXC has a B grade for Growth, Value, Quality, and Sentiment. It is ranked first in the same industry.
Click <a href="https://stocknews.com/stock/CDXC/">here</a> to access additional CDXC ratings for Stability and Momentum.
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AKZOY shares were trading at $22.62 per share on Tuesday morning, up $0.12 (+0.53%). Year-to-date, AKZOY has gained 3.08%, versus a 9.75% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Kritika Sarmah</h2> <img src='https:/wp-content/uploads/2022/08/Kritika-Sarmah_Image-3.jpg' style="float:left; padding:5px;width:125px;">Her interest in risky instruments and passion for writing made Kritika an analyst and financial journalist. She earned her bachelor's degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities.<a href="https://stocknews.com/authors/?author=kritika-sarmah">More...</a>The post <a href=https://stocknews.com/news/akzoy-kurry-odc-cdxc-4-chemical-stocks-with-encouraging-growth-prospects/>4 Chemical Stocks With Encouraging Growth Prospects</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

4 Chemical Stocks With Encouraging Growth Prospects

Air Products and Chemicals' (APD) fourth-quarter earnings beat analysts' estimates, but the specialty chemicals producer lagged on revenues. However, given a remarkable track record of 41 consecutive years of dividend growth, is APD an ideal investment this week? Read more… Specialty chemicals manufacturer Air Products and Chemicals, Inc.'s (<a href="https://stocknews.com/stock/APD/">APD</a>) fiscal 2023 fourth-quarter earnings surpassed analysts' estimates but missed on revenues. The company reported quarterly adjusted earnings of $3.15 per share, beating the consensus estimate of $3.11 per share. This compares to EPS of $2.89 a year earlier.
However, APD's fourth-quarter revenue came in at $3.19 billion, lower than analysts' expectations of $3.35 billion. The revenue compared to $3.57 billion in the same period last year. Further, the company missed the consensus revenue estimates in three of the trailing four quarters.
For the full year fiscal 2024, the company expects adjusted EPS of $12.80-$13.10, an increase of 13% at the midpoint from the prior year's value. For the fiscal 2024 first quarter, Air Products' adjusted EPS guidance is $2.90 to $3.05, up 13% at the midpoint over fiscal 2023 first quarter adjusted EPS.
Also, APD anticipates capital expenditures of $5 billion to $5.5 billion for the full-year 2024.
Yesterday, APD's shares <a href="https://www.cnbc.com/2023/11/07/air-products-has-a-bad-quarter-jim-cramer-favors-rival-linde-instead.html">slumped more than 10%</a> after the company released weaker-than-expected revenue for its fourth quarter of 2023. "It was a very bad quarter," Jim Cramer said, pointing to the company's weak forward guidance compared to competitor Linde's (<a href="https://stocknews.com/stock/LIN/">LIN</a>) overall upbeat results last month.
However, the company continued to increase the dividend, paying out nearly $1.50 billion to its shareholders during the fiscal 2023. APD raised the quarterly dividend by 8% to $1.75 per share in January, marking the 41st consecutive year of increases. Its annual dividend of $7 translates to a yield of 2.75% at the current share price. Its four-year average dividend yield is 2.15%.
Further, the company's dividend payouts have grown at a CAGR of 9.9% over the past three years and 10.1% over the past five years.
Shares of APD have plunged 9.4% over the past month and 13.9% over the past six months to close the last trading session at $254.46. Also, the stock has declined 17% year-to-date.
Here's what could influence APD's performance in the upcoming months:
Positive Developments
On November 6, APD announced that it will build, own, and operate a state-of-the-art carbon capture (CO2) treatment facility at its existing hydrogen production plant in Rotterdam, the Netherlands.
The facility is anticipated to be on-stream in 2026, and the resulting blue hydrogen product will serve ExxonMobil's (Esso) Rotterdam refinery and additional customers through Air Products' hydrogen pipeline network system. It might take a while to realize gains from this blue hydrogen plant as it's likely to be operating in 2026.
On October 30, the company announced that it would supply two main cryogenic heat exchanger (MCGE) replacements for the PETRONAS LNG Complex in Bintulu, Sarawak, Malaysia.
These replacements are part of an extension program implemented to extend the life and continue the superior performance and high reliability of the MLNG Dua LNG facility in Bintulu. This will be the second and third MCHE replacements provided by Air Products at the facility, following the original units completed almost three decades of reliable service.
Mixed Financials  
APD's sales declined 10.6% year-over-year to $3.19 billion for the fourth quarter ended September 30, 2023. However, its non-GAAP operating income increased 5.5% from the year-ago value to $738.60 million. The company's adjusted EBITDA came in at $1.26 billion, up 10% from the previous year's quarter.
Furthermore, Non-GAAP net income attributable to Air Products grew 12.4% from the prior year's quarter to $2.56 billion, and its non-GAAP EPS was $3.15, an increase of 10.5% year-over-year. Its <a href="https://www.investopedia.com/terms/t/total-liabilities.asp#:~:text=Total%20liabilities%20are%20the%20combined%20debts%20that%20an%20individual%20or,%2Dterm%2C%20and%20other%20liabilities.">total liabilities</a> stood at $16.34 billion as of September 30, 2023, compared to $13.49 billion as of September 30, 2022.
Favorable Analyst Estimates
Analysts expect APD's revenue to increase 0.5% year-over-year to $3.19 billion for the fiscal 2024 first quarter ending December 2023. The consensus earnings per share estimate of $2.98 for the ongoing quarter indicates a 13.1% rise year-over-year. Moreover, the company has topped the consensus EPS estimates in three of the trailing four quarters.
For the fiscal year ending September 2024, analysts expect APD's revenue and EPS to increase 7.2% and 12.8% year-over-year to $13.50 billion and $12.98, respectively. The company's revenue and EPS for fiscal year 2025 are expected to grow 9.5% and 9.3% year-over-year to $14.78 billion and $14.19, respectively.
Mixed Profitability
APD's trailing-12-month gross profit margin of 29.90% is 5.2% higher than the industry average of 28.43%. Also, the stock's trailing-12-month EBITDA margin and net income margin of 32.52% and 18.26% are 84.8% and 210.5% higher than the industry averages of 17.60% and 5.88%, respectively.
However, the stock's trailing-12-month asset turnover ratio of 0.43x is 41% lower than the industry average of 0.72x.
Elevated Valuation
In terms of forward non-GAAP P/E, APD is currently trading at 19.74x, 39.3% higher than the industry average of 14.18x. Likewise, the stock's forward EV/Sales and Price/Sales of 4.93x and 4.17x are significantly higher than the industry average of 1.43x and 1.06x, respectively.
In addition, the stock's forward Price/Cash Flow multiple of 12.97 is 79.6% higher than the industry average of 7.22.
POWR Ratings Reflect Uncertainty
APD's mixed fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall C rating, equating to Neutral in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. The stock has a C grade for Quality, consistent with its mixed profitability.
In addition, APD has a C grade for Growth, in sync with its mixed financial performance in the last reported quarter.
Within the <a href="https://stocknews.com/category/chemicals/">Chemicals</a> industry, APD is ranked #43 out of 83 stocks.
Beyond what I have stated above, we have also given APD grades for Sentiment, Stability, Value, and Momentum. Get all APD's POWR Ratings <a href="https://stocknews.com/stock/APD/">here</a>.
Bottom Line  
APD's earnings beat analysts' expectations in the last reported quarter but missed out on revenues. Despite decent earnings and revenue growth in the upcoming quarters, the stock's stretched valuation is concerning. APD's stock is currently trading below its 50-day and 200-day moving averages of $287.83 and $287.70, respectively, indicating a downtrend.
Given its mixed financials, mixed profitability, stretched valuation, and bleak near-term prospects, it could be wise to hold APD and wait for a better entry point in the stock.
Stocks to Consider Instead of Air Products and Chemicals, Inc. (APD)
Given its uncertain short-term prospects, the odds of APD outperforming in the weeks and months ahead are compromised. However, there are many industry peers with much more impressive POWR Ratings. So, consider these three A-rated (Strong Buy) stocks from the <a href="https://stocknews.com/category/chemicals/">Chemicals</a> industry instead:
Mitsubishi Chemical Holdings Corporation (<a href="https://stocknews.com/stock/MTLHY/">MTLHY</a>)
Kuraray Co., Ltd. (<a href="https://stocknews.com/stock/KURRY/">KURRY</a>)
ChromaDex Corporation (<a href="https://stocknews.com/stock/CDXC/">CDXC</a>)
To explore more A and B-rated chemical stocks, <a href="https://stocknews.com/category/chemicals/">click here</a>.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
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<hr />
APD shares were trading at $256.05 per share on Wednesday morning, up $1.59 (+0.62%). Year-to-date, APD has declined -15.40%, versus a 15.66% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Mangeet Kaur Bouns</h2> <img src='https:/wp-content/uploads/2022/01/Mangeet-Kaur-Bouns_Image-4.jpg' style="float:left; padding:5px;width:125px;">Mangeet's keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet's looks to help retail investors understand the underlying factors before making investment decisions.<a href="https://stocknews.com/authors/?author=mangeet-kaurbouns">More...</a>The post <a href=https://stocknews.com/news/apd-mtlhy-kurry-cdxc-lin-is-air-products-chemicals-apd-a-potential-buy-this/>Is Air Products & Chemicals (APD) a Potential Buy This Week?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Is Air Products & Chemicals (APD) a Potential Buy This Week?

Tweedy, Browne Fund Q3 2023 Commentary

The chemical industry is well-positioned for robust growth, driven by growing demand owing to its extensive usage across numerous sectors and the rising incorporation of digital technology. Amid this backdrop, it could be wise to invest in quality chemical stocks PPG Industries (PPG), Akzo (AKZOY), and Kuraray (KURRY) for substantial returns. Continue reading… The chemical industry plays a crucial part in diverse applications across several end-use industries, resulting in robust demand for specialty chemicals. In addition, the increasing integration and utilization of digital technologies will boost the industry's growth prospects.
With these factors in mind,  investing in fundamentally strong chemical stocks PPG Industries, Inc. (<a href="https://stocknews.com/stock/PPG/">PPG</a>), Akzo Nobel N.V. (<a href="https://stocknews.com/stock/AKZOY/">AKZOY</a>), and Kuraray Co., Ltd. (<a href="https://stocknews.com/stock/KURRY/">KURRY</a>), could be wise for potential gains.
The chemical industry is the backbone of the U.S. economy. Chemicals are vital materials for <a href="https://www.eia.gov/consumption/manufacturing/briefs/">producing an extensive assortment of consumer products</a>. Also, they are crucial for creating several resources that are essential inputs to numerous industries and sectors in the U.S.
Moreover, the chemical industry is responsible for <a href="https://www.cisa.gov/sites/default/files/2023-02/chemical_sector_profile_final_508_2022_0.pdf">more than a quarter of the GDP</a> as it supports the production of nearly all commercial and household goods, vital to the nation's economic growth. The global chemical market is expected to <a href="https://www.globenewswire.com/news-release/2023/06/06/2683143/0/en/Chemical-Industry-Forecast-2023-2032-Insights-Into-Market-Size-Growth-Rate-And-Drivers-By-The-Global-Market-Model.html">grow at a CAGR of 8.8%</a> from 2023 to 2032.
Specialty chemicals are very high in demand as they are tailored for specific industrial applications. These chemicals are used in various industries, including pharmaceuticals, automotive, food and beverages, automotive, textiles, agrochemicals, construction, electrical &amp; electronics, and more.
In addition, specialty chemicals are integral to developing clean energy technologies like solar panels, batteries, and fuel cells.
According to a report by Grand View Research, the global specialty chemicals market size was estimated at $641.47 billion in 2023 and is expected to <a href="https://www.grandviewresearch.com/industry-analysis/specialty-chemicals-market">increase at a CAGR of 5.2%</a> between 2023 and 2030.
The growing integration of digital technologies is revolutionizing the chemical industry. The global digital transformation in the chemical industry is expected to <a href="https://www.globalmarketestimates.com/market-report/digital-transformation-in-chemical-industry-market-4116">expand at a CAGR of 25.1%</a> from 2023 to 2028. Chemical companies are increasingly adopting advanced technologies, data, and analytics to enhance several aspects of the chemical manufacturing and supply chain processes.
For example, rapid technological advancements in AI and machine learning offer the industry innovative tools for data analysis and process optimization. Also, incorporating augmented reality (AR) helps to upskill the workforce and ensures that employees are proficient in utilizing digital systems, leading to more efficient operations.
In light of these encouraging trends, let's look at the fundamentals of the three best <a href="https://stocknews.com/category/chemicals/">Chemicals</a> stocks, beginning with number 3.
Stock #3: PPG Industries, Inc. (<a href="https://stocknews.com/stock/PPG/">PPG</a>)
PPG engages in the manufacturing and distribution of coatings, paints, and specialty materials globally. The company operates through Performance Coatings and Industrial Coatings. PPG offers its products and services to industries, including military, aviation, agriculture and construction, consumer electronics, and automotive.
On November 20, PPG launched the DP7000 Air-Dry Primer and a suite of specific ancillaries in the EMEA (European, Middle Eastern and African) automobile refinish markets. Given its compatibility with other products and quick dry technology, this new launch may be effectively utilized in different temperature circumstances.
The new product launch might extend PPG's market reach and drive profitability and growth.
On October 18, PPG announced that it had divested all Traffic Solutions operations in Australia and New Zealand to Geveko Markings, a Swedish pavement markings company.
"We are laser-focused on driving business growth, and we regularly review our portfolio to ensure we are in the best position to continue meeting our customers' needs and growing profitably," said Ed Baiden, PPG's global general manager, Traffic Solutions.
"We want to concentrate our investments on strategic growth areas so that we may continue to be a leader in the industry as a premier provider of traffic safety product solutions," Baiden added.
In the third quarter that ended September 30, 2023, PPG's <a href="https://www.investopedia.com/terms/n/netsales.asp">net sales</a> increased 3.9% year-over-year to $4.64 billion. Also, net income attributable to PPG grew 29.5% year-over-year to $426 million. Its earnings per share attributable to PPG came in at $1.79 billion, up 28.6% from the prior year's quarter.
As of September 30, 2023, the company's cash and cash equivalents came in at $1.22 billion, compared to $1.10 billion as of December 31, 2022.
Analysts expect PPG's revenue for the fourth quarter (ending December 2023) to increase 1.6% year-over-year to $4.25 billion. The company's consensus EPS of $1.49 for the current quarter indicates an improvement of 22% year-over-year. Moreover, the company surpassed the consensus EPS estimates in all four trailing quarters.
PPG's stock gained 9.6% over the past month and 8.7% year-to-date to close the last trading session at $136.64.
PPG's robust outlook is reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
The stock has a B grade for Growth, Sentiment and Quality. It is ranked #11 of 83 stocks within the <a href="https://stocknews.com/category/chemicals/">Chemicals</a> industry.
To see additional POWR Ratings of PPG for Stability, Value, and Momentum, <a href="https://stocknews.com/stock/PPG/">click here</a>.
Stock #2: Kuraray Co., Ltd. (<a href="https://stocknews.com/stock/KURRY/">KURRY</a>)
Headquartered in Tokyo, Japan, KURRY is a manufacturer, producer, and seller of resins, fibers, activated carbon, chemicals, and high-performance membranes and systems globally. The company operates through segments including  Vinyl Acetate; Isoprene; Functional Materials; Fibers and Textiles; and Trading.
In October, KURRY announced the development of  PVA hydrogel microcarriers for cell cultures for regenerative medicine. These microcarriers will have high robustness and safety, very efficient culture, and excellent cell observability. This newly developed product will be available from January 2024 in Japan and overseas, beginning with the U.S.
On August 9, KURRY announced a planned increase of its globally in-demand ethylene vinyl alcohol copolymer (EVAL) production capacity in the U.S.  and Europe. KURRY will add a total of 5,000 tons/year to the capacity of U.S. and European bases of operation in 2024, with another 5,000 tons/year to be added in 2026.
For the third quarter that ended September 30, KURRY's net sales increased 3.8% year-over-year to ¥574.40 billion ($3.85 billion). The operating income and ordinary income came in at ¥61.70 billion ($413.06 million) and ¥57.75 billion ($386.62 million), respectively.
In addition, the company's net assets were ¥754.60 billion ($5.05 billion) as of September 30, 2023, compared to ¥668.53 billion ($4.48 billion) as of December 31, 2022.
As per the updated financial guidance for the fourth quarter of 2023, KURRY expects its net sales to be ¥770 billion ($5.15 billion) and its operating income to touch ¥78 billion ($522.18 million).
Analysts expect KURRY's revenue for the fiscal year (ending December 2023) to increase 177.6% year-over-year to $5.36 billion. Likewise, the company's revenue for the next year 2024 is expected to grow 6.1% from the prior year to $5.68 billion.
Over the past six months, the stock has gained 10.6% and 29.3% year-to-date to close the last trading session at $31.21.
KURRY's robust outlook is reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
The stock has an A grade for Stability and a B for Value. Within the Chemical industry, KURRY is ranked #9 of 83 stocks.
<a href="https://stocknews.com/stock/KURRY/">Click here</a> to access additional ratings of KURRY for Growth, Momentum, Quality and Sentiment.
Stock #1: Akzo Nobel N.V. (<a href="https://stocknews.com/stock/AKZOY/">AKZOY</a>)
Based in Amsterdam, Netherlands, AKZOY engages in the production and sale of paints and coatings internationally. It provides decorative paints, lacquers, and varnishes, and a range of mixing machines and color concepts for building, renovation, and specialty coatings segments. It also offers performance coatings for ships, cars, aircraft, and yachts.
On November 16, AKZOY announced that its Packaging Coatings business has just launched the first two products in its new AccelstyleTM range.
AKZOY will also invest €32 million ($34.89 million) in a new plant at its Vilafranca site in Spain to produce bisphenol-free coatings for the metal packaging industry in EMEA. The facility is expected to be operational by mid-2025. The management is optimistic that it will help the company respond to a strong need from the packaging industry.
During the third quarter that ended September 30, 2023, AKZOY's gross profit grew at 14.7% year-over-year to €1.12 billion ($1.22 billion). The company's adjusted operating income rose 76.1% from the year-ago value to €324 million ($353.31 million). Its adjusted EBITDA grew 46.3% from the prior year's quarter to €414 million ($451.45 million).
Also, the company's net income attributable to shareholders increased 125% year-over-year to €189 million ($206.01 million). Its adjusted earnings per share from continuing operations were €0.99, up 73.7% from the previous year's quarter.
Street expects AKZOY's EPS and revenue for the fiscal year (ending December 2023) to increase 58.7% and 1% year-over-year to $1.39 and $11.74 billion, respectively.
Shares of AKZOY have increased 11.3% over the past month and 11.9% year-to-date to close the last trading session at $24.96.
AKZOY's solid outlook is reflected in its POWR Ratings. The stock has an overall rating of B, which translates to Buy in our proprietary rating system.
AKZOY has an A grade for Growth and a B for Stability and Quality. It is ranked #8 out of 83 stocks in the Chemicals industry.
<a href="https://stocknews.com/stock/AKZOY/">Click here</a> to access additional AKZOY ratings for Value, Sentiment and Momentum.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW! &gt;</a>

<hr />
PPG shares were trading at $137.02 per share on Friday morning, up $0.38 (+0.28%). Year-to-date, PPG has gained 11.04%, versus a 20.34% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Mangeet Kaur Bouns</h2> <img src='https:/wp-content/uploads/2022/01/Mangeet-Kaur-Bouns_Image-4.jpg' style="float:left; padding:5px;width:125px;">Mangeet's keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet's looks to help retail investors understand the underlying factors before making investment decisions.<a href="https://stocknews.com/authors/?author=mangeet-kaurbouns">More...</a>The post <a href=https://stocknews.com/news/ppg-akzoy-kurry-3-chemical-stocks-charging-up-for-positive-gains/>3 Chemical Stocks Charging up for Positive Gains</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Chemical Stocks Charging up for Positive Gains

The chemical industry is well-positioned for massive growth in 2024 due to persistent demand for chemicals across diverse sectors, a shift toward sustainability, and rapid technological advancements. Given this backdrop, fundamentally strong and undervalued chemical stocks Kuraray Co. (KURRY), LyondellBasell Industries N.V. (LYB), and Cabot Corporation (CBT) could be solid buys now. Read on… The chemicals industry is poised to remain buoyed in the foreseeable future, thanks to its diverse applications and the ongoing adoption of advanced technologies. Moreover, an escalating shift toward sustainability and Industry 4.0 appears to boost prospects for this sector further.
Therefore, quality chemical stocks Kuraray Co., Ltd. (<a href="https://stocknews.com/stock/KURRY/">KURRY</a>), LyondellBasell Industries N.V. (<a href="https://stocknews.com/stock/LYB/">LYB</a>), and Cabot Corporation (<a href="https://stocknews.com/stock/CBT/">CBT</a>), currently trading at discounted valuations, could be solid portfolio additions now.
The chemical industry displays resilience, driven by robust demand for chemicals used in different sectors for transforming raw materials into valuable products that meet society's needs.
Contributing to over a quarter of the U.S.'s gross domestic product (GDP), the U.S. chemical industry is an indispensable factor in nearly all commercial and domestic goods manufacturing processes. The industry is responsible for converting raw materials into <a href="https://www.cisa.gov/sites/default/files/2023-02/chemical_sector_profile_final_508_2022_0.pdf">over 70,000 diverse products,</a> which are distributed to around 750,000 end users nationwide.
Moreover, new governmental strategies and incentives advocating for investment in energy transition have incited an upsurge in manufacturing activities reliant on chemicals and materials. Over 75% of technologies <a href="https://www2.deloitte.com/us/en/insights/industry/oil-and-gas/chemical-industry-outlook.html">reducing emissions</a> are embedded in the chemical industry.
Furthermore, the shift toward digital technology is changing the strategic landscape for chemical manufacturers. The chemical industry is embracing <a href="https://www.deskera.com/blog/the-latest-trends-in-chemical-manufacturing-technology/#1-green-chemistry">Industry 4.0</a> by incorporating advanced digital technologies like blockchain, green chemistry, the Internet of Things (IoT), Artificial Intelligence (AI), and machine learning into their operational framework. This would increase efficiency, reduce costs, and allow for predictive maintenance needs.
The global chemical market is projected to reach $7.79 trillion by 2028, growing at a <a href="https://www.thebusinessresearchcompany.com/report/chemicals-global-market-report">CAGR of 8.7%</a>.
In light of these encouraging trends, let's look at the fundamentals of the three <a href="https://stocknews.com/category/chemicals/">Chemicals</a> stocks, starting with the third in line.
Stock #3: Kuraray Co., Ltd. (<a href="https://stocknews.com/stock/KURRY/">KURRY</a>)
Headquartered in Tokyo, Japan, KURRY produces and sells resins, chemicals, fibers, activated carbon, and high-performance membranes and systems worldwide. It operates through five business segments: Vinyl Acetate segment; Isoprene segment; Functional Materials segment; Textile segment; and Trading segment.
On January 22, Kuraray Europe GmbH (KEG) (a 100% owned subsidiary of KURRY) established a new European subsidiary, Kuraray Europe Spain S.L., to reinforce KEG's networks in Europe and accelerate future market development in the Iberian Peninsula. 
On January 17, KURRY acquired ISCC PLUS certification for 3-Methyl-1.5-Pentanediol (MPD) produced at the company's Niigata Plant (Tainai City, Niigata Prefecture). ISCC PLUS ensures that certified items, such as biomass and recycled raw materials, are properly managed via the use of the mass-balance approach throughout their supply chains, including the manufacturing process.
Its annualized dividend of $1.04 per share translates to a dividend yield of 3.21% on the current share price. Its four-year average yield is 3.70%.
In terms of forward Price/Sales, KURRY is trading at 0.66x, 45.3% lower than the industry average of 1.21x. The stock's forward <a href="https://www.investopedia.com/terms/e/enterprisevaluesales.asp#:~">EV/Sales</a> multiple of 0.90 is 40.2% lower than the industry average of 1.51.
KURRY's trailing-12-month CAPEX/Sales of 9.32% is 23.9% higher than the industry average of 7.52%, while its trailing-12-month cash per share of $2.26 is 47.7% higher than the industry average of $1.53.
For the fiscal third quarter that ended September 30, 2023, KURRY's net sales increased 3.8% year-over-year to ¥574.37 billion ($3.87 billion), while gross profit stood at ¥181.69 billion ($1.22 billion).
For the same quarter, its operating income and net income attributable to owners of the parent stood at ¥61.70 billion ($415.91 million) and ¥36.49 billion ($245.94 million), respectively. As of September 30, 2023, KURRY's total current assets stood at ¥547 billion ($3.69 billion), compared to ¥533.93 billion ($3.60 billion) as of December 31, 2022.
Street expects KURRY's revenue for the fiscal first quarter ending March 2024 to increase marginally year-over-year to $1.37 billion.
The stock has gained 30.7% over the past year to close the last trading session at $32.25. Over the past nine months, it has gained 16.2%.
KURRY's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect its positive prospects. The stock has an overall B rating, equating to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
The stock has an A grade for Stability and a B for Value. Within the <a href="https://stocknews.com/category/chemicals/">Chemicals</a> industry, it is ranked #17 out of 84 stocks.
To see additional POWR Ratings for Growth, Momentum, Sentiment, and Quality for KURRY, <a href="https://stocknews.com/stock/KURRY/">click here</a>.
Stock #2: LyondellBasell Industries N.V. (<a href="https://stocknews.com/stock/LYB/">LYB</a>)
LYB is a chemical company operating in the U.S., Germany, Mexico, Italy, Poland, France, Japan, China, the Netherlands, and internationally. It operates in six segments: Olefins and Polyolefins Americas; Olefins and Polyolefins Europe, Asia, International; Intermediates and Derivatives; Advanced Polymer Solutions; Refining; and Technology.
In 2023, $1.80 billion was returned to shareholders through quarterly dividends and share repurchases. During the fourth quarter that ended December 31, 2023, LYB returned $406 million in dividends to shareholders.
Its annualized dividend of $5 per share translates to a dividend yield of 5.29% on the current share price. Its four-year average yield is 6.82%. LYB's dividend payments have grown at CAGRs of 5.6% and 4.3% over the past three and five years, respectively.
On January 30, LYB and MSI Technology, LLC entered into an agreement for MSI Technology to serve the LyondellBasell Polybutene-1 (PB-1) resin line into consumer packaging applications for North America. MSI Technology is also the sales representative for the LYB Plexar product line.
LyondellBasell PB-1 resins are commonly used in consumer packaging applications for easy-open packaging and film modification. The expansion of the relationship is a strategic fit relative to the markets MSI Technology serves and should bode well for LYB.
In terms of forward non-GAAP P/E, LYB is trading at 10.95x, 31.7% lower than the industry average of 16.03x. The stock's forward EV/Sales multiple of 0.98 is 35.2% lower than the industry average of 1.51.
LYB's trailing-12-month cash from operations of $5.04 billion is significantly higher than the industry average of $432.26 million, while its trailing-12-month cash per share of $10.46 is 578.6% higher than the industry average of $1.54.
For the fiscal fourth quarter that ended December 31, 2023, LYB's total sales and other operating revenues came at $9.93 billion, while total operating income stood at $315 million. Moreover, its EBITDA excluding identified items increased 5.2% year-over-year to $910 million.
For the same quarter, net income excluding identified items and earnings per share excluding identified items stood at $411 million and $1.26, respectively.
Street expects LYB's revenue and EPS for the fiscal first quarter ending March 2024 to be $9.61 billion and $1.43, respectively. The company surpassed consensus EPS estimates in three of the trailing four quarters, which is impressive.
The stock has gained 2.5% over the past three months to close the last trading session at $94.47. Over the past nine months, it has gained 2.2%.
LYB's robust prospects are reflected in its POWR Ratings. The stock has an overall B rating, equating to Buy in our proprietary rating system.
LYB has a B grade for Growth, Value, Stability, and Quality. It is ranked #6 within the same industry.
<a href="https://stocknews.com/stock/LYB/">Click here</a> for the additional POWR Ratings for LYB (Momentum and Sentiment).
Stock #1: Cabot Corporation (<a href="https://stocknews.com/stock/CBT/">CBT</a>)
CBT operates as a specialty chemicals and performance materials company. The company operates through two segments: Reinforcement Materials; and Performance Chemicals. 
During the first quarter that ended December 31, 2023, CBT returned cash to shareholders with $22 million of dividends and $33 million of share repurchases.
On January 12, CBT's Board of Directors declared a quarterly dividend of $0.40 per share on all outstanding shares of the corporation's common stock. The dividend is payable to stockholders on March 8.
Its annualized dividend of $1.60 per share translates to a dividend yield of 2.09% on the current share price. Its four-year average yield is 2.64%. CBT's dividend payments have grown at CAGRs of 3.9% and 3.8% over the past three and five years, respectively.
In terms of forward non-GAAP P/E, CBT is trading at 10.63x, 27.5% lower than the industry average of 16.03x. The stock's forward EV/Sales multiple of 1.35 is 10.4% lower than the industry average of 1.51.
CBT's trailing-12-month cash per share of $4.40 is 185.5% higher than the industry average of $1.54. Its trailing-12-month net income and levered FCF margins of 11.24% and 8.04% are 91.1% and 73.6% higher than the industry averages of 5.88% and 4.63%, respectively.
For the fiscal first quarter that ended December 31, 2023, CBT's net sales and other operating revenues stood at $958 million, while income from operations increased 29.5% year-over-year to $136 million.
For the same quarter, net income attributable to CBT stood at $50 million, while adjusted earnings per share increased 59.2% from the year-ago quarter to $1.56. As of December 31, 2023, CBT's total current assets stood at $1.69 billion, compared to $1.63 billion as of September 30, 2023.
Street expects CBT's revenue and EPS for the fiscal second quarter ending March 2024 to increase 3.7% and 26% year-over-year to $1.07 billion and $1.68, respectively. The company surpassed consensus EPS estimates in three of the trailing four quarters.
The stock has gained 15.8% over the past three months to close the last trading session at $76.73. Over the past six months, it has gained 10.8%.
CBT's solid fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, translating to a Strong Buy in our proprietary rating system.
CBT has a B grade for Growth, Value, Stability, and Quality. Within the same industry, it is ranked first.
Beyond what we've stated above, we have also rated the stock for Momentum and Sentiment. Get all ratings of CBT <a href="https://stocknews.com/stock/CBT/">here</a>.
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LYB shares were unchanged in premarket trading Wednesday. Year-to-date, LYB has declined -0.64%, versus a 3.93% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Neha Panjwani</h2> <img src='https:/wp-content/uploads/2024/01/Neha-Panjwani_Headshot-1.jpeg' style="float:left; padding:5px;width:125px;">From her school days, Neha harbored a profound fascination for finance, a passion that steered her toward a career as an investment analyst following the completion of her bachelor's degree in commerce. Currently enrolled in the CFA program, Neha is dedicated to further enriching her comprehension of investment fundamentals.

Neha's primary objective is to aid retail investors in discerning optimal investment opportunities by diligently evaluating crucial aspects of financial instruments, with a primary focus on stocks and ETFs. Her commitment lies in empowering individuals to make informed and strategic investment decisions in the dynamic world of finance.<a href="https://stocknews.com/authors/?author=neha-panjwani">More...</a>The post <a href=https://stocknews.com/news/lyb-cbt-kurry-3-undervalued-chemical-stocks-set-to-surge/>3 Undervalued Chemical Stocks Set to Surge</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Undervalued Chemical Stocks Set to Surge

Tweedy, Browne 2024 Client Letter

The chemical industry is poised for solid growth, driven by the ongoing energy transition to sustainability, increasing demand for specialty chemicals, government initiatives, and technological advancements. Hence, investors might consider chemical stocks BASF SE (BASFY), Nitto Denko (NDEKY), and Kuraray (KURRY), which are heating up for May. Read more... The chemical industry shows promise due to rising demand from key sectors like automotive, construction, agriculture, healthcare, and electronics, particularly in emerging markets. Amid this backdrop, it could be wise to add robust chemical stocks BASF SE (<a href="https://stocknews.com/stock/BASFY/">BASFY</a>), Nitto Denko Corporation (<a href="https://stocknews.com/stock/NDEKY/">NDEKY</a>), and Kuraray Co., Ltd. (<a href="https://stocknews.com/stock/KURRY/">KURRY</a>) to one's portfolio before May.
Lucrative investment opportunities in the chemical industry are driven by increased demand, government initiatives, a shift toward sustainability, and rapid technological advancements. This year, the industry anticipates growth from chemicals supporting the energy transition, with innovations in eco-friendly products and the adoption of data analytics and AI.
Consequently, digital technology is reshaping chemical manufacturing by enabling innovative materials and cost-effective formulations. The global chemical market is expected to hit $7.79 trillion by 2028, growing at a <a href="https://www.thebusinessresearchcompany.com/report/chemicals-global-market-report">CAGR of 8.7%</a>.
On top of it, specialty chemicals are in high demand for specific applications, boosting product strength, durability, and efficiency. The market is expected to grow at a <a href="https://www.technavio.com/report/specialty-chemicals-market-industry-analysis">3% CAGR until 2032</a>, driven by increased demand for agrochemicals, recycled plastics, and construction chemicals.
Considering these conducive trends, let's analyze the fundamental aspects of the three <a href="https://stocknews.com/category/chemicals/">Chemicals</a> picks, beginning with the third choice.
Stock #3: BASF SE (<a href="https://stocknews.com/stock/BASFY/">BASFY</a>)
Headquartered in Ludwigshafen am Rhein, Germany, BASF operates as a chemical company worldwide. It operates through six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition &amp; Care, and Agricultural Solutions. The Chemicals segment provides petrochemicals and intermediates.
On April 22, 2024, BASFY and Vattenfall signed an agreement for BASFY to acquire a 49% stake in the Nordlicht offshore wind farms in the German North Sea, with a combined capacity of 1.6 gigawatts. The project will provide renewable energy for BASFY's production sites and Vattenfall's customers in Germany.
On February 9, 2024, BASFY announced it would divest its shares in two joint ventures in Korla, China, due to competitive pressures and high carbon footprints associated with the production processes. This move aligns with BASF's strategy to offer more sustainable products and address concerns related to its joint venture partner.
In terms of forward non-GAAP P/E, BASFY's 13.22x is 20.3% lower than the 16.59x industry average. Its 0.95x forward <a href="https://www.investopedia.com/terms/e/enterprisevaluesales.asp">EV/Sales</a> is 45.5% lower than the 1.75x industry average. Likewise, its 7.89x forward EV/EBITDA is 9.6% lower than the 8.72x industry average.
BASFY's sales for the first quarter ended March 31, 2024, were €17.55 billion ($19.02 billion). The company's EBITDA amounted to €2.66 billion ($2.88 billion). Net income from shareholdings rose 25.6% to €229 million ($248.25 million). Additionally, its net income and adjusted earnings per share stood at €1.37 billion ($1.49 billion) and €1.68, respectively.
Analysts expect BASFY's revenue for the quarter ending September 30, 2024, to increase 9.9% year-over-year to $18.30 billion. Its EPS for fiscal 2024 is expected to grow 31% year-over-year to $0.99. Over the past six months, BASFY's stock has gained 10.2% to close the last trading session at $13.13.
BASFY's promising outlook is reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. It has an overall rating of A, equating to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
It has a B grade for Value, and Stability. Within the B-rated <a href="https://stocknews.com/category/chemicals/">Chemicals</a> industry, it is ranked #9 out of 81 stocks. To see BASFY's ratings for Growth, Momentum, Sentiment, and Quality, <a href="https://stocknews.com/stock/BASFY/">click here</a>.
Stock #2: Nitto Denko Corporation (<a href="https://stocknews.com/stock/NDEKY/">NDEKY</a>)
Headquartered in Osaka, Japan, NDEKY primarily engages in the adhesive tapes business in Japan, the Americas, Europe, Asia, and Oceania. It provides tapes, surface protective films, sealing materials, membranes, FPD/touch panel-related products, gasket materials, semiconductor manufacturing process products, flexible printed circuit boards, and porous films/breathable materials.
In terms of forward EV/Sales, NDEKY's 1.44x is 19% lower than the 1.78x industry average. Similarly, its 8.54x forward EV/EBIT is 37.2% lower than the 13.61x industry average. Moreover, its 6.03x forward EV/EBITDA is 30.9% lower than the 8.72x industry average.
For the fiscal year that ended on March 31, 2024, NDEKY reported revenue of ¥915.14 billion ($5.85 billion). Its net profit attributable to owners of the parent company and earnings per share amounted to ¥102.68 billion ($656.12 million) and ¥719.30, respectively.
Additionally, the company's total current assets stood at ¥1.25 trillion ($7.99 billion) as of March 31, 2024, compared to ¥1.15 trillion ($7.37 billion) as of March 31, 2023.
Analysts expect NDEKY's revenue for fiscal 2025 to increase 83.4% year-over-year to $6.02 billion. Over the past nine months, NDEKY's stock has gained 17.4% to close the last trading session at $39.
NDEKY's POWR Ratings reflect its bright outlook. It has an overall rating of A, translating to a Strong Buy in our proprietary rating system.
It has an A grade for Quality and a B for Growth, Value, and Stability. It is ranked #4 in the same industry. To see NDEKY's Momentum, and Sentiment ratings, <a href="https://stocknews.com/stock/NDEKY/">click here</a>.
Stock #1: Kuraray Co., Ltd. (<a href="https://stocknews.com/stock/KURRY/">KURRY</a>)
Headquartered in Tokyo, Japan, KURRY engages in the production and sale of resins, chemicals, fibers, activated carbon, and high-performance membranes and systems worldwide. It operates in five segments: Vinyl Acetate, Isoprene, Functional Materials, Fibers and Textiles, and Trading.
In terms of forward EV/EBITDA, KURRY's 4.78x is 45.2% lower than the 8.72x industry average. Similarly, its 9.50x forward EV/EBIT is 30.2% lower than the 13.61x industry average. Moreover, its 4.78x forward EV/EBITDA is 45.2% lower than the 8.72x industry average.
During the fiscal first quarter that ended March 31, 2024, KURRY's net sales increased 3.9% year-over-year to ¥192.18 billion ($1.23 billion). Its operating income and net income attributable to owners of the parent stood at ¥28.79 billion ($183.97 million) and ¥21.61 billion ($138.09 million), respectively, up 35% and 165.1% over the prior-year quarter. Also, its net income per share grew 165.1% year-over-year to ¥64.52.
For the quarter ending September 30, 2024, its revenue is expected to increase 3.6% year-over-year to $1.32 billion. Over the past year, the stock has gained 30.2% to close the last trading session at $36.75.
KURRY's POWR Ratings reflect solid fundamentals. It has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
It is ranked first in the Chemicals industry. It has an A grade for Value, and Stability and a B for Growth, and Quality. <a href="https://stocknews.com/stock/KURRY/">Click here</a> to see KURRY's Momentum, and Sentiment ratings.
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BASFY shares were trading at $13.05 per share on Thursday afternoon, up $0.03 (+0.19%). Year-to-date, BASFY has gained 2.07%, versus a 11.64% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Abhishek Bhuyan</h2> <img src='https:/wp-content/uploads/2023/07/ABhuyan.jpg' style="float:left; padding:5px;width:125px;">Abhishek embarked on his professional journey as a financial journalist due to his keen interest in discerning the fundamental factors that influence the future performance of financial instruments.<a href="https://stocknews.com/authors/?author=abhishek-bhuyan">More...</a>The post <a href=https://stocknews.com/news/basfy-ndeky-kurry-3-chemical-stocks-heating-up-for-may/>3 Chemical Stocks Heating Up for May</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Chemical Stocks Heating Up for May

AAPL

AKZOY

AMZN

BABA

BABAF

BAESF

BAESY

BASFY

BCKIF

BCKIY

BNTGF

BNTGY

BZZUF

BZZUY

CDXC

CNHI

CNXC

COCSF

DBSDF

DBSDY

DGEAF

DHLGY

DNTUF

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DPSTF

FMCQF

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FUPBY

GOOG

GOOGL

HEINY

HINKF

HLPPF

HLPPY

HWDJF

HWDJY

IONS

JSVGF

KRNNF

KRNTY

KURRF

MHSDF

MSFT

MTLHY

NDEKY

NVDA

NWLI

PARA

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RHHBY

RHHVF

RNMBF

RNMBY

SAFRF

SAFRY

SCRYY

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TBABF

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TSLA

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Kuraray

Kuraray (KURRY) Forecast

Kuraray (OTC:KURRY) Stock, Quote.Headers.trade-ideas