Assessing Chemours (CC) Valuation After PFAS Class-Action Lawsuit Moves Forward in Montana

A Montana federal judge has allowed a high profile class-action lawsuit over toxic PFAS chemicals in firefighter gear to proceed against Chemours (CC) and other manufacturers, keeping potential liability and reputational questions in focus for shareholders.

See our latest analysis for Chemours.

Chemours shares trade at US$13.07, with a 7 day share price return of 10.86% and a 30 day gain of 7.13%. However, a 1 year total shareholder return decline of 24.19% and a 3 year total shareholder return decline of 55.50% suggest recent momentum contrasts with a weaker long term record as investors reassess legal and reputational risks such as the PFAS lawsuit.

If this kind of legal overhang has you reassessing your exposure to chemicals, it could be a good moment to look across fast growing stocks with high insider ownership for other ideas.

With Chemours trading at US$13.07, a value score of 5 and a very large 70% intrinsic discount estimate, you have to ask: is the market overreacting to PFAS risks, or overlooking a potential recovery story in future growth?

Most Popular Narrative Narrative: 26.5% Undervalued

With Chemours last closing at US$13.07 and the most followed narrative putting fair value at US$17.78, the gap hinges on how future earnings play out.

Secular demand growth for advanced materials tied to electrification, renewables, data centers, and energy storage is generating incremental sales in higher-value applications for APM. Ongoing portfolio optimization and pricing improvements in these segments are structurally enhancing net margins and improving earnings quality.

Read the complete narrative.

Curious how this turns an unprofitable business into a cash generator? The narrative leans on rising margins, steady top line progress, and a low implied future earnings multiple. Want to see how those moving parts line up in the model?

Result: Fair Value of $17.78 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this hinges on PFAS liabilities and tighter environmental rules not hitting harder than expected. If they do, this could pressure cash flows and the entire recovery story.

Find out about the key risks to this Chemours narrative.

Build Your Own Chemours Narrative

If you see the numbers differently or prefer to stress test your own assumptions, you can build a custom Chemours view in minutes by starting with Do it your way.

A great starting point for your Chemours research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Chemours has grabbed your attention, do not stop there, the same 15 minutes could surface other opportunities that fit your style and risk tolerance.

• Spot potential value plays early by scanning these 884 undervalued stocks based on cash flows that currently trade below what their cash flows might justify.
• Tap into growth stories at the frontier of technology with these 26 AI penny stocks shaping how businesses use artificial intelligence.
• Position yourself for income potential by reviewing these 12 dividend stocks with yields > 3% that already offer yields above 3%.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com