CMCElement Solutions

CMC vs Element Solutions

This page compares CMC and Element Solutions, analysing their business models, financial performance, and market context in a neutral, accessible way. It outlines each company’s approach to customers,...

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America's Copper Advantage: Tariffs Reshape The Market

America's Copper Advantage: Tariffs Reshape The Market

The U.S. has imposed a 50% tariff on certain copper imports, causing market volatility and creating a potential advantage for domestic producers. This theme focuses on U.S.-based copper fabricators and refiners who stand to benefit from these protectionist measures.

Published: July 31, 2025

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U.S. Protectionism: American Advantage

U.S. Protectionism: American Advantage

This carefully selected group of stocks represents companies set to benefit from the new 35% tariff on Canadian imports. Our professional analysts have identified these U.S. businesses as being uniquely positioned to capture greater market share and increase their pricing power as foreign competition becomes more expensive.

Published: July 14, 2025

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Trump's Tariff Ripple Effect

Trump's Tariff Ripple Effect

These carefully selected stocks represent US companies likely to benefit from expanded tariffs on foreign imports. Our professional analysts have identified domestic manufacturers and steel producers positioned to gain market share as their international competitors face higher costs.

Published: July 11, 2025

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Investment Analysis

CMC

CMC

CMC

Pros

  • CMC has strengthened its earnings power, return on capital, and balance sheet through transformational actions and acquisitions in recent years.
  • The company operates an integrated, geographically diversified network serving multiple regions including the U.S., Poland, and China, which reduces market-specific risk.
  • CMC is recognized as an industry innovator with energy-efficient steel production technology and top customer service ratings.

Considerations

  • Revenue declined slightly by 1.61% in 2025 compared to the previous year, indicating modest pressure on sales.
  • The trailing price-to-earnings ratio is relatively high at around 80, suggesting that the stock may be priced for strong future growth which may be challenging to sustain.
  • The steel industry exposure subjects CMC to cyclical risks tied to construction, infrastructure, and industrial demand fluctuations.

Pros

  • Element Solutions benefits from diversified specialty chemical products that serve multiple end markets including electronics, coatings, and consumer care, providing growth balance.
  • The company has shown resilience and growth potential through innovation and acquisition strategies expanding its global footprint.
  • Element Solutions holds a solid market position with increasing demand for sustainable and high-performance chemical solutions.

Considerations

  • Element Solutions faces exposure to volatile raw material costs and supply chain challenges impacting profitability and margins.
  • Regulatory pressures and compliance costs are significant in specialty chemicals, presenting ongoing risks to operational expenses.
  • Competition from larger chemical companies and shifting customer preferences may constrain pricing power and growth.

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