• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    Mixing Equipment Directory

    The Wood Coatings Market

    Antimicrobial Coatings Market

    Additives Update

    Pigment Supplier Directory
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Video Bites
    Raw Materials & Equipment
    Suppliers News
    Live From Shows
    Top News
    Croda Named Most Admired Company in British Chemical Sector

    Ashland Increases 1,4-Butanediol, Derivatives Prices in Europe

    First Source Worldwide, LLC Celebrates 20th Anniversary

    Chromaflo Technologies Adds Benjamin Woeste as Territory Sales Manager

    Maroon Group Acquires Cary Company's Raw Materials, Specialty Chemicals Distribution Business
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    The Connection Between Color Psychology & Productivity In The Workplace

    Benjamin Moore Launches COMMAND

    Mule-Hide Products Co. Introduces Seal-Fast Liqui-Flash

    IFS Coatings Breaks Ground on 70,000-Square-Foot Expansion

    Conversation with Henning Kreis of Zeppelin Systems
    Additives
    Binders
    Pigments
    Solvents

    Ashland Increases 1,4-Butanediol, Derivatives Prices in Europe

    AOC Announces EMEA Price Increase

    OQ Chemicals Increases Carboxylic Acids, Esters Prices

    Arkema Reports Full-year 2020 Results

    New Increase in Kynar Fluoropolymer Capacities at Arkema's Chinese Site
    Buyers Guide
    Company Capabilities
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Clariant Additives

    Siltech Corporation

    Keim Additec Surface USA LLC

    Shepherd Color Company, The

    Active Minerals
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    Surface Finishing Mexico 2021

    Cleveland Coatings Society Zoom Meeting

    Cleveland Coatings Society Zoom Meeting

    PCI Powder Coating Week

    Southern Society for Coatings Technology Annual Meeting and Technical Conference
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Pilot Chemical Company

    Clariant Additives

    Eagle Specialty Products

    Keim Additec Surface USA LLC

    Siltech Corporation
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • China Report
      • India/Asia Pacific Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Expert's Opinion

    Chemicals - Analyst Looks at Pension Funding on 10-K Releases

    ...

    Chemicals - Analyst Looks at Pension Funding on 10-K Releases
    Related CONTENT
    • Chemicals - Analyst Positive at IHS Markit’s 33rd annual World Petrochemical Conference
    • Huntsman Corporation – Analyst Positive on Strategic Acquisition of Demilec
    • Analyst Looks at 4Q17 ALB & UNVR Results; GRA Investor Day Preview
    • Huntsman Corporation – Analyst Sees Value, Raises EPS After 4Q17 Results
    • Huntsman Corporation – Analyst on Strong 4Q17 Results, Dividend
    07.22.18
    Chemicals 
    Pension Tension 2018; A Brief Update on Funded Status

    • We’ve updated our pension funding work. Now that 10-Ks are all out, we have reviewed the reports to update our work on the funded status of pension plans across the US chemicals sector. Our analysis reveals three pieces of good news. First, among chemical companies in our coverage, the cumulative pension funding deficit declined by 20% in 2017. Second, pension deficits as a percent of enterprise value declined by 120bps to an average of 3.9%, aided by rising equity markets. Third, recent increases in interest rates and prospects for three or perhaps four additional Fed actions in 2018 could result in upward revisions to discount rates and lower pension obligations (all else held constant) in the years to come.
    • Most improved award: Huntsman (HUN) and Celanese (CE). Based on improvements in funded status, our analysis suggests that Huntsman Corporation and Celanese enjoyed the greatest pension-linked increase in shareholder value at +3.1% and +2.0% of equity value, respectively, on an after-tax basis. As a reminder, Huntsman was able to...
    • Funding gaps widened at WR Grace (GRA). Our analysis suggests that WR Grace suffered the greatest pension-linked erosion of shareholder value at -1.3% of equity value. Grace’s PBO now represents 8.1% of the company’s current enterprise value, up from 6.7% last year. This new level now represents the…
    • Pension funding improves with an absolute decline in the average deficit. With the exception of Sherwin-Williams, all of our companies under coverage have under-funded pension obligations. As of fiscal year-end 2017, pension plans among companies in our coverage were 78% funded on a weighted-average basis with a median funding ratio of 80%. Figure 3 plots funded status as a… 
    • We continue to favor leverage in the form of pension obligations. All else equal, we’d prefer to see plans that are well funded in order to avoid risk of those plans siphoning future cash flows that could otherwise accrue to the benefit of shareholders. Since October 2016 however, we have viewed pension deficits as a positive from a…
    • Pension deficits skew valuation slightly. As shown in Figure 6, the inclusion of updated pension deficits in our calculation of enterprise value (EV) would increase the average ratio of EV to our 2018 EBITDA estimate by 0.3x to 10.4x from 10.1x. For two of our more under-funded companies in our coverage…
    • Overall, we remain Market Weight on US Chemicals exposure, albeit with a healthy appetite for risk. Based on 10-year average data, we consider the US chemicals sector to be overvalued by 10% on an absolute basis, and modestly undervalued relative to the S&P500 index. The average stock of our 18 names now under coverage trades for 16.2x our estimate of 2018 EPS. This compares to a 10-year average P/E multiple of next twelve months (NTM) earnings of 14.0x for Vertical Research Partners’ index of 25 chemical stocks. Likewise, the average stock of our names now under coverage trades for 9.9x our estimate of 2018 EBITDA. This compares to a 10-year average multiple of next twelve months (NTM) EBITDA of 7.9x for the VRP Chemicals Index. The picture doesn’t look nearly as grim when we compare the sector valuation to that of the broader market. Using the VRP Chemicals Index as a proxy, the sector trades at a relative P/E multiple of 0.91x that of the S&P500 index’s P/E multiple, which is below the 10-year average relative P/E multiple of 0.98x. Likewise, the sector trades at a relative EBITDA multiple of 0.85x that of the S&P500 index’s EBITDA multiple, which is also a modest discount to the 10-year average relative EBITDA multiple of 0.91x. Within the sector, our analysis suggests that commodity-linked chemical names – whether pure plays or diversified portfolios – remain inexpensive vs. specialty chemical counterparts on a 5-year and a 10-year historical basis.
    (Please see full report for details)
    Related Searches
    • chemical
    • sherwin-williams
    Suggested For You
    Chemicals - Analyst Positive at IHS Markit’s 33rd annual World Petrochemical Conference Chemicals - Analyst Positive at IHS Markit’s 33rd annual World Petrochemical Conference
    Huntsman Corporation – Analyst Positive on Strategic Acquisition of Demilec Huntsman Corporation – Analyst Positive on Strategic Acquisition of Demilec
    Analyst Looks at 4Q17 ALB & UNVR Results; GRA Investor Day Preview Analyst Looks at 4Q17 ALB & UNVR Results; GRA Investor Day Preview
    Huntsman Corporation – Analyst Sees Value, Raises EPS After 4Q17 Results Huntsman Corporation – Analyst Sees Value, Raises EPS After 4Q17 Results
    Huntsman Corporation – Analyst on Strong 4Q17 Results, Dividend Huntsman Corporation – Analyst on Strong 4Q17 Results, Dividend
    Sherwin-Williams Launches Color Express Powder Program Sherwin-Williams Launches Color Express Powder Program
    Sherwin-Williams Introduces Assured Applicator Certification Sherwin-Williams Introduces Assured Applicator Certification
    W.R. Grace and Co. - Analyst Reduces Estimates, PT After 4Q17 Results W.R. Grace and Co. - Analyst Reduces Estimates, PT After 4Q17 Results
    Olin Corporation, W.R. Grace and Co. - Analyst Provides Takeaways, Looks at Results Olin Corporation, W.R. Grace and Co. - Analyst Provides Takeaways, Looks at Results
    D.B. Becker Earns Huntsman Corporation’s Polyurethanes Division D.B. Becker Earns Huntsman Corporation’s Polyurethanes Division's Distributor of the Year Award
    Construction Chemicals Market: Current Business Trends & Growth Opportunities 2016-2024 Construction Chemicals Market: Current Business Trends & Growth Opportunities 2016-2024
    Sherwin-Williams Student Design Challenge Now Open Sherwin-Williams Student Design Challenge Now Open
    Wood Coatings  Market Wood Coatings Market
    Grace Wins Sherwin-Williams’ Certified Supplier Award Grace Wins Sherwin-Williams’ Certified Supplier Award
    Analyst Looks at Sector in Monthly Commodity Chemical Calculus Report Analyst Looks at Sector in Monthly Commodity Chemical Calculus Report

    Related Expert's Opinion

    • Chemical Industry’s Response to Crisis While in Crisis

      Chemical Industry’s Response to Crisis While in Crisis

      ...
      Dean Curtis, President and CEO of ICIS 05.22.20

    • Automotive Coatings
      A Brief Introduction to Importance of Automotive Paint Additives

      A Brief Introduction to Importance of Automotive Paint Additives

      ...
      Swamini Kulkarni 05.18.20

    • Breaking News | Marine Coatings | Paint & Coatings Manufacturer News
      Jotun: It’s Time for a

      Jotun: It’s Time for a 'Revhullution'

      Jotun Hull Skating Solutions.
      Jotun 05.11.20


    • Additives
      Lux Research Predicts Which Chemical Manufacturing Platforms Will Be Electrified By 2050

      Lux Research Predicts Which Chemical Manufacturing Platforms Will Be Electrified By 2050

      Report shows innovations in CO2 electrolysis will lead to displacement of natural gas for pure carbon monoxide and formic acid production by 2050.
      Lux Research 04.07.20

    • Synthetic Biology Has High Potential as Alternative Production Method for Chemicals

      Synthetic Biology Has High Potential as Alternative Production Method for Chemicals

      Fermentation holds the key to cost savings, greater innovation, and creation of novel products.
      Lux Research 04.02.20

    • AkzoNobel: How Our Products Contribute to Critical Industries

      AkzoNobel: How Our Products Contribute to Critical Industries

      ...
      AkzoNobel 03.30.20


    • In the Future of Plastic Recycling, No Singular Technology Will Dominate

      In the Future of Plastic Recycling, No Singular Technology Will Dominate

      ...
      Lux Research 01.30.20

    • Breaking News
      Frost and Sullivan: Digital Transformation Poised to Revolutionize Paints and Coatings Industry

      Frost and Sullivan: Digital Transformation Poised to Revolutionize Paints and Coatings Industry

      Adoption of big data, AI, and AR will aid coatings companies to uncover new revenue streams and attract new customers.
      01.15.20

    • Market Reports  | Pigments

      Evolving Automotive Sector Fueling Global Pigments Market Trends

      APAC to also emerge as a strong growth avenue, Pankaj Singh writes.
      Pankaj Singh 12.06.19


    • Breaking News
      PPG

      PPG's TAUBMANS, WHITE Knight Paints Reveal Top 7 Mini-makeovers Achievable with Tax Refund

      Company’s paint experts team with Cherie Barber to inspire DIY transformations.
      08.12.19

    • Commercial Construction Index Shows Surge in New Business Confidence

      ...
      06.20.19

    • Breaking News
      PX - Analyst Trims PT as Merger with Linde Faces Regulatory Concerns in EU

      PX - Analyst Trims PT as Merger with Linde Faces Regulatory Concerns in EU

      ...
      09.02.18


    • Breaking News | Market Reports
      Production Shutdowns, Second Dip in Operating Rates Challenge Global Methyl Methacrylate Market

      Production Shutdowns, Second Dip in Operating Rates Challenge Global Methyl Methacrylate Market

      Research by IHS Markit.
      08.28.18

    • Breaking News
      Chemicals - Analyst Positive at IHS Markit’s 33rd annual World Petrochemical Conference

      Chemicals - Analyst Positive at IHS Markit’s 33rd annual World Petrochemical Conference

      ...
      08.26.18

    • Breaking News
      Lithium Landscape - Analyst Provides a

      Lithium Landscape - Analyst Provides a 'Who's Who' in Sector, Looks at 30+ Industry Players

      ...
      08.19.18

    Trending
    • AkzoNobel Completes Titan Paints Acquisition
    • AkzoNobel Kicks Off Paint The Future Startup Challenge In China
    • Raw Material Price Increases Pile Pressure On Paint Manufacturers
    • Hempel Announces Global Price Increase
    • Maroon Group Acquires Cary Company's Raw Materials, Specialty Chemicals Distribution Business
    Breaking News
    • Croda Named Most Admired Company in British Chemical Sector
    • Ashland Increases 1,4-Butanediol, Derivatives Prices in Europe
    • First Source Worldwide, LLC Celebrates 20th Anniversary
    • Chromaflo Technologies Adds Benjamin Woeste as Territory Sales Manager
    • Maroon Group Acquires Cary Company's Raw Materials, Specialty Chemicals Distribution Business
    View Breaking News >
    CURRENT ISSUE

    February 2021

    • Mixing Equipment Directory
    • The Wood Coatings Market
    • Antimicrobial Coatings Market
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    Thymoquinone Inhibits Viral Infection in In Vitro Settings, New Study Finds
    IFT Transitions 2021 Annual Event to Digital Experience
    NY Federal Judge Enters Permanent Injunction Against Dietary Supplement Manufacturer
    Coatings World

    Latest Breaking News From Coatings World

    Sherwin-Williams Announces Resignation of President and COO
    Ashland Completes Expansion and Relocation of Viatel Bioresorbable Polymers Manufacturing Facility
    Evonik Receives Sustainability Award from EcVadis
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    Cretex CFO Announces Retirement
    New AI-Based Tool Developed for Coronary Artery Analysis, Intervention Planning
    First Reported Use of Pulse Biosciences' CellFX System
    Contract Pharma

    Latest Breaking News From Contract Pharma

    AGC Biologics Expands Cell and Gene Facility in Italy
    Celonic to Boost Cell & Gene Therapy Production
    Pharmaron Acquires Biomanufacturing Site in the UK from AbbVie
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Ulta Beauty Opens in Herald Square
    Elizabeth Arden Taps Sui He as Global Brand Ambassador
    Natura &Co Outperforms the Global Market in Q4 2020
    Happi

    Latest Breaking News From Happi

    Dr. Sheffield’s Adds New Toothpaste Flavors
    First Two Hand Sanitizers Are Certified by Green Seal
    Elizabeth Arden Taps Supermodel and Actress Sui He
    Ink World

    Latest Breaking News From Ink World

    Massilly North America Adds Koenig & Bauer MetalStar 3 Metal Decorating Press
    Hydrocarbon Solvents Market to Surpass $8.1 Billion by 2030
    Access Direct Mail Doubles Revenue with SCREEN's Truepress Jet520HD
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Arjobex America welcomes Maggie Naberezny to sales team
    Henkel publishes 30th Sustainability Report
    Avery Dennison Smartrac launches new Circus Pro inlays
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    FPInnovations Develops Biodegradable Mask
    Sani Professional Sanitizing and Disinfecting Products Approved by EPA
    Autefa Solutions Offers Fully Automated Line for Protective Mask Production
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    Colfax Decides to Divide Its Businesses
    Stryker Corp.'s 2020 Sales Slip 3.6 Percent
    Bioventus Appoints Managing Director, China and Asia Pacific
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    Comercial Kywi Improves Customer Service, Front-Store Operations with Zebra Mobile Solution
    Global Printed Circuit Board Market Projected to Reach $69.32 Billion by 2027
    Global Smart Glass Market to Register 6.8% CAGR Between 2021-28: Grand View Research

    Copyright © 2021 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login