GCP Applied Technologies (NYSE:GCP) is forecasting a moderate increase in sales volume in 2019 driven by growth in North America and Asia Pacific. EMEA remains weak and raw material cost inflation in 2017 and 2018 may continue to pressure gross margins. The stock has recovered along with the broader market trades at a premium compared to its 2019 forecast. Investors may be best served by waiting for a lower multiple.
The company operates in two segments. The SCC segment produces concrete admixtures that enhance the properties of concrete and cement additives that improve