Financial Review: Ciner Resources (CINR) and The Competition

Ciner Resources (NYSE: CINR) is one of 28 public companies in the “Agricultural Chemicals” industry, but how does it weigh in compared to its peers? We will compare Ciner Resources to related companies based on the strength of its risk, analyst recommendations, institutional ownership, valuation, profitability, dividends and earnings.

Profitability

This table compares Ciner Resources and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ciner Resources 8.18% 15.65% 9.52%
Ciner Resources Competitors -533.64% -14.43% -9.07%

Insider & Institutional Ownership

9.3% of Ciner Resources shares are held by institutional investors. Comparatively, 49.0% of shares of all “Agricultural Chemicals” companies are held by institutional investors. 16.0% of shares of all “Agricultural Chemicals” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Ciner Resources and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ciner Resources 0 1 1 0 2.50
Ciner Resources Competitors 176 728 883 31 2.42

Ciner Resources currently has a consensus target price of $25.00, indicating a potential downside of 1.96%. As a group, “Agricultural Chemicals” companies have a potential upside of 1.96%. Given Ciner Resources’ peers higher possible upside, analysts clearly believe Ciner Resources has less favorable growth aspects than its peers.

Dividends

Ciner Resources pays an annual dividend of $2.27 per share and has a dividend yield of 8.9%. Ciner Resources pays out 114.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Agricultural Chemicals” companies pay a dividend yield of 2.9% and pay out 71.7% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Ciner Resources and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Ciner Resources $490.40 million $115.10 million 12.81
Ciner Resources Competitors $3.75 billion $756.62 million 14.87

Ciner Resources’ peers have higher revenue and earnings than Ciner Resources. Ciner Resources is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Ciner Resources has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Ciner Resources’ peers have a beta of 0.95, meaning that their average stock price is 5% less volatile than the S&P 500.

Summary

Ciner Resources peers beat Ciner Resources on 8 of the 15 factors compared.

About Ciner Resources

Ciner Resources LP, through its subsidiary, Ciner Wyoming LLC (Ciner Wyoming), produces soda ash and serves a global market from its facility in the Green River Basin of Wyoming. The Company processes trona ore into soda ash, a raw material in flat glass, container glass, detergents, chemicals, paper and other consumer and industrial products. As of December 31, 2016, its Green River Basin surface operations were situated on approximately 880 acres in Wyoming, and the Company’s mining operations included approximately 23,500 acres of leased and licensed subsurface mining area. The Company’s mining leases and license are located in two mining beds, designated by the United States Geological Survey as beds 24 and 25, at depths of 800 to 1100 feet, respectively, below the surface. The Company uses a continuous mining technique to mine trona and roof bolt the ceiling simultaneously. The Company’s soda ash is shipped by rail or truck from its Green River Basin operations.

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