COVESTRO AG (1COV.DE) Stock Fundamental Analysis
FRA:1COV - Deutsche Boerse Ag - DE0006062144 - Common Stock - Currency: EUR
1COV gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 60 industry peers in the Chemicals industry. 1COV has a bad profitability rating. Also its financial health evaluation is rather negative. 1COV is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year 1COV has reported negative net income.
1COV had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: 1COV reported negative net income in multiple years.
In the past 5 years 1COV always reported a positive cash flow from operatings.
1.2 Ratios
1COV has a Return On Assets of -1.88%. This is in the lower half of the industry: 1COV underperforms 63.16% of its industry peers.
1COV has a Return On Equity of -3.93%. This is in the lower half of the industry: 1COV underperforms 63.16% of its industry peers.
1COV has a worse Return On Invested Capital (0.88%) than 61.40% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1COV is in line with the industry average of 6.58%.
The last Return On Invested Capital (0.88%) for 1COV is well below the 3 year average (5.39%), which needs to be investigated, but indicates that 1COV had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.88% | ||
| ROE | -3.93% | ||
| ROIC | 0.88% |
ROA(3y)2.35%
ROA(5y)3.08%
ROE(3y)4.72%
ROE(5y)6.59%
ROIC(3y)5.39%
ROIC(5y)5.5%
1.3 Margins
1COV has a worse Operating Margin (0.90%) than 61.40% of its industry peers.
1COV's Operating Margin has declined in the last couple of years.
1COV's Gross Margin of 15.88% is on the low side compared to the rest of the industry. 1COV is outperformed by 73.68% of its industry peers.
1COV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.9% | ||
| PM (TTM) | N/A | ||
| GM | 15.88% |
OM growth 3Y-46.35%
OM growth 5Y-42.77%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.76%
GM growth 5Y-12.98%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1COV is destroying value.
1COV has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1COV has more shares outstanding
1COV has a worse debt/assets ratio than last year.
2.2 Solvency
1COV has an Altman-Z score of 2.78. This is not the best score and indicates that 1COV is in the grey zone with still only limited risk for bankruptcy at the moment.
1COV has a better Altman-Z score (2.78) than 68.42% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that 1COV is not too dependend on debt financing.
The Debt to Equity ratio of 1COV (0.40) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.78 |
ROIC/WACC0.15
WACC5.95%
2.3 Liquidity
1COV has a Current Ratio of 1.68. This is a normal value and indicates that 1COV is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.68, 1COV perfoms like the industry average, outperforming 43.86% of the companies in the same industry.
1COV has a Quick Ratio of 1.68. This is a bad value and indicates that 1COV is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of 1COV (0.93) is worse than 71.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 71.01% over the past year.
The Revenue has decreased by -5.64% in the past year.
Measured over the past years, 1COV shows a decrease in Revenue. The Revenue has been decreasing by -0.33% on average per year.
EPS 1Y (TTM)71.01%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%206.25%
Revenue 1Y (TTM)-5.64%
Revenue growth 3Y10.33%
Revenue growth 5Y-0.33%
Sales Q2Q%0.98%
3.2 Future
1COV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 47.94% yearly.
Based on estimates for the next years, 1COV will show a small growth in Revenue. The Revenue will grow by 3.67% on average per year.
EPS Next Y64.31%
EPS Next 2Y88.17%
EPS Next 3Y71%
EPS Next 5Y47.94%
Revenue Next Year-1.08%
Revenue Next 2Y2.01%
Revenue Next 3Y2.88%
Revenue Next 5Y3.67%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for 1COV. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 35.70, which means the current valuation is very expensive for 1COV.
Based on the Price/Forward Earnings ratio, 1COV is valued a bit more expensive than the industry average as 64.91% of the companies are valued more cheaply.
1COV is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 35.7 |
4.2 Price Multiples
1COV's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.41 |
4.3 Compensation for Growth
1COV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as 1COV's earnings are expected to grow with 71.00% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y88.17%
EPS Next 3Y71%
5. Dividend
5.1 Amount
No dividends for 1COV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
COVESTRO AG
FRA:1COV (2/5/2025, 9:28:21 AM)
57.2
0 (0%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners60.38%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap10.81B
Analysts67.27
Price Target61.34 (7.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.02
Dividend Growth(5Y)-60.87%
DP-0.77%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6826.07%
Min EPS beat(2)-13853.1%
Max EPS beat(2)201.01%
EPS beat(4)1
Avg EPS beat(4)-8107.55%
Min EPS beat(4)-18727.5%
Max EPS beat(4)201.01%
EPS beat(8)2
Avg EPS beat(8)-4124.3%
EPS beat(12)3
Avg EPS beat(12)-2756.03%
EPS beat(16)6
Avg EPS beat(16)-2066.71%
Revenue beat(2)0
Avg Revenue beat(2)-4.65%
Min Revenue beat(2)-6.71%
Max Revenue beat(2)-2.59%
Revenue beat(4)0
Avg Revenue beat(4)-4.14%
Min Revenue beat(4)-6.71%
Max Revenue beat(4)-2.59%
Revenue beat(8)0
Avg Revenue beat(8)-4.38%
Revenue beat(12)3
Avg Revenue beat(12)-1.77%
Revenue beat(16)7
Avg Revenue beat(16)-0.57%
PT rev (1m)0.42%
PT rev (3m)1.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)53.9%
EPS NY rev (1m)-84.5%
EPS NY rev (3m)-84.5%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-8.1%
Revenue NY rev (1m)-1%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 35.7 | ||
| P/S | 0.76 | ||
| P/FCF | N/A | ||
| P/OCF | 17.02 | ||
| P/B | 1.63 | ||
| P/tB | 1.98 | ||
| EV/EBITDA | 12.41 |
EPS(TTM)-1.38
EYN/A
EPS(NY)1.6
Fwd EY2.8%
FCF(TTM)-0.48
FCFYN/A
OCF(TTM)3.36
OCFY5.87%
SpS74.86
BVpS35.18
TBVpS28.87
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.88% | ||
| ROE | -3.93% | ||
| ROCE | 1.25% | ||
| ROIC | 0.88% | ||
| ROICexc | 0.96% | ||
| ROICexgc | 1.1% | ||
| OM | 0.9% | ||
| PM (TTM) | N/A | ||
| GM | 15.88% | ||
| FCFM | N/A |
ROA(3y)2.35%
ROA(5y)3.08%
ROE(3y)4.72%
ROE(5y)6.59%
ROIC(3y)5.39%
ROIC(5y)5.5%
ROICexc(3y)5.76%
ROICexc(5y)6.09%
ROICexgc(3y)6.62%
ROICexgc(5y)6.73%
ROCE(3y)7.65%
ROCE(5y)7.81%
ROICexcg growth 3Y-41.88%
ROICexcg growth 5Y-44.63%
ROICexc growth 3Y-43.62%
ROICexc growth 5Y-45.63%
OM growth 3Y-46.35%
OM growth 5Y-42.77%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.76%
GM growth 5Y-12.98%
F-Score4
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.65 | ||
| Cap/Depr | 82.13% | ||
| Cap/Sales | 5.13% | ||
| Interest Coverage | 0.83 | ||
| Cash Conversion | 62.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 2.78 |
F-Score4
WACC5.95%
ROIC/WACC0.15
Cap/Depr(3y)80.01%
Cap/Depr(5y)90.35%
Cap/Sales(3y)4.92%
Cap/Sales(5y)5.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)71.01%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%206.25%
EPS Next Y64.31%
EPS Next 2Y88.17%
EPS Next 3Y71%
EPS Next 5Y47.94%
Revenue 1Y (TTM)-5.64%
Revenue growth 3Y10.33%
Revenue growth 5Y-0.33%
Sales Q2Q%0.98%
Revenue Next Year-1.08%
Revenue Next 2Y2.01%
Revenue Next 3Y2.88%
Revenue Next 5Y3.67%
EBIT growth 1Y130.55%
EBIT growth 3Y-40.81%
EBIT growth 5Y-42.96%
EBIT Next Year535.52%
EBIT Next 3Y118.83%
EBIT Next 5Y67.95%
FCF growth 1Y-62.5%
FCF growth 3Y-24.12%
FCF growth 5Y-32.61%
OCF growth 1Y-18.49%
OCF growth 3Y-6.89%
OCF growth 5Y-15.94%