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 65 industry peers in the Chemicals industry. LXS may be in some trouble as it scores bad on both profitability and health. LXS has a decent growth rate and is not valued too expensively.
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.
Of the past 5 years LXS 4 years were profitable.
Each year in the past 5 years LXS had a positive operating cash flow.
1.2 Ratios
LXS has a Return On Assets of -1.43%. This is in the lower half of the industry: LXS underperforms 63.08% of its industry peers.
LXS has a worse Return On Equity (-3.12%) than 63.08% of its industry peers.
With a Return On Invested Capital value of 0.05%, LXS is not doing good in the industry: 67.69% of the companies in the same industry are doing better.
| 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
With a Operating Margin value of 0.09%, LXS is not doing good in the industry: 66.15% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of LXS has declined.
With a Gross Margin value of 21.07%, LXS is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
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
LXS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
LXS has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, LXS has more shares outstanding
Compared to 1 year ago, LXS has an improved debt to assets ratio.
2.2 Solvency
LXS has an Altman-Z score of 1.82. This is not the best score and indicates that LXS is in the grey zone with still only limited risk for bankruptcy at the moment.
LXS has a Altman-Z score of 1.82. This is in the lower half of the industry: LXS underperforms 64.62% of its industry peers.
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.
The Debt to Equity ratio of LXS (0.56) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 28.05 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.01
WACC4.81%
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 comparable to the rest of the industry.
LXS has a Quick Ratio of 1.13. This is a normal value and indicates that LXS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.13, LXS is in line with its industry, outperforming 53.85% of the companies in the same industry.
| 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.
LXS shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.38% yearly.
LXS shows a decrease in Revenue. In the last year, the revenue decreased by -0.97%.
The Revenue has been decreasing by -1.32% on average over the past years.
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.
LXS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.36% yearly.
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 5Y1.36%
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 13.91, the valuation of LXS can be described as correct.
Based on the Price/Earnings ratio, LXS is valued cheaper than 81.54% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.29, LXS is valued a bit cheaper.
With a Price/Forward Earnings ratio of 12.42, LXS is valued correctly.
LXS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LXS is cheaper than 70.77% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of LXS to the average of the S&P500 Index (22.17), we can say LXS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.91 | ||
| Fwd PE | 12.42 |
4.2 Price Multiples
LXS's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. LXS is cheaper than 75.38% 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 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.32 | ||
| EV/EBITDA | 7.97 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates LXS does not grow enough to justify the current Price/Earnings ratio.
LXS's earnings are expected to grow with 13.72% in the coming years. This may justify a more expensive valuation.
PEG (NY)5.44
PEG (5Y)N/A
EPS Next 2Y16.02%
EPS Next 3Y13.72%
5. Dividend
5.1 Amount
With a yearly dividend of 0.37%, LXS is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.09, LXS is paying slightly less dividend.
With a Dividend Yield of 0.37, LXS pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
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 (6/3/2025, 5:36:15 PM)
26.42
-0.62 (-2.29%)
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 Cap2.28B
Analysts65.93
Price Target29.76 (12.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.37% |
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)0%
PT rev (3m)0.32%
EPS NQ rev (1m)-98%
EPS NQ rev (3m)-98.39%
EPS NY rev (1m)0%
EPS NY rev (3m)2.38%
Revenue NQ rev (1m)-5.12%
Revenue NQ rev (3m)-6.84%
Revenue NY rev (1m)-0.73%
Revenue NY rev (3m)-3.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.91 | ||
| Fwd PE | 12.42 | ||
| P/S | 0.36 | ||
| P/FCF | 21.32 | ||
| P/OCF | 5.27 | ||
| P/B | 0.52 | ||
| P/tB | 1.18 | ||
| EV/EBITDA | 7.97 |
EPS(TTM)1.9
EY7.19%
EPS(NY)2.13
Fwd EY8.05%
FCF(TTM)1.24
FCFY4.69%
OCF(TTM)5.01
OCFY18.98%
SpS73.65
BVpS50.47
TBVpS22.35
PEG (NY)5.44
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 | 1.82 |
F-Score5
WACC4.81%
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 5Y1.36%
EBIT growth 1Y100.79%
EBIT growth 3Y-48.45%
EBIT growth 5Y-38.23%
EBIT Next Year1226.47%
EBIT Next 3Y155.37%
EBIT Next 5Y79.5%
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%