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COVESTRO AG (11COV.MI) Stock Fundamental Analysis

BIT:11COV - Euronext Milan - DE0006062144 - Common Stock - Currency: EUR

59.98  +1.82 (+3.13%)

Fundamental Rating

3

11COV gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 67 industry peers in the Chemicals industry. Both the profitability and financial health of 11COV have multiple concerns. 11COV has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year 11COV has reported negative net income.
11COV had a positive operating cash flow in the past year.
In multiple years 11COV reported negative net income over the last 5 years.
In the past 5 years 11COV always reported a positive cash flow from operatings.
11COV.MI Yearly Net Income VS EBIT VS OCF VS FCF11COV.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B

1.2 Ratios

The Return On Assets of 11COV (-2.33%) is worse than 64.18% of its industry peers.
11COV's Return On Equity of -4.89% is on the low side compared to the rest of the industry. 11COV is outperformed by 64.18% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.89%, 11COV is in line with its industry, outperforming 40.30% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 11COV is in line with the industry average of 6.34%.
The 3 year average ROIC (5.74%) for 11COV is well above the current ROIC(0.89%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA -2.33%
ROE -4.89%
ROIC 0.89%
ROA(3y)2.35%
ROA(5y)3.08%
ROE(3y)4.72%
ROE(5y)6.59%
ROIC(3y)5.74%
ROIC(5y)5.86%
11COV.MI Yearly ROA, ROE, ROIC11COV.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

1.3 Margins

The Operating Margin of 11COV (0.87%) is worse than 61.19% of its industry peers.
In the last couple of years the Operating Margin of 11COV has declined.
11COV has a worse Gross Margin (15.82%) than 74.63% of its industry peers.
In the last couple of years the Gross Margin of 11COV has declined.
Industry RankSector Rank
OM 0.87%
PM (TTM) N/A
GM 15.82%
OM growth 3Y-46.35%
OM growth 5Y-42.77%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.76%
GM growth 5Y-12.98%
11COV.MI Yearly Profit, Operating, Gross Margins11COV.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 11COV is destroying value.
11COV has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 11COV has been increased compared to 5 years ago.
Compared to 1 year ago, 11COV has a worse debt to assets ratio.
11COV.MI Yearly Shares Outstanding11COV.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
11COV.MI Yearly Total Debt VS Total Assets11COV.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

2.2 Solvency

An Altman-Z score of 2.79 indicates that 11COV is not a great score, but indicates only limited risk for bankruptcy at the moment.
11COV has a better Altman-Z score (2.79) than 70.15% of its industry peers.
11COV has a debt to FCF ratio of 27.22. This is a negative value and a sign of low solvency as 11COV would need 27.22 years to pay back of all of its debts.
11COV has a Debt to FCF ratio of 27.22. This is comparable to the rest of the industry: 11COV outperforms 50.75% of its industry peers.
11COV has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.41, 11COV perfoms like the industry average, outperforming 50.75% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF 27.22
Altman-Z 2.79
ROIC/WACC0.14
WACC6.32%
11COV.MI Yearly LT Debt VS Equity VS FCF11COV.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.3 Liquidity

11COV has a Current Ratio of 1.71. This is a normal value and indicates that 11COV is financially healthy and should not expect problems in meeting its short term obligations.
11COV has a Current ratio of 1.71. This is comparable to the rest of the industry: 11COV outperforms 47.76% of its industry peers.
A Quick Ratio of 0.96 indicates that 11COV may have some problems paying its short term obligations.
With a Quick ratio value of 0.96, 11COV perfoms like the industry average, outperforming 40.30% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.71
Quick Ratio 0.96
11COV.MI Yearly Current Assets VS Current Liabilites11COV.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

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3

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 62.33% over the past year.
Looking at the last year, 11COV shows a very negative growth in Revenue. The Revenue has decreased by -12.03% in the last year.
The Revenue has been decreasing by -0.33% on average over the past years.
EPS 1Y (TTM)62.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-258.33%
Revenue 1Y (TTM)-12.03%
Revenue growth 3Y10.33%
Revenue growth 5Y-0.33%
Sales Q2Q%-0.81%

3.2 Future

Based on estimates for the next years, 11COV will show a very strong growth in Earnings Per Share. The EPS will grow by 46.78% on average per year.
Based on estimates for the next years, 11COV will show a small growth in Revenue. The Revenue will grow by 3.49% on average per year.
EPS Next Y95.13%
EPS Next 2Y109.16%
EPS Next 3Y77.88%
EPS Next 5Y46.78%
Revenue Next Year0.59%
Revenue Next 2Y3.07%
Revenue Next 3Y3.51%
Revenue Next 5Y3.49%

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
11COV.MI Yearly Revenue VS Estimates11COV.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5B 10B 15B
11COV.MI Yearly EPS VS Estimates11COV.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 4 6 8

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for 11COV. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 24.29, 11COV is valued on the expensive side.
11COV's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.27, 11COV is valued at the same level.
Industry RankSector Rank
PE N/A
Fwd PE 24.29
11COV.MI Price Earnings VS Forward Price Earnings11COV.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 60 80

4.2 Price Multiples

11COV's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as 11COV.
Industry RankSector Rank
P/FCF 107.82
EV/EBITDA 13.07
11COV.MI Per share data11COV.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

11COV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
11COV's earnings are expected to grow with 77.88% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y109.16%
EPS Next 3Y77.88%

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0

5. Dividend

5.1 Amount

11COV does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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COVESTRO AG

BIT:11COV (6/17/2025, 7:00:00 PM)

59.98

+1.82 (+3.13%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)07-30 2024-07-30/bmo
Earnings (Next)10-29 2024-10-29/amc
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap11.32B
Analysts77.6
Price Target58.89 (-1.82%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.02
Dividend Growth(5Y)-60.87%
DP-0.62%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-16290.3%
Min EPS beat(2)-18727.5%
Max EPS beat(2)-13853.1%
EPS beat(4)0
Avg EPS beat(4)-8299.67%
Min EPS beat(4)-18727.5%
Max EPS beat(4)-50.59%
EPS beat(8)1
Avg EPS beat(8)-4158.59%
EPS beat(12)3
Avg EPS beat(12)-2772.38%
EPS beat(16)6
Avg EPS beat(16)-2075.67%
Revenue beat(2)0
Avg Revenue beat(2)-3.33%
Min Revenue beat(2)-4.07%
Max Revenue beat(2)-2.59%
Revenue beat(4)0
Avg Revenue beat(4)-4.17%
Min Revenue beat(4)-6.82%
Max Revenue beat(4)-2.59%
Revenue beat(8)1
Avg Revenue beat(8)-2.67%
Revenue beat(12)4
Avg Revenue beat(12)-0.84%
Revenue beat(16)7
Avg Revenue beat(16)-0.41%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 24.29
P/S 0.8
P/FCF 107.82
P/OCF 13.12
P/B 1.7
P/tB 2.08
EV/EBITDA 13.07
EPS(TTM)-1.71
EYN/A
EPS(NY)2.47
Fwd EY4.12%
FCF(TTM)0.56
FCFY0.93%
OCF(TTM)4.57
OCFY7.62%
SpS74.78
BVpS35.24
TBVpS28.85
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.33%
ROE -4.89%
ROCE 1.19%
ROIC 0.89%
ROICexc 0.97%
ROICexgc 1.11%
OM 0.87%
PM (TTM) N/A
GM 15.82%
FCFM 0.74%
ROA(3y)2.35%
ROA(5y)3.08%
ROE(3y)4.72%
ROE(5y)6.59%
ROIC(3y)5.74%
ROIC(5y)5.86%
ROICexc(3y)6.14%
ROICexc(5y)6.49%
ROICexgc(3y)7.05%
ROICexgc(5y)7.17%
ROCE(3y)7.65%
ROCE(5y)7.81%
ROICexcg growth 3Y-41.88%
ROICexcg growth 5Y-44.63%
ROICexc growth 3Y-43.62%
ROICexc growth 5Y-45.63%
OM growth 3Y-46.35%
OM growth 5Y-42.77%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.76%
GM growth 5Y-12.98%
F-Score5
Asset Turnover1.01
Health
Industry RankSector Rank
Debt/Equity 0.41
Debt/FCF 27.22
Debt/EBITDA 2.74
Cap/Depr 86.23%
Cap/Sales 5.37%
Interest Coverage 0.76
Cash Conversion 86.13%
Profit Quality N/A
Current Ratio 1.71
Quick Ratio 0.96
Altman-Z 2.79
F-Score5
WACC6.32%
ROIC/WACC0.14
Cap/Depr(3y)80.01%
Cap/Depr(5y)90.35%
Cap/Sales(3y)4.92%
Cap/Sales(5y)5.73%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)62.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-258.33%
EPS Next Y95.13%
EPS Next 2Y109.16%
EPS Next 3Y77.88%
EPS Next 5Y46.78%
Revenue 1Y (TTM)-12.03%
Revenue growth 3Y10.33%
Revenue growth 5Y-0.33%
Sales Q2Q%-0.81%
Revenue Next Year0.59%
Revenue Next 2Y3.07%
Revenue Next 3Y3.51%
Revenue Next 5Y3.49%
EBIT growth 1Y129.01%
EBIT growth 3Y-40.81%
EBIT growth 5Y-42.96%
EBIT Next Year554.89%
EBIT Next 3Y120.78%
EBIT Next 5Y66.99%
FCF growth 1Y-64.04%
FCF growth 3Y-24.12%
FCF growth 5Y-32.61%
OCF growth 1Y-21.33%
OCF growth 3Y-6.89%
OCF growth 5Y-15.94%