CHE.UN operates as an industrial chemical and service provider in North America and is now trading at 7.9x times' Forward P/E. Sales in the last five years grew around 5% on average, although growth is quite cyclical. The balance sheet has a net debt of $937M and net debt/EBITDA is around 1.8x (which already came down substantially from a peak of 5.9x in 2020). There was a significant dividend cut in 2020 as the company focused on deleveraging from $0.40 per share annually to $0.20 per share. Overall, CHE.UN is quite cheap here, but it has been a horrible long term performer, and has not created any shareholder value in decades. It still depends operating results which are historically cyclical. While debt has improved it did get itself into trouble with leverage. Overall, we would not give it a strong endorsement.
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