LANXESS AG (LXS.DE) Stock Fundamental Analysis
FRA:LXS - Deutsche Boerse Ag - DE0005470405 - Common Stock - Currency: EUR
Taking everything into account, LXS scores 3 out of 10 in our fundamental rating. 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year LXS was profitable.
In the past year LXS had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of -1.43%, LXS is doing worse than 62.69% of the companies in the same industry.
The Return On Equity of LXS (-3.12%) is worse than 62.69% of its industry peers.
The Return On Invested Capital of LXS (0.05%) is worse than 67.16% of its industry peers.
| 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 has a Gross Margin of 21.07%. This is in the lower half of the industry: LXS underperforms 68.66% of its industry peers.
LXS's Gross Margin has declined in the last couple of years.
| 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.
LXS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for LXS has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.81, we must say that LXS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.81, LXS is not doing good in the industry: 62.69% of the companies in the same industry are doing better.
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.
LXS has a Debt to FCF ratio (28.05) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.56 indicates that LXS is somewhat dependend on debt financing.
LXS has a Debt to Equity ratio (0.56) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 28.05 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.01
WACC4.52%
2.3 Liquidity
LXS has a Current Ratio of 1.90. This is a normal value and indicates that LXS is financially healthy and should not expect problems in meeting its short term obligations.
LXS has a Current ratio (1.90) which is in line with its industry peers.
A Quick Ratio of 1.13 indicates that LXS should not have too much problems paying its short term obligations.
The Quick ratio of LXS (1.13) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
LXS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 190.48%, which is quite impressive.
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.
The Revenue has decreased by -0.97% in the past year.
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
Based on estimates for the next years, LXS will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.72% on average per year.
The Revenue is expected to grow by 1.29% on average over the next years.
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.66, the valuation of LXS can be described as correct.
LXS's Price/Earnings ratio is rather cheap when compared to the industry. LXS is cheaper than 82.09% of the companies in the same industry.
LXS is valuated cheaply when we compare the Price/Earnings ratio to 28.04, which is the current average of the S&P500 Index.
LXS is valuated correctly with a Price/Forward Earnings ratio of 12.21.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LXS indicates a somewhat cheap valuation: LXS is cheaper than 70.15% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.64. LXS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.66 | ||
| Fwd PE | 12.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LXS is valued a bit cheaper than the industry average as 70.15% of the companies are valued more expensively.
LXS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. LXS is cheaper than 70.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.95 | ||
| EV/EBITDA | 7.81 |
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)5.34
PEG (5Y)N/A
EPS Next 2Y16.02%
EPS Next 3Y13.72%
5. Dividend
5.1 Amount
With a yearly dividend of 0.38%, LXS is not a good candidate for dividend investing.
LXS's Dividend Yield is slightly below the industry average, which is at 3.03.
With a Dividend Yield of 0.38, LXS pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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
LXS has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-6.62%
EPS Next 2Y16.02%
EPS Next 3Y13.72%
FRA:LXS (7/25/2025, 7:00:00 PM)
25.96
-0.04 (-0.15%)
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 Cap2.24B
Analysts66.92
Price Target28.36 (9.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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)-3.41%
PT rev (3m)-4.73%
EPS NQ rev (1m)-6900%
EPS NQ rev (3m)-236%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)-4.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.66 | ||
| Fwd PE | 12.21 | ||
| P/S | 0.35 | ||
| P/FCF | 20.95 | ||
| P/OCF | 5.18 | ||
| P/B | 0.51 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 7.81 |
EPS(TTM)1.9
EY7.32%
EPS(NY)2.13
Fwd EY8.19%
FCF(TTM)1.24
FCFY4.77%
OCF(TTM)5.01
OCFY19.32%
SpS73.65
BVpS50.47
TBVpS22.35
PEG (NY)5.34
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 | 1.81 |
F-Score5
WACC4.52%
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%