ALZCHEM GROUP AG (ACT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ACT - DE000A2YNT30 - Common Stock
156 EUR
+3.2 (+2.09%)
Overall ACT gets a fundamental rating of 7 out of 10. We evaluated ACT against 71 industry peers in the Chemicals industry. ACT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. ACT is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make ACT a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
- ACT had positive earnings in the past year.
- In the past year ACT had a positive cash flow from operations.
- In the past 5 years ACT has always been profitable.
- Of the past 5 years ACT 4 years had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.49%, ACT belongs to the top of the industry, outperforming 94.37% of the companies in the same industry.
- ACT has a better Return On Equity (26.47%) than 94.37% of its industry peers.
- ACT has a better Return On Invested Capital (13.45%) than 91.55% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for ACT is above the industry average of 7.19%.
- The 3 year average ROIC (12.06%) for ACT is below the current ROIC(13.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.49% | ||
| ROE | 26.47% | ||
| ROIC | 13.45% |
ROA(3y)8.81%
ROA(5y)7.86%
ROE(3y)22.87%
ROE(5y)25.91%
ROIC(3y)12.06%
ROIC(5y)10.63%
1.3 Margins
- Looking at the Profit Margin, with a value of 10.97%, ACT belongs to the top of the industry, outperforming 81.69% of the companies in the same industry.
- ACT's Profit Margin has improved in the last couple of years.
- ACT has a better Operating Margin (15.93%) than 83.10% of its industry peers.
- In the last couple of years the Operating Margin of ACT has grown nicely.
- ACT's Gross Margin of 66.55% is amongst the best of the industry. ACT outperforms 97.18% of its industry peers.
- ACT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.93% | ||
| PM (TTM) | 10.97% | ||
| GM | 66.55% |
OM growth 3Y17.53%
OM growth 5Y12.4%
PM growth 3Y14.29%
PM growth 5Y15.31%
GM growth 3Y2.01%
GM growth 5Y1.44%
2. Health
2.1 Basic Checks
- ACT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for ACT has been reduced compared to 1 year ago.
- The number of shares outstanding for ACT has been reduced compared to 5 years ago.
- The debt/assets ratio for ACT has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 5.01 indicates that ACT is not in any danger for bankruptcy at the moment.
- ACT has a Altman-Z score of 5.01. This is amongst the best in the industry. ACT outperforms 87.32% of its industry peers.
- ACT has a debt to FCF ratio of 1.32. This is a very positive value and a sign of high solvency as it would only need 1.32 years to pay back of all of its debts.
- ACT has a better Debt to FCF ratio (1.32) than 94.37% of its industry peers.
- ACT has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
- ACT has a better Debt to Equity ratio (0.16) than 73.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.32 | ||
| Altman-Z | 5.01 |
ROIC/WACC1.85
WACC7.29%
2.3 Liquidity
- ACT has a Current Ratio of 2.87. This indicates that ACT is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of ACT (2.87) is better than 83.10% of its industry peers.
- A Quick Ratio of 1.77 indicates that ACT should not have too much problems paying its short term obligations.
- ACT has a better Quick ratio (1.77) than 81.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 24.12% over the past year.
- Measured over the past years, ACT shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.60% on average per year.
- The Revenue has been growing slightly by 1.05% in the past year.
- The Revenue has been growing by 8.06% on average over the past years. This is quite good.
EPS 1Y (TTM)24.12%
EPS 3Y25.02%
EPS 5Y24.6%
EPS Q2Q%31.66%
Revenue 1Y (TTM)1.05%
Revenue growth 3Y9.49%
Revenue growth 5Y8.06%
Sales Q2Q%6.46%
3.2 Future
- ACT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.26% yearly.
- The Revenue is expected to grow by 6.02% on average over the next years.
EPS Next Y21.07%
EPS Next 2Y12.7%
EPS Next 3Y18.06%
EPS Next 5Y20.26%
Revenue Next Year2.51%
Revenue Next 2Y5.13%
Revenue Next 3Y8.61%
Revenue Next 5Y6.02%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 25.57, the valuation of ACT can be described as expensive.
- ACT's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of ACT to the average of the S&P500 Index (27.25), we can say ACT is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 24.11, the valuation of ACT can be described as rather expensive.
- ACT's Price/Forward Earnings ratio is in line with the industry average.
- ACT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.57 | ||
| Fwd PE | 24.11 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ACT is valued a bit more expensive than the industry average as 60.56% of the companies are valued more cheaply.
- ACT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.39 | ||
| EV/EBITDA | 13.11 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of ACT may justify a higher PE ratio.
- ACT's earnings are expected to grow with 18.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.21
PEG (5Y)1.04
EPS Next 2Y12.7%
EPS Next 3Y18.06%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.16%, ACT has a reasonable but not impressive dividend return.
- ACT's Dividend Yield is slightly below the industry average, which is at 2.45.
- ACT's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
5.2 History
- The dividend of ACT has a limited annual growth rate of 6.00%.
Dividend Growth(5Y)6%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- 49.16% of the earnings are spent on dividend by ACT. This is a bit on the high side, but may be sustainable.
- ACT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP49.16%
EPS Next 2Y12.7%
EPS Next 3Y18.06%
ALZCHEM GROUP AG / ACT.DE FAQ
Can you provide the ChartMill fundamental rating for ALZCHEM GROUP AG?
ChartMill assigns a fundamental rating of 7 / 10 to ACT.DE.
What is the valuation status for ACT stock?
ChartMill assigns a valuation rating of 3 / 10 to ALZCHEM GROUP AG (ACT.DE). This can be considered as Overvalued.
Can you provide the profitability details for ALZCHEM GROUP AG?
ALZCHEM GROUP AG (ACT.DE) has a profitability rating of 9 / 10.
Can you provide the financial health for ACT stock?
The financial health rating of ALZCHEM GROUP AG (ACT.DE) is 9 / 10.
What is the earnings growth outlook for ALZCHEM GROUP AG?
The Earnings per Share (EPS) of ALZCHEM GROUP AG (ACT.DE) is expected to grow by 21.07% in the next year.