LANXESS AG (LXS.DE) Stock Fundamental Analysis
FRA:LXS - Deutsche Boerse Ag - DE0005470405 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to LXS. LXS was compared to 67 industry peers in the Chemicals industry. LXS may be in some trouble as it scores bad on both profitability and health. LXS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year LXS was profitable.
LXS had a positive operating cash flow in the past year.
LXS had positive earnings in 4 of the past 5 years.
LXS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of LXS (-1.43%) is worse than 62.69% of its industry peers.
Looking at the Return On Equity, with a value of -3.12%, LXS is doing worse than 62.69% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 0.05%, LXS is doing worse than 67.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.43% | ||
| ROE | -3.12% | ||
| ROIC | 0.05% |
ROA(3y)1.66%
ROA(5y)3.5%
ROE(3y)3.89%
ROE(5y)9.65%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
LXS has a Operating Margin of 0.09%. This is in the lower half of the industry: LXS underperforms 65.67% of its industry peers.
LXS's Operating Margin has declined in the last couple of years.
LXS's Gross Margin of 21.07% is on the low side compared to the rest of the industry. LXS is outperformed by 68.66% of its industry peers.
In the last couple of years the Gross Margin of LXS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.09% | ||
| PM (TTM) | N/A | ||
| GM | 21.07% |
OM growth 3Y-49.18%
OM growth 5Y-37.41%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.56%
GM growth 5Y-4.64%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LXS is destroying value.
Compared to 1 year ago, LXS has about the same amount of shares outstanding.
The number of shares outstanding for LXS has been increased compared to 5 years ago.
The debt/assets ratio for LXS has been reduced compared to a year ago.
2.2 Solvency
LXS has an Altman-Z score of 1.80. This is a bad value and indicates that LXS is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.80, LXS is doing worse than 62.69% of the companies in the same industry.
The Debt to FCF ratio of LXS is 28.05, which is on the high side as it means it would take LXS, 28.05 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LXS (28.05) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.56 indicates that LXS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.56, LXS is in line with its industry, outperforming 43.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 28.05 | ||
| Altman-Z | 1.8 |
ROIC/WACC0.01
WACC4.57%
2.3 Liquidity
A Current Ratio of 1.90 indicates that LXS should not have too much problems paying its short term obligations.
The Current ratio of LXS (1.90) is better than 61.19% of its industry peers.
A Quick Ratio of 1.13 indicates that LXS should not have too much problems paying its short term obligations.
LXS's Quick ratio of 1.13 is in line compared to the rest of the industry. LXS outperforms 55.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 190.48% over the past year.
Measured over the past years, LXS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.38% on average per year.
LXS shows a decrease in Revenue. In the last year, the revenue decreased by -0.97%.
Measured over the past years, LXS shows a decrease in Revenue. The Revenue has been decreasing by -1.32% on average per year.
EPS 1Y (TTM)190.48%
EPS 3Y-31.1%
EPS 5Y-19.38%
EPS Q2Q%355.56%
Revenue 1Y (TTM)-0.97%
Revenue growth 3Y1.43%
Revenue growth 5Y-1.32%
Sales Q2Q%-0.37%
3.2 Future
The Earnings Per Share is expected to grow by 13.72% on average over the next years. This is quite good.
Based on estimates for the next years, LXS will show a small growth in Revenue. The Revenue will grow by 1.29% on average per year.
EPS Next Y2.56%
EPS Next 2Y16.02%
EPS Next 3Y13.72%
EPS Next 5YN/A
Revenue Next Year-1.4%
Revenue Next 2Y0.81%
Revenue Next 3Y1.76%
Revenue Next 5Y1.29%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.01, LXS is valued correctly.
Based on the Price/Earnings ratio, LXS is valued cheaply inside the industry as 85.07% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.45, LXS is valued rather cheaply.
LXS is valuated reasonably with a Price/Forward Earnings ratio of 11.62.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LXS indicates a somewhat cheap valuation: LXS is cheaper than 76.12% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, LXS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 11.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LXS is valued a bit cheaper than 71.64% of the companies in the same industry.
LXS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LXS is cheaper than 71.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.95 | ||
| EV/EBITDA | 7.68 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as LXS's earnings are expected to grow with 13.72% in the coming years.
PEG (NY)5.09
PEG (5Y)N/A
EPS Next 2Y16.02%
EPS Next 3Y13.72%
5. Dividend
5.1 Amount
LXS has a yearly dividend return of 0.40%, which is pretty low.
LXS's Dividend Yield is slightly below the industry average, which is at 3.08.
Compared to an average S&P500 Dividend Yield of 2.42, LXS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
5.2 History
The dividend of LXS decreases each year by -35.08%.
Dividend Growth(5Y)-35.08%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
The earnings of LXS are negative and hence is the payout ratio. LXS will probably not be able to sustain this dividend level.
DP-6.62%
EPS Next 2Y16.02%
EPS Next 3Y13.72%
FRA:LXS (7/4/2025, 7:00:00 PM)
24.72
-0.4 (-1.59%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners57.91%
Inst Owner ChangeN/A
Ins Owners2.86%
Ins Owner ChangeN/A
Market Cap2.13B
Analysts66.92
Price Target29.36 (18.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.4% |
Yearly Dividend0.1
Dividend Growth(5Y)-35.08%
DP-6.62%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)265.73%
Min EPS beat(2)179.44%
Max EPS beat(2)352.03%
EPS beat(4)4
Avg EPS beat(4)283.37%
Min EPS beat(4)130.13%
Max EPS beat(4)471.87%
EPS beat(8)7
Avg EPS beat(8)156.69%
EPS beat(12)10
Avg EPS beat(12)114.53%
EPS beat(16)14
Avg EPS beat(16)92.1%
Revenue beat(2)0
Avg Revenue beat(2)-3.33%
Min Revenue beat(2)-4.87%
Max Revenue beat(2)-1.78%
Revenue beat(4)0
Avg Revenue beat(4)-3.41%
Min Revenue beat(4)-4.87%
Max Revenue beat(4)-1.78%
Revenue beat(8)2
Avg Revenue beat(8)-3.63%
Revenue beat(12)3
Avg Revenue beat(12)-2.66%
Revenue beat(16)3
Avg Revenue beat(16)-6.02%
PT rev (1m)-1.37%
PT rev (3m)-2.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-98.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.68%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 11.62 | ||
| P/S | 0.34 | ||
| P/FCF | 19.95 | ||
| P/OCF | 4.93 | ||
| P/B | 0.49 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | 7.68 |
EPS(TTM)1.9
EY7.69%
EPS(NY)2.13
Fwd EY8.6%
FCF(TTM)1.24
FCFY5.01%
OCF(TTM)5.01
OCFY20.29%
SpS73.65
BVpS50.47
TBVpS22.35
PEG (NY)5.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.43% | ||
| ROE | -3.12% | ||
| ROCE | 0.08% | ||
| ROIC | 0.05% | ||
| ROICexc | 0.06% | ||
| ROICexgc | 0.09% | ||
| OM | 0.09% | ||
| PM (TTM) | N/A | ||
| GM | 21.07% | ||
| FCFM | 1.68% |
ROA(3y)1.66%
ROA(5y)3.5%
ROE(3y)3.89%
ROE(5y)9.65%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-49.79%
ROICexcg growth 5Y-39.03%
ROICexc growth 3Y-49.29%
ROICexc growth 5Y-40.18%
OM growth 3Y-49.18%
OM growth 5Y-37.41%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.56%
GM growth 5Y-4.64%
F-Score5
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 28.05 | ||
| Debt/EBITDA | 4.27 | ||
| Cap/Depr | 58.11% | ||
| Cap/Sales | 5.13% | ||
| Interest Coverage | 0.14 | ||
| Cash Conversion | 76.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z | 1.8 |
F-Score5
WACC4.57%
ROIC/WACC0.01
Cap/Depr(3y)54.6%
Cap/Depr(5y)69.53%
Cap/Sales(3y)4.97%
Cap/Sales(5y)6.05%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)190.48%
EPS 3Y-31.1%
EPS 5Y-19.38%
EPS Q2Q%355.56%
EPS Next Y2.56%
EPS Next 2Y16.02%
EPS Next 3Y13.72%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.97%
Revenue growth 3Y1.43%
Revenue growth 5Y-1.32%
Sales Q2Q%-0.37%
Revenue Next Year-1.4%
Revenue Next 2Y0.81%
Revenue Next 3Y1.76%
Revenue Next 5Y1.29%
EBIT growth 1Y100.79%
EBIT growth 3Y-48.45%
EBIT growth 5Y-38.23%
EBIT Next Year1226.47%
EBIT Next 3Y155.37%
EBIT Next 5Y79.84%
FCF growth 1Y9.18%
FCF growth 3YN/A
FCF growth 5Y6.85%
OCF growth 1Y-13.57%
OCF growth 3Y7.67%
OCF growth 5Y-4.6%