WACKER CHEMIE AG (WCH.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:WCH - DE000WCH8881 - Common Stock
72.95 EUR
+0.3 (+0.41%)
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. Both the profitability and the financial health of WCH get a neutral evaluation. Nothing too spectacular is happening here. WCH does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- WCH had positive earnings in the past year.
- In the past year WCH had a positive cash flow from operations.
- 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
- With a Return On Assets value of 0.49%, WCH perfoms like the industry average, outperforming 46.38% of the companies in the same industry.
- WCH has a Return On Equity of 0.98%. This is comparable to the rest of the industry: WCH outperforms 43.48% of its industry peers.
- WCH has a worse Return On Invested Capital (1.55%) than 62.32% of its industry peers.
- WCH had an Average Return On Invested Capital over the past 3 years of 8.12%. This is in line with the industry average of 7.19%.
- The 3 year average ROIC (8.12%) for WCH is well above the current ROIC(1.55%). The reason for the recent decline needs to be investigated.
| 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 has a Profit Margin (0.49%) which is comparable to the rest of the industry.
- 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: 68.12% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of WCH has grown nicely.
- The Gross Margin of WCH (14.81%) is worse than 78.26% of its industry peers.
- 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.
- The number of shares outstanding for WCH remains at a similar level compared to 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.
- WCH has a Altman-Z score of 2.54. This is comparable to the rest of the industry: WCH outperforms 56.52% of its industry peers.
- WCH has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
- WCH has a Debt to Equity ratio (0.42) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.54 |
ROIC/WACC0.25
WACC6.29%
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.
- With an excellent Current ratio value of 3.02, WCH belongs to the best of the industry, outperforming 84.06% of the companies in the same industry.
- WCH has a Quick Ratio of 1.64. This is a normal value and indicates that WCH is financially healthy and should not expect problems in meeting its short term obligations.
- With a decent Quick ratio value of 1.64, WCH is doing good in the industry, outperforming 75.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.02 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
- WCH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -82.73%.
- The earnings per share for WCH have been decreasing by -33.20% on average. This is quite bad
- WCH shows a decrease in Revenue. In the last year, the revenue decreased by -3.50%.
- WCH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.03% yearly.
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
- WCH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.40% yearly.
- WCH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.71% yearly.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- 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
- WCH is valuated quite expensively with a Price/Earnings ratio of 169.65.
- Based on the Price/Earnings ratio, WCH is valued a bit more expensive than 68.12% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, WCH is valued quite expensively.
- WCH is valuated quite expensively with a Price/Forward Earnings ratio of 111.23.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of WCH indicates a slightly more expensive valuation: WCH is more expensive than 73.91% of the companies listed in the same industry.
- WCH is valuated expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 169.65 | ||
| Fwd PE | 111.23 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WCH is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.36 |
4.3 Compensation for Growth
- A cheap valuation may be justified as WCH's earnings are expected to decrease with -23.67% in the coming years.
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%.
- 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 1.81.
| 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.
- WCH's earnings are declining while the Dividend Rate has been growing. 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%.