Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Chemicals industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Chemicals Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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7 Undervalued Chemicals Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Chemicals industry for Friday, December 26, 2025. Let’s take a closer look at their individual scores to see how they measure up against each other and the Chemicals industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Cabot Corporation’s Value Grade

Value Grade:

Cabot Corporation operates as a specialty chemicals and performance materials company. It operates through two segments, Reinforcement Materials and Performance Chemicals. The company offers reinforcing carbons that are used in tires as a rubber reinforcing agent and performance additive, as well as in industrial products, such as hoses, belts, extruded profiles, and molded goods; and engineered elastomer composites solutions. It also provides specialty carbons for use in inks, coatings, plastics, adhesives, toners, batteries, and displays; conductive additives and fumed alumina used in lead acid and lithium-ion batteries for electric vehicles; fumed silica used in adhesives, sealants, cosmetics, batteries, inks, toners, silicone elastomers, coatings, polishing slurries, and pharmaceuticals; and fumed alumina for use in various products, including inkjet media, lighting, coatings, cosmetics, and polishing slurries. In addition, it offers aerogel, a hydrophobic, silica-based particle to use in various thermal insulation and specialty chemical applications; masterbatch and conductive compound products that are used in automotive, industrial, packaging, infrastructure, agriculture, consumer products, and electronics industries; and inkjet colorants for inkjet printing applications, as well as carbon nanotubes and fumed metal oxides. The company sells its products through distributors and sales representatives in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Cabot Corporation was founded in 1882 and is headquartered in Boston, Massachusetts.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Cabot Corporation has a Value Score of 85, which is considered to be undervalued.

When you look at Cabot Corporation’s price-to-sales ratio at 0.96 compared to the industry median at 0.98, this company has a lower price relative to revenue compared to its peers. This could make Cabot Corporation’s stock more attractive for value investors.

Cabot Corporation’s price-earnings ratio is 11.00 compared to the industry median at 22.30. This means it has a lower share price relative to earnings compared to its peers. This could make Cabot Corporation more attractive for value investors.

Now, let’s assess Cabot Corporation’s EV/EBITDA ratio, also known as enterprise multiple. At 7.5, when compared to the industry median of 12.7, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Cabot Corporation’s shareholder yield is higher than its industry median ratio of 1.80%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Cabot Corporation’s price-to-book ratio is higher than its industry median ratio of 1.22. This could make Cabot Corporation less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Cabot Corporation’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Cabot Corporation’s price-to-free-cash-flow ratio is lower than its industry median ratio of 25.70. This could make Cabot Corporation more attractive because the lower P/FCF ratio indicates that Cabot Corporation is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Celanese Corporation’s Value Grade

Value Grade:

Celanese Corporation, a chemical and specialty materials company, manufactures and sells engineered polymers worldwide. The Engineered Materials segment offers nylon and polypropylene compounds and formulations, high temperature nylon, polyoxymethylene, polyethylene and polybutylene terephthalates, ultra-high molecular weight polyethylene, long-chain polyamides, long-fiber reinforced thermoplastics, liquid crystal polymers, thermoplastic elastomers and vulcanizates, polyphenylene sulfide, ethylene vinyl acetate pharmaceutical grade copolymers, and ethylene acrylic elastomers for use in automotive, medical, industrial, energy storage, consumer electronics, appliance, construction, filtration equipment, telecommunication, beverage, electrical, and consumer apparel applications. Its Acetyl Chain segment produces and supplies acetyl products, including acetic acid, vinyl acetate monomers, vinyl acetate ethylene emulsions, conventional emulsions, ethylene vinyl acetate resins and compounds, low-density polyethylene resins, redispersible powders, acetic anhydride, ethyl acetates, formaldehydes, butyl acetates, acetate tows, and acetate flakes for use in paints, coatings, adhesives, textiles, paper finishing, flexible packaging, lamination products, pharmaceuticals, films, inks, plasticizers, solvents, automotive parts, external thermal insulation composite systems, tiling, plasters and renders, lubricants, filtration, food and beverage, consumer goods, and food packaging applications. The company offers its products under the Celanyl, FRIANYL, ECOMID, Zytel, Celcon, Hostaform, Celanex, Crastin, Thermx, Rynite, GUR, Celstran, Factor, Vectra, Zenite, Forprene, Sofprene, Laprene, Hytrel, Santoprene, Dytron, Geolast, Vamac, Polifor, Tecnoprene, and VitalDose brands. It sells its products directly to customers and through distributors; and serves original equipment manufacturers and suppliers. Celanese Corporation was founded in 1912 and is headquartered in Irving, Texas.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Celanese Corporation has a Value Score of 76, which is considered to be undervalued.

Celanese Corporation’s price-to-book ratio is lower than its peers. This could make Celanese Corporation fairly attractive for value investors when compared to the industry median at 1.22.

You can read more about Celanese Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Intrepid Potash, Inc.’s Value Grade

Value Grade:

Intrepid Potash, Inc. delivers potassium, magnesium, sulfur, salt, and water products. It operates through three segments: Potash, Trio, and Oilfield Solutions. The company offers muriate of potash for various markets, such as in agricultural market as a fertilizer input, in animal feed market as a nutrient supplement, in industrial market as a component in drilling and fracturing fluids, as well as input to other industrial processes. It also provides Trio, a specialty fertilizer that delivers potassium, sulfate, and magnesium in a single particle; salt for various markets, including animal feed, industrial applications, pool salt, and the treatment of roads and walkways for ice melting or to manage road conditions; magnesium chloride for use as a road treatment agent for deicing and dedusting; brines for use in oil and gas industry to support well workover and completion activities; and metal recovery salts. Intrepid Potash, Inc. was founded in 2000 and is based in Denver, Colorado.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Intrepid Potash, Inc. has a Value Score of 80, which is considered to be undervalued.

Intrepid Potash, Inc.’s price-to-book ratio is higher than its peers. This could make Intrepid Potash, Inc. less attractive for value investors when compared to the industry median at 1.22.

You can read more about Intrepid Potash, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

LSB Industries, Inc.’s Value Grade

Value Grade:

LSB Industries, Inc. engages in the manufacture, marketing, and sale of chemical products in the United States. The company offers ammonia, fertilizer grade ammonium nitrate, and urea ammonia nitrate for agricultural applications. It also provides high purity and commercial grade ammonia, high purity ammonium nitrate, sulfuric acids, concentrated, blended and regular nitric acid, mixed nitrating acids, carbon dioxide, industrial grade ammonium nitrate, and ammonium nitrate for industrial applications. In addition, the company aqua ammonia, and low-density and high-density ammonium nitrate. Its products are used for various end markets, including semiconductor, nylon, polyurethane, intermediates, ammonium nitrate, metals processing, DoD contractors-armaments, chemical feedstock, emissions, abatement, water treatments, refrigerants, bromine, pulp and paper, water treatment, metals processing, food refrigeration, dry ice, enhanced oil recovery, liquid fertilizer for corn and other crops, pastures and key nitrogen components in nitrogen, phosphorus and potassium fertilizers, as well as explosives for mining, quarries, and other blasting activities. The company sells its products to farmers, ranchers, fertilizer dealers, and distributors primarily in the ranch land and grain production markets, as well as industrial users of acids and explosive manufacturers. LSB Industries, Inc. was founded in 1968 and is headquartered in Oklahoma City, Oklahoma.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

LSB Industries, Inc. has a Value Score of 73, which is considered to be undervalued.

LSB Industries, Inc.’s price-to-book ratio is lower than its peers. This could make LSB Industries, Inc. fairly attractive for value investors when compared to the industry median at 1.22.

You can read more about LSB Industries, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Mativ Holdings, Inc.’s Value Grade

Value Grade:

Mativ Holdings, Inc., together with its subsidiaries, manufactures and sells specialty materials in the United States, Europe, the Asia Pacific, the Americas, and internationally. The company operates through two segments, Filtration & Advanced Materials and Sustainable & Adhesive Solutions. The Filtration & Advanced Materials manufactures and sells various engineered polymer, resin and fiber-based substrates, nets, films, adhesive tapes, and other nonwovens for the fi filtration, industrial netting, and protective solutions end markets. The Sustainable & Adhesive Solutions segment offers tapes, labels, and liners that includes substrates for tapes used in building and construction, infrastructure, DIY, athletic, and industrial applications; and substrates critical to protection and adhesive separation applications in the personal care, label, tape, industrial, graphic arts, composites, and medical categories, as well as performance labels and cable wrapping. This segment also provides paper and packaging products comprising premium printing and other specialty papers and packaging applications used for print collateral, advertising, direct mail, sustainable alternatives, product packaging, graphics, wallpaper, and education, as well as consumer office, stationery and craft papers to retailers, small business, personal use, and educational applications; and healthcare and other products, including wound care, consumer wellness, device fixation, medical packaging, as well as various other solutions and applications. It serves tape, release liners, industrials, healthcare, and packaging and specialty papers end markets. The company was formerly known as Schweitzer-Mauduit International, Inc. and changed its name to Mativ Holdings, Inc. in July 2022. Mativ Holdings, Inc. was incorporated in 1995 and is headquartered in Alpharetta, Georgia.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Mativ Holdings, Inc. has a Value Score of 73, which is considered to be undervalued.

Mativ Holdings, Inc.’s price-to-book ratio is lower than its peers. This could make Mativ Holdings, Inc. more attractive for value investors when compared to the industry median at 1.22.

You can read more about Mativ Holdings, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Methanex Corporation’s Value Grade

Value Grade:

Methanex Corporation produces and supplies methanol in Asia Pacific, North America, Europe, and South America. It owns and leases storage and terminal facilities. The company serves chemical and petrochemical producers. Methanex Corporation was incorporated in 1968 and is headquartered in Vancouver, Canada.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Methanex Corporation has a Value Score of 80, which is considered to be undervalued.

Methanex Corporation’s price-earnings ratio is 13.5 compared to the industry median at 22.3. This means that it has a lower price relative to its earnings compared to its peers. This makes Methanex Corporation more attractive for value investors.

Methanex Corporation’s price-to-book ratio is lower than its peers. This could make Methanex Corporation fairly attractive for value investors when compared to the industry median at 1.22.

You can read more about Methanex Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Olin Corporation’s Value Grade

Value Grade:

Olin Corporation manufactures and distributes chemical products in the United States, Europe, Asia Pacific, Latin America, and Canada. It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester. The Chlor Alkali Products and Vinyls segment offers chlorine and caustic soda, ethylene dichloride and vinyl chloride monomers, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products, potassium hydroxide, and chlorinated organics intermediates and solvents. The Epoxy segment provides Allylics, such as allyl chloride, epichlorohydrin, and glycerin; aromatics, including acetone, bisphenol, cumene, and phenol; liquid and solid epoxy resins; and converted epoxy resins and additives. The Winchester segment offers sporting ammunition products, including shotshells, small caliber centerfire, and rimfire ammunition products for hunters and recreational shooters, and law enforcement agencies; small caliber military ammunition products for use in infantry and mounted weapons; and industrial products comprising gauge loads and powder-actuated tool loads for maintenance applications in power and concrete industries, and powder-actuated tools in construction industry. The company markets its products through its sales force, as well as directly to various industrial customers, mass merchants, retailers, wholesalers, gun clubs, other distributors, and the U.S. Government and its prime contractors. Olin Corporation was incorporated in 1892 and is based in Clayton, Missouri.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Olin Corporation has a Value Score of 76, which is considered to be undervalued.

Olin Corporation’s price-earnings ratio is 44.3 compared to the industry median at 22.3. This means that it has a higher price relative to its earnings compared to its peers. This makes Olin Corporation less attractive for value investors.

Olin Corporation’s price-to-book ratio is lower than its peers. This could make Olin Corporation fairly attractive for value investors when compared to the industry median at 1.22.

You can read more about Olin Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Chemicals Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Chemicals stocks as well as other industrys.

Choosing Which of the 7 Best Chemicals Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Cabot Corporation stock has a Value Grade of A.
• Celanese Corporation stock has a Value Grade of B.
• Intrepid Potash, Inc. stock has a Value Grade of B.
• LSB Industries, Inc. stock has a Value Grade of B.
• Mativ Holdings, Inc. stock has a Value Grade of B.
• Methanex Corporation stock has a Value Grade of B.
• Olin Corporation stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 undervalued stocks in the Chemicals industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Chemicals Stocks

Want to learn more about Chemicals stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 7 Undervalued Chemicals Stocks for Friday, December 26
• Is Linde plc (LIN) Overvalued?
• 3 Undervalued Chemicals Stocks for Thursday, December 25
• Is Linde plc (LIN) Overvalued?

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.