CHEMTRADE LOGISTICS INCOM FD (CHE-UN.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CHE-UN - CA16387P1036
15.57 CAD
+0.24 (+1.57%)
Overall CHE-UN gets a fundamental rating of 6 out of 10. We evaluated CHE-UN against 29 industry peers in the Chemicals industry. While CHE-UN has a great profitability rating, there are quite some concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on CHE-UN.
1. Profitability
1.1 Basic Checks
- In the past year CHE-UN was profitable.
- CHE-UN had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: CHE-UN reported negative net income in multiple years.
- CHE-UN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CHE-UN's Return On Assets of 4.85% is amongst the best of the industry. CHE-UN outperforms 92.59% of its industry peers.
- CHE-UN has a Return On Equity of 14.76%. This is amongst the best in the industry. CHE-UN outperforms 92.59% of its industry peers.
- CHE-UN's Return On Invested Capital of 15.87% is amongst the best of the industry. CHE-UN outperforms 100.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CHE-UN is significantly above the industry average of 7.57%.
- The last Return On Invested Capital (15.87%) for CHE-UN is above the 3 year average (12.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.85% | ||
| ROE | 14.76% | ||
| ROIC | 15.87% |
ROA(3y)7.48%
ROA(5y)0.85%
ROE(3y)23.35%
ROE(5y)-3.91%
ROIC(3y)12.98%
ROIC(5y)N/A
1.3 Margins
- With an excellent Profit Margin value of 5.74%, CHE-UN belongs to the best of the industry, outperforming 85.19% of the companies in the same industry.
- The Operating Margin of CHE-UN (16.21%) is better than 88.89% of its industry peers.
- Looking at the Gross Margin, with a value of 24.34%, CHE-UN is in line with its industry, outperforming 59.26% of the companies in the same industry.
- CHE-UN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.21% | ||
| PM (TTM) | 5.74% | ||
| GM | 24.34% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5Y30.57%
2. Health
2.1 Basic Checks
- CHE-UN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- CHE-UN has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, CHE-UN has more shares outstanding
- The debt/assets ratio for CHE-UN has been reduced compared to a year ago.
2.2 Solvency
- CHE-UN has an Altman-Z score of 1.18. This is a bad value and indicates that CHE-UN is not financially healthy and even has some risk of bankruptcy.
- CHE-UN has a Altman-Z score of 1.18. This is comparable to the rest of the industry: CHE-UN outperforms 59.26% of its industry peers.
- The Debt to FCF ratio of CHE-UN is 6.92, which is on the high side as it means it would take CHE-UN, 6.92 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 6.92, CHE-UN belongs to the best of the industry, outperforming 81.48% of the companies in the same industry.
- CHE-UN has a Debt/Equity ratio of 0.86. This is a neutral value indicating CHE-UN is somewhat dependend on debt financing.
- CHE-UN has a Debt to Equity ratio of 0.86. This is comparable to the rest of the industry: CHE-UN outperforms 48.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 6.92 | ||
| Altman-Z | 1.18 |
ROIC/WACC1.38
WACC11.49%
2.3 Liquidity
- A Current Ratio of 0.53 indicates that CHE-UN may have some problems paying its short term obligations.
- CHE-UN has a worse Current ratio (0.53) than 66.67% of its industry peers.
- A Quick Ratio of 0.33 indicates that CHE-UN may have some problems paying its short term obligations.
- With a Quick ratio value of 0.33, CHE-UN is not doing good in the industry: 70.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 44.83% over the past year.
- The Revenue has grown by 10.20% in the past year. This is quite good.
- Measured over the past years, CHE-UN shows a small growth in Revenue. The Revenue has been growing by 3.12% on average per year.
EPS 1Y (TTM)44.83%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-5%
Revenue 1Y (TTM)10.2%
Revenue growth 3Y9.3%
Revenue growth 5Y3.12%
Sales Q2Q%12.35%
3.2 Future
- Based on estimates for the next years, CHE-UN will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.49% on average per year.
- The Revenue is expected to grow by 7.46% on average over the next years.
EPS Next Y14.69%
EPS Next 2Y26.86%
EPS Next 3Y20.21%
EPS Next 5Y16.49%
Revenue Next Year11.73%
Revenue Next 2Y9.27%
Revenue Next 3Y7.46%
Revenue Next 5YN/A
3.3 Evolution
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 12.36 indicates a correct valuation of CHE-UN.
- Based on the Price/Earnings ratio, CHE-UN is valued cheaply inside the industry as 96.30% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, CHE-UN is valued rather cheaply.
- With a Price/Forward Earnings ratio of 10.63, the valuation of CHE-UN can be described as very reasonable.
- 92.59% of the companies in the same industry are more expensive than CHE-UN, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of CHE-UN to the average of the S&P500 Index (25.98), we can say CHE-UN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.36 | ||
| Fwd PE | 10.63 |
4.2 Price Multiples
- CHE-UN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CHE-UN is cheaper than 96.30% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHE-UN indicates a rather cheap valuation: CHE-UN is cheaper than 85.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.2 | ||
| EV/EBITDA | 5.32 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- CHE-UN has an outstanding profitability rating, which may justify a higher PE ratio.
- CHE-UN's earnings are expected to grow with 20.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)N/A
EPS Next 2Y26.86%
EPS Next 3Y20.21%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 7.47%, CHE-UN is a good candidate for dividend investing.
- CHE-UN's Dividend Yield is rather good when compared to the industry average which is at 2.08. CHE-UN pays more dividend than 85.19% of the companies in the same industry.
- CHE-UN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.47% |
5.2 History
- The dividend of CHE-UN decreases each year by -11.56%.
- CHE-UN has paid a dividend for at least 10 years, which is a reliable track record.
- CHE-UN has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-11.56%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
- CHE-UN pays out 71.01% of its income as dividend. This is not a sustainable payout ratio.
DP71.01%
EPS Next 2Y26.86%
EPS Next 3Y20.21%
CHEMTRADE LOGISTICS INCOM FD / CHE-UN.CA FAQ
What is the fundamental rating for CHE-UN stock?
ChartMill assigns a fundamental rating of 6 / 10 to CHE-UN.CA.
What is the valuation status for CHE-UN stock?
ChartMill assigns a valuation rating of 9 / 10 to CHEMTRADE LOGISTICS INCOM FD (CHE-UN.CA). This can be considered as Undervalued.
Can you provide the profitability details for CHEMTRADE LOGISTICS INCOM FD?
CHEMTRADE LOGISTICS INCOM FD (CHE-UN.CA) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for CHE-UN stock?
The Price/Earnings (PE) ratio for CHEMTRADE LOGISTICS INCOM FD (CHE-UN.CA) is 12.36 and the Price/Book (PB) ratio is 2.39.
Can you provide the dividend sustainability for CHE-UN stock?
The dividend rating of CHEMTRADE LOGISTICS INCOM FD (CHE-UN.CA) is 6 / 10 and the dividend payout ratio is 71.01%.