The bioplastics industry has experienced significant growth driven by increasing environmental concerns and the demand for sustainable alternatives to conventional plastics.
So, let us explore three bioplastics stocks, BASF SE (BASFY), LyondellBasell Industries N.V. (LYB), and Eastman Chemical Company (EMN), that are leading the way in producing eco-friendly solutions to combat plastic waste and minimize reliance on petroleum-based plastics.
With rising consumer awareness and stricter environmental regulations, both governments and companies are investing heavily in the development of biodegradable and renewable plastics. This sector is expected to continue expanding as more industries seek eco-friendly solutions to reduce their carbon footprint and reliance on petroleum-based plastics.
Additionally, innovations in materials and production processes have expanded bioplastics' applications, from packaging to automotive and agriculture. The global bioplastics industry is valued at $15.57 billion in 2024 and is expected to grow at a CAGR of 19.5% from 2025 to 2030, driven by growing consumer demand and stricter environmental regulations.
Given the promising growth outlook, let's explore the Chemicals stocks in more detail:
Stock #3: Eastman Chemical Company (EMN)
EMN is a global specialty materials company providing products across industries such as transportation, construction, electronics, and personal care. Its offerings include specialty polymers, biopolymers, chemical intermediates, and filtration media.
On December 9, EMN announced an increase in its quarterly cash dividend from $0.81 to $0.83 per share, payable on January 8, 2025. It pays an annual dividend of $3.32, which translates to a dividend yield of 3.63% at the prevailing price levels.
In the fiscal third quarter ended September 30, 2024, EMN’s sales revenue increased 8.7% year-over-year to $2.46 billion. Its earnings before interest and taxes grew 28.5% from the year-ago value to $ 329 million. In addition, the company’s adjusted EBIT reached $ 366 million, up 43% from the same quarter last year, and adjusted EPS was $2.26, indicating an increase of 53.7% from the prior-year quarter.
Street expects EMN’s revenue for the fiscal fourth quarter (ending December 31, 2024) to increase 3.2% year-over-year to $ 2.28 billion. Its EPS for the same quarter is likely to increase 22.2% year-over-year to $1.60.
Shares of EMN have gained 1.3% over the past year to close the last trading session at $91.51.
EMN’s POWR Ratings reflect its robust outlook. EMN has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
EMN has a B grade in Value. It is ranked #37 out of 80 stocks in the Chemicals industry.
To access EMN’s Growth, Momentum, Stability, Sentiment, and Quality ratings, click here.
Stock #2: LyondellBasell Industries N.V. (LYB)
LYB is a global chemical company specializing in olefins, polyolefins, advanced polymers, and refining heavy crude oil. It serves industries like packaging, automotive, and coatings while also licensing chemical technologies and producing catalysts.
On December 9, LYB distributed a quarterly dividend of $1.34 per share. It pays an annual dividend of $5.36, which translates to a yield of 7.23% at the prevailing price levels.
On October 17, LYB acquired full ownership of APK AG in Germany to enhance its solvent-based recycling technology for low-density polyethylene (LDPE). This move supports LYB's sustainability goals and aims to produce high-purity materials for flexible packaging applications.
During the fiscal third quarter that ended September 30, 2024, LYB’s sales and other operating revenues was $10.32 billion. Its EBITDA excluding identified items from the year-ago value to $1.21 billion. In addition, the company’s net income and EPS came in at $573 million and $1.75, respectively.
Analysts expect LYB’s EPS and revenue for the fourth quarter ending December 31, 2024, to $0.95 and $ 9.49 billion, respectively. It surpassed the Street revenue estimates in three of the trailing four quarters, which is impressive.
The stock rise up to 22.4% in the past six month to close the last trading session at $74.35.
LYB’s POWR Ratings reflect its robust outlook. It has an overall rating of B, equating to a Buy in our proprietary rating system.
LYB has a B grade in Value. It is ranked #35 in the same industry.
Beyond what we have stated above, we also have given LYB grades for Growth, Momentum, Stability, Sentiment, and Quality. Get all the LYB’s ratings here.
Stock #1: BASF SE (BASFY)
Germany-based BASFY is a global chemical leader offering diverse products across six segments, including petrochemicals, advanced materials, coatings, and agricultural solutions. It serves industries like automotive, electronics, and agriculture, with additional activities in engineering and commodity trading.
It pays an annual dividend of $0.91, which translates to a dividend yield of 8.21% at the prevailing price levels.
BASFY’s revenue increased 4.3% year-over-year to €15.74 billion ($16.38 billion) in the fiscal third quarter that ended on September 30, 2024. The company’s adjusted net income reached €284 million ($295.51 million) and $0.32 per share, indicating a marginal increase from the prior-year quarter.
Street expects BASFY’s revenue and EPS for the year ending December 31, 2024, to reach $67.82 billion and $0.84, up to 11.9% year-over-year.
Shares of BASFY have gained marginally over the past month and the last trading session closed at $11.08. It surpassed the Street EPS and revenue estimates in each of the trailing four quarters.
BASFY’s POWR Ratings reflect its robust outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.
It has a B grade for Growth, Value, and Stability. It is ranked #8 in the same industry.
Click here to see BASFY’s ratings for Momentum, Sentiment, and Quality.
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BASFY shares were trading at $11.08 per share on Friday morning, up $0.05 (+0.45%). Year-to-date, BASFY has declined -13.34%, versus a 27.55% rise in the benchmark S&P 500 index during the same period.
About the Author: Kritika Sarmah
Her interest in risky instruments and passion for writing made Kritika an analyst and financial journalist. She earned her bachelor's degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities.
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