Albemarle Corporation

Albemarle Corporation (NYSE: ALB) is a specialty chemical developer, producer, and marketer focused on energy storage, petroleum refining, consumer electronics, construction, automotive, lubricants, medicines, and crop protection end markets.

Key Highlights

• The company reported a 6.67% rise in net sales to USD 1.60 billion during H1FY21 (ended June 30, 2021) compared to USD 1.50 billion during H1FY20.
• ALB reported a significant increase in net income to USD 563.91 million during H1FY21 vs. USD 227.39 million in H1FY20 due to the inclusion of gain on sale of its fine chemistry services (FCS) business on June 01, 2021.
• As of June 30, 2021, the company had cash and cash equivalents of USD 823.57 million and total debt of USD 2.04 billion.
• ALB's cash conversion cycle stood at 121 days in FY20, significantly higher than the industry median of 80 days.
• On September 02, 2021, ALB stated that its lithium brine extraction facility, the Salar Plant located in Salar de Atacama in Northern Chile, has begun a third-party review utilizing the Initiative Responsible Mining Assurance's (IRMA) Standard for Responsible Mining.
• Stock is trading far above its crucial short-term (50-day) and long-term (200-day) SMA support levels.
• Stock is leaning towards the higher band of the 52-week range of USD 79.06 to USD 248.71.
• In the last 12 months, ALB's stock price surged 159.56%, compared to 93.28% for the S&P 500 index and 86.21% for the S&P 500 Specialty Chemical sector.

Technical Price Chart (as of September 03, 2021). Analysis by Kalkine

Conclusion: Considering the significant uptick in the stock price, we believe the current share price adequately reflects the decent business fundamentals and have chosen to remain on the sidelines. Hence, we recommend an "Expensive" rating on the stock at the closing price of USD 241.86, down 0.89% as of September 03, 2021.

*The reference data in this report has been partly sourced from REFINITIV.

The Chemours Company

The Chemours Company (NYSE: CC) is a performance chemicals company that provides various industrial and specialty chemical products used for plastics and coatings, refrigeration and air conditioning, general industrial, electronics, mining, and oil refining industries.

Key Highlights

• The company reported YoY growth of 51.42% in net sales to USD 1.66 billion in Q2FY21 (ended June 30, 2021) compared to USD 1.09 billion in Q2FY20, owing to a 46% volume growth.
• Net income for Q2FY21 increased to USD 66 million from USD 24 million in Q2FY20.
• On August 18, 2021, CC closed the issuance of USD 650 million aggregate principal amount of 4.625% senior unsecured notes due 2029 under a private offering to qualified institutional investors.
• On August 04, 2021, it commenced a tender offer for the redemption in cash of its outstanding 7.00% senior notes due 2025.
• CC’s net margin for Q2FY21 was 4.0%, significantly lower than the industry median of 10.1%.
• The Debt/Equity ratio as of Q2FY21 was 4.44x, making a significantly leveraged balance sheet. The peer median stood at 0.77x.
• Relatively high ROE of 7.6% in Q2FY21 vs. industry median of 4.6%.
• Stock is currently trading between its crucial short-term (50-day) and long-term (200-day) SMA support levels.
• Stock is leaning towards the higher end of the 52-week range of USD 19.07 to USD 38.87.
• CC’s share price has increased 28.20% and 64.95% in the past nine and twelve months, respectively.

Technical Price Chart (as of September 03, 2021). Analysis by Kalkine

Conclusion: Considering the significant uptick in the stock price, we believe the current share price adequately reflects the robust business fundamentals, and hence, we recommend an “Expensive” rating on the stock at the closing price of USD 33.37, down 0.98% as of September 03, 2021.

*The reference data in this report has been partly sourced from REFINITIV.