Risk factor
Critical default risk
Profitability factor
Excellent dividends
About
A. Schulman, Inc. manufactures and supplies plastic compounds and resins, offering a diverse product portfolio. This includes custom performance colors, featuring a range of standard and bespoke hues, organic and inorganic pigments, high-chroma options (available in translucent or opaque formats), and various special effects. The company also provides engineered composites, such as bulk, sheet, and thick molding compounds, along with structural composite solutions tailored for original equipment manufacturers (OEMs) and custom molders. Further offerings comprise concentrates designed to enhance the performance, appearance, and processing of plastics for specific applications. A. Schulman also delivers additive solutions and application solutions aimed at minimizing plastic use, incorporating recycled materials, or utilizing renewable-based polymers, alongside films for agricultural, packaging, and personal care/hygiene sectors. Their polymer solutions focus on structural integrity, incorporating multi-component blends (e.g., polyolefins, nylons, polyesters, and elastomers) and specialized formulations that utilize fiber reinforcements (like glass and carbon), nano-reinforcements, flame retardants, impact modifiers, and UV stabilization. Beyond products, the company provides various services, including size reduction, jet milling for fine particle requirements, and cryogenic milling. They also produce specialty powders for rotational molding, oil and gas additives, and sports and leisure products. A. Schulman additionally procures, repackages, and resells polymers for processing types such as injection molding, blow molding, thermoforming, and film and sheet extrusion. The company serves a global clientele across numerous markets, including packaging, mobility, building and construction, electronics and electrical, agriculture, personal care and hygiene, custom services, sports, home, and leisure. Established in 1928 and headquartered in Fairlawn, Ohio, A. Schulman, Inc. has operated as a subsidiary of LyondellBasell Industries N.V. since August 21, 2018.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is overpriced on P/E, 'expensive' on EV/EB