LENZING AG (LEN.DE) Stock Fundamental Analysis
FRA:LEN - Deutsche Boerse Ag - AT0000644505 - Common Stock - Currency: EUR
We assign a fundamental rating of 2 out of 10 to LEN. LEN was compared to 62 industry peers in the Chemicals industry. Both the profitability and financial health of LEN have multiple concerns. LEN does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
LEN had negative earnings in the past year.
In the past year LEN had a positive cash flow from operations.
In multiple years LEN reported negative net income over the last 5 years.
LEN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of LEN (-3.15%) is worse than 62.90% of its industry peers.
LEN has a worse Return On Equity (-11.96%) than 66.13% of its industry peers.
LEN's Return On Invested Capital of 1.60% is in line compared to the rest of the industry. LEN outperforms 46.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for LEN is below the industry average of 6.15%.
The 3 year average ROIC (1.29%) for LEN is below the current ROIC(1.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.15% | ||
| ROE | -11.96% | ||
| ROIC | 1.6% |
ROA(3y)-5.64%
ROA(5y)-2.94%
ROE(3y)-20.41%
ROE(5y)-11%
ROIC(3y)1.29%
ROIC(5y)1.63%
1.3 Margins
The Operating Margin of LEN (3.33%) is comparable to the rest of the industry.
LEN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 19.07%, LEN is doing worse than 69.35% of the companies in the same industry.
In the last couple of years the Gross Margin of LEN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.33% | ||
| PM (TTM) | N/A | ||
| GM | 19.07% |
OM growth 3Y-21.19%
OM growth 5Y-11.81%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.92%
GM growth 5Y-14.28%
2. Health
2.1 Basic Checks
LEN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
LEN has about the same amout of shares outstanding than it did 1 year ago.
LEN has more shares outstanding than it did 5 years ago.
The debt/assets ratio for LEN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.10, we must say that LEN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of LEN (1.10) is worse than 72.58% of its industry peers.
The Debt to FCF ratio of LEN is 12.69, which is on the high side as it means it would take LEN, 12.69 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 12.69, LEN perfoms like the industry average, outperforming 51.61% of the companies in the same industry.
LEN has a Debt/Equity ratio of 1.40. This is a high value indicating a heavy dependency on external financing.
LEN has a Debt to Equity ratio of 1.40. This is in the lower half of the industry: LEN underperforms 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 12.69 | ||
| Altman-Z | 1.1 |
ROIC/WACC0.26
WACC6.06%
2.3 Liquidity
LEN has a Current Ratio of 1.48. This is a normal value and indicates that LEN is financially healthy and should not expect problems in meeting its short term obligations.
LEN has a Current ratio (1.48) which is in line with its industry peers.
A Quick Ratio of 0.89 indicates that LEN may have some problems paying its short term obligations.
LEN has a Quick ratio of 0.89. This is in the lower half of the industry: LEN underperforms 62.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
LEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 76.56%, which is quite impressive.
LEN shows a small growth in Revenue. In the last year, the Revenue has grown by 5.67%.
The Revenue has been growing slightly by 4.82% on average over the past years.
EPS 1Y (TTM)76.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%95.69%
Revenue 1Y (TTM)5.67%
Revenue growth 3Y6.67%
Revenue growth 5Y4.82%
Sales Q2Q%7.68%
3.2 Future
LEN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.54% yearly.
The Revenue is expected to grow by 2.54% on average over the next years.
EPS Next Y104.55%
EPS Next 2Y107.39%
EPS Next 3Y60.99%
EPS Next 5Y44.54%
Revenue Next Year8.17%
Revenue Next 2Y6.14%
Revenue Next 3Y5.77%
Revenue Next 5Y2.54%
3.3 Evolution
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
LEN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 645.52, which means the current valuation is very expensive for LEN.
67.74% of the companies in the same industry are cheaper than LEN, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of LEN to the average of the S&P500 Index (20.86), we can say LEN is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 645.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LEN is valued a bit cheaper than 75.81% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of LEN indicates a rather cheap valuation: LEN is cheaper than 96.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.57 | ||
| EV/EBITDA | 6.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LEN does not grow enough to justify the current Price/Earnings ratio.
LEN's earnings are expected to grow with 60.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y107.39%
EPS Next 3Y60.99%
5. Dividend
5.1 Amount
LEN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:LEN (5/2/2025, 7:00:00 PM)
28.25
+0.6 (+2.17%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners19.14%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.09B
Analysts51.67
Price Target32.6 (15.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.74
Dividend Growth(5Y)-31.68%
DP-18.36%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)-2.79%
PT rev (3m)-2.89%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)99.95%
EPS NY rev (3m)120.06%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)4.76%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 645.52 | ||
| P/S | 0.41 | ||
| P/FCF | 6.57 | ||
| P/OCF | 3.38 | ||
| P/B | 0.83 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 6.75 |
EPS(TTM)-4.06
EYN/A
EPS(NY)0.04
Fwd EY0.15%
FCF(TTM)4.3
FCFY15.23%
OCF(TTM)8.35
OCFY29.56%
SpS68.98
BVpS33.92
TBVpS33.3
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.15% | ||
| ROE | -11.96% | ||
| ROCE | 2.28% | ||
| ROIC | 1.6% | ||
| ROICexc | 1.83% | ||
| ROICexgc | 1.84% | ||
| OM | 3.33% | ||
| PM (TTM) | N/A | ||
| GM | 19.07% | ||
| FCFM | 6.24% |
ROA(3y)-5.64%
ROA(5y)-2.94%
ROE(3y)-20.41%
ROE(5y)-11%
ROIC(3y)1.29%
ROIC(5y)1.63%
ROICexc(3y)1.51%
ROICexc(5y)2.07%
ROICexgc(3y)1.52%
ROICexgc(5y)2.09%
ROCE(3y)1.84%
ROCE(5y)2.31%
ROICexcg growth 3Y-16.94%
ROICexcg growth 5Y-17.21%
ROICexc growth 3Y-16.83%
ROICexc growth 5Y-17.09%
OM growth 3Y-21.19%
OM growth 5Y-11.81%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.92%
GM growth 5Y-14.28%
F-Score5
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.4 | ||
| Debt/FCF | 12.69 | ||
| Debt/EBITDA | 4.6 | ||
| Cap/Depr | 50.63% | ||
| Cap/Sales | 5.87% | ||
| Interest Coverage | 0.83 | ||
| Cash Conversion | 81.16% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z | 1.1 |
F-Score5
WACC6.06%
ROIC/WACC0.26
Cap/Depr(3y)130.66%
Cap/Depr(5y)264.56%
Cap/Sales(3y)14.58%
Cap/Sales(5y)24.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)76.56%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%95.69%
EPS Next Y104.55%
EPS Next 2Y107.39%
EPS Next 3Y60.99%
EPS Next 5Y44.54%
Revenue 1Y (TTM)5.67%
Revenue growth 3Y6.67%
Revenue growth 5Y4.82%
Sales Q2Q%7.68%
Revenue Next Year8.17%
Revenue Next 2Y6.14%
Revenue Next 3Y5.77%
Revenue Next 5Y2.54%
EBIT growth 1Y118.6%
EBIT growth 3Y-15.93%
EBIT growth 5Y-7.56%
EBIT Next Year510.81%
EBIT Next 3Y95.6%
EBIT Next 5Y67.42%
FCF growth 1Y254.56%
FCF growth 3YN/A
FCF growth 5Y207.34%
OCF growth 1Y101.16%
OCF growth 3Y-6.46%
OCF growth 5Y5.68%