Chemicals Industry Report
Market Cap: $293.0B
Stocks: 57
Median P/E: 13.4x
Median ROIC: -2.7%
Data sourced from SEC EDGAR filings. Report refreshed weekly.
Part of the Materials sector.
Performance Dashboard
| Period | Sector (MCW) | Sector (Median) |
|---|---|---|
| 1 Day | +0.3% | +0.2% |
| 1 Week | +1.2% | +1.2% |
| 1 Month | — | — |
| 3 Months | — | — |
| 6 Months | — | — |
| YTD | -0.9% | -0.5% |
| 1 Year | +25.1% | +7.1% |
| 3 Years | +14.3% | -4.1% |
| 5 Years | +18.8% | -26.1% |
Today's Breadth: 32 advancing · 21 declining · 4 flat
Valuation Summary
| Metric | Median | P25 | P75 | vs 5Y Avg |
|---|---|---|---|---|
| P/E | 13.4x | 0.0x | 21.2x | -16% |
| P/B | 1.3x | 0.6x | 3.3x | -40% |
| P/S | 1.2x | 0.3x | 1.9x | — |
| P/FCF | 20.3x | 11.8x | 35.4x | — |
| EV/EBITDA | 13.5x | 8.6x | 21.8x | — |
| EV/EBIT | 14.8x | 12.9x | 21.3x | — |
Earnings Yield
5.7%
FCF Yield
1.5%
Below Fair Value
39% of stocks
Profitability Profile
Margins
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| Gross Margin | 28.6% | 26.0% | 13.1% | 36.6% |
| Operating Margin | -0.1% | — | -7.1% | 10.5% |
| Net Margin | -3.3% | 3.7% | -13.5% | 5.8% |
| FCF Margin | 2.4% | — | -3.5% | 8.2% |
Returns on Capital
| Metric | Median | 5Y Avg | P25 | P75 |
|---|---|---|---|---|
| ROE | -7.0% | — | -36.3% | 7.0% |
| ROA | -4.4% | — | -14.6% | 3.1% |
| ROIC | -2.7% | 4.7% | -11.3% | 8.0% |
Growth Metrics
| Metric | 1Y | 3Y CAGR | 5Y CAGR |
|---|---|---|---|
| Revenue | -2.5% | -9.1% | +3.2% |
| EPS | +29.1% | -4.3% | +12.7% |
| Free Cash Flow | +10.1% | -12.7% | -5.7% |
All values represent sector median growth rates.
Balance Sheet Health
Debt / Equity
0.7x
Net Debt / EBITDA
2.3x
Interest Coverage
-0.1x
Current Ratio
1.8x
Altman Z-Score
Safe (>3): 9 (18%)
Gray (1.8–3): 10 (20%)
Distress (<1.8): 30 (61%)
Piotroski F-Score
Strong (7–9): 6 (11%)
Moderate (4–6): 31 (54%)
Weak (0–3): 20 (35%)
Top Companies
| Symbol | #▲ | Mkt Cap | P/E | EV/EBITDA | ROIC | Net Mgn | Rev Gr. | Div Yld | YTD | Qual. |
|---|---|---|---|---|---|---|---|---|---|---|
| DOW | 1 | $28.4B | — | 22.8x | -8.6% | -6.6% | -7.0% | 9.1% | -1.8% | 2/9 |
| PPG | 2 | $25.0B | 14.9x | 10.5x | 13.3% | 9.9% | +0.2% | 2.7% | +3.1% | 4/9 |
| LYB | 3 | $24.0B | — | 20.4x | -3.3% | -2.5% | -9.7% | 12.6% | -4.2% | 2/9 |
| ALB | 4 | $21.8B | — | 64.9x | -5.3% | -13.2% | -4.4% | 1.1% | -2.1% | 2/9 |
| DD | 5 | $19.7B | — | 63.4x | -3.8% | -11.4% | +1.9% | 3.5% | -4.1% | 3/9 |
| CF | 6 | $19.7B | 8.6x | 4.3x | 29.8% | 20.5% | +19.3% | 2.6% | -7.4% | 6/9 |
| IFF | 7 | $18.4B | — | 41.1x | -1.8% | -3.3% | -5.2% | 2.4% | +1.0% | 1/9 |
| WLK | 8 | $15.5B | — | — | -10.4% | -13.5% | -8.0% | 2.9% | -0.5% | 1/9 |
| RPM | 9 | $14.0B | 20.9x | 15.2x | 16.1% | 9.3% | +0.5% | 1.8% | +1.5% | 5/9 |
| SOLS | 10 | $13.0B | 33.4x | 13.5x | 13.5% | 6.1% | +3.1% | 19.0% | +2.6% | 4/9 |
| EMN | 11 | $8.6B | 15.5x | 8.5x | 6.4% | 5.4% | -6.7% | 5.2% | -0.5% | 2/9 |
| ICL | 12 | $8.5B | — | — | 4.5% | 3.9% | +4.6% | — | -1.3% | 3/9 |
| MOS | 13 | $7.8B | 14.3x | 6.5x | 3.2% | 4.5% | +8.4% | 3.6% | -8.1% | 4/9 |
| HXL | 14 | $6.7B | 55.5x | 23.5x | 6.1% | 5.8% | -0.5% | 93.4% | +2.4% | 3/9 |
| AXTA | 15 | $6.2B | 18.6x | 4.1x | 10.5% | 7.4% | -3.0% | — | -1.6% | 4/9 |
| NEU | 16 | $6.2B | 16.0x | 11.1x | 16.2% | 15.3% | -2.2% | 1.6% | +4.9% | 7/9 |
| BCPC | 17 | $5.8B | 33.1x | 19.6x | 11.6% | 14.9% | +8.8% | 0.6% | -3.6% | 6/9 |
| SXT | 18 | $4.0B | 30.3x | 17.6x | 8.5% | 8.3% | +3.5% | 1.7% | 0.0% | 3/9 |
| PRM | 19 | $3.8B | — | — | -11.4% | -31.6% | +16.4% | — | +2.4% | 1/9 |
| SMG | 20 | $3.6B | 22.2x | 4.4x | 13.7% | 4.3% | -3.9% | 4.8% | +2.1% | 2/9 |
Industry Composition
| Industry | Stocks | Market Cap | % | |
|---|---|---|---|---|
| Plastic Materials, Synth Resins & Nonvulcan Elastomers | 11 | $92.5B | 31.6% | |
| Industrial Organic Chemicals | 18 | $73.2B | 25.0% | |
| Paints, Varnishes, Lacquers, Enamels & Allied Prods | 3 | $45.3B | 15.5% | |
| Agricultural Chemicals | 9 | $41.1B | 14.0% | |
| Chemicals & Allied Products | 16 | $40.9B | 14.0% |
Quality Distribution
0
1
2
3
4
5
6
7
8
9
Quality Score (0-9)
High Quality (7+)
2%
Median Piotroski F
4/9
Profitable Years
7 of 10
Dividends & Shareholder Returns
Paying Dividends
46%
Median Div Yield
3.4%
Median Buyback Yield
1.1%
Shareholder Yield
2.7%
Payout Ratio
38.7%
Div Growth (3Y)
0.8%
Div Growth (5Y)
5.4%
Strengths & Weaknesses
Strengths
- +[Growth]Revenue growth is accelerating: median 1-year growth of -2.5% exceeds the 3-year CAGR of -9.1%, signaling improving demand conditions.
- +[Valuation]Attractive valuations: current median P/E of 13.4x is 16.1% below the 5-year average, presenting potential value opportunity.
Weaknesses
- −[Cash Flow]Deteriorating cash flow with a median 5-year FCF CAGR of -5.7%, raising sustainability concerns for capital allocation.
- −[Financial Health]61.2% of companies fall in the Altman Z-Score distress zone (<1.8), indicating elevated bankruptcy risk within the sector.
- −[Leverage]Tight interest coverage at -0.1x, leaving limited cushion for debt servicing if earnings decline.
- −[Profitability]Below-average capital returns with a median ROIC of -2.7%, suggesting limited pricing power or capital-intensive operations.