GRA
W R Grace & Co
Industrial/Transportation
06/25/2015
Presented
| Date | 06/22/2015 |
| Price | $86.15 |
| Market Cap | $7.45B |
| Ent Value | $9.37B |
| P/E Ratio | 27.5x |
| Book Value | $5.01 |
| Div Yield | N/A |
| Shares O/S | 72.77M |
| Ave Daily Vol | 520,000 |
| Short Int | 2.84% |
Current
| Price | $69.99 |
| Market Cap | $4.67B |
| W. R. Grace & Co. produces and sells specialty chemicals and materials worldwide. It operates through three segments: Grace Catalysts Technologies, Grace Materials Technologies, and Grace Construction Products. The Grace Catalysts Technologies segment offers fluid catalytic cracking (FCC) catalysts for the production of transportation fuels, such as gasoline and diesel fuels, and other petroleum-based products; FCC additives; and hydro processing catalysts used in process reactors to upgrade heavy oils into lighter. This segment also provides polyolefin catalysts and catalyst supports for the production of polypropylene and polyethylene thermoplastic resins; and chemical catalysts used in various industrial, environmental, and consumer applications, as well as gas-phase polypropylene process technology to manufacture polypropylene products. The Grace Materials Technologies segment offers silica-based and silica-alumina-based engineered materials used in coatings and print media, consumer, and industrial applications, as well as pharmaceutical, life science, and related applications; and packaging materials, including can and closure sealants, coatings for cans and closures, and scavenging technologies. The Grace Construction Products segment provides specialty construction chemicals, such as concrete admixtures and polymeric fibers; additives for cement processing; admixtures for masonry concrete; and process control solutions for ready-mix concrete. This segment also offers specialty building materials for new construction and renovation/repair projects that include waterproofing membranes and roofing underlayments for commercial and residential buildings; chemical grouts for use in waterproofing and soil stabilization applications; air and vapor barriers; cementitious grouts and mortars; passive fire protection; and products for decorative/architectural concrete. W. R. Grace & Co. was founded in 1854 and is headquartered in Columbia, Maryland. |
Please note, on February 03, 2016 GCP Applied Technologies Inc. (GCP) was spun off from W. R. Grace & Co. (GRA). Presented price has been adjusted to account for the split, but other presented data values and the idea text remains unchanged.
Public companies mentioned in the summary notes: W.R. Grace & Co (GRA), BASF (BASFY), Albemarle (ALB) and Honeywell (HON)
Highlights
W.R. Grace & Co recently revealed that it will be splitting its catalyst chemicals and construction businesses in February of 2016, but the stock hasn’t done a whole lot since the announcement. Currently trading at just under 10 times EBITDA, the presenter believes that once spun, each of the businesses should trade at closer to 12 times, implying 20-25% upside to today’s stock price. The dislocation in value is likely a function of the company’s investor base, according to the presenter, with dedicated chemicals and industrials investors likely willing to pay a full multiple turn or two more for the isolated businesses.
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