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5 Specialty Chemicals Plays

By  +Follow September 20, 2013 5:44AM
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The basic materials sector has been a tricky field for investors as of late. Mining companies are in a fluid state due to a number of circumstances, including the turmoil surrounding gold and to a lesser extent other precious metals, while iron ore and copper prices are set to go down due to the recent expectations for a supply glut. And while energy stocks offer a great deal of promise, they too are caught up in a whirlwind of hype resulting from the US and global shale boom.

The specialty chemicals industry, however, offers a number of attractive opportunities.

The following five companies have been selected from that sector based on the kind of healthy fundamentals that are, generally speaking, desirable for basic materias stocks:a price to cash ratio greater than one, indicating that the company not only has cash on hand, but interest to go along with it; a return on equity rate of greater than 20 percent, indicating that the company is investing capital properly and can continue to operate in the long term; a debt/equity ratio of less than 1, indicating that the company's finances are in order; and any kind of dividend yield, since basic materials companies are generally not high-growth, and a dividend of any ammount suggests that the company is doing better than the rest.

Furthermore, all of these stocks have been rated "buy or better" by analysts.

LyondellBasel Industries NV (LYB) –
Market Cap: $42 billion
Price/Cash Ratio: 13.05
Return On Equity: 28.1 percent
Dividend Yield: 2.71 percent
Debt/Equity Ratio: 0.37

The Netherlands-based company is the largest publicly-traded specialty chemicals company on the New York Stock Exchange, and specializes in plastics. The company sells its products in about 100 countries, and counts itself as the world’s largest producer of polypropylene and related compounds that are used in a wide variety of products, including but not limited to thermal undergarments, carpets, loudspeakers, and polymer bank notes. The company has had a good year so far, with shares up over 30 percent to their current price of $73.80.

PPG Industries Inc. (PPG) –
Market Cap: $24 billion
Price/Cash Ratio: 13.53
Return On Equity: 74.70 percent
Dividend Yield: 1.45 percent
Debt/Equity Ratio: 0.67

PPG is based in Pittsburgh, Pennsylvania, and mainly produces coatings and sealants for use in aerospace, automotive, and marine vehicles, as well as architecture and industry. The company also produces materials for use in eye-glasses, as well as fiber glass and packaging, via its facilities which can be found in about 60 countries around the world. PPG is the second largest public specialty chemicals company in the business, and has enjoyed a good 2013, with shares adding more than 25 percent to $168 a piece.

The Sherwin-Williams Company (SHW) –
Market Cap: $18.5 billion
Price/Cash Ratio: 24.91
Return On Equity: 39 percent
Dividend Yield: 1.10 percent
Debt/Equity Ratio: 0.94

The well-known manufacturer of paint and coatings for uses both commercial and industrial, and is the fourth largest public company in the specialty chemicals sector. Most recently, Sherwin-Williams announced the purchase of the US and Canadian segments of the leading Mexican paint company, Consorcio Comex S.A. de C.V. for some $165 million, a deal that had previously been rejected by Mexican regulators. Otherwise, it has been a good year for Sherwin, as the company’s shares have advanced 20 percent to a current price of $181.60 a piece.

International Flavors & Fragrances Inc. (IFF) –
Market Cap: $6.8 billion
Price/Cash Ratio: 18.65
Return On Equity: 21.30 percent
Dividend Yield: 1.86 percent
Debt/Equity Ratio: 0.75

The company develops and manufactures flavoring for food and beverage products, as well as component ingredients for perfume, soap, and other beauty care products. Headquartered in New York City, IFF’s recent second-quarter earnings report showed the company posting substantial year-over-year increases in net sales as well as earnings-per-share. IFF has also had a good year, with shares some 27 percent higher to $83.90 each.

Quaker Chemical Corporation (KWR) –
Market Cap: $905 million
Price/Cash Ratio: 23.52
Return On Equity: 31.10 percent
Dividend Yield: 1.44 percent
Debt/Equity Ratio: 0.08

Quaker produces specialty chemicals primarily for heavy industry and metals manufacturers, including cleaners, lubricants, oils, coatings, and greases. Headquartered in Conshohocken, Pennsylvania, the company has also had a great year, with shares up over 30 percent to their current price of $69.50.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for LYB
Alysia Sarkisian
24 Oct 14 14:02:52
RT @SAlphaTrending: LyondellBasell Industries' (LYB) CEO Jim Gallogly on Q3 2014 Results - Earnings Call Transc... http://t.co/3co89xa53a $…
Seeking Alpha
24 Oct 14 14:00:02
LyondellBasell Industries' (LYB) CEO Jim Gallogly on Q3 2014 Results - Earnings Call Transc... http://t.co/3co89xa53a $LYB
StockEarnings.com
24 Oct 14 12:01:48
$LYB Since last ER, stock dropped 12%. Will drop continue aftr ER on 10/24 Before Open? http://t.co/o5GmMMnuc4
wininstocks2014
24 Oct 14 11:50:13
LYB 91.63 Stock Charts $LYB LyondellBasell Industries N.V. Cl A (NYSE) Last Updated: 10/24/2014 13:50:14 LYB S http://t.co/2K4xbHh1p9
Dividend Master
24 Oct 14 11:19:35
i see going long $LYB being a decent hedge to being long mREIT common , pfds , muni CEF , pfd CEF , etc .
Dividend Master
24 Oct 14 10:45:35
Flash Crash Commodities ? new 28mo low on CRB index ..... probably why my $LYB buy not looking too good
Dividend Master
24 Oct 14 10:42:50
so basically , it appears $OLN results were so horrible that chemicals sector declared dead thus $LYB BASF $WLK all must get crushed 3%
NASDAQ
24 Oct 14 09:52:03
$LYB - Quarterly Report (10-q) http://t.co/KcmjnNU2EJ
Instrumental Data
24 Oct 14 09:48:58
LYONDELLBASELL INDUSTRIES N.V. $LYB 10-Q now available
Dividend Master
24 Oct 14 09:26:35
@illyahkuryahkin you worked @ $LYB ?
Debbie
24 Oct 14 09:22:46
RT @DividendMaster: I am long $LYB for first time in 4-5yrs
Silver Streak
24 Oct 14 09:15:41
RT @DividendMaster: $LYB : revs up 8% , EPS up 66% , wins from cheaper NG & oil , pays a 3% div and getting thumped ....go figger
Silver Streak
24 Oct 14 09:12:44
RT @DividendMaster: Street obviously thought $LYB results were as good as i did as well http://t.co/pXaQoJJb2e
Silver Streak
24 Oct 14 09:12:13
RT @DividendMaster: @bigcoveranch thank me when it hits $100 :) $LYB
US Banking News
24 Oct 14 09:09:28
LyondellBasell Industries NV $LYB Posts Quarterly Results http://t.co/0AMEQUhEvn
Dividend Master
24 Oct 14 08:51:31
@bigcoveranch thank me when it hits $100 :) $LYB
Ticker Report
24 Oct 14 08:43:52
LyondellBasell Industries NV $LYB Posts Quarterly Results http://t.co/BAskdzSpt0
Dividend Master
24 Oct 14 08:43:38
Street obviously thought $LYB results were as good as i did as well http://t.co/pXaQoJJb2e
OptionsPlay
24 Oct 14 08:40:04
$LYB bounced off that $95.53 resistance level. Looking for moves down towards $83 support level http://t.co/AoklYQtmpJ
Fed Porn
24 Oct 14 08:26:00
RT @DividendMaster: $LYB : revs up 8% , EPS up 66% , wins from cheaper NG & oil , pays a 3% div and getting thumped ....go figger
Dividend Master
24 Oct 14 08:12:47
I am long $LYB for first time in 4-5yrs
Eric Swanson
24 Oct 14 08:08:28
RT @DividendMaster: $LYB : revs up 8% , EPS up 66% , wins from cheaper NG & oil , pays a 3% div and getting thumped ....go figger
Flex Crush
24 Oct 14 07:59:29
@DividendMaster lol... $LYB is my go-to name when NG prices drop.. nothing makes sense anymore
Dividend Master
24 Oct 14 07:57:20
$LYB : revs up 8% , EPS up 66% , wins from cheaper NG & oil , pays a 3% div and getting thumped ....go figger
finsents
24 Oct 14 07:49:01
$LYB:US LyondellBasell Q3 Profit From Cont. Ops. Rises #LYONDELLBASELL INDUSTRIES NV http://t.co/fxDRuNM8CH #SP500
Michael Maher
24 Oct 14 07:45:26
Commented on StockTwits: I'm looking at it too. That was a good quarter, $LYB throwing off a ton of FCF, not sur... http://t.co/aDVAd5wpP7
finsents
24 Oct 14 07:43:37
$LYB:US LyondellBasell Q3 Profit From Cont. Ops. Rises #LYONDELLBASELL INDUSTRIES NV http://t.co/NfKiH2lZ70 #SP500
Jon Vince
24 Oct 14 06:46:44
RT @psychsignal: New bearish conversation activity in $LYB. Had been quiet for past 48 hours.
PsychSignal
24 Oct 14 06:45:05
New bearish conversation activity in $LYB. Had been quiet for past 48 hours.
US Banking News
24 Oct 14 06:44:51
LyondellBasell Industries NV announces earnings. $2.46 EPS. Beats estimates. $11.15b revenue. http://t.co/JOyeQpA0fi $LYB #LYB
Large Void Bot
24 Oct 14 06:40:05
In Play: $IBIO, $LAKE, $VTAE, $APT, $DRYS, $NPSP, $LYB, $LSCC High Uncertainty: $PT, $BJRI, $RP
TalkMarkets
24 Oct 14 06:32:58
Morning Call $LYB $COG $STT $DLPH $WYN $PG $CL $MCO $F $NDAQ http://t.co/isaHraqCZa
NASDAQ
24 Oct 14 06:24:09
$LYB - LyondellBasell Files 8K - Regulation FD http://t.co/weKPyp0zU7
SprinkleBit
24 Oct 14 06:15:43
#Earnings before today's open (P2): $IMS, $LEA, $LPNT, $LYB, $MGLN,$MCO, $NDAQ, $NPBC, $EDU, $OCR, $PG, $SR, $STT, $SXC, $SXCP, $UPS, $WYN
Stockbuyer2014
24 Oct 14 06:15:42
RT @Estimize: Well done @StockBuyer2014 beating 7 other analysts and the Wall Street Consensus to take the win for $LYB - http://t.co/Wt1E6…
Myrollingstocks
24 Oct 14 06:10:41
We are excited about this stock $LYB http://t.co/EyUPUwIqYf
4-traders.com
24 Oct 14 06:10:04
LyondellBasell NV : Files 8K - Regulation FD http://t.co/sKPEUID5OQ $LYB
NASDAQ
24 Oct 14 05:55:13
$LYB - Current Report Filing (8-k) http://t.co/gFFdgAtr6I
Instrumental Data
24 Oct 14 05:52:56
LYONDELLBASELL INDUSTRIES N.V. $LYB 8-K now available
Jerry Khachoyan
24 Oct 14 05:52:51
Mornin'. Today's best PM movers: $MSFT $P $PG $UPS $JNPR $ALTR $SYNA $KLAC $MXIM $EDU $LYB $WYN $NPSP $AMZN $SWFT $SWN $F $CBI & Ebola names
Andrew Ragsly
24 Oct 14 05:47:13
$LYB continues to kill it http://t.co/q6t0ftWvwS -- market cap is now $48bn. The POR back in 2010 had the EV in the $14.2bn - $16.2bn range
Thudder & Wicks
24 Oct 14 05:14:09
$LYB #LyondellBasell Q3 Results Beat Estimates http://t.co/DtRZzTk4o3
Briefing.com
24 Oct 14 05:13:09
$LYB: LyondellBasell beats by $0.16, beats on revs http://t.co/pufXhIuuwI
Michael Maher
24 Oct 14 04:36:29
"A tight U.S. ethylene market helped drive the record earnings," said Jim Gallogly, $LYB CEO. Good news for $EPD
Stock Market Picks
24 Oct 14 04:29:21
$LYB reported EPS 2.46 vs consensus 2.30 revenues of $12066 vs EST $11847 YR/YR REV 8.2%. http://t.co/JKNfk6P6ul $SPY $QQQ $DIA #sto
Day Trade Alerts
24 Oct 14 04:10:57
RT @Estimize: Well done @StockBuyer2014 beating 7 other analysts and the Wall Street Consensus to take the win for $LYB - http://t.co/Wt1E6…
Large Void Bot
24 Oct 14 04:00:35
Popular: $LYB, $INO, $EDU, $JD, $B, $WFC, $GLW, $EWC, $SRPT, $BBL, $C, $BCRX, $BK
Stock Moo
24 Oct 14 03:55:52
$lyb: LyondellBasell Reports Record Third-Quarter 2014 Results http://t.co/DgDP2aAItH
Estimize
24 Oct 14 03:40:58
@TrembFredrick Your estimate for $LYB Q3 2014 has been scored – http://t.co/gOJSVrLVI1
Estimize
24 Oct 14 03:40:34
Well done @StockBuyer2014 beating 7 other analysts and the Wall Street Consensus to take the win for $LYB - http://t.co/Wt1E6h6IJE
				
				
By  +Follow September 20, 2013 5:44AM
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