Chemours (NYSE:CC) stock appears unappealing – making it a poor choice to purchase at its current price of approximately $11. We believe there are multiple significant concerns regarding CC stock, which render it unappealing despite its current low valuation.
We reach our conclusion by assessing the current valuation of CC stock in relation to its operating performance over recent years, along with its existing and historical financial condition. Our evaluation of Chemours based on critical parameters such as Growth, Profitability, Financial Stability, and Downturn Resilience indicates that the company has a very weak operating performance and financial state, as elaborated below. That being said, if you are looking for upside potential with reduced volatility compared to individual stocks, the Trefis High Quality portfolio offers an alternative – having surpassed the S&P 500 and delivering returns over 91% since its inception.
How Does Chemours’ Valuation Look vs. The S&P 500?
Based on the amount you spend per dollar of sales or profit, CC stock appears inexpensive in comparison to the larger market.
• Chemours has a price-to-sales (P/S) ratio of 0.3 compared to a figure of 2.8 for the S&P 500
• Additionally, it has a price-to-earnings (P/E) ratio of 21.8 versus the benchmark’s 24.5
How Have Chemours’ Revenues Grown Over Recent Years?
Chemours’ revenues have declined over the past few years.
• Chemours has experienced its top line shrink at an average rate of 2.7% over the last 3 years (compared to an increase of 6.2% for the S&P 500)
• Its revenues have fallen 4.9% from $6.1 Bil to $5.8 Bil in the previous 12 months (in contrast to a growth of 5.3% for the S&P 500)
• Moreover, its quarterly revenues dipped 1.3% to $1.4 Bil in the most recent quarter from $1.4 Bil a year prior (compared to a 4.9% increase for the S&P 500)
How Profitable Is Chemours?
Chemours’ profit margins are significantly lower than those of most companies in the Trefis coverage universe.
• Chemours’ Operating Income over the last four quarters was $443 Mil, indicating a poor Operating Margin of 7.7% (compared to 13.1% for the S&P 500)
• CC Operating Cash Flow (OCF) during this period was $-633 Mil, pointing to a very poor OCF Margin of -10.9% (versus 15.7% for the S&P 500)
• Over the last four-quarter period, CC Net Income was $86 Mil – signifying a very poor Net Income Margin of 1.5% (in contrast to 11.3% for the S&P 500)
Does Chemours Look Financially Stable?
Chemours’ balance sheet appears weak.
• Chemours’ debt amounted to $4.4 Bil at the conclusion of the most recent quarter, while its market capitalization is $1.6 Bil (as of 5/7/2025). This results in a very poor Debt-to-Equity Ratio of 232.7% (against 21.5% for the S&P 500). [Note: A lower Debt-to-Equity Ratio is preferable]
• Cash (including cash equivalents) constitutes $713 Mil of the $7.5 Bil in Total Assets for Chemours. This yields a moderate Cash-to-Assets Ratio of 9.5% (compared to 15.0% for the S&P 500)
How Resilient Is CC Stock During A Downturn?
CC stock has shown an impact that was slightly better than the benchmark S&P 500 index throughout certain recent downturns. While investors are hopeful for a soft landing by the U.S. economy, how severe could the consequences be in the event of another recession? Our dashboard How Low Can Stocks Go During A Market Crash illustrates how key stocks performed during and after the last six market crashes.
Inflation Shock (2022)
• CC stock dropped 36.1% from a peak of $36.16 on 14 January 2022 to $23.12 on 7 March 2022, in contrast to a peak-to-trough decline of 25.4% for the S&P 500
• The stock completely recovered to its pre-Crisis peak by 3 May 2022
• Since then, the stock has risen to a high of $44.79 on 7 June 2022 and currently trades around $11.24.
Covid Pandemic (2020)
• CC stock declined 63.1% from a high of $19.70 on 20 February 2020 to $7.26 on 3 April 2020, compared to a peak-to-trough decline of 33.9% for the S&P 500
• The stock fully recovered to its pre-Crisis peak by 5 August 2020
Putting All The Pieces Together: What It Means For CC Stock
In conclusion, Chemours’ performance across the parameters outlined above is as follows:
• Growth: Weak
• Profitability: Extremely Weak
• Financial Stability: Very Weak
• Downturn Resilience: Neutral
• Overall: Very Weak
Thus, despite its low valuation, we consider the stock to be unattractive, which reinforces our conclusion that CC is currently a poor stock to buy.
While it would be prudent to steer clear of CC stock for now, you might want to consider the Trefis Reinforced Value (RV) Portfolio, which has surpassed its all-cap stocks benchmark (a mix of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) in generating significant returns for investors. Why is that? The quarterly adjusted composition of large-, mid-, and small-cap RV Portfolio stocks offered an effective means to capitalize on favorable market conditions while minimizing losses during market downturns, as detailed in RV Portfolio performance metrics.
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