The Company in a Nutshell
| Date Reviewed | 09/08/2025 |
| Company Name | Chemtrade Logistics Income Fund |
| Symbol | CHE.UN.TO |
| Sector | Materials |
| Industry | Chemicals |
| Beta | 1.26 |
| PRO Rating | 2 |
| Dividend Safety | 2 |
Business Model
Chemtrade Logistics Income Fund is a Canada-based company, which operates a diversified business providing industrial chemicals and services to customers in North America and around the world. The Company is also a producer of high purity sulphuric acid for the semiconductor industry in North America. Its segments include Sulphur and Water Chemicals (SWC) and Electrochemicals (EC). SWC markets, removes and/or produces merchant, Regen and ultra-pure sulphuric acid, sodium hydrosulphite, elemental sulphur, hydrogen sulphide, sodium bisulphite, and sulphides, and provides other processing services. SWC also manufactures and markets a variety of inorganic coagulants used in water treatment, including aluminum sulphate, aluminum chlorohydrate, polyaluminum chloride, ferric sulphate, and sodium nitrite. EC manufactures and markets sodium chlorate and chlor-alkali products including caustic soda, chlorine and HCl, largely for the pulp and paper, oil and gas and water treatment industries.
| Current price | 13.38 |
| ROE | 16.65 % |
| ROIC | 13.70 % |
| Shareholder Yield | 0.50 % |
| 5-Yr Total Return | 305.65 % |
| 1-Yr Total Return | 27.80 % |
| Next Earnings Date | 11-12-25 |
Latest Quarter Information
What the CEO said:
Chemtrade delivered another strong quarter in Q2, with double-digit growth in revenue, Adjusted EBITDA, and distributable cash. These results reflect the consistent execution of our strategy, underpinned by operational discipline, commercial focus, and the overall strength of our diversified portfolio. I am incredibly proud of how our team continues to perform amid a volatile macro-economic environment. Although global trade tensions persist, our robust first half performance and resilient business provide us with the confidence to once again raise our full-year Adjusted EBITDA guidance for 2025.
What we say:
2025-09-08, Chemtrade's Q2 revenues increased by 10.8% driven by higher selling prices for several key products, and AEBITDA of ~$138M was up ~20% Y/Y. It, however, witnessed lower volumes of sodium chlorate and lower selling prices for chlorine. Q2 distributable cash was $71.5M and CFO was $83.4M. Revenue grew by 13% in SWC ($302.4M) and 7.2% in the EC ($194.2M) segment in Q2. Chemtrade raised its 2025 Adjusted EBITDA guidance and now expects it to be $475M-$500M. The company purchased 2.2M units in Q2, totalling 11.2M units acquired out of 11.7M authorized under the NCIB. It maintained a strong balance sheet, with a Net debt to LTM AEBITDA ratio of 2x at the end of Q2.
Investment Thesis
Dividend Triangle
| 5-Yr Rev. Growth | 5.90 % |
| 5-Yr EPS Growth | 0.00 % |
| 5-Yr Div Growth | 2.85 % |
Potential Risks
| Debt/Equity | 1.10 |
| Financial Debt to EBITDA (TTM) | 2.00 |
| Current Ratio (Quarterly) | 0.40 |
| Credit Score | 54 |
Dividend Growth Perspective
| Dividend ($) | 0.69 |
| Dividend Yield Fwd | 5.15 % |
| Dividend Frequency | Monthly |
| Average 5-Yr Yield | 6.95 % |
| Payout Ratio (%) | 61.75 |
| Cash Payout Ratio (%) | 62.50 |
| DGR 1-Yr | 4.55 |
| DGR 3-Yr | 4.75 |
| DGR 5-Yr | 2.85 |
| DGR Streak | |
| Chowder Score | 7.95 |
| Next DVD PMT | 10-31-25 |
Valuation
(Data for `ddm_growth_rate_years` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
| Market Cap | 2 B |
| PE Ratio | 15.10 |
| Fwd PE | 10.00 |
| Price to Book Ratio | 2.10 |
| DDM Valuation | 0 |
| Average 5-Yr PE | 9.66 |
| Value Score | 96 |