Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 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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6 Undervalued Chemicals Stocks
Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 6 undervalued stocks in the Chemicals industry for Thursday, July 16, 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 |
| Axalta Coating Systems Ltd. | AXTA | 1.37 | 19.0 | 10.9 | 2.2% | 2.87 | 14.3 | C |
| Eastman Chemical Company | EMN | 0.90 | 19.6 | 11.0 | 5.9% | 1.29 | 66.5 | B |
| H.B. Fuller Company | FUL | 0.88 | 16.9 | 8.8 | 1.7% | 1.47 | 34.8 | B |
| Intrepid Potash, Inc. | IPI | 1.87 | 31.4 | 6.7 | (1.7%) | 0.92 | 11.3 | B |
| LSB Industries, Inc. | LXU | 1.23 | 17.4 | 6.0 | (0.3%) | 1.45 | 11.8 | B |
| Olin Corporation | OLN | 0.37 | na | 11.3 | 5.0% | 1.44 | 11.8 | 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.
Axalta Coating Systems Ltd.’s Value Grade
Value Grade:
| Metric | Score | AXTA | Industry Median |
| Price/Sales | 38 | 1.37 | 1.13 |
| Price/Earnings | 48 | 19.0 | 24.2 |
| EV/EBITDA | 41 | 10.9 | 10.4 |
| Shareholder Yield | 30 | 2.2% | 2.2% |
| Price/Book Value | 63 | 2.87 | 1.54 |
| Price/Free Cash Flow | 36 | 14.3 | 25.5 |
Axalta Coating Systems Ltd., through its subsidiaries, manufactures, markets, and distributes high-performance coatings systems in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through two segments, Performance Coatings and Mobility Coatings. It also offers water and solvent-borne products and systems to repair damaged vehicles for independent body shops, multi-shop operators, and original equipment manufacturers (OEM) dealership body shops. In addition, the company provides functional and decorative liquid, and powder coatings for building materials, cabinet, wood and luxury vinyl flooring, and furniture applications under the Imron Industrial, Tufcote Industrial, Corlar Industrial, Strenex Industrial, PercoTop, Voltatex, AquaEC, Durapon, Hydropon, UNRIVALED, Ceranamel, Alesta, Teodur, Nap-Gard, Abcite, and Plascoat brands. Further, it develops and supplies electrocoat, primer, the basecoat, and clearcoat products for OEMs of light and commercial vehicles; and coatings systems for various commercial applications, including HDT, MDT, bus, rail, motorcycles, marine and aviation, trailers, recreational vehicles, and personal sport vehicles under the Imron, Imron Elite, Centari, Rival, Corlar epoxy undercoats, and AquaEC brands. The company also offers products under the Audurra, Abcite, Alesta, AquaEC, Axalta Irus Mix, Axalta Irus Scan, Axalta NextJet, Axalta Nimbus, Centari, Ceranamel, Challenger, Chemophan, ColorNet, Cromax, Cromax Mosaic, Durapon 70, Duxone, Harmonized Coating Technologies, Hydropon, Imron ExcelPro, Imron Elite, Imron, Lutophen, Nap-Gard, Nason, Spies Hecker, Standox, Stollaquid, Syntopal, Syrox, Raptor, Rival, U-POL, and Vermeera brands. The company was formerly known as Axalta Coating Systems Bermuda Co., Ltd. and changed its name to Axalta Coating Systems Ltd. in August 2014. Axalta Coating Systems Ltd. was founded in 1866 and is headquartered in Philadelphia, Pennsylvania.
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.
Axalta Coating Systems Ltd. has a Value Score of 60, which is considered to be fairly valued.
When you look at Axalta Coating Systems Ltd.’s price-to-sales ratio at 1.37 compared to the industry median at 1.13, this company has a higher price relative to revenue compared to its peers. This could make Axalta Coating Systems Ltd.’s stock less attractive for value investors.
Axalta Coating Systems Ltd.’s price-earnings ratio is 19.00 compared to the industry median at 24.20. This means it has a lower share price relative to earnings compared to its peers. This could make Axalta Coating Systems Ltd. more attractive for value investors.
Now, let’s assess Axalta Coating Systems Ltd.’s EV/EBITDA ratio, also known as enterprise multiple. At 10.9, when compared to the industry median of 10.4, the company may be considered overvalued 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. Axalta Coating Systems Ltd.’s shareholder yield is the same than its industry median ratio of 2.20%. 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. Axalta Coating Systems Ltd.’s price-to-book ratio is higher than its industry median ratio of 1.54. This could make Axalta Coating Systems Ltd. less attractive to investors looking for a new addition to their portfolio.
Lastly, let’s take a look at Axalta Coating Systems Ltd.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Axalta Coating Systems Ltd.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 25.50. This could make Axalta Coating Systems Ltd. more attractive because the lower P/FCF ratio indicates that Axalta Coating Systems Ltd. is fairly valued. 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.
Eastman Chemical Company’s Value Grade
Value Grade:
| Metric | Score | EMN | Industry Median |
| Price/Sales | 29 | 0.90 | 1.13 |
| Price/Earnings | 50 | 19.6 | 24.2 |
| EV/EBITDA | 42 | 11.0 | 10.4 |
| Shareholder Yield | 12 | 5.9% | 2.2% |
| Price/Book Value | 33 | 1.29 | 1.54 |
| Price/Free Cash Flow | 86 | 66.5 | 25.5 |
Eastman Chemical Company operates as a specialty materials company in the United States, China, and internationally. The company’s Additives & Functional Products segment offers amine derivative-based building blocks, intermediates for surfactants, metam-based soil fumigants, and organic acid-based solutions; specialty coalescent and solvents, paint additives, and specialty polymers; and heat transfer and aviation fluids. It serves transportation, personal care, wellness, food, feed, agriculture, building and construction, water treatment, energy, consumables, durables, and electronics markets. Its Advanced Materials segment provides copolyesters, cellulosic biopolymers, polyvinyl butyral sheets, polyester films and window and protective films for value-added end uses in the transportation, durables, electronics, building and construction, medical and pharma, and consumables end-markets. The company’s Chemical Intermediates segment offers olefin and acetyl derivatives, methylamines and salts, higher amines and solvents, ethylene, and commodity solvents; and primary non-phthalate and phthalate plasticizers, and niche non-phthalate plasticizers for industrial chemicals and processing, building and construction, health and wellness, and food and feed. Its Fibers segment provides cellulose acetate tow, triacetin, cellulose acetate flake, acetic acid, and acetic anhydride for use in filtration media primarily cigarette filters; natural and solution dyed acetate yarns, and staple fiber for use in consumables, and health and wellness markets; and wet-laid nonwoven media, specialty and engineered papers, and cellulose acetate fibers for transportation, industrial, agriculture and mining, and aerospace markets. Eastman Chemical Company was founded in 1920 and is headquartered in Kingsport, Tennessee.
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.
Eastman Chemical Company has a Value Score of 61, which is considered to be undervalued.
Eastman Chemical Company’s price-earnings ratio is 19.6 compared to the industry median at 24.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Eastman Chemical Company more attractive for value investors.
Eastman Chemical Company’s price-to-book ratio is higher than its peers. This could make Eastman Chemical Company less attractive for value investors when compared to the industry median at 1.54.
You can read more about Eastman Chemical 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.
H.B. Fuller Company’s Value Grade
Value Grade:
| Metric | Score | FUL | Industry Median |
| Price/Sales | 29 | 0.88 | 1.13 |
| Price/Earnings | 42 | 16.9 | 24.2 |
| EV/EBITDA | 29 | 8.8 | 10.4 |
| Shareholder Yield | 32 | 1.7% | 2.2% |
| Price/Book Value | 38 | 1.47 | 1.54 |
| Price/Free Cash Flow | 71 | 34.8 | 25.5 |
H.B. Fuller Company, together with its subsidiaries, formulates, manufactures, and markets adhesives, sealants, coatings, polymers, tapes, encapsulants, additives, and other specialty chemical products. It operates through three segments: Hygiene, Health and Consumable Adhesives; Engineering Adhesives; and Building Adhesive Solutions. The Hygiene, Health and Consumable Adhesives segment produces and supplies specialty industrial adhesives, such as thermoplastic, thermoset, reactive, water-based, and solvent-based products for applications in various markets, including packaging, converting, nonwoven and hygiene, and medical and beauty. The Engineering Adhesives segment produces and supplies high performance industrial adhesives comprising reactive, light cure, two-part liquids, polyurethane, silicone, film, and fast cure products to the durable assembly, performance wood and textile, transportation, electronics, clean energy, aerospace and defense, appliance, heavy machinery, and insulating glass markets. The Construction Adhesives segment provides products used for commercial roofing, heating, ventilation, and air conditioning and insulation applications, as well as caulks and sealants for the consumer market and professional trade. The company sells its products directly to customers, as well as through distributors and retailers in North America, Latin America, Europe, India, the Middle East, Africa, and the Asia Pacific. H.B. Fuller Company was founded in 1887 and is headquartered in Saint Paul, Minnesota.
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.
H.B. Fuller Company has a Value Score of 65, which is considered to be undervalued.
H.B. Fuller Company’s price-earnings ratio is 16.9 compared to the industry median at 24.2. This means that it has a lower price relative to its earnings compared to its peers. This makes H.B. Fuller Company more attractive for value investors.
H.B. Fuller Company’s price-to-book ratio is lower than its peers. This could make H.B. Fuller Company fairly attractive for value investors when compared to the industry median at 1.54.
You can read more about H.B. Fuller 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.
Intrepid Potash, Inc.’s Value Grade
Value Grade:
| Metric | Score | IPI | Industry Median |
| Price/Sales | 46 | 1.87 | 1.13 |
| Price/Earnings | 70 | 31.4 | 24.2 |
| EV/EBITDA | 18 | 6.7 | 10.4 |
| Shareholder Yield | 59 | (1.7%) | 2.2% |
| Price/Book Value | 19 | 0.92 | 1.54 |
| Price/Free Cash Flow | 27 | 11.3 | 25.5 |
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. The company 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 65, which is considered to be undervalued.
Intrepid Potash, Inc.’s price-earnings ratio is 31.4 compared to the industry median at 24.2. This means that it has a higher price relative to its earnings compared to its peers. This makes Intrepid Potash, Inc. less attractive for value investors.
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 1.54.
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:
| Metric | Score | LXU | Industry Median |
| Price/Sales | 35 | 1.23 | 1.13 |
| Price/Earnings | 44 | 17.4 | 24.2 |
| EV/EBITDA | 15 | 6.0 | 10.4 |
| Shareholder Yield | 50 | (0.3%) | 2.2% |
| Price/Book Value | 38 | 1.45 | 1.54 |
| Price/Free Cash Flow | 28 | 11.8 | 25.5 |
LSB Industries, Inc. manufactures, markets, and sells chemical products in the United States. The company offers ammonia 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. It 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 75, which is considered to be undervalued.
LSB Industries, Inc.’s price-earnings ratio is 17.4 compared to the industry median at 24.2. This means that it has a lower price relative to its earnings compared to its peers. This makes LSB Industries, Inc. more attractive for value investors.
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 1.54.
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.
Olin Corporation’s Value Grade
Value Grade:
| Metric | Score | OLN | Industry Median |
| Price/Sales | 15 | 0.37 | 1.13 |
| Price/Earnings | na | na | 24.2 |
| EV/EBITDA | 43 | 11.3 | 10.4 |
| Shareholder Yield | 15 | 5.0% | 2.2% |
| Price/Book Value | 38 | 1.44 | 1.54 |
| Price/Free Cash Flow | 28 | 11.8 | 25.5 |
Olin Corporation manufactures and distributes chemical products in the United States, Europe, Asia Pacific, the Middle East, Africa, and India Middle East, Africa, India, 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, and phenol; bisphenol, caustic soda, cumene, 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, competitive, and recreational shooters, and law enforcement agencies; small caliber military ammunition products for use in infantry and mounted weapons; and industrial products comprising 8-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 87, which is considered to be undervalued.
Olin Corporation’s price-to-book ratio is higher than its peers. This could make Olin Corporation less attractive for value investors when compared to the industry median at 1.54.
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 6 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.
- Axalta Coating Systems Ltd. stock has a Value Grade of C.
- Eastman Chemical Company stock has a Value Grade of B.
- H.B. Fuller Company 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.
- Olin Corporation stock has a Value Grade of A.
Now that you have a bit more background about each of the 6 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.
- 6 Undervalued Chemicals Stocks for Wednesday, July 15
- Is Linde plc (LIN) Overvalued?
- Why Alto Ingredients, Inc.’s (ALTO) Stock Is Down 6.14%
- Why Braskem S.A.’s (BAK) Stock Is Down 5.62%
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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