WACKER CHEMIE AG (WCH.DE) Stock Fundamental Analysis
FRA:WCH - Deutsche Boerse Ag - DE000WCH8881 - Common Stock - Currency: EUR
WCH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 61 industry peers in the Chemicals industry. Both the profitability and the financial health of WCH get a neutral evaluation. Nothing too spectacular is happening here. WCH has a decent growth rate and is not valued too expensively. WCH also has an excellent dividend rating. This makes WCH very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year WCH was profitable.
In the past year WCH had a positive cash flow from operations.
Each year in the past 5 years WCH has been profitable.
In the past 5 years WCH always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WCH (3.33%) is better than 67.21% of its industry peers.
Looking at the Return On Equity, with a value of 6.71%, WCH is in the better half of the industry, outperforming 67.21% of the companies in the same industry.
WCH has a Return On Invested Capital of 3.78%. This is in the better half of the industry: WCH outperforms 62.30% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WCH is in line with the industry average of 6.29%.
The 3 year average ROIC (8.12%) for WCH is well above the current ROIC(3.78%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.33% | ||
| ROE | 6.71% | ||
| ROIC | 3.78% |
ROA(3y)6.47%
ROA(5y)6.41%
ROE(3y)12.66%
ROE(5y)15.27%
ROIC(3y)8.12%
ROIC(5y)9.02%
1.3 Margins
Looking at the Profit Margin, with a value of 3.62%, WCH is in the better half of the industry, outperforming 62.30% of the companies in the same industry.
In the last couple of years the Profit Margin of WCH has declined.
WCH has a Operating Margin of 4.08%. This is comparable to the rest of the industry: WCH outperforms 55.74% of its industry peers.
WCH's Operating Margin has improved in the last couple of years.
The Gross Margin of WCH (16.32%) is worse than 70.49% of its industry peers.
WCH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.08% | ||
| PM (TTM) | 3.62% | ||
| GM | 16.32% |
OM growth 3Y-35.5%
OM growth 5Y4.99%
PM growth 3Y-31.32%
PM growth 5YN/A
GM growth 3Y-13.82%
GM growth 5Y1.13%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WCH is creating some value.
The number of shares outstanding for WCH remains at a similar level compared to 1 year ago.
The number of shares outstanding for WCH remains at a similar level compared to 5 years ago.
WCH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.41 indicates that WCH is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.41, WCH is in the better half of the industry, outperforming 60.66% of the companies in the same industry.
WCH has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
WCH has a Debt to Equity ratio of 0.37. This is comparable to the rest of the industry: WCH outperforms 59.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.41 |
ROIC/WACC0.62
WACC6.08%
2.3 Liquidity
A Current Ratio of 2.66 indicates that WCH has no problem at all paying its short term obligations.
The Current ratio of WCH (2.66) is better than 78.69% of its industry peers.
A Quick Ratio of 1.48 indicates that WCH should not have too much problems paying its short term obligations.
The Quick ratio of WCH (1.48) is better than 70.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.66 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
WCH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.17%.
The earnings per share for WCH have been decreasing by -33.20% on average. This is quite bad
WCH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.63%.
The Revenue has been growing slightly by 3.03% on average over the past years.
EPS 1Y (TTM)-23.17%
EPS 3Y-33.2%
EPS 5YN/A
EPS Q2Q%510.87%
Revenue 1Y (TTM)-10.63%
Revenue growth 3Y-2.68%
Revenue growth 5Y3.03%
Sales Q2Q%-3.46%
3.2 Future
Based on estimates for the next years, WCH will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.01% on average per year.
Based on estimates for the next years, WCH will show a small growth in Revenue. The Revenue will grow by 4.19% on average per year.
EPS Next Y-26.72%
EPS Next 2Y13.06%
EPS Next 3Y13.13%
EPS Next 5Y15.01%
Revenue Next Year4.84%
Revenue Next 2Y6.2%
Revenue Next 3Y5.06%
Revenue Next 5Y4.19%
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
Based on the Price/Earnings ratio of 13.57, the valuation of WCH can be described as correct.
80.33% of the companies in the same industry are more expensive than WCH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of WCH to the average of the S&P500 Index (24.12), we can say WCH is valued slightly cheaper.
The Price/Forward Earnings ratio is 18.52, which indicates a rather expensive current valuation of WCH.
Based on the Price/Forward Earnings ratio, WCH is valued a bit cheaper than the industry average as 62.30% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 20.42. WCH is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 18.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WCH is valued cheaply inside the industry as 90.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.74 |
4.3 Compensation for Growth
WCH has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WCH's earnings are expected to grow with 13.13% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.06%
EPS Next 3Y13.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.79%, WCH has a reasonable but not impressive dividend return.
WCH's Dividend Yield is rather good when compared to the industry average which is at 3.10. WCH pays more dividend than 80.33% of the companies in the same industry.
WCH's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
5.2 History
The dividend of WCH has a limited annual growth rate of 3.71%.
Dividend Growth(5Y)3.71%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
47.59% of the earnings are spent on dividend by WCH. This is a bit on the high side, but may be sustainable.
The dividend of WCH is growing, but earnings are growing more, so the dividend growth is sustainable.
DP47.59%
EPS Next 2Y13.06%
EPS Next 3Y13.13%
FRA:WCH (5/8/2025, 7:00:00 PM)
65.7
-0.1 (-0.15%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners17.96%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap3.43B
Analysts81.82
Price Target93.12 (41.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
Yearly Dividend3
Dividend Growth(5Y)3.71%
DP47.59%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.75%
Min EPS beat(2)-5.33%
Max EPS beat(2)18.83%
EPS beat(4)2
Avg EPS beat(4)6.54%
Min EPS beat(4)-29.57%
Max EPS beat(4)42.24%
EPS beat(8)4
Avg EPS beat(8)0.64%
EPS beat(12)6
Avg EPS beat(12)1.59%
EPS beat(16)10
Avg EPS beat(16)6.34%
Revenue beat(2)0
Avg Revenue beat(2)-2.38%
Min Revenue beat(2)-2.62%
Max Revenue beat(2)-2.14%
Revenue beat(4)0
Avg Revenue beat(4)-1.77%
Min Revenue beat(4)-2.62%
Max Revenue beat(4)-0.77%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-7.89%
PT rev (3m)-14.86%
EPS NQ rev (1m)576.67%
EPS NQ rev (3m)-61.35%
EPS NY rev (1m)-13.94%
EPS NY rev (3m)-40.72%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.74%
Revenue NY rev (3m)-2.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.57 | ||
| Fwd PE | 18.52 | ||
| P/S | 0.4 | ||
| P/FCF | N/A | ||
| P/OCF | 11.04 | ||
| P/B | 0.73 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | 4.74 |
EPS(TTM)4.84
EY7.37%
EPS(NY)3.55
Fwd EY5.4%
FCF(TTM)-6.54
FCFYN/A
OCF(TTM)5.95
OCFY9.06%
SpS165.69
BVpS89.53
TBVpS84
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.33% | ||
| ROE | 6.71% | ||
| ROCE | 4.47% | ||
| ROIC | 3.78% | ||
| ROICexc | 4.5% | ||
| ROICexgc | 4.7% | ||
| OM | 4.08% | ||
| PM (TTM) | 3.62% | ||
| GM | 16.32% | ||
| FCFM | N/A |
ROA(3y)6.47%
ROA(5y)6.41%
ROE(3y)12.66%
ROE(5y)15.27%
ROIC(3y)8.12%
ROIC(5y)9.02%
ROICexc(3y)10.44%
ROICexc(5y)11.8%
ROICexgc(3y)10.89%
ROICexgc(5y)12.12%
ROCE(3y)9.6%
ROCE(5y)10.67%
ROICexcg growth 3Y-43.15%
ROICexcg growth 5Y3.81%
ROICexc growth 3Y-43.8%
ROICexc growth 5Y3.01%
OM growth 3Y-35.5%
OM growth 5Y4.99%
PM growth 3Y-31.32%
PM growth 5YN/A
GM growth 3Y-13.82%
GM growth 5Y1.13%
F-Score4
Asset Turnover0.92
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.09 | ||
| Cap/Depr | 137.85% | ||
| Cap/Sales | 7.54% | ||
| Interest Coverage | 7.57 | ||
| Cash Conversion | 37.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.66 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 2.41 |
F-Score4
WACC6.08%
ROIC/WACC0.62
Cap/Depr(3y)143.39%
Cap/Depr(5y)113.16%
Cap/Sales(3y)9.4%
Cap/Sales(5y)7.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-23.17%
EPS 3Y-33.2%
EPS 5YN/A
EPS Q2Q%510.87%
EPS Next Y-26.72%
EPS Next 2Y13.06%
EPS Next 3Y13.13%
EPS Next 5Y15.01%
Revenue 1Y (TTM)-10.63%
Revenue growth 3Y-2.68%
Revenue growth 5Y3.03%
Sales Q2Q%-3.46%
Revenue Next Year4.84%
Revenue Next 2Y6.2%
Revenue Next 3Y5.06%
Revenue Next 5Y4.19%
EBIT growth 1Y-21.61%
EBIT growth 3Y-37.23%
EBIT growth 5Y8.18%
EBIT Next Year157.57%
EBIT Next 3Y50.07%
EBIT Next 5Y28.23%
FCF growth 1Y-215%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-66.85%
OCF growth 3Y-33.69%
OCF growth 5Y-12.49%