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 61 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
LXS had positive earnings in the past year.
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
LXS has a Return On Assets of -1.82%. This is comparable to the rest of the industry: LXS outperforms 44.26% of its industry peers.
LXS has a Return On Equity (-3.86%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.82% | ||
| ROE | -3.86% | ||
| ROIC | N/A |
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
In the last couple of years the Operating Margin of LXS has declined.
LXS's Gross Margin of 20.39% is on the low side compared to the rest of the industry. LXS is outperformed by 63.93% of its industry peers.
LXS's Gross Margin has declined in the last couple of years.
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 | 20.39% |
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 does not have a ROIC to compare to the WACC, probably because it is not profitable.
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.
LXS has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.78, we must say that LXS is in the distress zone and has some risk of bankruptcy.
LXS has a Altman-Z score of 1.78. This is comparable to the rest of the industry: LXS outperforms 40.98% of its industry peers.
LXS has a debt to FCF ratio of 16.02. This is a negative value and a sign of low solvency as LXS would need 16.02 years to pay back of all of its debts.
LXS has a Debt to FCF ratio (16.02) which is comparable to the rest of the industry.
LXS has a Debt/Equity ratio of 0.53. This is a neutral value indicating LXS is somewhat dependend on debt financing.
LXS has a Debt to Equity ratio (0.53) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 16.02 | ||
| Altman-Z | 1.78 |
ROIC/WACCN/A
WACC4.79%
2.3 Liquidity
A Current Ratio of 1.95 indicates that LXS should not have too much problems paying its short term obligations.
LXS's Current ratio of 1.95 is in line compared to the rest of the industry. LXS outperforms 59.02% of its industry peers.
A Quick Ratio of 1.18 indicates that LXS should not have too much problems paying its short term obligations.
LXS has a Quick ratio (1.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 216.18% 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.
Looking at the last year, LXS shows a decrease in Revenue. The Revenue has decreased by -5.18% in the last year.
LXS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.32% yearly.
EPS 1Y (TTM)216.18%
EPS 3Y-31.1%
EPS 5Y-19.38%
EPS Q2Q%170%
Revenue 1Y (TTM)-5.18%
Revenue growth 3Y1.43%
Revenue growth 5Y-1.32%
Sales Q2Q%3.27%
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 1.36% on average per year.
EPS Next Y2.56%
EPS Next 2Y16.02%
EPS Next 3Y13.72%
EPS Next 5YN/A
Revenue Next Year-0.68%
Revenue Next 2Y1.23%
Revenue Next 3Y1.97%
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.
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
The Price/Earnings ratio is 16.61, which indicates a correct valuation of LXS.
Based on the Price/Earnings ratio, LXS is valued a bit cheaper than the industry average as 73.77% of the companies are valued more expensively.
LXS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.18.
Based on the Price/Forward Earnings ratio of 16.19, the valuation of LXS can be described as correct.
LXS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. LXS is cheaper than 65.57% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.81, LXS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.61 | ||
| Fwd PE | 16.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, LXS is valued a bit cheaper than the industry average as 70.49% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, LXS is valued a bit cheaper than the industry average as 73.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.05 | ||
| EV/EBITDA | 7.87 |
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.
A more expensive valuation may be justified as LXS's earnings are expected to grow with 13.72% in the coming years.
PEG (NY)6.49
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.
Compared to an average industry Dividend Yield of 3.10, LXS is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.45, LXS's dividend is way lower than the S&P500 average.
| 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 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.
DP-5.08%
EPS Next 2Y16.02%
EPS Next 3Y13.72%
FRA:LXS (5/5/2025, 5:35:30 PM)
26.24
-0.04 (-0.15%)
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 Cap2.27B
Analysts65.93
Price Target29.76 (13.41%)
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-5.08%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)241.08%
Min EPS beat(2)130.13%
Max EPS beat(2)352.03%
EPS beat(4)4
Avg EPS beat(4)260.99%
Min EPS beat(4)89.94%
Max EPS beat(4)471.87%
EPS beat(8)7
Avg EPS beat(8)144.62%
EPS beat(12)10
Avg EPS beat(12)101.69%
EPS beat(16)14
Avg EPS beat(16)81.9%
Revenue beat(2)0
Avg Revenue beat(2)-4.62%
Min Revenue beat(2)-4.87%
Max Revenue beat(2)-4.37%
Revenue beat(4)1
Avg Revenue beat(4)-2.76%
Min Revenue beat(4)-4.87%
Max Revenue beat(4)0.82%
Revenue beat(8)2
Avg Revenue beat(8)-3.57%
Revenue beat(12)3
Avg Revenue beat(12)-4.1%
Revenue beat(16)3
Avg Revenue beat(16)-5.95%
PT rev (1m)-1.39%
PT rev (3m)-0.32%
EPS NQ rev (1m)-282.23%
EPS NQ rev (3m)-282.23%
EPS NY rev (1m)-4.68%
EPS NY rev (3m)73.49%
Revenue NQ rev (1m)-1.32%
Revenue NQ rev (3m)-1.32%
Revenue NY rev (1m)-2.66%
Revenue NY rev (3m)-3.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.61 | ||
| Fwd PE | 16.19 | ||
| P/S | 0.36 | ||
| P/FCF | 12.05 | ||
| P/OCF | 4.46 | ||
| P/B | 0.49 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 7.87 |
EPS(TTM)1.58
EY6.02%
EPS(NY)1.62
Fwd EY6.18%
FCF(TTM)2.18
FCFY8.3%
OCF(TTM)5.88
OCFY22.42%
SpS73.72
BVpS53.11
TBVpS23.8
PEG (NY)6.49
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.82% | ||
| ROE | -3.86% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 20.39% | ||
| FCFM | 2.95% |
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)4.25%
ROCE(5y)4.56%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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-Score4
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 16.02 | ||
| Debt/EBITDA | 4.51 | ||
| Cap/Depr | 56.54% | ||
| Cap/Sales | 5.03% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 94.42% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 1.78 |
F-Score4
WACC4.79%
ROIC/WACCN/A
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)216.18%
EPS 3Y-31.1%
EPS 5Y-19.38%
EPS Q2Q%170%
EPS Next Y2.56%
EPS Next 2Y16.02%
EPS Next 3Y13.72%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.18%
Revenue growth 3Y1.43%
Revenue growth 5Y-1.32%
Sales Q2Q%3.27%
Revenue Next Year-0.68%
Revenue Next 2Y1.23%
Revenue Next 3Y1.97%
Revenue Next 5Y1.36%
EBIT growth 1Y95.81%
EBIT growth 3Y-48.45%
EBIT growth 5Y-38.23%
EBIT Next Year1294.49%
EBIT Next 3Y158.7%
EBIT Next 5Y79.5%
FCF growth 1Y-63.28%
FCF growth 3YN/A
FCF growth 5Y6.85%
OCF growth 1Y-39.38%
OCF growth 3Y7.67%
OCF growth 5Y-4.6%