WACKER CHEMIE AG (WCH.DE) Stock Fundamental Analysis
FRA:WCH - Deutsche Boerse Ag - DE000WCH8881 - Common Stock - Currency: EUR
Taking everything into account, WCH scores 5 out of 10 in our fundamental rating. WCH was compared to 60 industry peers in the Chemicals industry. WCH has only an average score on both its financial health and profitability. WCH has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally WCH also has an excellent dividend rating. These ratings would make WCH suitable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year WCH was profitable.
In the past year WCH had a positive cash flow from operations.
WCH had positive earnings in 4 of the past 5 years.
WCH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.48%, WCH is doing good in the industry, outperforming 63.16% of the companies in the same industry.
The Return On Equity of WCH (7.02%) is better than 61.40% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.97%, WCH is in line with its industry, outperforming 57.89% of the companies in the same industry.
WCH had an Average Return On Invested Capital over the past 3 years of 11.79%. This is significantly above the industry average of 6.58%.
The last Return On Invested Capital (3.97%) for WCH is well below the 3 year average (11.79%), which needs to be investigated, but indicates that WCH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.48% | ||
| ROE | 7.02% | ||
| ROIC | 3.97% |
ROA(3y)8.92%
ROA(5y)3.92%
ROE(3y)19.85%
ROE(5y)7.7%
ROIC(3y)11.79%
ROIC(5y)8.7%
1.3 Margins
WCH has a Profit Margin of 4.90%. This is in the better half of the industry: WCH outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of WCH has remained more or less at the same level.
With a decent Operating Margin value of 5.69%, WCH is doing good in the industry, outperforming 61.40% of the companies in the same industry.
WCH's Operating Margin has been stable in the last couple of years.
The Gross Margin of WCH (16.92%) is worse than 71.93% of its industry peers.
In the last couple of years the Gross Margin of WCH has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.69% | ||
| PM (TTM) | 4.9% | ||
| GM | 16.92% |
OM growth 3Y-12.76%
OM growth 5Y0.99%
PM growth 3Y6.7%
PM growth 5Y-0.18%
GM growth 3Y-3.01%
GM growth 5Y-0.75%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), WCH is creating value.
Compared to 1 year ago, WCH has about the same amount of shares outstanding.
Compared to 5 years ago, WCH has about the same amount of shares outstanding.
The debt/assets ratio for WCH is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.21 indicates that WCH is not a great score, but indicates only limited risk for bankruptcy at the moment.
WCH has a Altman-Z score (2.21) which is in line with its industry peers.
WCH has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.35, WCH is in the better half of the industry, outperforming 61.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.21 |
ROIC/WACC0.72
WACC5.49%
2.3 Liquidity
A Current Ratio of 2.58 indicates that WCH has no problem at all paying its short term obligations.
WCH has a Current ratio of 2.58. This is in the better half of the industry: WCH outperforms 77.19% of its industry peers.
A Quick Ratio of 1.51 indicates that WCH should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.51, WCH is in the better half of the industry, outperforming 71.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The earnings per share for WCH have decreased strongly by -75.94% in the last year.
WCH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.91% yearly.
Looking at the last year, WCH shows a very negative growth in Revenue. The Revenue has decreased by -22.01% in the last year.
WCH shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.16% yearly.
EPS 1Y (TTM)-75.94%
EPS 3Y18.25%
EPS 5Y4.91%
EPS Q2Q%0%
Revenue 1Y (TTM)-22.01%
Revenue growth 3Y10.91%
Revenue growth 5Y5.16%
Sales Q2Q%-6.12%
3.2 Future
Based on estimates for the next years, WCH will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.76% on average per year.
WCH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.99% yearly.
EPS Next Y-30.7%
EPS Next 2Y-2.55%
EPS Next 3Y9.14%
EPS Next 5Y9.76%
Revenue Next Year-9.39%
Revenue Next 2Y-1.3%
Revenue Next 3Y1.12%
Revenue Next 5Y0.99%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 25.94, WCH can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as WCH.
WCH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.47.
A Price/Forward Earnings ratio of 10.80 indicates a reasonable valuation of WCH.
Based on the Price/Forward Earnings ratio, WCH is valued cheaper than 85.96% of the companies in the same industry.
WCH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.94 | ||
| Fwd PE | 10.8 |
4.2 Price Multiples
87.72% of the companies in the same industry are more expensive than WCH, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.76 |
4.3 Compensation for Growth
WCH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.28
EPS Next 2Y-2.55%
EPS Next 3Y9.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.43%, WCH is a good candidate for dividend investing.
WCH's Dividend Yield is a higher than the industry average which is at 3.94.
WCH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
5.2 History
On average, the dividend of WCH grows each year by 21.67%, which is quite nice.
Dividend Growth(5Y)21.67%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
46.88% of the earnings are spent on dividend by WCH. This is a bit on the high side, but may be sustainable.
The dividend of WCH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP46.88%
EPS Next 2Y-2.55%
EPS Next 3Y9.14%
WACKER CHEMIE AG
FRA:WCH (2/5/2025, 9:40:51 AM)
64.6
-0.42 (-0.65%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners19.19%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.37B
Analysts80.95
Price Target109.37 (69.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.43% |
Yearly Dividend12
Dividend Growth(5Y)21.67%
DP46.88%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.34%
Min EPS beat(2)-29.57%
Max EPS beat(2)42.24%
EPS beat(4)1
Avg EPS beat(4)-12.03%
Min EPS beat(4)-59.63%
Max EPS beat(4)42.24%
EPS beat(8)3
Avg EPS beat(8)-2.97%
EPS beat(12)7
Avg EPS beat(12)2.33%
EPS beat(16)11
Avg EPS beat(16)15.89%
Revenue beat(2)0
Avg Revenue beat(2)-1.16%
Min Revenue beat(2)-1.55%
Max Revenue beat(2)-0.77%
Revenue beat(4)0
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-3.31%
Max Revenue beat(4)-0.77%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-7.17%
PT rev (3m)-11.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.02%
EPS NY rev (1m)0.99%
EPS NY rev (3m)-3.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)-1.85%
Revenue NY rev (3m)-3.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.94 | ||
| Fwd PE | 10.8 | ||
| P/S | 0.53 | ||
| P/FCF | N/A | ||
| P/OCF | 5.72 | ||
| P/B | 0.75 | ||
| P/tB | 0.81 | ||
| EV/EBITDA | 4.76 |
EPS(TTM)2.49
EY3.85%
EPS(NY)5.98
Fwd EY9.26%
FCF(TTM)-6.98
FCFYN/A
OCF(TTM)11.29
OCFY17.48%
SpS122.77
BVpS85.62
TBVpS79.85
PEG (NY)N/A
PEG (5Y)5.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.48% | ||
| ROE | 7.02% | ||
| ROCE | 4.84% | ||
| ROIC | 3.97% | ||
| ROICexc | 4.66% | ||
| ROICexgc | 4.89% | ||
| OM | 5.69% | ||
| PM (TTM) | 4.9% | ||
| GM | 16.92% | ||
| FCFM | N/A |
ROA(3y)8.92%
ROA(5y)3.92%
ROE(3y)19.85%
ROE(5y)7.7%
ROIC(3y)11.79%
ROIC(5y)8.7%
ROICexc(3y)15.58%
ROICexc(5y)11.34%
ROICexgc(3y)16.02%
ROICexgc(5y)11.61%
ROCE(3y)14.39%
ROCE(5y)10.62%
ROICexcg growth 3Y-7.2%
ROICexcg growth 5Y7.75%
ROICexc growth 3Y-8.69%
ROICexc growth 5Y6.75%
OM growth 3Y-12.76%
OM growth 5Y0.99%
PM growth 3Y6.7%
PM growth 5Y-0.18%
GM growth 3Y-3.01%
GM growth 5Y-0.75%
F-Score4
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 10.02 | ||
| Cash Conversion | 73.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 2.21 |
F-Score4
WACC5.49%
ROIC/WACC0.72
Cap/Depr(3y)123.94%
Cap/Depr(5y)91.88%
Cap/Sales(3y)7.33%
Cap/Sales(5y)7.05%
Profit Quality(3y)77.27%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-75.94%
EPS 3Y18.25%
EPS 5Y4.91%
EPS Q2Q%0%
EPS Next Y-30.7%
EPS Next 2Y-2.55%
EPS Next 3Y9.14%
EPS Next 5Y9.76%
Revenue 1Y (TTM)-22.01%
Revenue growth 3Y10.91%
Revenue growth 5Y5.16%
Sales Q2Q%-6.12%
Revenue Next Year-9.39%
Revenue Next 2Y-1.3%
Revenue Next 3Y1.12%
Revenue Next 5Y0.99%
EBIT growth 1Y-75.64%
EBIT growth 3Y-3.24%
EBIT growth 5Y6.2%
EBIT Next Year76.32%
EBIT Next 3Y37.05%
EBIT Next 5Y21.53%
FCF growth 1Y-143.72%
FCF growth 3Y-22.89%
FCF growth 5Y24.1%
OCF growth 1Y-42.81%
OCF growth 3Y2.33%
OCF growth 5Y12.94%