COVESTRO AG(FRA:1COV) stock Fundamental Analysis

Fundamental Rating

We assign a fundamental rating of 2 out of 10 to 1COV. 1COV was compared to 61 industry peers in the Chemicals industry. 1COV may be in some trouble as it scores bad on both profitability and health. 1COV does not seem to be growing, but still is valued expensively.

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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.

In multiple years 1COV reported negative net income over the last 5 years.

1COV had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

1COV has a Return On Assets (-1.88%) which is comparable to the rest of the industry.

The Return On Equity of 1COV (-3.93%) is comparable to the rest of the industry.

1COV has a Return On Invested Capital (0.88%) which is in line with its industry peers.

Measured over the past 3 years, the Average Return On Invested Capital for 1COV is in line with the industry average of 6.72%.

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 Operating Margin of 0.90%. This is comparable to the rest of the industry: 1COV outperforms 46.03% of its industry peers.

In the last couple of years the Operating Margin of 1COV has declined.

1COV's Gross Margin of 15.88% is on the low side compared to the rest of the industry. 1COV is outperformed by 69.84% of its industry peers.

In the last couple of years the Gross Margin of 1COV has declined.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

1COV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.

There is no outstanding debt for 1COV. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

An Altman-Z score of 2.80 indicates that 1COV is not a great score, but indicates only limited risk for bankruptcy at the moment.

The Altman-Z score of 1COV (2.80) is better than 71.43% of its industry peers.

1COV has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.

1COV has a Debt to Equity ratio (0.40) which is in line with its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.4
Debt/FCF	N/A
Altman-Z	2.8

ROIC/WACC0.14

WACC6.19%

2.3 Liquidity

A Current Ratio of 1.68 indicates that 1COV should not have too much problems paying its short term obligations.

1COV's Current ratio of 1.68 is in line compared to the rest of the industry. 1COV outperforms 47.62% of its industry peers.

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.

With a Quick ratio value of 0.93, 1COV is not doing good in the industry: 63.49% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	1.68
Quick Ratio	0.93

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

1COV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.07%, which is quite good.

EPS 1Y (TTM)12.07%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%47.5%

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%2.54%

3.2 Future

Based on estimates for the next years, 1COV will show a very strong growth in Earnings Per Share. The EPS will grow by 50.00% on average per year.

The Revenue is expected to grow by 4.86% on average over the next years.

EPS Next Y250.49%

EPS Next 2Y126%

EPS Next 3Y91.02%

EPS Next 5Y50%

Revenue Next Year4.52%

Revenue Next 2Y4.95%

Revenue Next 3Y4.49%

Revenue Next 5Y4.86%

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

1COV reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.

A Price/Forward Earnings ratio of 42.60 indicates a quite expensive valuation of 1COV.

Compared to the rest of the industry, the Price/Forward Earnings ratio of 1COV indicates a slightly more expensive valuation: 1COV is more expensive than 65.08% of the companies listed in the same industry.

1COV's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.10.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	42.6

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1COV.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	12.68

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

1COV's earnings are expected to grow with 91.02% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y126%

EPS Next 3Y91.02%

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5. Dividend

5.1 Amount

1COV does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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COVESTRO AG

FRA:1COV (3/7/2025, 7:00:00 PM)

58.62

+0.18 (+0.31%)

Chartmill FA Rating

GICS SectorMaterials

GICS IndustryGroupMaterials

GICS IndustryChemicals

Earnings (Last)02-26 2025-02-26/bmo

Earnings (Next)05-06 2025-05-06

Inst Owners47.64%

Inst Owner ChangeN/A

Ins Owners0.03%

Ins Owner ChangeN/A

Market Cap11.08B

Analysts67.27

Price Target62.22 (6.14%)

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)1.44%

PT rev (3m)1.87%

EPS NQ rev (1m)0%

EPS NQ rev (3m)-98.31%

EPS NY rev (1m)-79.79%

EPS NY rev (3m)-231.7%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)-0.97%

Revenue NY rev (1m)-0.21%

Revenue NY rev (3m)-1.2%

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	42.6
P/S	0.78
P/FCF	N/A
P/OCF	17.45
P/B	1.67
P/tB	2.03
EV/EBITDA	12.68

EPS(TTM)-0.91

EYN/A

EPS(NY)1.38

Fwd EY2.35%

FCF(TTM)-0.48

FCFYN/A

OCF(TTM)3.36

OCFY5.73%

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	2.8

F-Score4

WACC6.19%

ROIC/WACC0.14

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)12.07%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%47.5%

EPS Next Y250.49%

EPS Next 2Y126%

EPS Next 3Y91.02%

EPS Next 5Y50%

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%2.54%

Revenue Next Year4.52%

Revenue Next 2Y4.95%

Revenue Next 3Y4.49%

Revenue Next 5Y4.86%

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%

COVESTRO AG (1COV.DE) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

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2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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