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Investor Insights

This summary was created by AI, based on 6 opinions in the last 12 months.

Chemtrade Logistics Income Fund (CHE.UN-T) is a company specializing in chemicals needed for water treatment, as well as serving the pulp/paper and oil/gas industries. Although it has experienced a decrease in revenue, recent earnings and margins have been strong and the company has raised its guidance. It offers a high yield of 6.9% and has a strong pipeline of products, especially in the segment of ultra-pure acid for chip manufacturers. The company has also shown improvement in leverage and dividend sustainability.

Consensus
Mixed
Valuation
Fair Value
TOP PICK

Small company, good takeout candidate. Pretty volatile. Sometimes the high dividend makes him nervous, is he missing something? But this is an underappreciated name. Sulfur and water chemicals. If can get above previous peak, around $10.50, pretty good upside. Really healthy margins. Raised guidance after recent earnings. Nice yield of 7%.

Pricing power. Good name to have in an inflationary environment. You'll be happy 2-3 years out.

(Analysts’ price target is $12.36)
chemicals
PARTIAL BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Chemtrade posted strong Q1/24 results, and management is now guiding to the upper end of its 2024 guidance range. The operating segments are performing well and with a significantly stronger balance sheet relative to previous years, the Board has approved a 10% share buyback and the company is also considering strategic M&A opportunities. The balance sheet has improved a bit versus prior years as cash flow has grown. It is still cyclical, but we will give it kudos for its strong quarter and guidance. It is also priced well at 7X earnings. We note the company has cut its dividend in the past, however and at 5.5c is still not near its prior 10c level.
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chemicals
BUY

Loves it. About 5% of his income fund. Still sees lots of long-term upside. New management doing all the right things such as selling some businesses and reducing debt. Increased dividend in January, payout ratio around 25-30%, 7.5% yield. Just reported strong results, putting it at high end of guidance for the year.

New sulfuric acid facility coming online in Ohio in 2025, will be best one in North America. Potential one in Arizona.

chemicals
HOLD

Decent company, nice distribution. Not highest quality long-term stock. Doesn't love its growth rate. Input and commodity costs are not always favourable for them. Don't add here. He'd be interested if it really sold off.

chemicals
TOP PICK

In chemicals that we need every day. Global customers -- most are water treatment (pretty stable), some pulp/paper and oil/gas. Down on revenue, but recent earnings and margins really good. Raised guidance again. Don't take a big position, try 1% to start. Big, fat yield of 6.9%.

(Analysts’ price target is $11.86)
chemicals
PAST TOP PICK
(A Top Pick Oct 31/22, Up 20%)

Raised guidance for second half of 2023. Really likes that it sells chemicals for water treatment, a utility-like business and a stable revenue stream. Very competitive in that market. With population growth comes increased water usage. Also chemicals to onshoring semiconductor industry. Fixed balance sheet, new management, firing on all cylinders.

chemicals
BUY ON WEAKNESS

Dividend is sustainable. Beat earnings last quarter. Strong pipeline of products. Good debt levels, but better names in sector available. Would not buy at this time. 

chemicals
HOLD

EBITDA beat by 25%, but market was not excited, since a lot of earnings seemed to be pulled from the second half of this year. Capex lowered. OK leverage. Decent name, decent dividend. There are higher quality names, but this is fine.

chemicals
STRONG BUY

Has pulled back. Very good relationships with customers. Recurring revenue. New, very interesting segment of ultra-pure acid, which is used by chip manufacturers. Onshoring theme will benefit this new segment. Will take good market share, really long run, it's just getting started.

chemicals
COMMENT

Its leverage is now under control. It beat in the last quarter and raised guidance. The dividend is good with a 50% payout ratio. The distributable cash flow is heading down and you can buy better quality stocks at better levels.

chemicals
DON'T BUY

Does not own shares.
Painful stock to own.
High volatility 
Hard to determine future of stock.
Dividends hard to predict. 

chemicals
PAST TOP PICK
(A Top Pick Mar 08/22, Up 36%)

Troubled company that has since turned around.
New management team performing well.
High natural gas prices helping bottom line.
Strong dividend yield.
Will continue to hold. 

chemicals
BUY

Demand for sulfuric acid are rising a lot as European suppliers shut down their operations because of high energy costs. Their water division is recession-resistant. Overall demand for their products is good. He hasn't jumped into this yet, but shares are reasonably valued.

chemicals
TOP PICK
Large dividend yield (income trust format). Stock has under performed the past few years (large legal bills). Specialty chemical business with under-investment creating opportunities. Investing into R&D which will create new business lines and profits. Expecting cash flow and earnings to grow regardless of economy.
chemicals
RISKY
Joint ventures in US to build out semis, and this will be an enduring theme. Macro environment is tough for a small cap. Balance sheet getting better, payout ratio and valuation not bad. For speculative money in a non-registered account, especially if no recession or a mild one. Try for under $7.
chemicals
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Chemtrade Logistics Income Fund(CHE.UN-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 5

Neutral - Hold Signals / Votes : 2

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 7

Stockchase rating for Chemtrade Logistics Income Fund is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Chemtrade Logistics Income Fund(CHE.UN-T) Frequently Asked Questions

What is Chemtrade Logistics Income Fund stock symbol?

Chemtrade Logistics Income Fund is a Canadian stock, trading under the symbol CHE.UN-T on the Toronto Stock Exchange (CHE.UN-CT). It is usually referred to as TSX:CHE.UN or CHE.UN-T

Is Chemtrade Logistics Income Fund a buy or a sell?

In the last year, 7 stock analysts published opinions about CHE.UN-T. 5 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Chemtrade Logistics Income Fund.

Is Chemtrade Logistics Income Fund a good investment or a top pick?

Chemtrade Logistics Income Fund was recommended as a Top Pick by on . Read the latest stock experts ratings for Chemtrade Logistics Income Fund.

Why is Chemtrade Logistics Income Fund stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Chemtrade Logistics Income Fund worth watching?

7 stock analysts on Stockchase covered Chemtrade Logistics Income Fund In the last year. It is a trending stock that is worth watching.

What is Chemtrade Logistics Income Fund stock price?

On 2024-06-20, Chemtrade Logistics Income Fund (CHE.UN-T) stock closed at a price of $9.34.