Chemours stock struggles amid high debt and poor performance

In the United States, Chemours Company (NYSE:CC) is facing significant challenges as its performance indicators reveal a weak financial standing. As of May 2025, Chemours has seen its stock price hover around $11, prompting a detailed evaluation of its financial health and operational efficiency. The company's revenue has been declining, with an average reduction of 2.7% over the past three years, contrasting sharply with the 6.2% growth recorded for the S&P 500 during the same timeframe. Specifically, in the previous 12 months, revenues dropped from $6.1 billion to $5.8 billion, marking a 4.9% downturn, while the S&P 500 saw a 5.3% increase. Profitability metrics further underscore Chemours' struggles. Despite having an operating income of $443 million over the last four quarters, the company's operating margin stood at a scant 7.7%, significantly lower than the S&P 500’s 13.1%. Compounding its woes, Chemours reported an operating cash flow of -$633 million, reflecting an OCF margin of -10.9%, when the benchmark's margin was at 15.7%. Additionally, the company’s net income of $86 million corresponds with a dismal net income margin of 1.5%, in stark contrast to the S&P 500's 11.3%. Examining Chemours' financial stability exposes further vulnerability. As of the last quarter's end, the company's debt reached $4.4 billion, juxtaposed against a market capitalization of only $1.6 billion, resulting in an alarming debt-to-equity ratio of 232.7%, compared to the S&P 500's more favorable 21.5%. This precarious situation highlights Chemours' limited capacity to manage its obligations effectively. Moreover, the company maintained $713 million in cash and cash equivalents out of a total asset figure of $7.5 billion, yielding a cash-to-assets ratio of 9.5%, lower than the 15.0% average for the S&P 500. Despite these financial concerns, Chemours' stock has displayed a mixed performance during recent market downturns. During the COVID-19 pandemic, Chemours' stock saw a decline of 63.1% from its peak of $19.70 in February 2020 to a low of $7.26 in April 2020, which was a relatively milder drop compared to the 33.9% decline of the S&P 500. However, it managed to recover to its pre-crisis levels by August 2020. Overall, assessments of Chemours reveal significant weaknesses in growth, profitability, and financial stability, suggesting that the stock is an unattractive investment at this time. Investors are encouraged instead to consider better-performing alternatives such as the Trefis Reinforced Value Portfolio, which has demonstrated promising returns.