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A. Schulman, Inc. (NASDAQ:SHLM) supplies plastic compounds and resins for packaging, consumer products, industrial, and automotive applications. The company offers additive compounds, custom color concentrates for film and molding, carbon black color concentrates, white color concentrates, additive compounds for polyester resins and special pearl effects, antistatic concentrates, and masterbatch for the production of synthetic paper.

It is scheduled to report its Q3 2012 results on July 9, 2012, after the bell.

Technical Overview


The stock has a market capitalization of $585.97M and is currently trading at $19.68 with a 52-week range of $16.16-$28.00. The stock performance year to date: -4.80%. It is currently trading above 20 SMA, but below 50 and 200 SMA.

Key Metrics

  • Trailing P/E: 12.49
  • Forward P/E: 8.90
  • Price/Sales: 0.26
  • Price/Book: 1.12
  • PEG Ratio: 0.91
  • Total Debt: 239.37M
  • Annual dividend yield: 3.50%
  • Return on Equity: 9.26%
  • Return on Assets: 4.36%

Recent EPS Actuals vs. Estimates

The company has failed to meet analysts' estimates in the last few quarters. In the last quarter, it reported $0.38 EPS, failing to meet analyst estimates of $0.44.

The consensus EPS is $0.62 based on 4 analysts' estimates, down from $0.65 a year ago. Revenue estimates are $565.60M, down from $611.14M a year ago. The median target price by analysts for the stock is $30.00.

Average recommendation: Hold

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On June 14, 2012, the company was downgraded from Buy to Hold at Gabelli & Co.
  • On June 5, 2012, the company was downgraded from Neutral to Sell at Longbow.

Latest Developments

  • On June 10, 2012, Alujain Corporation announced that its subsidiary, National Petrochemical Industrial Company (NATPET), has entered into a joint venture agreement with A. Schulman Inc, a United States-based company.
  • On April 4, 2012, A. Schulman Inc. announced that for fiscal 2012, it expects net income to exceed the levels that the Company posted during fiscal 2011. The company reported net income of $58.01 million in fiscal 2011.
  • On January 5, 2012, A. Schulman Inc. announced that the Board of Directors of the company on January 4, 2012, declared a regular cash dividend of $0.17 per common share, payable February 1, 2012, to shareholders of record on January 20, 2012.

Competitors

A. Schulman, Inc. operates in Specialty Chemicals industry. A comparison can be made with Buckeye Technologies Inc. (NYSE:BKI), E. I. du Pont de Nemours and Company (NYSE:DD), Dow Chemical Company (NYSE:DOW), and Westlake Chemical Corp. (NYSE:WLK). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one-year period.

Click to enlargeSHLM Chart

SHLM data by YCharts

Competitors' Latest Development

  • On June 29, 2012, Dow AgroSciences, a wholly owned subsidiary of Dow Chemical Company, and The Royal Barenbrug Group, announced a global strategic relationship for the development and commercialization of advanced germplasm in forage seeds.
  • On June 19, 2012, Reuters reported that Monsanto Co is suing chief rival E.I. Du Pont de Nemours and Co (Du Pont), accusing DuPont and its agricultural crop subsidiary of treading on Monsanto's technological turf by copying key new plant breeding innovations.
  • On June 8, 2012, Reuters reported that DuPont had acquired a unit of Britain's BAE Systems plc and had taken a minority stake in a U.S. high-technology start up, Nanocomp Technologies Inc, to expand its portfolio of high-performance protection materials.
  • On May 24, 2012, Reuters reported that an arbitrator ruled Kuwait's state-run chemical company must pay Dow Chemical Co $2.16 billion for wrongly canceling a planned plastics joint venture in 2008, Dow said on Thursday.
  • On May 4, 2012, Westlake Chemical Corporation announced that following acquisition discussions with Georgia Gulf's management under the terms of a confidentiality agreement, it notified Georgia Gulf that Westlake has withdrawn its proposal to acquire all of the outstanding shares of common stock of Georgia Gulf Corporation and does not intend to continue to pursue a transaction with Georgia Gulf.
  • On May 1, 2012, DuPont announced that it had acquired from Bunge full ownership of the Solae, LLC joint venture. DuPont previously owned 72% of the joint venture, while Bunge owned the remaining 28%.
  • On April 26, 2012, Dow Chemical Company announced that it is confidence in ability to deliver higher and sustainable earnings growth over the long term.
  • On April 25, 2012, DuPont announced that Board of Directors had approved a 5% increase in the Company's quarterly cash dividend. The second quarter dividend will increase from $0.41 to $0.43 per share for common stock, payable June 12, 2012, to stockholders of record May 15, 2012.
  • On April 19, 2012, Dow Chemical Company announced that the company will construct a new world-scale ethylene production plant at Dow Texas Operations in Freeport, TX, as part of Dow's previously announced comprehensive plan to further connect its U.S.
  • On April 12, 2012, The Dow Chemical Company announced that its Board of Directors had declared a 28% increase in the second quarter dividend, from $0.25 per share to $0.32 per share.
  • On April 2, 2012, Dow Chemical Company announced it was implementing cost reductions in line with its commitment to actively manage its portfolio and in response to continued weakness in the European economy.
  • On March 27, 2012, BM&FBovespa (Bovespa) announced that, on April 4, 2012, the Brazilian Depositary Receipts (BDRs) Level I of Dow Chemical Company will start being traded on Bovespa's over-the-counter (OTC) market, quoted in BRL per unit and with standard trading lot of 100 BDRs, under the ticker DOWB11B.
  • On March 23, 2012, China Sunergy Co., Ltd. announced that the company, together with China Electric Equipment Group (CEEG) had signed a Letter of Intent with DuPont's DuPont China Holdings (DuPont) for strategic collaboration relating to photovoltaic (solar) technologies & materials, power transformer, insulation and aircraft composite materials over a three-year period.
  • On March 21, 2012, Dow Chemical Company's Dow AgroSciences LLC and Dualsystems Biotech announced a drug profiling agreement. Under the agreement, Dualsystems Biotech will use its drug profiling platform to identify molecular targets for an undisclosed small molecule lead candidate in Dow AgroSciences' agrochemical discovery program.
  • On March 5, 2012, Dow AgroSciences LLC, a wholly owned subsidiary of Dow Chemical Company, announced that it has divested its European Dithane fungicide business to Indofil Industries Ltd.
  • On February 17, 2012, Westlake Chemical Corporation announced that the Board of Directors had declared a dividend of $0.07375 per share, payable on March 21, 2012, to stockholders of record on March 7, 2012.
  • On February 14, 2012, DuPont announced that it had signed a multi-year lease agreement with Beijing International Flower Port to build a state-of-the-art Technology Hub for its Pioneer seed business in Beijing, China.
  • On February 10, 2012, Reuters reported that DuPont has started the auction of its car paint business, which could bring in more than $4 billion and has drawn early interest from a number of private equity firms, according to sources familiar with the matter.
  • On February 9, 2012, Dow Chemical Company announced that it had declared a dividend of $0.25 per share, payable April 30, 2012, to shareholders of record on March 30, 2012.
  • On February 1, 2012, Westlake Chemical Corporation announced that it had submitted a revised proposal to the board of Georgia Gulf Corporation to acquire all the outstanding shares of Georgia Gulf for $35.00 per share in cash.
  • On January 26, 2012, Buckeye Technologies, Inc. announced that for the third quarter of 2012, it expected earnings in the $0.69-$0.73 range. This is down from the $0.75 estimate that the company shared in October.
  • On January 24, 2012, DuPont reaffirmed its fiscal 2012 earnings outlook of $4.20 to $4.40 per share (NYSEARCA:EPS), an increase of 7% to 12% versus fiscal 2011, excluding significant items.
  • On January 17, 2012, Georgia Gulf Corporation announced that its Board of Directors has rejected Westlake Chemical Corporation's unsolicited proposal to acquire Georgia Gulf for $30.00 per share.
  • On January 13, 2012, Westlake Chemical Corporation announced that it has submitted a proposal to Georgia Gulf Corporation to acquire all of the outstanding shares of Georgia Gulf for $30.00 per share in cash.
  • On January 12, 2012, Buckeye Technologies, Inc. announced the closure of its Americana, Brazil cotton linter pulp production line. The company will work closely with its customers to continue to meet their needs from its Memphis, Tennessee facility.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: A. Schulman, Inc.