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Kuraray (OTC:KURRY) Stock, Option Chain

KURARAY CO LTD

Kuraray Co Ltd manufactures and sells specialty chemicals, fiber, and resin. The firm organizes itself into six segments based on product type. The Vinyl Acetate segment, which generates the most revenue of any segment, sells plastic films and resins for use in the food packaging and electronics industries. The Isoprene segment sells isoprene chemicals, thermoplastic elastomers, and liquid rubber. The Functional Materials segment sells dental materials, while the Fibers and Textiles segment sells fibers for cement and concrete, industrial products for automobiles, and hook and loop fasteners for clothing. The other two segments are Trading, and Other. The majority of revenue comes from Asia.

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Tweedy, Browne Fund Q3 2023 Commentary

The chemical industry is well-positioned for robust growth, driven by growing demand owing to its extensive usage across numerous sectors and the rising incorporation of digital technology. Amid this backdrop, it could be wise to invest in quality chemical stocks PPG Industries (PPG), Akzo (AKZOY), and Kuraray (KURRY) for substantial returns. Continue reading… The chemical industry plays a crucial part in diverse applications across several end-use industries, resulting in robust demand for specialty chemicals. In addition, the increasing integration and utilization of digital technologies will boost the industry's growth prospects.
With these factors in mind,  investing in fundamentally strong chemical stocks PPG Industries, Inc. (<a href="https://stocknews.com/stock/PPG/">PPG</a>), Akzo Nobel N.V. (<a href="https://stocknews.com/stock/AKZOY/">AKZOY</a>), and Kuraray Co., Ltd. (<a href="https://stocknews.com/stock/KURRY/">KURRY</a>), could be wise for potential gains.
The chemical industry is the backbone of the U.S. economy. Chemicals are vital materials for <a href="https://www.eia.gov/consumption/manufacturing/briefs/">producing an extensive assortment of consumer products</a>. Also, they are crucial for creating several resources that are essential inputs to numerous industries and sectors in the U.S.
Moreover, the chemical industry is responsible for <a href="https://www.cisa.gov/sites/default/files/2023-02/chemical_sector_profile_final_508_2022_0.pdf">more than a quarter of the GDP</a> as it supports the production of nearly all commercial and household goods, vital to the nation's economic growth. The global chemical market is expected to <a href="https://www.globenewswire.com/news-release/2023/06/06/2683143/0/en/Chemical-Industry-Forecast-2023-2032-Insights-Into-Market-Size-Growth-Rate-And-Drivers-By-The-Global-Market-Model.html">grow at a CAGR of 8.8%</a> from 2023 to 2032.
Specialty chemicals are very high in demand as they are tailored for specific industrial applications. These chemicals are used in various industries, including pharmaceuticals, automotive, food and beverages, automotive, textiles, agrochemicals, construction, electrical &amp; electronics, and more.
In addition, specialty chemicals are integral to developing clean energy technologies like solar panels, batteries, and fuel cells.
According to a report by Grand View Research, the global specialty chemicals market size was estimated at $641.47 billion in 2023 and is expected to <a href="https://www.grandviewresearch.com/industry-analysis/specialty-chemicals-market">increase at a CAGR of 5.2%</a> between 2023 and 2030.
The growing integration of digital technologies is revolutionizing the chemical industry. The global digital transformation in the chemical industry is expected to <a href="https://www.globalmarketestimates.com/market-report/digital-transformation-in-chemical-industry-market-4116">expand at a CAGR of 25.1%</a> from 2023 to 2028. Chemical companies are increasingly adopting advanced technologies, data, and analytics to enhance several aspects of the chemical manufacturing and supply chain processes.
For example, rapid technological advancements in AI and machine learning offer the industry innovative tools for data analysis and process optimization. Also, incorporating augmented reality (AR) helps to upskill the workforce and ensures that employees are proficient in utilizing digital systems, leading to more efficient operations.
In light of these encouraging trends, let's look at the fundamentals of the three best <a href="https://stocknews.com/category/chemicals/">Chemicals</a> stocks, beginning with number 3.
Stock #3: PPG Industries, Inc. (<a href="https://stocknews.com/stock/PPG/">PPG</a>)
PPG engages in the manufacturing and distribution of coatings, paints, and specialty materials globally. The company operates through Performance Coatings and Industrial Coatings. PPG offers its products and services to industries, including military, aviation, agriculture and construction, consumer electronics, and automotive.
On November 20, PPG launched the DP7000 Air-Dry Primer and a suite of specific ancillaries in the EMEA (European, Middle Eastern and African) automobile refinish markets. Given its compatibility with other products and quick dry technology, this new launch may be effectively utilized in different temperature circumstances.
The new product launch might extend PPG's market reach and drive profitability and growth.
On October 18, PPG announced that it had divested all Traffic Solutions operations in Australia and New Zealand to Geveko Markings, a Swedish pavement markings company.
"We are laser-focused on driving business growth, and we regularly review our portfolio to ensure we are in the best position to continue meeting our customers' needs and growing profitably," said Ed Baiden, PPG's global general manager, Traffic Solutions.
"We want to concentrate our investments on strategic growth areas so that we may continue to be a leader in the industry as a premier provider of traffic safety product solutions," Baiden added.
In the third quarter that ended September 30, 2023, PPG's <a href="https://www.investopedia.com/terms/n/netsales.asp">net sales</a> increased 3.9% year-over-year to $4.64 billion. Also, net income attributable to PPG grew 29.5% year-over-year to $426 million. Its earnings per share attributable to PPG came in at $1.79 billion, up 28.6% from the prior year's quarter.
As of September 30, 2023, the company's cash and cash equivalents came in at $1.22 billion, compared to $1.10 billion as of December 31, 2022.
Analysts expect PPG's revenue for the fourth quarter (ending December 2023) to increase 1.6% year-over-year to $4.25 billion. The company's consensus EPS of $1.49 for the current quarter indicates an improvement of 22% year-over-year. Moreover, the company surpassed the consensus EPS estimates in all four trailing quarters.
PPG's stock gained 9.6% over the past month and 8.7% year-to-date to close the last trading session at $136.64.
PPG's robust outlook is reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
The stock has a B grade for Growth, Sentiment and Quality. It is ranked #11 of 83 stocks within the <a href="https://stocknews.com/category/chemicals/">Chemicals</a> industry.
To see additional POWR Ratings of PPG for Stability, Value, and Momentum, <a href="https://stocknews.com/stock/PPG/">click here</a>.
Stock #2: Kuraray Co., Ltd. (<a href="https://stocknews.com/stock/KURRY/">KURRY</a>)
Headquartered in Tokyo, Japan, KURRY is a manufacturer, producer, and seller of resins, fibers, activated carbon, chemicals, and high-performance membranes and systems globally. The company operates through segments including  Vinyl Acetate; Isoprene; Functional Materials; Fibers and Textiles; and Trading.
In October, KURRY announced the development of  PVA hydrogel microcarriers for cell cultures for regenerative medicine. These microcarriers will have high robustness and safety, very efficient culture, and excellent cell observability. This newly developed product will be available from January 2024 in Japan and overseas, beginning with the U.S.
On August 9, KURRY announced a planned increase of its globally in-demand ethylene vinyl alcohol copolymer (EVAL) production capacity in the U.S.  and Europe. KURRY will add a total of 5,000 tons/year to the capacity of U.S. and European bases of operation in 2024, with another 5,000 tons/year to be added in 2026.
For the third quarter that ended September 30, KURRY's net sales increased 3.8% year-over-year to ¥574.40 billion ($3.85 billion). The operating income and ordinary income came in at ¥61.70 billion ($413.06 million) and ¥57.75 billion ($386.62 million), respectively.
In addition, the company's net assets were ¥754.60 billion ($5.05 billion) as of September 30, 2023, compared to ¥668.53 billion ($4.48 billion) as of December 31, 2022.
As per the updated financial guidance for the fourth quarter of 2023, KURRY expects its net sales to be ¥770 billion ($5.15 billion) and its operating income to touch ¥78 billion ($522.18 million).
Analysts expect KURRY's revenue for the fiscal year (ending December 2023) to increase 177.6% year-over-year to $5.36 billion. Likewise, the company's revenue for the next year 2024 is expected to grow 6.1% from the prior year to $5.68 billion.
Over the past six months, the stock has gained 10.6% and 29.3% year-to-date to close the last trading session at $31.21.
KURRY's robust outlook is reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
The stock has an A grade for Stability and a B for Value. Within the Chemical industry, KURRY is ranked #9 of 83 stocks.
<a href="https://stocknews.com/stock/KURRY/">Click here</a> to access additional ratings of KURRY for Growth, Momentum, Quality and Sentiment.
Stock #1: Akzo Nobel N.V. (<a href="https://stocknews.com/stock/AKZOY/">AKZOY</a>)
Based in Amsterdam, Netherlands, AKZOY engages in the production and sale of paints and coatings internationally. It provides decorative paints, lacquers, and varnishes, and a range of mixing machines and color concepts for building, renovation, and specialty coatings segments. It also offers performance coatings for ships, cars, aircraft, and yachts.
On November 16, AKZOY announced that its Packaging Coatings business has just launched the first two products in its new AccelstyleTM range.
AKZOY will also invest €32 million ($34.89 million) in a new plant at its Vilafranca site in Spain to produce bisphenol-free coatings for the metal packaging industry in EMEA. The facility is expected to be operational by mid-2025. The management is optimistic that it will help the company respond to a strong need from the packaging industry.
During the third quarter that ended September 30, 2023, AKZOY's gross profit grew at 14.7% year-over-year to €1.12 billion ($1.22 billion). The company's adjusted operating income rose 76.1% from the year-ago value to €324 million ($353.31 million). Its adjusted EBITDA grew 46.3% from the prior year's quarter to €414 million ($451.45 million).
Also, the company's net income attributable to shareholders increased 125% year-over-year to €189 million ($206.01 million). Its adjusted earnings per share from continuing operations were €0.99, up 73.7% from the previous year's quarter.
Street expects AKZOY's EPS and revenue for the fiscal year (ending December 2023) to increase 58.7% and 1% year-over-year to $1.39 and $11.74 billion, respectively.
Shares of AKZOY have increased 11.3% over the past month and 11.9% year-to-date to close the last trading session at $24.96.
AKZOY's solid outlook is reflected in its POWR Ratings. The stock has an overall rating of B, which translates to Buy in our proprietary rating system.
AKZOY has an A grade for Growth and a B for Stability and Quality. It is ranked #8 out of 83 stocks in the Chemicals industry.
<a href="https://stocknews.com/stock/AKZOY/">Click here</a> to access additional AKZOY ratings for Value, Sentiment and Momentum.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW! &gt;</a>

<hr />
PPG shares were trading at $137.02 per share on Friday morning, up $0.38 (+0.28%). Year-to-date, PPG has gained 11.04%, versus a 20.34% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Mangeet Kaur Bouns</h2> <img src='https:/wp-content/uploads/2022/01/Mangeet-Kaur-Bouns_Image-4.jpg' style="float:left; padding:5px;width:125px;">Mangeet's keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet's looks to help retail investors understand the underlying factors before making investment decisions.<a href="https://stocknews.com/authors/?author=mangeet-kaurbouns">More...</a>The post <a href=https://stocknews.com/news/ppg-akzoy-kurry-3-chemical-stocks-charging-up-for-positive-gains/>3 Chemical Stocks Charging up for Positive Gains</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Chemical Stocks Charging up for Positive Gains

The chemical industry is well-positioned for massive growth in 2024 due to persistent demand for chemicals across diverse sectors, a shift toward sustainability, and rapid technological advancements. Given this backdrop, fundamentally strong and undervalued chemical stocks Kuraray Co. (KURRY), LyondellBasell Industries N.V. (LYB), and Cabot Corporation (CBT) could be solid buys now. Read on… The chemicals industry is poised to remain buoyed in the foreseeable future, thanks to its diverse applications and the ongoing adoption of advanced technologies. Moreover, an escalating shift toward sustainability and Industry 4.0 appears to boost prospects for this sector further.
Therefore, quality chemical stocks Kuraray Co., Ltd. (<a href="https://stocknews.com/stock/KURRY/">KURRY</a>), LyondellBasell Industries N.V. (<a href="https://stocknews.com/stock/LYB/">LYB</a>), and Cabot Corporation (<a href="https://stocknews.com/stock/CBT/">CBT</a>), currently trading at discounted valuations, could be solid portfolio additions now.
The chemical industry displays resilience, driven by robust demand for chemicals used in different sectors for transforming raw materials into valuable products that meet society's needs.
Contributing to over a quarter of the U.S.'s gross domestic product (GDP), the U.S. chemical industry is an indispensable factor in nearly all commercial and domestic goods manufacturing processes. The industry is responsible for converting raw materials into <a href="https://www.cisa.gov/sites/default/files/2023-02/chemical_sector_profile_final_508_2022_0.pdf">over 70,000 diverse products,</a> which are distributed to around 750,000 end users nationwide.
Moreover, new governmental strategies and incentives advocating for investment in energy transition have incited an upsurge in manufacturing activities reliant on chemicals and materials. Over 75% of technologies <a href="https://www2.deloitte.com/us/en/insights/industry/oil-and-gas/chemical-industry-outlook.html">reducing emissions</a> are embedded in the chemical industry.
Furthermore, the shift toward digital technology is changing the strategic landscape for chemical manufacturers. The chemical industry is embracing <a href="https://www.deskera.com/blog/the-latest-trends-in-chemical-manufacturing-technology/#1-green-chemistry">Industry 4.0</a> by incorporating advanced digital technologies like blockchain, green chemistry, the Internet of Things (IoT), Artificial Intelligence (AI), and machine learning into their operational framework. This would increase efficiency, reduce costs, and allow for predictive maintenance needs.
The global chemical market is projected to reach $7.79 trillion by 2028, growing at a <a href="https://www.thebusinessresearchcompany.com/report/chemicals-global-market-report">CAGR of 8.7%</a>.
In light of these encouraging trends, let's look at the fundamentals of the three <a href="https://stocknews.com/category/chemicals/">Chemicals</a> stocks, starting with the third in line.
Stock #3: Kuraray Co., Ltd. (<a href="https://stocknews.com/stock/KURRY/">KURRY</a>)
Headquartered in Tokyo, Japan, KURRY produces and sells resins, chemicals, fibers, activated carbon, and high-performance membranes and systems worldwide. It operates through five business segments: Vinyl Acetate segment; Isoprene segment; Functional Materials segment; Textile segment; and Trading segment.
On January 22, Kuraray Europe GmbH (KEG) (a 100% owned subsidiary of KURRY) established a new European subsidiary, Kuraray Europe Spain S.L., to reinforce KEG's networks in Europe and accelerate future market development in the Iberian Peninsula. 
On January 17, KURRY acquired ISCC PLUS certification for 3-Methyl-1.5-Pentanediol (MPD) produced at the company's Niigata Plant (Tainai City, Niigata Prefecture). ISCC PLUS ensures that certified items, such as biomass and recycled raw materials, are properly managed via the use of the mass-balance approach throughout their supply chains, including the manufacturing process.
Its annualized dividend of $1.04 per share translates to a dividend yield of 3.21% on the current share price. Its four-year average yield is 3.70%.
In terms of forward Price/Sales, KURRY is trading at 0.66x, 45.3% lower than the industry average of 1.21x. The stock's forward <a href="https://www.investopedia.com/terms/e/enterprisevaluesales.asp#:~">EV/Sales</a> multiple of 0.90 is 40.2% lower than the industry average of 1.51.
KURRY's trailing-12-month CAPEX/Sales of 9.32% is 23.9% higher than the industry average of 7.52%, while its trailing-12-month cash per share of $2.26 is 47.7% higher than the industry average of $1.53.
For the fiscal third quarter that ended September 30, 2023, KURRY's net sales increased 3.8% year-over-year to ¥574.37 billion ($3.87 billion), while gross profit stood at ¥181.69 billion ($1.22 billion).
For the same quarter, its operating income and net income attributable to owners of the parent stood at ¥61.70 billion ($415.91 million) and ¥36.49 billion ($245.94 million), respectively. As of September 30, 2023, KURRY's total current assets stood at ¥547 billion ($3.69 billion), compared to ¥533.93 billion ($3.60 billion) as of December 31, 2022.
Street expects KURRY's revenue for the fiscal first quarter ending March 2024 to increase marginally year-over-year to $1.37 billion.
The stock has gained 30.7% over the past year to close the last trading session at $32.25. Over the past nine months, it has gained 16.2%.
KURRY's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect its positive prospects. The stock has an overall B rating, equating to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
The stock has an A grade for Stability and a B for Value. Within the <a href="https://stocknews.com/category/chemicals/">Chemicals</a> industry, it is ranked #17 out of 84 stocks.
To see additional POWR Ratings for Growth, Momentum, Sentiment, and Quality for KURRY, <a href="https://stocknews.com/stock/KURRY/">click here</a>.
Stock #2: LyondellBasell Industries N.V. (<a href="https://stocknews.com/stock/LYB/">LYB</a>)
LYB is a chemical company operating in the U.S., Germany, Mexico, Italy, Poland, France, Japan, China, the Netherlands, and internationally. It operates in six segments: Olefins and Polyolefins Americas; Olefins and Polyolefins Europe, Asia, International; Intermediates and Derivatives; Advanced Polymer Solutions; Refining; and Technology.
In 2023, $1.80 billion was returned to shareholders through quarterly dividends and share repurchases. During the fourth quarter that ended December 31, 2023, LYB returned $406 million in dividends to shareholders.
Its annualized dividend of $5 per share translates to a dividend yield of 5.29% on the current share price. Its four-year average yield is 6.82%. LYB's dividend payments have grown at CAGRs of 5.6% and 4.3% over the past three and five years, respectively.
On January 30, LYB and MSI Technology, LLC entered into an agreement for MSI Technology to serve the LyondellBasell Polybutene-1 (PB-1) resin line into consumer packaging applications for North America. MSI Technology is also the sales representative for the LYB Plexar product line.
LyondellBasell PB-1 resins are commonly used in consumer packaging applications for easy-open packaging and film modification. The expansion of the relationship is a strategic fit relative to the markets MSI Technology serves and should bode well for LYB.
In terms of forward non-GAAP P/E, LYB is trading at 10.95x, 31.7% lower than the industry average of 16.03x. The stock's forward EV/Sales multiple of 0.98 is 35.2% lower than the industry average of 1.51.
LYB's trailing-12-month cash from operations of $5.04 billion is significantly higher than the industry average of $432.26 million, while its trailing-12-month cash per share of $10.46 is 578.6% higher than the industry average of $1.54.
For the fiscal fourth quarter that ended December 31, 2023, LYB's total sales and other operating revenues came at $9.93 billion, while total operating income stood at $315 million. Moreover, its EBITDA excluding identified items increased 5.2% year-over-year to $910 million.
For the same quarter, net income excluding identified items and earnings per share excluding identified items stood at $411 million and $1.26, respectively.
Street expects LYB's revenue and EPS for the fiscal first quarter ending March 2024 to be $9.61 billion and $1.43, respectively. The company surpassed consensus EPS estimates in three of the trailing four quarters, which is impressive.
The stock has gained 2.5% over the past three months to close the last trading session at $94.47. Over the past nine months, it has gained 2.2%.
LYB's robust prospects are reflected in its POWR Ratings. The stock has an overall B rating, equating to Buy in our proprietary rating system.
LYB has a B grade for Growth, Value, Stability, and Quality. It is ranked #6 within the same industry.
<a href="https://stocknews.com/stock/LYB/">Click here</a> for the additional POWR Ratings for LYB (Momentum and Sentiment).
Stock #1: Cabot Corporation (<a href="https://stocknews.com/stock/CBT/">CBT</a>)
CBT operates as a specialty chemicals and performance materials company. The company operates through two segments: Reinforcement Materials; and Performance Chemicals. 
During the first quarter that ended December 31, 2023, CBT returned cash to shareholders with $22 million of dividends and $33 million of share repurchases.
On January 12, CBT's Board of Directors declared a quarterly dividend of $0.40 per share on all outstanding shares of the corporation's common stock. The dividend is payable to stockholders on March 8.
Its annualized dividend of $1.60 per share translates to a dividend yield of 2.09% on the current share price. Its four-year average yield is 2.64%. CBT's dividend payments have grown at CAGRs of 3.9% and 3.8% over the past three and five years, respectively.
In terms of forward non-GAAP P/E, CBT is trading at 10.63x, 27.5% lower than the industry average of 16.03x. The stock's forward EV/Sales multiple of 1.35 is 10.4% lower than the industry average of 1.51.
CBT's trailing-12-month cash per share of $4.40 is 185.5% higher than the industry average of $1.54. Its trailing-12-month net income and levered FCF margins of 11.24% and 8.04% are 91.1% and 73.6% higher than the industry averages of 5.88% and 4.63%, respectively.
For the fiscal first quarter that ended December 31, 2023, CBT's net sales and other operating revenues stood at $958 million, while income from operations increased 29.5% year-over-year to $136 million.
For the same quarter, net income attributable to CBT stood at $50 million, while adjusted earnings per share increased 59.2% from the year-ago quarter to $1.56. As of December 31, 2023, CBT's total current assets stood at $1.69 billion, compared to $1.63 billion as of September 30, 2023.
Street expects CBT's revenue and EPS for the fiscal second quarter ending March 2024 to increase 3.7% and 26% year-over-year to $1.07 billion and $1.68, respectively. The company surpassed consensus EPS estimates in three of the trailing four quarters.
The stock has gained 15.8% over the past three months to close the last trading session at $76.73. Over the past six months, it has gained 10.8%.
CBT's solid fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, translating to a Strong Buy in our proprietary rating system.
CBT has a B grade for Growth, Value, Stability, and Quality. Within the same industry, it is ranked first.
Beyond what we've stated above, we have also rated the stock for Momentum and Sentiment. Get all ratings of CBT <a href="https://stocknews.com/stock/CBT/">here</a>.
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LYB shares were unchanged in premarket trading Wednesday. Year-to-date, LYB has declined -0.64%, versus a 3.93% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Neha Panjwani</h2> <img src='https:/wp-content/uploads/2024/01/Neha-Panjwani_Headshot-1.jpeg' style="float:left; padding:5px;width:125px;">From her school days, Neha harbored a profound fascination for finance, a passion that steered her toward a career as an investment analyst following the completion of her bachelor's degree in commerce. Currently enrolled in the CFA program, Neha is dedicated to further enriching her comprehension of investment fundamentals.

Neha's primary objective is to aid retail investors in discerning optimal investment opportunities by diligently evaluating crucial aspects of financial instruments, with a primary focus on stocks and ETFs. Her commitment lies in empowering individuals to make informed and strategic investment decisions in the dynamic world of finance.<a href="https://stocknews.com/authors/?author=neha-panjwani">More...</a>The post <a href=https://stocknews.com/news/lyb-cbt-kurry-3-undervalued-chemical-stocks-set-to-surge/>3 Undervalued Chemical Stocks Set to Surge</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Undervalued Chemical Stocks Set to Surge

Tweedy, Browne 2024 Client Letter

The chemical industry is poised for solid growth, driven by the ongoing energy transition to sustainability, increasing demand for specialty chemicals, government initiatives, and technological advancements. Hence, investors might consider chemical stocks BASF SE (BASFY), Nitto Denko (NDEKY), and Kuraray (KURRY), which are heating up for May. Read more... The chemical industry shows promise due to rising demand from key sectors like automotive, construction, agriculture, healthcare, and electronics, particularly in emerging markets. Amid this backdrop, it could be wise to add robust chemical stocks BASF SE (<a href="https://stocknews.com/stock/BASFY/">BASFY</a>), Nitto Denko Corporation (<a href="https://stocknews.com/stock/NDEKY/">NDEKY</a>), and Kuraray Co., Ltd. (<a href="https://stocknews.com/stock/KURRY/">KURRY</a>) to one's portfolio before May.
Lucrative investment opportunities in the chemical industry are driven by increased demand, government initiatives, a shift toward sustainability, and rapid technological advancements. This year, the industry anticipates growth from chemicals supporting the energy transition, with innovations in eco-friendly products and the adoption of data analytics and AI.
Consequently, digital technology is reshaping chemical manufacturing by enabling innovative materials and cost-effective formulations. The global chemical market is expected to hit $7.79 trillion by 2028, growing at a <a href="https://www.thebusinessresearchcompany.com/report/chemicals-global-market-report">CAGR of 8.7%</a>.
On top of it, specialty chemicals are in high demand for specific applications, boosting product strength, durability, and efficiency. The market is expected to grow at a <a href="https://www.technavio.com/report/specialty-chemicals-market-industry-analysis">3% CAGR until 2032</a>, driven by increased demand for agrochemicals, recycled plastics, and construction chemicals.
Considering these conducive trends, let's analyze the fundamental aspects of the three <a href="https://stocknews.com/category/chemicals/">Chemicals</a> picks, beginning with the third choice.
Stock #3: BASF SE (<a href="https://stocknews.com/stock/BASFY/">BASFY</a>)
Headquartered in Ludwigshafen am Rhein, Germany, BASF operates as a chemical company worldwide. It operates through six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition &amp; Care, and Agricultural Solutions. The Chemicals segment provides petrochemicals and intermediates.
On April 22, 2024, BASFY and Vattenfall signed an agreement for BASFY to acquire a 49% stake in the Nordlicht offshore wind farms in the German North Sea, with a combined capacity of 1.6 gigawatts. The project will provide renewable energy for BASFY's production sites and Vattenfall's customers in Germany.
On February 9, 2024, BASFY announced it would divest its shares in two joint ventures in Korla, China, due to competitive pressures and high carbon footprints associated with the production processes. This move aligns with BASF's strategy to offer more sustainable products and address concerns related to its joint venture partner.
In terms of forward non-GAAP P/E, BASFY's 13.22x is 20.3% lower than the 16.59x industry average. Its 0.95x forward <a href="https://www.investopedia.com/terms/e/enterprisevaluesales.asp">EV/Sales</a> is 45.5% lower than the 1.75x industry average. Likewise, its 7.89x forward EV/EBITDA is 9.6% lower than the 8.72x industry average.
BASFY's sales for the first quarter ended March 31, 2024, were €17.55 billion ($19.02 billion). The company's EBITDA amounted to €2.66 billion ($2.88 billion). Net income from shareholdings rose 25.6% to €229 million ($248.25 million). Additionally, its net income and adjusted earnings per share stood at €1.37 billion ($1.49 billion) and €1.68, respectively.
Analysts expect BASFY's revenue for the quarter ending September 30, 2024, to increase 9.9% year-over-year to $18.30 billion. Its EPS for fiscal 2024 is expected to grow 31% year-over-year to $0.99. Over the past six months, BASFY's stock has gained 10.2% to close the last trading session at $13.13.
BASFY's promising outlook is reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. It has an overall rating of A, equating to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
It has a B grade for Value, and Stability. Within the B-rated <a href="https://stocknews.com/category/chemicals/">Chemicals</a> industry, it is ranked #9 out of 81 stocks. To see BASFY's ratings for Growth, Momentum, Sentiment, and Quality, <a href="https://stocknews.com/stock/BASFY/">click here</a>.
Stock #2: Nitto Denko Corporation (<a href="https://stocknews.com/stock/NDEKY/">NDEKY</a>)
Headquartered in Osaka, Japan, NDEKY primarily engages in the adhesive tapes business in Japan, the Americas, Europe, Asia, and Oceania. It provides tapes, surface protective films, sealing materials, membranes, FPD/touch panel-related products, gasket materials, semiconductor manufacturing process products, flexible printed circuit boards, and porous films/breathable materials.
In terms of forward EV/Sales, NDEKY's 1.44x is 19% lower than the 1.78x industry average. Similarly, its 8.54x forward EV/EBIT is 37.2% lower than the 13.61x industry average. Moreover, its 6.03x forward EV/EBITDA is 30.9% lower than the 8.72x industry average.
For the fiscal year that ended on March 31, 2024, NDEKY reported revenue of ¥915.14 billion ($5.85 billion). Its net profit attributable to owners of the parent company and earnings per share amounted to ¥102.68 billion ($656.12 million) and ¥719.30, respectively.
Additionally, the company's total current assets stood at ¥1.25 trillion ($7.99 billion) as of March 31, 2024, compared to ¥1.15 trillion ($7.37 billion) as of March 31, 2023.
Analysts expect NDEKY's revenue for fiscal 2025 to increase 83.4% year-over-year to $6.02 billion. Over the past nine months, NDEKY's stock has gained 17.4% to close the last trading session at $39.
NDEKY's POWR Ratings reflect its bright outlook. It has an overall rating of A, translating to a Strong Buy in our proprietary rating system.
It has an A grade for Quality and a B for Growth, Value, and Stability. It is ranked #4 in the same industry. To see NDEKY's Momentum, and Sentiment ratings, <a href="https://stocknews.com/stock/NDEKY/">click here</a>.
Stock #1: Kuraray Co., Ltd. (<a href="https://stocknews.com/stock/KURRY/">KURRY</a>)
Headquartered in Tokyo, Japan, KURRY engages in the production and sale of resins, chemicals, fibers, activated carbon, and high-performance membranes and systems worldwide. It operates in five segments: Vinyl Acetate, Isoprene, Functional Materials, Fibers and Textiles, and Trading.
In terms of forward EV/EBITDA, KURRY's 4.78x is 45.2% lower than the 8.72x industry average. Similarly, its 9.50x forward EV/EBIT is 30.2% lower than the 13.61x industry average. Moreover, its 4.78x forward EV/EBITDA is 45.2% lower than the 8.72x industry average.
During the fiscal first quarter that ended March 31, 2024, KURRY's net sales increased 3.9% year-over-year to ¥192.18 billion ($1.23 billion). Its operating income and net income attributable to owners of the parent stood at ¥28.79 billion ($183.97 million) and ¥21.61 billion ($138.09 million), respectively, up 35% and 165.1% over the prior-year quarter. Also, its net income per share grew 165.1% year-over-year to ¥64.52.
For the quarter ending September 30, 2024, its revenue is expected to increase 3.6% year-over-year to $1.32 billion. Over the past year, the stock has gained 30.2% to close the last trading session at $36.75.
KURRY's POWR Ratings reflect solid fundamentals. It has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
It is ranked first in the Chemicals industry. It has an A grade for Value, and Stability and a B for Growth, and Quality. <a href="https://stocknews.com/stock/KURRY/">Click here</a> to see KURRY's Momentum, and Sentiment ratings.
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<hr />
BASFY shares were trading at $13.05 per share on Thursday afternoon, up $0.03 (+0.19%). Year-to-date, BASFY has gained 2.07%, versus a 11.64% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Abhishek Bhuyan</h2> <img src='https:/wp-content/uploads/2023/07/ABhuyan.jpg' style="float:left; padding:5px;width:125px;">Abhishek embarked on his professional journey as a financial journalist due to his keen interest in discerning the fundamental factors that influence the future performance of financial instruments.<a href="https://stocknews.com/authors/?author=abhishek-bhuyan">More...</a>The post <a href=https://stocknews.com/news/basfy-ndeky-kurry-3-chemical-stocks-heating-up-for-may/>3 Chemical Stocks Heating Up for May</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 Chemical Stocks Heating Up for May

AAPL

AKZOY

AMZN

BABA

BABAF

BAESF

BAESY

BASFY

BCKIF

BCKIY

BNTGF

BNTGY

BZZUF

BZZUY

CNHI

CNXC

COCSF

DBSDF

DBSDY

DGEAF

DHLGY

DNTUF

DNTUY

DPSTF

FMCQF

FSNUF

FSNUY

GOOG

GOOGL

HEINY

HINKF

HLPPF

HLPPY

HWDJF

HWDJY

IONS

JSVGF

KRNNF

KRNTY

KURRF

MHSDF

MSFT

NDEKY

NVDA

NWLI

PARA

PARAA

RHHBF

RHHBY

RHHVF

RNMBF

RNMBY

SAFRF

SAFRY

SCRYY

SOHVF

SOHVY

SZCRF

TBABF

TBABY

TCEHY

TCTZF

TLPFF

TLPFY

TSLA

TTFNF

UBSFF

UBSFY

UHAL

UNPSF

UOVEF

UOVEY

UPCHY

VRTX

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