ALZCHEM GROUP AG (ACT.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:ACT - DE000A2YNT30 - Common Stock
156 EUR
+1 (+0.65%)
Overall ACT gets a fundamental rating of 7 out of 10. We evaluated ACT against 69 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 quite expensive at the moment. 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.
- ACT had a positive operating cash flow in the past year.
- ACT had positive earnings in each of the past 5 years.
- ACT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 10.49%, ACT belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
- ACT has a Return On Equity of 26.47%. This is amongst the best in the industry. ACT outperforms 95.65% of its industry peers.
- The Return On Invested Capital of ACT (13.45%) is better than 92.75% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ACT is significantly above the industry average of 6.70%.
- The last Return On Invested Capital (13.45%) for ACT is above the 3 year average (12.06%), which is a sign of increasing profitability.
| 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
- ACT's Profit Margin of 10.97% is amongst the best of the industry. ACT outperforms 84.06% of its industry peers.
- ACT's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 15.93%, ACT belongs to the best of the industry, outperforming 84.06% of the companies in the same industry.
- In the last couple of years the Operating Margin of ACT has grown nicely.
- ACT has a Gross Margin of 66.55%. This is amongst the best in the industry. ACT outperforms 97.10% of its industry peers.
- In the last couple of years the Gross Margin of ACT has remained more or less at the same level.
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ACT is creating value.
- The number of shares outstanding for ACT has been reduced compared to 1 year ago.
- ACT has less shares outstanding than it did 5 years ago.
- ACT has a better debt/assets ratio than last year.
2.2 Solvency
- ACT has an Altman-Z score of 5.04. This indicates that ACT is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of ACT (5.04) is better than 88.41% of its industry peers.
- The Debt to FCF ratio of ACT is 1.32, which is an excellent value as it means it would take ACT, only 1.32 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of ACT (1.32) is better than 94.20% of its industry peers.
- A Debt/Equity ratio of 0.16 indicates that ACT is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.16, ACT is doing good in the industry, outperforming 75.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 1.32 | ||
| Altman-Z | 5.04 |
ROIC/WACC1.85
WACC7.29%
2.3 Liquidity
- A Current Ratio of 2.87 indicates that ACT has no problem at all paying its short term obligations.
- ACT has a better Current ratio (2.87) than 82.61% of its industry peers.
- A Quick Ratio of 1.77 indicates that ACT should not have too much problems paying its short term obligations.
- The Quick ratio of ACT (1.77) is better than 81.16% 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.
- The Earnings Per Share has been growing by 24.60% on average over the past years. This is a very strong growth
- ACT shows a small growth in Revenue. In the last year, the Revenue has grown by 1.05%.
- ACT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.06% yearly.
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
- The Earnings Per Share is expected to grow by 20.26% on average over the next years. This is a very strong growth
- ACT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.02% yearly.
EPS Next Y19.46%
EPS Next 2Y14.69%
EPS Next 3Y19.01%
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
- With a Price/Earnings ratio of 25.57, ACT can be considered very expensive at the moment.
- 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 (27.21), we can say ACT is valued inline with the index average.
- With a Price/Forward Earnings ratio of 23.28, ACT is valued on the expensive side.
- ACT's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of ACT to the average of the S&P500 Index (24.26), we can say ACT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.57 | ||
| Fwd PE | 23.28 |
4.2 Price Multiples
- 60.87% of the companies in the same industry are cheaper than ACT, based on the Enterprise Value to EBITDA ratio.
- The rest of the industry has a similar Price/Free Cash Flow ratio as ACT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.39 | ||
| EV/EBITDA | 13.3 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- ACT has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as ACT's earnings are expected to grow with 19.01% in the coming years.
PEG (NY)1.31
PEG (5Y)1.04
EPS Next 2Y14.69%
EPS Next 3Y19.01%
5. Dividend
5.1 Amount
- ACT has a Yearly Dividend Yield of 1.12%.
- Compared to an average industry Dividend Yield of 2.33, ACT is paying slightly less dividend.
- Compared to the average S&P500 Dividend Yield of 1.82, ACT is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
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 2Y14.69%
EPS Next 3Y19.01%
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 19.46% in the next year.