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 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

The demand for specialty chemicals has surged owing to increased industrial production, creating a promising opportunity for investors. To capitalize on the industry's growth, investors could consider adding fundamentally solid specialty chemicals stocks, Kronos (KRO), PPG Industries (PPG), and Kuraray Co. (KURRY) to their portfolios. Read on… Specialty chemicals are seeing a surge in demand as industries ramp up their needs. Key sectors like electronics, construction, automotive, and pharmaceuticals are driving this growth, fueling the rise in demand. As a result, the chemical industry is poised for stronger, more promising growth opportunities ahead.
Amid this backdrop, investors could scoop up shares of specialty chemical companies,  Kronos Worldwide, Inc. (<a href="https://stocknews.com/stock/KRO/">KRO</a>), PPG Industries, Inc. (<a href="https://stocknews.com/stock/PPG/">PPG</a>), and Kuraray Co., Ltd. (<a href="https://stocknews.com/stock/KURRY/">KURRY</a>). These stocks are well-positioned to benefit from increased industrial demand and bolster significant growth.
As industries like electronics, construction, automotive, and pharmaceuticals boom globally, the demand for chemicals in manufacturing is also skyrocketing. A report by TechNavio reveals that the specialty chemicals market is set to grow by $368.2 million by 2028 at <a href="https://www.technavio.com/report/specialty-chemicals-market-industry-analysis">an impressive 6.8% CAGR</a>, driving major benefits for the sector.
Most of this growth is due to the rising demand from the agrochemical sector for the usage of specialty chemicals as inputs for producing high-performance pesticides and fertilizers and, in the construction industry, for the use of specialty chemicals as additives and performance enhancers in concrete and other building materials.
Furthermore, the American Chemistry Council (ACC) predicts global chemical production will <a href="https://www2.deloitte.com/us/en/insights/industry/oil-and-gas/chemical-industry-outlook.html">grow by 3.4% in 2024</a> and 3.5% in 2025, fueled by this increased demand.
Now, let us dive deep into the fundamentals of three <a href="https://stocknews.com/category/chemicals/">Chemicals</a> stocks, starting with #3.
Stock #3: Kronos Worldwide, Inc. (<a href="https://stocknews.com/stock/KRO/">KRO</a>)
KRO produces and markets value-added titanium dioxide pigments (TiO2). These pigments are used in coatings, plastics, paper, and specialty products like inks, cosmetics, and pharmaceuticals. The company offers over 50 different TiO2 pigment grades and manufactures iron-based chemicals and specialty chemicals.
On July 17, KRO <a href="https://kronosworldwideinc.gcs-web.com/news-releases/news-release-details/kronos-worldwide-inc-announces-acquisition-joint-venture">announced its acquisition</a> of the remaining 50% interest in Louisiana Pigment Company, L.P., where it previously held a 50% stake. The acquisition provides a unique opportunity for KRO to enhance customer value and strengthen its service to the North American market.
For the fiscal 2024 third quarter that ended September 30, KRO's <a href="https://www.investopedia.com/terms/n/netsales.asp">net sales</a> increased 22.1% year-over-year to $484.70 million. Its income from operations came in at $38.90 million, compared to a loss of $25.30 million in the prior year's quarter.
Additionally, the company's net income and net income per share amounted to $71.80 million and $0.62, compared to a net loss and loss per share of $20.40 million and $0.18 in the previous year's quarter, respectively.
Analysts expect KRO's revenue and EPS for the fiscal year ending December 2025 to increase 4.1% and 41% year-over-year to $2.32 billion and $0.97, respectively.
Shares of KRO have surged 36.3% over the past nine months and 41.1% over the past year to close the last trading session at $11.71.
KRO's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect its sound fundamentals. The stock has an overall rating of B, which equates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
KRO has an A grade for Growth and a B for Value. In the B-rated <a href="https://stocknews.com/category/chemicals/">Chemicals</a> industry, it is ranked #13 out of 80 stocks.
In addition to the POWR Rating highlighted above, you can check KRO's ratings for Stability, Quality, Momentum, and Sentiment <a href="https://stocknews.com/stock/KRO/">here</a>.
Stock #2: PPG Industries, Inc. (<a href="https://stocknews.com/stock/PPG/">PPG</a>)
PPG is involved in the manufacture and distribution of paints, coatings, and specialty materials. The company's two operational segments include: Performance Coatings and Industrial Coatings. Its brand offerings include PPG, GLIDDEN, COMEX, OLYMPIC, DULUX, SIGMA, HISTOR etc.
On November 18, PPG <a href="https://investor.ppg.com/news/news-details/2024/PPG-strengthens-powder-coatings-presence-in-Italy-through-partnership-with-SAROSiccardi/default.aspx">formed a strategic partnership</a> with SARO/Siccardi, Italy's largest powder coatings distributor. The collaboration could strengthen PPG's distribution network in Italy, enabling it to expand its market presence, enhance accessibility, and position itself as a leader in the Italian powder coatings market.
On October 17, PPG <a href="https://investor.ppg.com/news/news-details/2024/PPG-reaches-agreement-to-sell-architectural-coatings-U.S.-and-Canada-business-to-American-Industrial-Partners-announces-comprehensive-cost-reduction-program/default.aspx">agreed to sell</a> its U.S. and Canadian architectural coatings business to American Industrial Partners for $550 million. The strategic move would allow PPG to streamline its portfolio, focus on core growth areas, and enhance its financial flexibility for future investments and innovations.
For the fiscal 2024 third quarter that ended September 30, PPG's net sales came in at $4.58 billion. Its adjusted net income and adjusted EPS increased 1.4% and 2.9% year-over-year to $500 million and $2.13, respectively.
Moreover, as of September 30, 2024, PPG's total current assets stood at $7.91 billion, compared to $7.43 billion on December 31, 2023.
For the fiscal fourth quarter ending December 2024, Street expects PPG's revenue to come in at $4.16 billion. Additionally, its EPS is expected to increase 8.2% year-over-year to $1.66 for the ongoing quarter.
PPG's shares marginally declined intra-day to close the last trading session at $122.47.
PPG's strong fundamentals are mirrored in its POWR Ratings. The stock has an overall rating of A, translating to a Strong Buy in our proprietary rating system.
PPG has a B grade for Growth, Stability and Quality. It is ranked #6 out of 80 stocks in the Chemicals industry.
<a href="https://stocknews.com/stock/PPG/">Click here</a> to access PPG's ratings for Value, Momentum, and Sentiment.
Stock #1: 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. The company operates through five key segments: Vinyl Acetate; Isoprene; Functional Materials; Fibers and Textiles; and Trading.
On November 14, KURRY <a href="https://www.kuraray.com/news/2024/241114">secured ISCC PLUS certification</a> for six vinyl acetate-related products across four production sites in Europe and the United States. The achievement could strengthen KURRY's commitment to sustainability, enhancing its market competitiveness and appeal to eco-conscious customers.
For the fiscal 2024 third quarter that ended September 30, KURRY's net sales increased 7% year-over-year to ¥614.83 billion ($3.98 billion). Its operating income rose 19.8% from the year-ago value to ¥73.92 billion ($478.05 million). Plus, net income attributable to owners of the parent grew 27.8% from the prior year's quarter to ¥46.63 billion ($301.57 million).
The consensus revenue estimates of $1.41 billion for the fiscal fourth quarter ending December 2024 exhibits a year-over-year rise of 2.3%. In addition, for the full fiscal year ending in December 2024, analysts estimate the company's revenue to rise 219% from the prior year to $5.42 billion.
Shares of KURRY have gained 18.3% over the past nine months, closing the last trading session at $36.75.
KURRY's POWR Ratings reflect solid prospects. It has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
KURRY has an A grade for Stability and a B for Value, and Quality. It is ranked #3 in the same industry.
<a href="https://stocknews.com/stock/KURRY/">Click here</a> to access KURRY's ratings for Momentum, Growth, and Sentiment.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>
<hr />
PPG shares were trading at $122.33 per share on Friday morning, down $0.35 (-0.29%). Year-to-date, PPG has declined -16.49%, versus a 26.22% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Aanchal Sugandh</h2> <img src='https:/wp-content/uploads/2022/12/Aanchal-Sugandh_Headshot.jpg' style="float:left; padding:5px;width:125px;">Aanchal's passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor's degree in finance and is pursuing the CFA program.

She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns.<a href="https://stocknews.com/authors/?author=aanchal-sugandh">More...</a>The post <a href=https://stocknews.com/news/ppg-kurry-kro-3-specialty-chemical-companies-gaining-from-industrial-demand/>3 Specialty Chemical Companies Gaining From Industrial Demand</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Specialty Chemical Companies Gaining From Industrial Demand

With increasing demand from various industries driving the growth of the specialty chemicals market, could NewMarket Corporation (NEU) be an ideal investment opportunity for those looking to capitalize on the sector's expansion? Read on… The specialty chemicals market is witnessing steady growth as industries adapt to rising consumer demands. Sectors such as electronics, construction, automotive, and pharmaceuticals rely heavily on these vital chemicals. This surge is reshaping global industry dynamics, driving innovation, and creating new opportunities within the sector.
According to a study by Grand View Research, the global specialty chemicals market is forecasted to reach $914.40 billion by 2030, growing at a <a href="https://www.grandviewresearch.com/industry-analysis/specialty-chemicals-market">CAGR of 5.2%</a>. This growth is a sign of a thriving market, making it an exciting time to explore the opportunities within the sector.
Amid this backdrop, NewMarket Corporation (<a href="https://stocknews.com/stock/NEU/">NEU</a>) stands strong within the specialty chemicals industry owing to its manufacture and sale of petroleum additives. The company also offers lubricant additives for use in various vehicle and industrial applications, including engine oils, transmission fluids, and more.
Shares of NEU declined marginally intraday, closing the last trading session at $497.42.
Now, let us delve deeper into the factors that could shape NEU's performance in the near future.
Solid Historical Growth
Over the past three years, NEU has demonstrated consistent growth across key financial metrics. Its revenue grew at a CAGR of 6.4%, while EBITDA rose at a 20.3% CAGR. Moreover, operational income (EBIT) expanded at a CAGR of 23.1%. Additionally, NEU's net income and EPS grew at a CAGR of 21.6% and 26.9%, respectively.
Strong Financials
For the fiscal 2024 third quarter that ended September 30, NEU's net sales increased 8.7% year-over-year to $724.95 million. Its operating profit grew 28% from the prior year's quarter to $169.52 million.
Moreover, the company's <a href="https://www.investopedia.com/terms/n/netincome.asp">net income</a> and EPS both rose 18.9% year-over-year to $132.32 million and $13.79, respectively. As of September 30, 2024, NEU's total assets amounted to $3.17 billion compared to $2.31 million on December 31, 2023.
High Profitability
NEU's trailing-12-month gross profit margin of 30.84% is 5.5% higher than the industry average of 29.22%. Its trailing-12-month EBITDA margin stands at 25.40%, 54.8% higher than the industry average of 16.40%.
In addition, the company boasts a trailing-12-month net income margin of 15.57%, which is 213.9% higher than the sector average of 4.96%. Also, the stock's trailing-12-month levered FCF margin of 13.28% outperforms the industry average of 5.05% by 162.1%.
POWR Ratings Reflects Optimism
NEU's sound fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of A, which equates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by taking into account 118 different factors, with each factor weighted to an optimal degree.
NEU has a B grade for Quality, supported by profitability measures that exceed industry benchmarks. Moreover, its B grade in Stability is in line with its 60-month beta of 0.51. In addition, NEU also has a B grade for Growth, which is evident by its impressive historical growth. Within the B-rated <a href="https://stocknews.com/category/chemicals/">Chemicals</a> industry, the stock is ranked #4 out of 81 stocks.
Beyond what is stated above, we have also given NEU grades for Sentiment, Momentum, and Value. Get all NEU ratings <a href="https://stocknews.com/stock/NEU/">here</a>.
Bottom Line
NEU has emerged as a prominent player in the specialty chemicals market, driven by its innovative offerings that cater to numerous industries. With the global economy on an upward trajectory, the demand for specialty chemicals is expected to surge, creating significant growth opportunities for NEU.
What could make NEU particularly appealing to investors is its strong profitability, solid financial health, and low stock volatility, which highlight its resilience. Thus, now could be an opportune moment to consider adding NEU to one's holdings.
How Does NewMarket Corporation (NEU) Stack Up Against Its Peers?
Although NEU's near-term outlook appears sound, it may be worthwhile to explore its industry peers, who also exhibit strong POWR Ratings. So, consider these A (Strong Buy) rated stocks from the Chemicals industry:
Nitto Denko Corporation (<a href="https://stocknews.com/stock/NDEKY/">NDEKY</a>)
Fuchs SE (<a href="https://stocknews.com/stock/FUPBY/">FUPBY</a>)
Kuraray Co., Ltd. (<a href="https://stocknews.com/stock/KURRY/">KURRY</a>)
To explore more A or B-rated Chemicals stocks, <a href="https://stocknews.com/category/chemicals/">click here</a>.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>

<hr />
NEU shares . Year-to-date, NEU has declined -5.85%, versus a 1.58% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Aanchal Sugandh</h2> <img src='https:/wp-content/uploads/2022/12/Aanchal-Sugandh_Headshot.jpg' style="float:left; padding:5px;width:125px;">Aanchal's passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor's degree in finance and is pursuing the CFA program.

She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns.<a href="https://stocknews.com/authors/?author=aanchal-sugandh">More...</a>The post <a href=https://stocknews.com/news/neu-ndeky-fupby-kurry-is-newmarket-corporation-a-specialty-chemicals-stock-worth-buying/>Is NewMarket Corporation a Specialty Chemicals Stock Worth Buying?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Is NewMarket Corporation a Specialty Chemicals Stock Worth Buying?

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