The Basic Materials sector includes companies that deal in the discovery, development, and processing of raw materials. Companies operating in this sector are primarily engaged in mining and metal refining, chemical products and forestry products.
It must be noted that this sector doesn’t include companies that extract or process oil, natural gas or coal, as these companies are part of the energy sector. Most companies operating in Basic Materials supply products used in construction, and this makes this sector sensitive to changes in the business cycle.
There are several advantages of investing in basic materials stocks, including their above average dividend yield and reliable cash flows. On the other hand, these stocks could prove risky as well, especially during economic downturns.
Still, it is one of the most popular options for both short- and long-term investments. If you are also planning to invest in this sector, then to help you select, detailed below are the 10 biggest Basic Materials stocks with high debt-to-equity ratios.
10 Biggest Basic Materials Stocks With High Debt-To-Equity Ratios
For our list of the 10 biggest Basic Materials stocks with high debt-to-equity ratios, we have only considered Basic Materials stocks with a debt-to-equity ratio of more than 50%.
We have ranked the 10 biggest Basic Materials stocks with high debt-to-equity ratios based on their market capitalization (as of April 14, 2023). Here are the 10 biggest Basic Materials stocks with high debt-to-equity ratios:
10. Vulcan Materials
Founded in 1909 and headquartered in Birmingham, AL, Vulcan Materials deals in the production of construction aggregates, including crushed stone, sand, and gravel.
Vulcan Materials Company (NYSE:VMC) shares are down by over 2% year-to-date, bringing their one-year return to almost -2%. As of this writing, Vulcan Materials shares are trading at above $170.70 with a 52-week range of $137.54 to $197.76, giving the company a market capitalization of more than $22.5 billion.
Vulcan Materials reported revenue of more than $7.3 billion in 2022, compared to over $5.5 billion in 2021. The net income for the company was more than $590 million in 2022, compared to over $670 million in 2021.
Two popular hedge funds with a significant stake in Vulcan Materials are BlackRock and State Street.
9. International Flavors & Fragrances
Founded in 1833 and headquartered in New York City, this company makes and sells flavors and fragrances that are used in personal care, food, beverage and household products.
International Flavors & Fragrances Inc (NYSE:IFF) shares are down by almost 9% year-to-date, bringing their one-year return to almost -24%. As of this writing, International Flavors & Fragrances shares are trading at above $95.60 with a 52-week range of $81.53 to $135.17, giving the company a market capitalization of more than $24.2 billion.
International Flavors & Fragrances reported revenue of more than $12.4 billion in 2022, compared to over $11.6 billion in 2021. The net loss for the company was more than $1.8 billion in 2022, compared to a net income of over $260 million in 2021.
Two popular hedge funds with a significant stake in International Flavors & Fragrances are Sachem Head Capital Management and Geode Capital Management.
8. LyondellBasell Industries
Founded in 2007 and headquartered in London, the UK, this company deals in the refinery and production of plastic resins and other chemicals.
LyondellBasell Industries NV (NYSE:LYB) shares are up by almost 17% year-to-date, bringing their one-year return to over -10%. As of this writing, LyondellBasell Industries shares are trading at above $96.50 with a 52-week range of $71.46 to $117.22, giving the company a market capitalization of more than $31.3 billion.
LyondellBasell Industries reported revenue of more than $50.3 billion in 2022, compared to over $46.1 billion in 2021. The net income for the company was more than $3.8 billion in 2022, compared to over $5.6 billion in 2021.
Two popular hedge funds with a significant stake in LyondellBasell Industries are Dodge & Cox and Geode Capital Management.
7. PPG Industries
Founded in 1883 and headquartered in Pittsburgh, Pa., PPG Industries makes and sells paints, coatings, and specialty material.
PPG Industries, Inc. (NYSE:PPG) shares are up by almost 11% year-to-date, bringing their one-year return to almost 9%. As of this writing, PPG Industries shares are trading at above $139.30 with a 52-week range of $107.06 to $141.36, giving the company a market capitalization of more than $32.7 billion.
PPG Industries reported revenue of more than $17.6 billion in 2022, compared to over $16 billion in 2021. The net income for the company was more than $1 billion in 2022, compared to over $1.4 billion in 2021.
Two popular hedge funds with a significant stake in PPG Industries are BlackRock and State Street.
6. Dow
Founded in 1897 and headquartered in Midland, Mich., Dow is a materials science company that develops innovative solutions.
Dow Inc (NYSE:DOW) shares are up by almost 13% year-to-date, bringing their one-year return to over -13%. As of this writing, Dow shares are trading at above $57 with a 52-week range of $42.91 to $71.86, giving the company a market capitalization of more than $40.1 billion.
Dow reported revenue of more than $56 billion in 2022, compared to over $54.9 billion in 2021. The net income for the company was more than $4.5 billion in 2022, compared to over $6.2 billion in 2021.
Two popular hedge funds with a significant stake in Dow are State Street and BlackRock.
5. Ecolab
Founded in 1923 and headquartered in St. Paul, Minn., Ecolab offers products and services in the field of water, hygiene, and energy.
Ecolab Inc (NYSE:ECL) shares are up by almost 15% year-to-date, bringing their one-year return to almost -6%. As of this writing, Ecolab shares are trading at above $165.50 with a 52-week range of $131.04 to $185.50, giving the company a market capitalization of more than $47.4 billion.
Ecolab reported revenue of more than $14.1 billion in 2022, compared to over $12.7 billion in 2021. The net income for the company was more than $1 billion in 2022, compared to over $1.1 billion in 2021.
Two popular hedge funds with a significant stake in Ecolab are BlackRock and the Bill & Melinda Gates Foundation Trust.
4. Sherwin-Williams
Founded in 1866 and headquartered in Cleveland, OH, Sherwin-Williams deals in the development and distribution of paint and coatings.
Sherwin-Williams Co (NYSE:SHW) shares are down by over 4% year-to-date, bringing their one-year return to over -10%. As of this writing, Sherwin-Williams shares are trading at above $227.40 with a 52-week range of $195.24 to $285.00, giving the company a market capitalization of more than $58.3 billion.
Sherwin-Williams reported revenue of more than $22.1 billion in 2022, compared to over $19.9 billion in 2021. The net income for the company was more than $2 billion in 2022, compared to over $1.8 billion in 2021.
Two popular hedge funds with a significant stake in Sherwin-Williams are Farallon Capital Management and Meritage Group.
3. Southern Copper
Founded in 1952 and headquartered in Phoenix, Ariz., Southern Copper deals in the development and exploration of copper, molybdenum, zinc and silver.
Southern Copper Corp (NYSE:SCCO) shares are up by over 33% year-to-date, bringing their one-year return to almost 11%. As of this writing, Southern Copper shares are trading at above $81 with a 52-week range of $42.42 to $80.78, giving the company a market capitalization of more than $59.8 billion.
Southern Copper reported revenue of more than $10 billion in 2022, compared to over $10.9 billion in 2021. The net income for the company was more than $2.6 billion in 2022, compared to over $3.35 billion in 2021.
Two popular hedge funds with a significant stake in Southern Copper are Fisher Asset Management and Gotham Asset Management.
2. Freeport-McMoRan
Founded in 1987 and headquartered in Phoenix, Ariz., Freeport-McMoRan deals in the mining of copper, gold, and molybdenum.
Freeport-McMoRan Inc (NYSE:FCX) shares are up by over 13% year-to-date, bringing their one-year return to almost -13%. As of this writing, Freeport-McMoRan shares are trading at above $43.10 with a 52-week range of $24.80 to $51.34, giving the company a market capitalization of more than $61.4 billion.
Freeport-McMoRan reported revenue of more than $23.3 billion in 2022, compared to over $22.3 billion in 2021. The net income for the company was more than $3.4 billion in 2022, compared to over $4.2 billion in 2021.
Two popular hedge funds with a significant stake in Freeport-McMoRan are Fisher Asset Management and HHLR Advisors.
1. Air Products & Chemicals
Founded in 1940 and headquartered in Allentown, Pa., Air Products & Chemicals deals in atmospheric gases.
Air Products & Chemicals, Inc. (NYSE:APD) shares are down by almost 7% year-to-date, bringing their one-year return to almost 17%. As of this writing, Air Products & Chemicals shares are trading at above $286 with a 52-week range of $218.88 to $328.56, giving the company a market capitalization of more than $63.9 billion.
Air Products & Chemicals reported revenue of more than $12.6 billion in 2022, compared to over $10.3 billion in 2021. The net income for the company was more than $2.2 billion in 2022, compared to over $2 billion in 2021.
Two popular hedge funds with a significant stake in Air Products & Chemicals are BlackRock and State Street.
This article originally appeared on ValueWalk
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