5 Stocks in the Basic Materials Sector with High Debt-to-Equity Levels

The following 5 companies in the Basic Materials sector have the highest total debt-to-equity levels, excluding all companies with a market capitalization lower than $500 million:

  1. Nalco Holding Company (NYSE:NLC):  The stock has traded in a 52-week range of $20.15 to $32.62 and most recently traded at $28.80 per share.  It has total debt of $2.75 billion, a total debt to equity ratio of 309.51, $118.7 million in cash, a current ratio of 1.75, and a book value per share of $6.19.  Its market capitalization is $4 billion.  About this company:  Nalco Holding Co. provides integrated water treatment and process improvement services, chemicals and equipment programs for industrial and institutional applications.  The Company’s products and services are used in water treatment applications to prevent corrosion, contamination and the buildup of harmful deposits, or in production processes to enhance process efficiency.
  2. Mercer International Inc. (NASDAQ:MERC):  The stock has traded in a 52-week range of $3.73 to $15.27 and most recently traded at $12.65 per share.  It has total debt of $1.16 billion, a total debt to equity ratio of 314.47, total cash of $176.92, a current ratio of 2.36, and a book value per share of $8.98.  Its market capitalization is $586 million.   About this company:  Mercer International, Inc. owns and operates market pulp and paper businesses in the southern Germany states of Saxony and Thuringia.  The Company produces softwood kraft pulp, specialty papers, and printing and writing papers.
  3. Celanese Corporation (NYSE:CE):  The stock has traded in a 52-week range of $23.47 to $52.92 and most recently traded at $50.64 per share.  It has total debt of $3.28 billion, a debt to equity ratio of 288.64, total cash of $796 million, a current ratio of 1.77, and a book value per share of $7.28.  Its amrket capitalization is $7.91 billion.  About this company:  Celanese Corporation is a global industrial chemicals company.  Its business involves processing chemical raw materials, such as ethylene and propylene, and natural products, including natural gas and wood pulp, into chemicals and chemical-based products.
  4. Graphic Packaging Holding Company (NYSE:GPK):  The shares have traded in a 52-week range of $2.85 to $5.87 and most recently traded at $5.73 per share.  It has total debt of $2.58 billion, a total debt to equity ratio of 325.88, total cash of $109.1 million, a current ratio of 1.83, and a book value per share of $2.3.  Its market capitalization is $1.97 billion.  About this company:  Graphic Packaging Holding Company is an integrated provider of paperboard and integrated paperboard packaging solutions to multinational beverage and consumer products companies.  The Company manufactures folding cartons to be frozen and non-frozen food and beverage products.
  5. Koppers Holdings, Inc. (NYSE:KOP):  The shares have traded in a 52-week range of $19.77 to $46.14 and most recently traded at $42.05 per share.  It has total debt of $296.4 million, total debt to equity of 296.7, total cash of $35.4, a current ratio of 2.48, and a book value per share of $4.31.  Its market capitalization is $865.3 million.  About this company:  Koppers Holdings, Inc. manufactures carbon compounds and wood treatments.  The Company distills coal tar into carbon pitch, creosote and phthalic anhydride, which are used to produce aluminum, plasticizers and specialty chemicals, and pressure treat wood.  Koppers also manufactures railroad ties.

Note: Financial data is taken from Yahoo! Finance.  Selected other data is taken from Google Finance and publicly available SEC filings.  All data are assumed to be accurate.

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