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 Thursday, July 23, 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 |
| Celanese Corporation | CE | 0.56 | na | 15.3 | 0.0% | 1.31 | 6.1 | B |
| Dow Inc. | DOW | 0.57 | na | na | 2.5% | 1.48 | na | A |
| H.B. Fuller Company | FUL | 0.87 | 16.7 | 8.8 | 1.7% | 1.45 | 34.3 | B |
| Koppers Holdings Inc. | KOP | 0.54 | 13.6 | 6.1 | 4.7% | 1.79 | 7.6 | A |
| Tronox Holdings plc | TROX | 0.36 | na | na | 2.5% | 0.82 | na | 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.
Celanese Corporation’s Value Grade
Value Grade:
| Metric | Score | CE | Industry Median |
| Price/Sales | 20 | 0.56 | 1.17 |
| Price/Earnings | na | na | 24.1 |
| EV/EBITDA | 63 | 15.3 | 10.4 |
| Shareholder Yield | 48 | 0.0% | 2.2% |
| Price/Book Value | 34 | 1.31 | 1.58 |
| Price/Free Cash Flow | 13 | 6.1 | 25.5 |
Celanese Corporation produces and sells engineered polymers worldwide. It operates through Engineered Materials and Acetyl Chain segments. The company offers ethylene acrylic elastomers, ethylene vinyl acetate pharmaceutical grade copolymers, liquid crystal polymers, long-fiber reinforced thermoplastics, nylon and polypropylene compounds and formulations, polyoxymethylene, ultra-high molecular weight polyethylene, and thermoplastic elastomers, polyesters, and vulcanizates for use in appliance, automotive, construction, consumer apparel, consumer electronics, electrical, energy storage, filtration equipment, industrial, medical, and telecommunication applications. It also provides acetic acid and anhydride, acetate flakes and tows, butyl acetates, emulsion polymers, ethyl acetates, ethylene vinyl acetate resins and compounds, formaldehydes, redispersible powders, and vinyl acetate monomers for use in adhesives, automotive parts, coatings, consumer goods, external thermal insulation composite systems, films, filtration, flexible packaging, food and beverage, food packaging, inks, lamination, lubricants, paints, paper finishing, pharmaceuticals, plasticizers, plasters and renders, solvents, textiles, and tiling applications. The company offers its products under the Amcel, AOPlus, Ateva, Avicor, Celanese, Celanex, Celanyl, Celcon, Celstran, Celvolit, Clarifoil, Crastin, Dur-O-Set, Dytron, ECOMID, EcoVAE, Elotex, Factor, Flexbond, Forprene, FRIANYL, Fortron, Geolast, GHR, GUR, Hostaform, Hytrel, Laprene, Melinex, MetaLX, Mowilith, MT, Mylar, NILAMID, Nylfor, OmniLon, Pibifor, Pibiter, Polifor, Resyn, Rynite, Santoprene, SlideX, Sofprene, Sofpur, Talcoprene, Tarnoform, Tecnoprene, TufCOR, Tynex, Vamac, VAntage, Vectra, Vinac, Vinamul, VitalDose, Zenite, and Zytel brands. It sells its products directly to customers and through distributors; and 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 74, which is considered to be undervalued.
When you look at Celanese Corporation’s price-to-sales ratio at 0.56 compared to the industry median at 1.17, this company has a lower price relative to revenue compared to its peers. This could make Celanese Corporation’s stock more attractive for value investors.
Now, let’s assess Celanese Corporation’s EV/EBITDA ratio, also known as enterprise multiple. At 15.3, 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. Celanese Corporation’s shareholder yield is lower 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. Celanese Corporation’s price-to-book ratio is lower than its industry median ratio of 1.58. This could make Celanese Corporation more attractive to investors looking for a new addition to their portfolio.
Lastly, let’s take a look at Celanese Corporation’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Celanese Corporation’s price-to-free-cash-flow ratio is lower than its industry median ratio of 25.50. This could make Celanese Corporation more attractive because the lower P/FCF ratio indicates that Celanese 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.
Dow Inc.’s Value Grade
Value Grade:
| Metric | Score | DOW | Industry Median |
| Price/Sales | 21 | 0.57 | 1.17 |
| Price/Earnings | na | na | 24.1 |
| EV/EBITDA | na | na | 10.4 |
| Shareholder Yield | 28 | 2.5% | 2.2% |
| Price/Book Value | 39 | 1.48 | 1.58 |
| Price/Free Cash Flow | na | na | 25.5 |
Dow Inc., through its subsidiaries, provides various materials science solutions for packaging, infrastructure, mobility, and consumer applications in the United States, Canada, Europe, the Middle East, Africa, India, the Asia Pacific, and Latin America. The company operates through Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings segments. The Packaging & Specialty Plastics segment provides ethylene, propylene, polyethylene, and aromatics products; and other ethylene derivatives, such as polyolefin elastomers, ethylene vinyl acetate, and ethylene propylene diene monomer rubber. The Industrial Intermediates & Infrastructure segment offers polyurethanes, including propylene oxide, propylene glycol, and polyether polyols; aromatic isocyanates and fully formulated polyurethane systems; and chlor-alkali and vinyl comprising chlorine and caustic soda, ethylene dichloride, and vinyl chloride monomer; and construction chemicals consisting of cellulose ethers, redispersible latex powders, and acrylic emulsions, as well as coatings, adhesives, sealants, elastomers, and composites. The Performance Materials & Coatings segment provides architectural paints and coatings, and industrial coatings; and acrylics-based building blocks, silicon metals, siloxanes, and intermediates. The company also engages in the property and casualty insurance, as well as reinsurance business. The company was founded in 1897 and is headquartered in Midland, Michigan.
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.
Dow Inc. has a Value Score of 85, which is considered to be undervalued.
Dow Inc.’s price-to-book ratio is higher than its peers. This could make Dow Inc. less attractive for value investors when compared to the industry median at 1.58.
You can read more about Dow 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.
H.B. Fuller Company’s Value Grade
Value Grade:
| Metric | Score | FUL | Industry Median |
| Price/Sales | 28 | 0.87 | 1.17 |
| Price/Earnings | 42 | 16.7 | 24.1 |
| EV/EBITDA | 30 | 8.8 | 10.4 |
| Shareholder Yield | 32 | 1.7% | 2.2% |
| Price/Book Value | 38 | 1.45 | 1.58 |
| Price/Free Cash Flow | 70 | 34.3 | 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 16.7 compared to the industry median at 24.1. 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 higher than its peers. This could make H.B. Fuller Company less attractive for value investors when compared to the industry median at 1.58.
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.
Koppers Holdings Inc.’s Value Grade
Value Grade:
| Metric | Score | KOP | Industry Median |
| Price/Sales | 20 | 0.54 | 1.17 |
| Price/Earnings | 31 | 13.6 | 24.1 |
| EV/EBITDA | 15 | 6.1 | 10.4 |
| Shareholder Yield | 17 | 4.7% | 2.2% |
| Price/Book Value | 46 | 1.79 | 1.58 |
| Price/Free Cash Flow | 16 | 7.6 | 25.5 |
Koppers Holdings Inc. provides treated wood products, wood preservation chemicals, and carbon compounds in the United States, Australasia, Europe, and internationally. It operates through three segments: Railroad and Utility Products and Services; Performance Chemicals; and Carbon Materials and Chemicals. The company procures and treats crossties, switch ties, and various types of lumber used for railroad bridges and crossings; offers utility products, including pressure treatment of transmission and distribution poles for electric and telephone utilities; untreated wood products and rail joint bars; provides railroad markets and inspection services to the utility markets; and operate a business related to the recovery of used crossties. It also provides copper-based wood preservatives comprising micronized copper azole, micronized pigments, alkaline copper quaternary, amine copper azole, dichloro-octyl-isothiazolinone, chromated copper arsenate under the MicroPro and MicroShades brands for decking, fencing, utility poles, construction lumber and timbers, and various agricultural applications; and supplies fire-retardant chemicals under the FlamePro brand for pressure treatment of wood applications. In addition, the company offers creosote for the treatment of wood or as a feedstock in the production of carbon black; carbon pitch, a raw material used in the production of aluminum and steel; naphthalene for use as a surfactant in the production of concrete; and carbon black feedstock. It serves the railroad, specialty chemical, utility, residential lumber, agriculture, aluminum, steel, rubber, and construction sectors. Koppers Holdings Inc. was founded in 1988 and is headquartered in Pittsburgh, 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.
Koppers Holdings Inc. has a Value Score of 92, which is considered to be undervalued.
Koppers Holdings Inc.’s price-earnings ratio is 13.6 compared to the industry median at 24.1. This means that it has a lower price relative to its earnings compared to its peers. This makes Koppers Holdings Inc. more attractive for value investors.
Koppers Holdings Inc.’s price-to-book ratio is lower than its peers. This could make Koppers Holdings Inc. more attractive for value investors when compared to the industry median at 1.58.
You can read more about Koppers 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.
Tronox Holdings plc’s Value Grade
Value Grade:
| Metric | Score | TROX | Industry Median |
| Price/Sales | 14 | 0.36 | 1.17 |
| Price/Earnings | na | na | 24.1 |
| EV/EBITDA | na | na | 10.4 |
| Shareholder Yield | 28 | 2.5% | 2.2% |
| Price/Book Value | 17 | 0.82 | 1.58 |
| Price/Free Cash Flow | na | na | 25.5 |
Tronox Holdings plc operates as a manufacturer of TiO2 pigment in North America, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates titanium-bearing mineral sand mines; and engages in beneficiation and smelting operations. It offers TiO2 pigment; ultrafine specialty TiO2; zircon; high purity pig iron; monazite; feedstock; and titanium tetrachloride products. The company’s products are used for the manufacture of paints, coatings, plastics, and paper, as well as various other applications. Tronox Holdings plc was incorporated in 2018 and is based in Stamford, Connecticut.
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.
Tronox Holdings plc has a Value Score of 96, which is considered to be undervalued.
Tronox Holdings plc’s price-to-book ratio is higher than its peers. This could make Tronox Holdings plc less attractive for value investors when compared to the industry median at 1.58.
You can read more about Tronox Holdings plc’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.
- Celanese Corporation stock has a Value Grade of B.
- Dow Inc. stock has a Value Grade of A.
- H.B. Fuller Company stock has a Value Grade of B.
- Koppers Holdings Inc. stock has a Value Grade of A.
- Tronox Holdings plc 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 Thursday, July 23
- Is Albemarle Corporation (ALB) Overvalued?
- Why Brazil Potash Corp.’s (GRO) Stock Is Down 5.15%
- Why International Flavors & Fragrances Inc.’s (IFF) Stock Is Down 5.26%
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