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 60 industry peers in the Chemicals industry. While LXS seems to be doing ok healthwise, there are quite some concerns on its profitability. LXS is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
LXS had positive earnings in the past year.
LXS had a positive operating cash flow in the past year.
In the past 5 years LXS has always been profitable.
In the past 5 years LXS always reported a positive cash flow from operatings.
1.2 Ratios
LXS's Return On Assets of -9.16% is on the low side compared to the rest of the industry. LXS is outperformed by 68.33% of its industry peers.
The Return On Equity of LXS (-19.78%) is worse than 68.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.16% | ||
| ROE | -19.78% | ||
| ROIC | N/A |
ROA(3y)3.11%
ROA(5y)4.33%
ROE(3y)7.54%
ROE(5y)11.96%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Profit Margin of LXS has remained more or less at the same level.
In the last couple of years the Operating Margin of LXS has grown nicely.
With a Gross Margin value of 19.39%, LXS is not doing good in the industry: 63.33% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of LXS has declined.
The Profit Margin and Operating Margin are not available for LXS so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 19.39% |
OM growth 3Y12.58%
OM growth 5Y1.67%
PM growth 3Y-23.02%
PM growth 5Y0.92%
GM growth 3Y-9.51%
GM growth 5Y-5.81%
2. Health
2.1 Basic Checks
LXS does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for LXS remains at a similar level compared to 1 year ago.
Compared to 5 years ago, LXS has less shares outstanding
Compared to 1 year ago, LXS has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.66, we must say that LXS is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.66, LXS is doing worse than 61.67% of the companies in the same industry.
The Debt to FCF ratio of LXS is 42.44, which is on the high side as it means it would take LXS, 42.44 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of LXS (42.44) 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 | 42.44 | ||
| Altman-Z | 1.66 |
ROIC/WACCN/A
WACC4.92%
2.3 Liquidity
LXS has a Current Ratio of 1.96. This is a normal value and indicates that LXS is financially healthy and should not expect problems in meeting its short term obligations.
LXS's Current ratio of 1.96 is fine compared to the rest of the industry. LXS outperforms 65.00% of its industry peers.
LXS has a Quick Ratio of 1.17. 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 Quick ratio of 1.17. This is comparable to the rest of the industry: LXS outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
LXS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 281.36%, which is quite impressive.
The Earnings Per Share has been growing slightly by 1.81% on average over the past years.
Looking at the last year, LXS shows a very negative growth in Revenue. The Revenue has decreased by -12.85% in the last year.
The Revenue has been decreasing by -0.32% on average over the past years.
EPS 1Y (TTM)281.36%
EPS 3Y-20.47%
EPS 5Y1.81%
EPS Q2Q%156.58%
Revenue 1Y (TTM)-12.85%
Revenue growth 3Y3.23%
Revenue growth 5Y-0.32%
Sales Q2Q%-0.19%
3.2 Future
Based on estimates for the next years, LXS will show a very strong growth in Earnings Per Share. The EPS will grow by 35.98% on average per year.
LXS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.50% yearly.
EPS Next Y160.46%
EPS Next 2Y77.87%
EPS Next 3Y54.04%
EPS Next 5Y35.98%
Revenue Next Year-6.58%
Revenue Next 2Y-2.31%
Revenue Next 3Y-0.3%
Revenue Next 5Y-0.5%
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 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 28.95, LXS can be considered very expensive at the moment.
LXS's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of LXS to the average of the S&P500 Index (28.63), we can say LXS is valued inline with the index average.
With a Price/Forward Earnings ratio of 19.57, LXS is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of LXS is on the same level as its industry peers.
LXS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.95 | ||
| Fwd PE | 19.57 |
4.2 Price Multiples
LXS's Enterprise Value to EBITDA ratio is in line with the industry average.
LXS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.68 | ||
| EV/EBITDA | 11.53 |
4.3 Compensation for Growth
LXS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as LXS's earnings are expected to grow with 54.04% in the coming years.
PEG (NY)0.18
PEG (5Y)16.03
EPS Next 2Y77.87%
EPS Next 3Y54.04%
5. Dividend
5.1 Amount
LXS has a yearly dividend return of 0.32%, which is pretty low.
LXS's Dividend Yield is slightly below the industry average, which is at 2.99.
Compared to an average S&P500 Dividend Yield of 2.39, LXS's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
5.2 History
The dividend of LXS has a limited annual growth rate of 5.44%.
Dividend Growth(5Y)5.44%
Div Incr Years0
Div Non Decr Years4
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.
The dividend of LXS is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-1.04%
EPS Next 2Y77.87%
EPS Next 3Y54.04%
FRA:LXS (3/19/2025, 3:41:52 PM)
30.98
+1.7 (+5.81%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners64.41%
Inst Owner ChangeN/A
Ins Owners2.86%
Ins Owner ChangeN/A
Market Cap2.68B
Analysts71.43
Price Target29.8 (-3.81%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.32% |
Yearly Dividend1.05
Dividend Growth(5Y)5.44%
DP-1.04%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)301%
Min EPS beat(2)130.13%
Max EPS beat(2)471.87%
EPS beat(4)4
Avg EPS beat(4)188.73%
Min EPS beat(4)62.99%
Max EPS beat(4)471.87%
EPS beat(8)7
Avg EPS beat(8)107.04%
EPS beat(12)10
Avg EPS beat(12)75.94%
EPS beat(16)14
Avg EPS beat(16)60.78%
Revenue beat(2)0
Avg Revenue beat(2)-3.49%
Min Revenue beat(2)-4.37%
Max Revenue beat(2)-2.61%
Revenue beat(4)1
Avg Revenue beat(4)-4.13%
Min Revenue beat(4)-10.36%
Max Revenue beat(4)0.82%
Revenue beat(8)2
Avg Revenue beat(8)-3.22%
Revenue beat(12)3
Avg Revenue beat(12)-4.83%
Revenue beat(16)3
Avg Revenue beat(16)-5.66%
PT rev (1m)0.45%
PT rev (3m)-0.65%
EPS NQ rev (1m)20.95%
EPS NQ rev (3m)30.36%
EPS NY rev (1m)0%
EPS NY rev (3m)13.46%
Revenue NQ rev (1m)0.71%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.95 | ||
| Fwd PE | 19.57 | ||
| P/S | 0.42 | ||
| P/FCF | 37.68 | ||
| P/OCF | 7.1 | ||
| P/B | 0.61 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 11.53 |
EPS(TTM)1.07
EY3.45%
EPS(NY)1.58
Fwd EY5.11%
FCF(TTM)0.82
FCFY2.65%
OCF(TTM)4.37
OCFY14.09%
SpS73.18
BVpS50.63
TBVpS22.61
PEG (NY)0.18
PEG (5Y)16.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.16% | ||
| ROE | -19.78% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 19.39% | ||
| FCFM | 1.12% |
ROA(3y)3.11%
ROA(5y)4.33%
ROE(3y)7.54%
ROE(5y)11.96%
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)5.37%
ROCE(5y)5.88%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y12.58%
OM growth 5Y1.67%
PM growth 3Y-23.02%
PM growth 5Y0.92%
GM growth 3Y-9.51%
GM growth 5Y-5.81%
F-Score3
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 42.44 | ||
| Debt/EBITDA | 5.95 | ||
| Cap/Depr | 30.78% | ||
| Cap/Sales | 4.84% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 92.4% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 1.66 |
F-Score3
WACC4.92%
ROIC/WACCN/A
Cap/Depr(3y)66.88%
Cap/Depr(5y)78.42%
Cap/Sales(3y)5.91%
Cap/Sales(5y)6.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)281.36%
EPS 3Y-20.47%
EPS 5Y1.81%
EPS Q2Q%156.58%
EPS Next Y160.46%
EPS Next 2Y77.87%
EPS Next 3Y54.04%
EPS Next 5Y35.98%
Revenue 1Y (TTM)-12.85%
Revenue growth 3Y3.23%
Revenue growth 5Y-0.32%
Sales Q2Q%-0.19%
Revenue Next Year-6.58%
Revenue Next 2Y-2.31%
Revenue Next 3Y-0.3%
Revenue Next 5Y-0.5%
EBIT growth 1Y-606.02%
EBIT growth 3Y16.22%
EBIT growth 5Y1.34%
EBIT Next Year1510.71%
EBIT Next 3Y176.94%
EBIT Next 5Y85.32%
FCF growth 1Y144.1%
FCF growth 3Y58.33%
FCF growth 5Y41.9%
OCF growth 1Y27.36%
OCF growth 3Y12.73%
OCF growth 5Y7.42%