Univar's (UNVR) ChemPoint Partners With CFS North America
Univar Solutions Inc.’s UNVR subsidiary, ChemPoint.com Inc. collaborated with CFS North America, LLC. The latter, a subsidiary of Camlin Fine Sciences Ltd., chose ChemPoint for the sales and distribution of its Xtendra BHT (butylated hydroxytoluenein) product throughout the United States and Canada.
Xtendra BHT is a food-grade hindered phenolic antioxidant commonly used as a preservative in a various applications including foods, animal feed, animal and vegetable oils, petroleum products, rubber and plastics.
ChemPoint provides technical expertise across several industries. With its marketing proficiency and deep understanding of customer needs, the company facilitates products like Xtendra BHT to reach new markets and applications, supporting its growth.
BHT, an antioxidant for food applications, helps provide carry-through effectiveness in fats and oils by imparting stability to baked goods, cereals and packaging materials.For industrial applications, it helps to avoid degradation and discoloration of plastics, coatings, inks, and pigments and facilitates the stabilization of polymers when exposed to high temperatures and Ultraviolet (UV) light.
Shares of Univar have dropped 1% in the past year against a 16.9% decline of the industry.
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In its last earnings call, Univar stated that it expects adjusted EBITDA for second-quarter 2022 to be $270-$290 million. For 2022, adjusted EBITDA is projected to be $1,000-$1,050 million. The guidance considers anticipated continued strong business conditions, market share growth and benefits from net synergies from the Nexeo acquisition.
The company also projects net free cash flow for 2022 in the range of $400-$450 million.
Univar benefits from market share gains, operational execution, cost minimization and a robust liquidity position. Chemical price inflation and higher industrial demand also contribute to its top-line growth. Univar also focuses on cost-cutting, expense management and productivity actions, helping the company minimize operational costs and boost margins.
Univar Solutions Inc. Price and Consensus
Univar Solutions Inc. price-consensus-chart | Univar Solutions Inc. Quote
Zacks Rank & Key Picks
Univar currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are Albemarle Corporation ALB, Cabot Corporation CBT and Allegheny Technologies Inc. ATI.
Albemarle has a projected earnings growth rate of 231.7% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 17.9% upward in the past 60 days.
Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 22.5%, on average. ALB has gained around 5.5% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% upward in the past 60 days.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 15.5% over a year.
Allegheny has a projected earnings growth rate of 1,046.2% for the current year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 15.5% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 128.9%. ATI has gained 8.7% in a year. The company sports a Zacks Rank #1.
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