Q: Please advise your thoughts on Chemtrade Logistics.
Thank you
Margaret
Thank you
Margaret
5i Research Answer:
CHE.UN is getting its act together and is up 35% this year. It is now 14X earnings, with a yield of 4.7%. It has cut its dividend in the past and it is a cyclical company. Historically, it has not done well, but it has fixed some cost issues and prices for its products have improved. Very strong growth is now forecast for 2026. Cash flow is good. It looks better than it has for some time, but there are risks here. Debt is high, and in a cyclical downturn investors may sell it off. But today it looks decent.