Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 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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5 Undervalued Chemicals Stocks
Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 5 undervalued stocks in the Chemicals industry for Tuesday, May 12, 2026. Let’s take a closer look at their individual scores to see how they measure up against each other and the Chemicals industry median.
| Company | Ticker | Price/Sales | Price/Earnings | EV/EBITDA | Shareholder Yield | Price/Book Value | Price/Free Cash Flow | Value Grade |
| Avient Corporation | AVNT | 1.00 | 20.9 | 9.6 | 2.9% | 1.37 | 31.0 | B |
| Methanex Corporation | MEOH | 1.25 | na | 8.3 | (13.6%) | 2.04 | 6.8 | B |
| Minerals Technologies Inc. | MTX | 1.19 | 15.5 | 7.6 | 3.4% | 1.44 | 24.0 | B |
| The Scotts Miracle-Gro Company | SMG | 1.00 | 17.2 | 11.0 | 3.5% | na | 15.4 | B |
| Westlake Chemical Partners LP | WLKP | 0.71 | 17.2 | 3.2 | 6.2% | 1.67 | 6.2 | A |
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.
Avient Corporation’s Value Grade
Value Grade:
| Metric | Score | AVNT | Industry Median |
| Price/Sales | 31 | 1.00 | 1.25 |
| Price/Earnings | 53 | 20.9 | 24.0 |
| EV/EBITDA | 33 | 9.6 | 11.0 |
| Shareholder Yield | 25 | 2.9% | 1.6% |
| Price/Book Value | 37 | 1.37 | 1.67 |
| Price/Free Cash Flow | 67 | 31.0 | 33.0 |
Avient Corporation operates as a formulator of material solutions in the United States, Canada, Mexico, Europe, South America, and Asia. The company operates in two segments, Color, Additives and Inks; and Specialty Engineered Materials. The Color, Additives and Inks segment offers custom color and additive concentrates in solid and liquid form for thermoplastics, dispersions for thermosets, and specialty inks; custom-formulated liquid system, such as polyester, vinyl, natural rubber and latex, polyurethane, and silicone; and proprietary inks. The company products are used in medical and pharmaceutical devices, food packaging, personal care and cosmetics, transportation, building products, wire and cable, recreational and athletic apparel, construction and filtration, outdoor furniture, healthcare, textiles and appliances, and industrial markets. The Specialty Engineered Materials segment provides specialty polymer formulations, services, and solutions for designers, assemblers, and processors of thermoplastic materials. It sells its products through direct sales personnel, distributors, and commissioned sales agents. The company was formerly known as PolyOne Corporation and changed its name to Avient Corporation in June 2020. Avient Corporation was founded in 1885 and is headquartered in Avon Lake, Ohio.
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.
Avient Corporation has a Value Score of 63, which is considered to be undervalued.
When you look at Avient Corporation’s price-to-sales ratio at 1.00 compared to the industry median at 1.25, this company has a lower price relative to revenue compared to its peers. This could make Avient Corporation’s stock more attractive for value investors.
Avient Corporation’s price-earnings ratio is 20.90 compared to the industry median at 24.05. This means it has a lower share price relative to earnings compared to its peers. This could make Avient Corporation more attractive for value investors.
Now, let’s assess Avient Corporation’s EV/EBITDA ratio, also known as enterprise multiple. At 9.6, when compared to the industry median of 11.0, 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. Avient Corporation’s shareholder yield is higher than its industry median ratio of 1.60%. 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. Avient Corporation’s price-to-book ratio is lower than its industry median ratio of 1.67. This could make Avient Corporation more attractive to investors looking for a new addition to their portfolio.
Lastly, let’s take a look at Avient Corporation’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Avient Corporation’s price-to-free-cash-flow ratio is lower than its industry median ratio of 32.95. This could make Avient Corporation more attractive because the lower P/FCF ratio indicates that Avient 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.
Methanex Corporation’s Value Grade
Value Grade:
| Metric | Score | MEOH | Industry Median |
| Price/Sales | 36 | 1.25 | 1.25 |
| Price/Earnings | na | na | 24.0 |
| EV/EBITDA | 26 | 8.3 | 11.0 |
| Shareholder Yield | 78 | (13.6%) | 1.6% |
| Price/Book Value | 51 | 2.04 | 1.67 |
| Price/Free Cash Flow | 15 | 6.8 | 33.0 |
Methanex Corporation engages in the production and sale of methanol and ammonia in Asia Pacific, North America, Europe, and South America. It also owns and leases in-region 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 62, which is considered to be undervalued.
Methanex Corporation’s price-to-book ratio is lower than its peers. This could make Methanex Corporation more attractive for value investors when compared to the industry median at 1.67.
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.
Minerals Technologies Inc.’s Value Grade
Value Grade:
| Metric | Score | MTX | Industry Median |
| Price/Sales | 35 | 1.19 | 1.25 |
| Price/Earnings | 38 | 15.5 | 24.0 |
| EV/EBITDA | 22 | 7.6 | 11.0 |
| Shareholder Yield | 22 | 3.4% | 1.6% |
| Price/Book Value | 39 | 1.44 | 1.67 |
| Price/Free Cash Flow | 59 | 24.0 | 33.0 |
Minerals Technologies Inc. develops, produces, and markets various mineral, mineral-based products and services. The company operates through two segments, Consumer & Specialties, and Engineered Solutions segments. The Consumer & Specialties segment offers household and personal care products, such as cat litter under the SIVO brand name, personal care, fabric care, edible oil and renewable fluid purification, animal health, and agricultural products; and specialty additives products, including precipitated calcium carbonate and ground calcium carbonate products that are used in the paper, paperboard, and fiber-based packaging industries, as well as automotive, construction, consumer markets, and packaging applications. The Engineered Solutions segment provides high-temperature technology products consisting of custom-blended mineral and non-mineral products for casting auto and heavy truck parts, agriculture and construction equipment, municipal, infrastructure and other industrial castings markets; and environmental and infrastructure products comprising geosynthetic clay lining systems, vapor intrusion mitigation products, sub surface waterproofing systems, green roofs, wastewater remediation, drinking water purification technologies, and drilling products. In addition, this segment offers gunnable monolithic refractory products and application systems; monolithic refractory materials and pre-cast refractory shapes; refractory shapes and linings; carbon composites and pyrolitic graphite under PYROID brand; and filtration and well testing services. It markets its products primarily through its direct sales force, as well as regional distributors. The company operates in the United States, Canada, Latin America, Europe, Africa, and Asia. Minerals Technologies Inc. was incorporated in 1968 and is headquartered in New York, New York.
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.
Minerals Technologies Inc. has a Value Score of 73, which is considered to be undervalued.
Minerals Technologies Inc.’s price-earnings ratio is 15.5 compared to the industry median at 24.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Minerals Technologies Inc. more attractive for value investors.
Minerals Technologies Inc.’s price-to-book ratio is higher than its peers. This could make Minerals Technologies Inc. less attractive for value investors when compared to the industry median at 1.67.
You can read more about Minerals Technologies 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.
The Scotts Miracle-Gro Company’s Value Grade
Value Grade:
| Metric | Score | SMG | Industry Median |
| Price/Sales | 31 | 1.00 | 1.25 |
| Price/Earnings | 43 | 17.2 | 24.0 |
| EV/EBITDA | 40 | 11.0 | 11.0 |
| Shareholder Yield | 22 | 3.5% | 1.6% |
| Price/Book Value | na | na | 1.67 |
| Price/Free Cash Flow | 41 | 15.4 | 33.0 |
The Scotts Miracle-Gro Company, together with its subsidiaries, engages in the manufacture, marketing, and sale of products for lawn, garden care, and indoor and hydroponic gardening in the United States and internationally. The company provides lawn care products, comprising lawn fertilizers, clover and grass seed products, spreaders, and other durable products, as well as lawn-related weed, pest, and disease control products; and gardening and landscape products, which include water-soluble and continuous-release plant foods, potting mixes, garden soils, mulches and ground cover products, plant-related pest and disease control products, organic garden products, and live goods and seeding solutions. It also offers hydroponic products that help users to grow plants, flowers, and vegetables using little or no soil; lighting systems and components; insect, rodent, and weed control products for home areas; and non-selective weed killer products. The company sells its products under the Scotts, Turf Builder, Grower’s Edge, EZ Seed, PatchMaster, Thick’R Lawn, GrubEx, EdgeGuard, Whirl, Wizz, Miracle-Gro, LiquaFeed, Shake ‘N Feed, Hyponex, Earthgro, Miracle-Gro Organic, CAN-FAN, CAN-FILTERS, EcoPlus, Bug B Gon, Nature Scapes, Ortho, Miracle-Gro Performance Organics, Miracle-Gro Organic Choice, Whitney Farms, Ortho Max, Home Defense, Mother Earth, Botanicare, General Hydroponics, CYCO, Gavita, Agrolux, HydroLogic Purification System, Gro Pro, AeroGarden, Titan, Tomcat, Ortho Weed B Gon, Roundup, Groundclear, and Alchemist brands. It serves home centers, mass merchandisers, warehouse clubs, large hardware chains, independent hardware stores, nurseries, garden centers, e-commerce platforms, and food and drug stores, as well as indoor gardening and hydroponic distributors, retailers, and growers. The company was formerly known as The Scotts Company. The Scotts Miracle-Gro Company was founded in 1868 and is headquartered in Marysville, Ohio.
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.
The Scotts Miracle-Gro Company has a Value Score of 74, which is considered to be undervalued.
The Scotts Miracle-Gro Company’s price-earnings ratio is 17.2 compared to the industry median at 24.0. This means that it has a lower price relative to its earnings compared to its peers. This makes The Scotts Miracle-Gro Company more attractive for value investors.
You can read more about The Scotts Miracle-Gro Company’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.
Westlake Chemical Partners LP’s Value Grade
Value Grade:
| Metric | Score | WLKP | Industry Median |
| Price/Sales | 25 | 0.71 | 1.25 |
| Price/Earnings | 43 | 17.2 | 24.0 |
| EV/EBITDA | 6 | 3.2 | 11.0 |
| Shareholder Yield | 11 | 6.2% | 1.6% |
| Price/Book Value | 44 | 1.67 | 1.67 |
| Price/Free Cash Flow | 13 | 6.2 | 33.0 |
Westlake Chemical Partners LP acquires, develops, and operates ethylene production facilities and related assets in the United States. It’s ethylene production facilities which primarily convert ethane into ethylene. The company also sells ethylene co-products, such as propylene, crude butadiene, pyrolysis gasoline, and hydrogen directly to third parties on either a spot or contract basis. It serves as the general partner of the company. Westlake Chemical Partners LP was founded in 1991 and is headquartered in Houston, 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.
Westlake Chemical Partners LP has a Value Score of 92, which is considered to be undervalued.
Westlake Chemical Partners LP’s price-earnings ratio is 17.2 compared to the industry median at 24.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Westlake Chemical Partners LP more attractive for value investors.
Westlake Chemical Partners LP’s price-to-book ratio is lower than its peers. This could make Westlake Chemical Partners LP fairly attractive for value investors when compared to the industry median at 1.67.
You can read more about Westlake Chemical Partners LP’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 5 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.
- Avient Corporation stock has a Value Grade of B.
- Methanex Corporation stock has a Value Grade of B.
- Minerals Technologies Inc. stock has a Value Grade of B.
- The Scotts Miracle-Gro Company stock has a Value Grade of B.
- Westlake Chemical Partners LP stock has a Value Grade of A.
Now that you have a bit more background about each of the 5 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.
- 5 Undervalued Chemicals Stocks for Tuesday, May 12
- Is Linde plc (LIN) Overvalued?
- 6 Undervalued Chemicals Stocks for Monday, May 11
- 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.
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