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. WCH has only an average score on both its financial health and profitability. WCH has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
WCH had positive earnings in the past year.
WCH had a positive operating cash flow in the past year.
Of the past 5 years WCH 4 years were profitable.
WCH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
WCH's Return On Assets of 3.48% is fine compared to the rest of the industry. WCH outperforms 67.21% of its industry peers.
WCH's Return On Equity of 7.02% is fine compared to the rest of the industry. WCH outperforms 67.21% of its industry peers.
WCH has a Return On Invested Capital of 3.97%. This is in the better half of the industry: WCH outperforms 63.93% of its industry peers.
WCH had an Average Return On Invested Capital over the past 3 years of 11.79%. This is significantly above the industry average of 6.72%.
The 3 year average ROIC (11.79%) for WCH is well above the current ROIC(3.97%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.48% | ||
| ROE | 7.02% | ||
| ROIC | 3.97% |
ROA(3y)8.92%
ROA(5y)3.92%
ROE(3y)19.85%
ROE(5y)7.7%
ROIC(3y)11.79%
ROIC(5y)8.7%
1.3 Margins
With a decent Profit Margin value of 4.90%, WCH is doing good in the industry, outperforming 67.21% of the companies in the same industry.
In the last couple of years the Profit Margin of WCH has remained more or less at the same level.
With a decent Operating Margin value of 5.69%, WCH is doing good in the industry, outperforming 63.93% of the companies in the same industry.
In the last couple of years the Operating Margin of WCH has remained more or less at the same level.
WCH has a worse Gross Margin (16.92%) than 68.85% of its industry peers.
WCH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.69% | ||
| PM (TTM) | 4.9% | ||
| GM | 16.92% |
OM growth 3Y-12.76%
OM growth 5Y0.99%
PM growth 3Y6.7%
PM growth 5Y-0.18%
GM growth 3Y-3.01%
GM growth 5Y-0.75%
2. Health
2.1 Basic Checks
WCH has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
There is no outstanding debt for WCH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
WCH has an Altman-Z score of 2.33. This is not the best score and indicates that WCH is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.33, WCH is in line with its industry, outperforming 55.74% of the companies in the same industry.
WCH has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.35, WCH is in the better half of the industry, outperforming 63.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.33 |
ROIC/WACC0.67
WACC5.93%
2.3 Liquidity
A Current Ratio of 2.58 indicates that WCH has no problem at all paying its short term obligations.
The Current ratio of WCH (2.58) is better than 75.41% of its industry peers.
A Quick Ratio of 1.51 indicates that WCH should not have too much problems paying its short term obligations.
WCH has a better Quick ratio (1.51) than 70.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The earnings per share for WCH have decreased strongly by -23.17% in the last year.
The earnings per share for WCH have been decreasing by -33.20% on average. This is quite bad
EPS 1Y (TTM)-23.17%
EPS 3Y-33.2%
EPS 5YN/A
EPS Q2Q%510.87%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-3.46%
3.2 Future
The Earnings Per Share is expected to grow by 17.99% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.34% on average over the next years.
EPS Next Y14.41%
EPS Next 2Y27.91%
EPS Next 3Y28.31%
EPS Next 5Y17.99%
Revenue Next Year6.62%
Revenue Next 2Y6.69%
Revenue Next 3Y5.76%
Revenue Next 5Y3.34%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.05, which indicates a rather expensive current valuation of WCH.
Compared to the rest of the industry, the Price/Earnings ratio of WCH indicates a somewhat cheap valuation: WCH is cheaper than 72.13% of the companies listed in the same industry.
WCH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.90.
The Price/Forward Earnings ratio is 14.91, which indicates a correct valuation of WCH.
Based on the Price/Forward Earnings ratio, WCH is valued a bit cheaper than the industry average as 67.21% of the companies are valued more expensively.
WCH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.05 | ||
| Fwd PE | 14.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WCH is valued cheaply inside the industry as 85.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.9 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of WCH may justify a higher PE ratio.
WCH's earnings are expected to grow with 28.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.18
PEG (5Y)N/A
EPS Next 2Y27.91%
EPS Next 3Y28.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.09%, WCH has a reasonable but not impressive dividend return.
WCH's Dividend Yield is a higher than the industry average which is at 2.91.
WCH's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
5.2 History
On average, the dividend of WCH grows each year by 21.67%, which is quite nice.
Dividend Growth(5Y)21.67%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
46.88% of the earnings are spent on dividend by WCH. This is a bit on the high side, but may be sustainable.
WCH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP46.88%
EPS Next 2Y27.91%
EPS Next 3Y28.31%
FRA:WCH (3/14/2025, 7:00:00 PM)
82.54
+1.56 (+1.93%)
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 Cap4.30B
Analysts80.95
Price Target103.36 (25.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
Yearly Dividend12
Dividend Growth(5Y)21.67%
DP46.88%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.34%
Min EPS beat(2)-29.57%
Max EPS beat(2)42.24%
EPS beat(4)1
Avg EPS beat(4)-12.03%
Min EPS beat(4)-59.63%
Max EPS beat(4)42.24%
EPS beat(8)3
Avg EPS beat(8)-2.97%
EPS beat(12)7
Avg EPS beat(12)2.33%
EPS beat(16)11
Avg EPS beat(16)15.89%
Revenue beat(2)0
Avg Revenue beat(2)-1.16%
Min Revenue beat(2)-1.55%
Max Revenue beat(2)-0.77%
Revenue beat(4)0
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-3.31%
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)-5.49%
PT rev (3m)-13.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.43%
EPS NY rev (3m)1.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.05 | ||
| Fwd PE | 14.91 | ||
| P/S | 0.67 | ||
| P/FCF | N/A | ||
| P/OCF | 7.31 | ||
| P/B | 0.96 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | 5.9 |
EPS(TTM)4.84
EY5.86%
EPS(NY)5.54
Fwd EY6.71%
FCF(TTM)-6.98
FCFYN/A
OCF(TTM)11.29
OCFY13.68%
SpS122.77
BVpS85.62
TBVpS79.85
PEG (NY)1.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.48% | ||
| ROE | 7.02% | ||
| ROCE | 4.84% | ||
| ROIC | 3.97% | ||
| ROICexc | 4.66% | ||
| ROICexgc | 4.89% | ||
| OM | 5.69% | ||
| PM (TTM) | 4.9% | ||
| GM | 16.92% | ||
| FCFM | N/A |
ROA(3y)8.92%
ROA(5y)3.92%
ROE(3y)19.85%
ROE(5y)7.7%
ROIC(3y)11.79%
ROIC(5y)8.7%
ROICexc(3y)15.58%
ROICexc(5y)11.34%
ROICexgc(3y)16.02%
ROICexgc(5y)11.61%
ROCE(3y)14.39%
ROCE(5y)10.62%
ROICexcg growth 3Y-7.2%
ROICexcg growth 5Y7.75%
ROICexc growth 3Y-8.69%
ROICexc growth 5Y6.75%
OM growth 3Y-12.76%
OM growth 5Y0.99%
PM growth 3Y6.7%
PM growth 5Y-0.18%
GM growth 3Y-3.01%
GM growth 5Y-0.75%
F-Score4
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.97 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 10.02 | ||
| Cash Conversion | 73.27% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 2.33 |
F-Score4
WACC5.93%
ROIC/WACC0.67
Cap/Depr(3y)123.94%
Cap/Depr(5y)91.88%
Cap/Sales(3y)7.33%
Cap/Sales(5y)7.05%
Profit Quality(3y)77.27%
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 Y14.41%
EPS Next 2Y27.91%
EPS Next 3Y28.31%
EPS Next 5Y17.99%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-3.46%
Revenue Next Year6.62%
Revenue Next 2Y6.69%
Revenue Next 3Y5.76%
Revenue Next 5Y3.34%
EBIT growth 1Y-75.64%
EBIT growth 3Y-3.24%
EBIT growth 5Y6.2%
EBIT Next Year76.32%
EBIT Next 3Y37.05%
EBIT Next 5Y20.64%
FCF growth 1Y-143.72%
FCF growth 3Y-22.89%
FCF growth 5Y24.1%
OCF growth 1Y-42.81%
OCF growth 3Y2.33%
OCF growth 5Y12.94%