A. Schulman (SHLM) and Its Peers Financial Analysis

A. Schulman (NASDAQ: SHLM) is one of 35 public companies in the “Commodity Chemicals” industry, but how does it contrast to its peers? We will compare A. Schulman to similar companies based on the strength of its earnings, profitability, analyst recommendations, risk, dividends, valuation and institutional ownership.

Insider and Institutional Ownership

84.2% of A. Schulman shares are held by institutional investors. Comparatively, 69.9% of shares of all “Commodity Chemicals” companies are held by institutional investors. 4.1% of A. Schulman shares are held by company insiders. Comparatively, 7.9% of shares of all “Commodity Chemicals” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

A. Schulman pays an annual dividend of $0.82 per share and has a dividend yield of 2.4%. A. Schulman pays out -6.6% of its earnings in the form of a dividend. As a group, “Commodity Chemicals” companies pay a dividend yield of 1.9% and pay out 55.0% of their earnings in the form of a dividend. A. Schulman is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares A. Schulman and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
A. Schulman $2.42 billion $207.01 million -2.72
A. Schulman Competitors $4.37 billion $978.27 million 32.09

A. Schulman’s peers have higher revenue and earnings than A. Schulman. A. Schulman is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for A. Schulman and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
A. Schulman 0 2 2 0 2.50
A. Schulman Competitors 190 997 1275 56 2.48

A. Schulman currently has a consensus target price of $35.00, suggesting a potential upside of 2.79%. As a group, “Commodity Chemicals” companies have a potential downside of 0.60%. Given A. Schulman’s stronger consensus rating and higher possible upside, equities analysts plainly believe A. Schulman is more favorable than its peers.

Profitability

This table compares A. Schulman and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
A. Schulman -14.86% 35.64% 3.29%
A. Schulman Competitors -27.99% 23.71% 5.27%

Volatility & Risk

A. Schulman has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, A. Schulman’s peers have a beta of 1.16, indicating that their average share price is 16% more volatile than the S&P 500.

Summary

A. Schulman beats its peers on 8 of the 15 factors compared.

A. Schulman Company Profile

A. Schulman, Inc. is an international supplier of plastic formulations, resins and services, and provides solutions to its customers’ requirements through custom-formulated products. The Company’s customers span a range of markets, such as packaging, mobility, building and construction, electronics and electrical, agriculture, personal care and hygiene, custom services, and sports, home and leisure. The Company’s segments include Europe, Middle East and Africa (EMEA), the United States and Canada (USCAN), Latin America (LATAM), Asia Pacific (APAC) and Engineered Composites (EC). As of August 31, 2016, the Company operated in six product families, including custom performance colors (CPC), engineered composites, Masterbatch solutions, engineered plastics, specialty powders and distribution services. The CPC product family offers powdered, pelletized and liquid color concentrates that are custom-designed for thermoplastic resins.

Receive News & Ratings for A. Schulman Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for A. Schulman Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply