WACKER CHEMIE AG (WCH.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:WCH - DE000WCH8881 - Common Stock
68.85 EUR
-2.85 (-3.97%)
Taking everything into account, WCH scores 3 out of 10 in our fundamental rating. WCH was compared to 71 industry peers in the Chemicals industry. WCH has only an average score on both its financial health and profitability. WCH is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- WCH had positive earnings in the past year.
- WCH had a positive operating cash flow in the past year.
- Each year in the past 5 years WCH has been profitable.
- In the past 5 years WCH always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of WCH (0.49%) is comparable to the rest of the industry.
- WCH has a Return On Equity (0.98%) which is in line with its industry peers.
- With a Return On Invested Capital value of 1.55%, WCH is not doing good in the industry: 61.97% of the companies in the same industry are doing better.
- Measured over the past 3 years, the Average Return On Invested Capital for WCH is in line with the industry average of 7.19%.
- The last Return On Invested Capital (1.55%) for WCH is well below the 3 year average (8.12%), which needs to be investigated, but indicates that WCH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.49% | ||
| ROE | 0.98% | ||
| ROIC | 1.55% |
ROA(3y)6.47%
ROA(5y)6.41%
ROE(3y)12.66%
ROE(5y)15.27%
ROIC(3y)8.12%
ROIC(5y)9.02%
1.3 Margins
- WCH's Profit Margin of 0.49% is in line compared to the rest of the industry. WCH outperforms 42.25% of its industry peers.
- WCH's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 1.59%, WCH is not doing good in the industry: 69.01% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of WCH has grown nicely.
- Looking at the Gross Margin, with a value of 14.81%, WCH is doing worse than 77.46% of the companies in the same industry.
- WCH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.59% | ||
| PM (TTM) | 0.49% | ||
| GM | 14.81% |
OM growth 3Y-35.5%
OM growth 5Y4.99%
PM growth 3Y-31.32%
PM growth 5YN/A
GM growth 3Y-13.82%
GM growth 5Y1.13%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WCH is still creating some value.
- The number of shares outstanding for WCH remains at a similar level compared to 1 year ago.
- WCH has about the same amout of shares outstanding than it did 5 years ago.
- WCH has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.54 indicates that WCH is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.54, WCH perfoms like the industry average, outperforming 52.11% of the companies in the same industry.
- A Debt/Equity ratio of 0.42 indicates that WCH is not too dependend on debt financing.
- WCH has a Debt to Equity ratio (0.42) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.54 |
ROIC/WACC0.25
WACC6.28%
2.3 Liquidity
- WCH has a Current Ratio of 3.02. This indicates that WCH is financially healthy and has no problem in meeting its short term obligations.
- WCH has a better Current ratio (3.02) than 84.51% of its industry peers.
- A Quick Ratio of 1.64 indicates that WCH should not have too much problems paying its short term obligations.
- WCH has a Quick ratio of 1.64. This is in the better half of the industry: WCH outperforms 76.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
- The earnings per share for WCH have decreased strongly by -82.73% in the last year.
- WCH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -33.20% yearly.
- WCH shows a decrease in Revenue. In the last year, the revenue decreased by -3.50%.
- The Revenue has been growing slightly by 3.03% on average over the past years.
EPS 1Y (TTM)-82.73%
EPS 3Y-33.2%
EPS 5YN/A
EPS Q2Q%-408.93%
Revenue 1Y (TTM)-3.5%
Revenue growth 3Y-2.68%
Revenue growth 5Y3.03%
Sales Q2Q%-6.25%
3.2 Future
- Based on estimates for the next years, WCH will show a decrease in Earnings Per Share. The EPS will decrease by -3.40% on average per year.
- Based on estimates for the next years, WCH will show a small growth in Revenue. The Revenue will grow by 0.71% on average per year.
EPS Next Y-115.89%
EPS Next 2Y-63.19%
EPS Next 3Y-23.67%
EPS Next 5Y-3.4%
Revenue Next Year-4.7%
Revenue Next 2Y-1.51%
Revenue Next 3Y0.62%
Revenue Next 5Y0.71%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 160.12, the valuation of WCH can be described as expensive.
- 67.61% of the companies in the same industry are cheaper than WCH, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.60. WCH is valued rather expensively when compared to this.
- Based on the Price/Forward Earnings ratio of 104.98, the valuation of WCH can be described as expensive.
- WCH's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. WCH is more expensive than 73.24% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, WCH is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 160.12 | ||
| Fwd PE | 104.98 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WCH is valued a bit cheaper than the industry average as 70.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.26 |
4.3 Compensation for Growth
- WCH's earnings are expected to decrease with -23.67% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-63.19%
EPS Next 3Y-23.67%
5. Dividend
5.1 Amount
- WCH has a Yearly Dividend Yield of 3.44%. Purely for dividend investing, there may be better candidates out there.
- WCH's Dividend Yield is a higher than the industry average which is at 2.45.
- WCH's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
5.2 History
- The dividend of WCH has a limited annual growth rate of 3.71%.
Dividend Growth(5Y)3.71%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
- WCH pays out 280.10% of its income as dividend. This is not a sustainable payout ratio.
- The Dividend Rate of WCH has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP280.1%
EPS Next 2Y-63.19%
EPS Next 3Y-23.67%
WACKER CHEMIE AG / WCH.DE FAQ
What is the fundamental rating for WCH stock?
ChartMill assigns a fundamental rating of 3 / 10 to WCH.DE.
What is the valuation status for WCH stock?
ChartMill assigns a valuation rating of 1 / 10 to WACKER CHEMIE AG (WCH.DE). This can be considered as Overvalued.
Can you provide the profitability details for WACKER CHEMIE AG?
WACKER CHEMIE AG (WCH.DE) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for WCH stock?
The Earnings per Share (EPS) of WACKER CHEMIE AG (WCH.DE) is expected to decline by -115.89% in the next year.
How sustainable is the dividend of WACKER CHEMIE AG (WCH.DE) stock?
The dividend rating of WACKER CHEMIE AG (WCH.DE) is 4 / 10 and the dividend payout ratio is 280.1%.