Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?


5 Specialty Chemicals Plays

By  +Follow September 20, 2013 5:44AM
Tickers Mentioned:

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.

Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for LYB
30 Jan 15 19:58:55
Investors Sell LyondellBasell Industries NV on Strength $LYB http://t.co/wp17FRIY69
30 Jan 15 19:51:02
$LYB: Investors Sell LyondellBasell Industries NV on Strength (LYB): http://t.co/c2UWb0lqzo
Investing Philosophy
30 Jan 15 12:14:01
RT @SeekingAlpha: 3 Chemical Companies Benjamin Graham Would Appreciate http://t.co/7weyMxbOcx $LYB $MEOH $CBT
Seeking Alpha
30 Jan 15 12:04:51
3 Chemical Companies Benjamin Graham Would Appreciate http://t.co/7weyMxbOcx $LYB $MEOH $CBT
30 Jan 15 03:20:06
$LYB: Bank of America Rating Disclosure on LyondellBasell Industries NV: http://t.co/uU2h0WjqcC
US Banking News
30 Jan 15 02:48:47
LyondellBasell Industries NV $LYB Set to Announce Earnings on Tuesday http://t.co/Z8YKVEJEeA
Investors Hangout
29 Jan 15 10:31:53
Stocks Trending Now: http://t.co/48sklYB0IN $LYB $ITCI $SHPG $PKPL $ATNVF $MFDB $NOA $SLLN $IPTV $CXEE $SNRY $AMLTF ~
Dividend Master
29 Jan 15 08:27:39
Lights out natty gas ...... $UNG at lifetime low . Why isn't $LYB $EMN $HUN rallying given NG a huge cost input ? #OhYeahWeakDemand
29 Jan 15 04:06:05
$LYB: LyondellBasell Industries NV Analyst Rating Update: http://t.co/wCNAIqRY3v
29 Jan 15 02:46:03
$LYB: Update: LyondellBasell Industries NV Short Interest Disclosure: http://t.co/R5mE4kp13D
FinSentS SP500
28 Jan 15 15:15:49
$LYB:US LyondellBasell Files 8K #LYONDELLBASELL INDUSTRIES NV http://t.co/VTebA2H5kJ #SP500
28 Jan 15 13:03:10
$LYB - LyondellBasell Files 8K - Changes Executive Management http://t.co/Ql20cHrAcJ
28 Jan 15 12:34:29
$LYB - Current Report Filing (8-k) http://t.co/DBTkNMRmdi
Instrumental Data
28 Jan 15 12:34:01
BV Basic Materials
28 Jan 15 12:33:11
$LYB Lyondellbasell Industries N.v files Form 8-K (Events or Changes Between Quarterly Reports) SEC Fi.. http://t.co/i7vzO8QA12
Breaking News Now
28 Jan 15 12:32:03
$LYB: New SEC Filing for LYB: Form 8-K, No. 0001193125-15-023488 http://t.co/I4zUTYgXrb http://t.co/zkUBN4a57S
28 Jan 15 08:50:07
RT @DividendMaster: recall when cheap NG was going to drive chemicals makers to moon ? Instead they cratered $DOW $LYB $WLK $HUN $EMN
28 Jan 15 08:37:23
RT @DividendMaster: recall when cheap NG was going to drive chemicals makers to moon ? Instead they cratered $DOW $LYB $WLK $HUN $EMN
Dividend Master
28 Jan 15 08:28:53
recall when cheap NG was going to drive chemicals makers to moon ? Instead they cratered $DOW $LYB $WLK $HUN $EMN
Penny Stock Secret
28 Jan 15 03:36:06
This Guy Turned $100 into over $10,000 In Just 30 Days! http://t.co/vezCDY95do .. $LYB $LYG $LYG-A
28 Jan 15 02:56:05
$LYB: Short Interest of LyondellBasell Industries NV Increases by 8.8%: http://t.co/IWmuqEaCrD
27 Jan 15 14:08:10
Most Popular Tweets Pertaining to $LYB (Lyondellbasell Inds symbol LYB) on 01/27/2015 http://t.co/mt5R3dTx7f
27 Jan 15 11:01:04
$AAL $LYB: Traders Recap-American Airlines (AAL),LyondellBasell Industries ...: http://t.co/fl7Ek46hyV
27 Jan 15 08:06:07
$LYB $WLK: Is This the End of an Era for the Chemical Giants?: http://t.co/JAcUMRaO4i
Ticker Report
27 Jan 15 07:25:39
LyondellBasell Industries NV Stock Rating Lowered by Bank of America $LYB http://t.co/AvotuP5ebv
Arthur Sells
27 Jan 15 07:07:47
#limitorders looking for 4 to 5+% dicounts $FISH $ARE $FCAU $LYB
26 Jan 15 23:16:03
$LYB: LyondellBasell Industries NV Witness Large Inflow of Money: http://t.co/QGgheCQOor
Arthur Sells
26 Jan 15 21:29:21
One Word: Plastics $LYB feed stocks down significantly http://t.co/0vt7rSeYVG via @sharethis
26 Jan 15 20:30:02
TV_Trading Ideas
26 Jan 15 20:25:39
Bilo Selhi
26 Jan 15 19:42:17
Need help finding momentum stocks? http://t.co/T9zutL79nE Ranked #1 http://t.co/5QuLdACbil $LUV $SBUX $TWX $LYB $WAG $FDX $BMY $AXP $MAT
26 Jan 15 17:34:09
Morning Call For January 26, 2015 $LYB $WLK $UPL $UL $ROP $DHI $COV $KNX $UPI $NGL $SWY http://t.co/sZ2p1mizJL
26 Jan 15 09:36:09
LyondellBasell Industries NV Downgraded by Bank of America to Neutral $LYB http://t.co/fCnR13S21O
26 Jan 15 08:33:03
$ECIG announced debt restructuring, new investors for global expansion. $0.50+ tgt $DAL $LYB $BP investors see http://t.co/dMATVBILuL
Mark Frey
26 Jan 15 07:36:16
BAML downgrades: LyondellBasell Industries NV $LYB downgraded to neutral; Westlake Chemical $WLK downgraded to neutral from buy.
Dividend Master
26 Jan 15 06:22:49
$LYB, $WLK cut to neutral vs buy to reflect recent drop in oil price; “end of an era for ethylene,” BofA analyst Kevin McCarthy writes.
Mike Richardson
26 Jan 15 06:02:02
$ROP, $DH with earnings beats. Upgraded: $UL. Downgraded: $LYB, $WLK, $KNX.
Joe Kunkle
26 Jan 15 05:38:46
"End of an Era for Ethylene" - BAML - Negative $LYB $DOW $WLK
26 Jan 15 05:03:28
Morning Call For January 26, 2015 $LYB $WLK $UPL $UL $ROP $DHI $COV $KNX $UPI $NGL $SWY http://t.co/sZ2p1mizJL
26 Jan 15 04:21:51
LyondellBasell Industries NV Cut to “Neutral” at Bank of America $LYB http://t.co/iKD1IEP9az
US Banking News
26 Jan 15 04:13:45
LyondellBasell Industries NV Downgraded to Neutral at Bank of America $LYB http://t.co/5Eee30ibLV
US Consumer News
26 Jan 15 04:00:07
LyondellBasell Industries NV downgraded by Bank of America to neutral. http://t.co/p2p19dOAhQ $LYB #LYB
Media Sentiment
26 Jan 15 03:55:11
$LYB received a new alert. Find out why at http://t.co/5lwmDm2SCs #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 42
Analyst Ratings
26 Jan 15 03:53:08
LyondellBasell Industries NV downgraded by Bank of America to neutral. http://t.co/WuaUVP4uPQ $LYB #LYB
26 Jan 15 03:06:06
$LYB: First Call Rating Update on LyondellBasell Industries NV: http://t.co/2oVIffu0sh
TV_Trading Ideas
25 Jan 15 18:19:55
LYB Rebound? $LYB http://t.co/NlXG9vzmNM
Bilo Selhi
25 Jan 15 11:21:23
Need help finding momentum stocks? http://t.co/T9zutL79nE Ranked #1 http://t.co/5QuLdACbil $LUV $SBUX $TWX $LYB $WAG $FDX $BMY $AXP $MAT
23 Jan 15 14:31:14
$LYB - Statement of Changes in Beneficial Ownership (4) http://t.co/5kjrPkPRgd
23 Jan 15 14:31:12
$LYB - Statement of Changes in Beneficial Ownership (4) http://t.co/GQMnftGHyt
23 Jan 15 14:31:11
$LYB - Statement of Changes in Beneficial Ownership (4) http://t.co/8CKW5UCeTm
By  +Follow September 20, 2013 5:44AM



blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.