CC - Embedded Expectations Analysis - 2018 11 16
The Chemours Company (CC:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) Earnings, with an 8.8x Uniform P/E, implying bearish expectations for the firm, and management may have concerns about margin expansion of Fluoroproducts, Opteon, and their Mining Solutions facilitySpecifically, management may have concerns about the potential of their low GWP refrigerant, Opteon, and may lack confidence in their ability to sustain margin expansion in their Fluoroproducts segment. Moreover, they may lack confidence in their ability to efficiently run their Mining Solutions facility to meet customer demand, and to adjust for ore price fluctuations. Furthermore, they may be exaggerating their confidence in their Opteon patents, and may lack confidence in expectations for local TiO2 prices to remain stable at current levels. They may also lack confidence in their ability to accurately account for ingredient costs in their long-term contracts, and may be exaggerating the growth potential of their other chemicals segment. In addition, they may be exaggerating how much their mix issues can be attributed to customer mix, and may have concerns about customer buying patterns
Chemours is a provider of performance chemicals. The company has three reportable segments: Fluoroproducts, Chemical Solutions, and Titanium Technologies. The company's Fluoroproducts segment is a provider of fluoroproducts, including refrigerants and industrial fluoropolymer resins. The company's Chemical Solutions segment is a North American provider of industrial chemicals used in gold production, industrial, and consumer applications. The company's Titanium Technologies segment is a provider of titanium dioxide pigment, a white pigment used to deliver whiteness, brightness, opacity, and protection in a variety of applications.
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