Stock Analysis & Valuation Chemours Co (2CU.DE)

• Previous Close: €33.72
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method	8.00	-76
Graham Formula	107.70	219

Strategic Investment Analysis

Company Overview

The Chemours Co. (2CU.DE) is a leading global provider of performance chemicals, headquartered in Wilmington, Delaware. Operating through three key segments—Titanium Technologies, Fluoroproducts, and Chemical Solutions—Chemours serves diverse industries, including plastics, coatings, refrigeration, mining, and oil refining. The company is a major producer of titanium dioxide (TiO2), a critical pigment used in paints and coatings, and a leading supplier of fluoroproducts such as refrigerants and industrial fluoropolymer resins. Its Chemical Solutions segment provides essential industrial chemicals like sodium cyanide for gold extraction and water treatment. With 26 production facilities across 10 countries, Chemours leverages its global footprint to deliver high-performance chemical solutions. As a key player in the Basic Materials sector, Chemours is positioned at the intersection of industrial innovation and sustainability, addressing critical needs in energy efficiency and environmental solutions.

Investment Summary

Chemours presents a compelling investment case with strong revenue (€6.35B in FY2021) and net income (€608M), supported by a diversified product portfolio and global market presence. The company's high beta (2.41) suggests significant volatility, reflecting sensitivity to commodity prices and industrial demand cycles. Positive operating cash flow (€820M) and a solid cash position (€1.45B) provide financial flexibility, though total debt (€3.93B) warrants monitoring. The dividend yield (€2.25 per share) may appeal to income-focused investors. Risks include exposure to raw material costs, regulatory pressures on fluorochemicals, and cyclical demand in end markets like construction and automotive. Long-term growth hinges on innovation in sustainable chemistries and expanding applications for TiO2 and fluoroproducts.

Competitive Analysis

Chemours holds a competitive edge through its leadership in titanium dioxide (TiO2) and fluoroproducts, where it benefits from technological expertise and established customer relationships. In TiO2, its scale and production efficiency allow cost advantages, though commoditization pressures persist. The Fluoroproducts segment capitalizes on regulatory-driven demand for next-gen refrigerants (e.g., Opteon™), but faces rivalry from firms developing alternatives. The Chemical Solutions segment’s focus on niche markets (e.g., sodium cyanide for mining) provides stability but limits growth scalability. Chemours’ R&D focus on sustainable solutions (e.g., low-global-warming-potential refrigerants) aligns with industry trends, but competitors are aggressively pursuing similar innovations. Geographic diversification mitigates regional risks, but operational complexity could strain margins. Overall, Chemours’ strengths lie in its technological moats and diversified industrial exposure, though pricing power varies by segment.

Major Competitors

• LyondellBasell Industries (LYB): LyondellBasell is a global chemical giant with strengths in polyolefins and refining, overlapping with Chemours in industrial chemicals. Its larger scale and vertical integration provide cost advantages, but it lacks Chemours’ focus on TiO2 and fluoroproducts. Weaknesses include heavier exposure to petrochemical cycles.
• DuPont de Nemours (DD): DuPont (Chemours’ former parent) competes in fluoroproducts and specialty materials. Its R&D resources and brand strength are formidable, but restructuring has diluted its chemical focus. DuPont’s diversified portfolio reduces reliance on any single segment, unlike Chemours’ concentrated exposure.
• Westlake Chemical (WLK): Westlake excels in vinyls and polyethylene, with limited direct competition in TiO2 or fluoroproducts. Its vertically integrated model ensures raw material security, a weakness for Chemours. However, Westlake’s lack of fluorochemical expertise gives Chemours an edge in refrigerants and industrial resins.
• Sherwin-Williams (SHW): A key TiO2 customer, Sherwin-Williams’ dominance in paints creates symbiotic demand for Chemours’ products. However, as a buyer, Sherwin-Williams’ scale allows it to pressure TiO2 pricing. Its in-house coatings innovation reduces dependency on suppliers like Chemours over time.
• Huntsman Corporation (HUN): Huntsman’s polyurethanes and performance products compete indirectly with Chemours’ industrial chemicals. Its strong position in Asia-Pacific complements Chemours’ broader global reach. Huntsman’s smaller size in TiO2 and fluoroproducts makes it a secondary competitor.