AXLL
Axiall Corp
Industrial/Transportation
03/15/2013
Presented
| Date | 03/12/2013 |
| Price | $58.84 |
| Market Cap | $4.11B |
| Ent Value | $4.47B |
| P/E Ratio | 71.6x |
| Book Value | $35.35 |
| Div Yield | 1.4% |
| Shares O/S | 69.80M |
| Ave Daily Vol | 1,920,000 |
| Short Int | N/A |
Current
| Price | $33.00 |
| Market Cap | $2.33B |
| Axiall Corporation manufactures and markets chemicals and building products in the United States and internationally. The company operates through three segments: Chlorovinyls, Building Products, and Aromatics. The Chlorovinyls segment produces chlor-alkali and derivative products, including chlorine, caustic soda, vinyl chloride monomer, and vinyl resins; other chlor-alkali and derivative products comprising chlorinated ethylene, calcium hypochlorite, hydrochloric acid, and phosgene derivatives; and compound products, such as vinyl compounds, and compound additives and plasticizers. The Building Products segment offers window and door profiles, which include vinyl window profiles, such as frames, sashes, trims, and other components, as well as vinyl patio door components and fabricated patio doors; extruded decorative trims, moldings, and millwork and deck products; vinyl soffits and soffits, fascia and trims, molded vent mounts and exterior shutters, and vinyl cellular sidings; and pipe and pipe fittings for the municipal and electrical markets. This segment markets its vinyl-based home improvement and building products under the Royal Building Products, Celect Cellular Exteriors, Zuri Premium Decking, Royal Kor Flo, Overture patio doors, Genesis Cellular Window System, Royal S4S Trimboard, and Exterior Portfolio brand names. The Aromatics segment provides cumene, and phenol and acetone products. Axiall Corporation sells its chlorovinyls and aromatics chemical products for further processing into various end-use applications, including plastic pipe and pipe fittings, siding and window frames, bonding agents for wood products, plastics, acrylic sheetings and coatings for wires and cables, paper, minerals, metals, and water treatment industries. The company was formerly known as Georgia Gulf Corporation and changed its name to Axiall Corporation in January 2013. Axiall Corporation was founded in 1984 and is based in Atlanta, Georgia. |
Highlights
AXLL was officially formed at the end of January, 2013, when the merger of Georgia Gulf and PPG’s commodity chemicals business was completed. The presenter believes the manufacturer of chlor-alkali and caustic soda (among other derivatives) is poised to benefit from low natural gas prices, the housing recovery in the US, as well as the export market for AXLL’s products. He expects the company to earn substantially more than the Street is currently modeling over the next two years (his 2014 earnings estimate is $7, vs. the consensus of $5.52), and provided the following points supporting his bullish thesis on AXLL:
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