W.R. Grace & Company (GRA)
We assign a fundamental rating of 2 out of 10 to GRA. GRA was compared to 84 industry peers in the Chemicals industry. GRA may be in some trouble as it scores bad on both profitability and health. GRA is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
GRA had positive earnings in the past year.
1.2 Ratios
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 22.09% | ||
| ROIC | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.06% | ||
| PM (TTM) | 4.16% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
There is no outstanding debt for GRA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 1.48, we must say that GRA is in the distress zone and has some risk of bankruptcy.
A Debt/Equity ratio of 6.48 is on the high side and indicates that GRA has dependencies on debt financing.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.48 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.48 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 1.71 indicates that GRA should not have too much problems paying its short term obligations.
GRA has a Quick Ratio of 1.11. This is a normal value and indicates that GRA is financially healthy and should not expect problems in meeting its short term obligations.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
GRA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.88%.
GRA shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.20% yearly.
The Revenue has been growing slightly by 2.42% in the past year.
GRA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.22% yearly.
EPS 1Y (TTM)-8.88%
EPS 3Y-8.09%
EPS 5Y-11.2%
EPS growth Q2Q106.12%
Revenue 1Y (TTM)2.42%
Revenue growth 3Y0.26%
Revenue growth 5Y1.22%
Revenue growth Q2Q22.5%
3.2 Future
The Earnings Per Share is expected to grow by 22.11% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.63% on average over the next years.
EPS Next Y46.76%
EPS Next 2Y33.41%
EPS Next 3Y26.09%
EPS Next 5Y22.11%
Revenue Next Year11.69%
Revenue Next 2Y9.11%
Revenue Next 3Y8.47%
Revenue Next 5Y7.63%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
GRA is valuated rather expensively with a Price/Earnings ratio of 22.01.
GRA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.73.
With a Price/Forward Earnings ratio of 14.89, GRA is valued correctly.
GRA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.01 | ||
| Fwd PE | 14.89 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.12 |
4.3 Compensation for Growth
GRA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as GRA's earnings are expected to grow with 26.09% in the coming years.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y33.41%
EPS Next 3Y26.09%
5. Dividend
5.1 Amount
GRA has a yearly dividend return of 0.90%, which is pretty low.
Compared to an average S&P500 Dividend Yield of 2.41, GRA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
The dividend of GRA has a limited annual growth rate of 4.32%.
GRA has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)4.32%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
GRA pays out 79.82% of its income as dividend. This is not a sustainable payout ratio.
GRA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP79.82%
EPS Next 2Y33.41%
EPS Next 3Y26.09%
W.R. Grace & Company
NYSE:GRA (9/21/2021, 7:04:00 PM)
After market: 69.99 0 (0%)69.99
+0.02 (+0.03%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.64B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.01 | ||
| Fwd PE | 14.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.76% | ||
| ROE | 22.09% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.06% | ||
| PM (TTM) | 4.16% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.48 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-8.88%
EPS 3Y-8.09%
EPS 5Y
EPS growth Q2Q
EPS Next Y46.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.42%
Revenue growth 3Y0.26%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y