Valuation Update With 7 Day Price Move • 12h
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to €3.29, the stock trades at a forward P/E ratio of 27x. Average forward P/E is 15x in the Chemicals industry in Germany. Total loss to shareholders of 27% over the past three years. New Risk • Jul 09
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 6.9% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.9x net interest cover). Share price has been highly volatile over the past 3 months (19% average weekly change). Earnings are forecast to decline by an average of 6.9% per year for the foreseeable future. High level of non-cash earnings (44% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (5.5% net profit margin). Valuation Update With 7 Day Price Move • May 29
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to €2.58, the stock trades at a trailing P/E ratio of 10.3x. Average forward P/E is 17x in the Chemicals industry in Germany. Total loss to shareholders of 30% over the past three years. Board Change • May 20
Less than half of directors are independent There is 1 new director who has joined the board in the last 3 years. The new board member was an independent director. The company's board is composed of: 1 new director. 9 experienced directors. 2 highly experienced directors. 4 independent directors (6 non-independent directors). Independent Director & Advisor Antonio Guglielmi was the last independent director to join the board, commencing their role in 2025. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Oct 02
First half 2024 earnings released First half 2024 results: Revenue: €94.2m (up 4.9% from 1H 2023). Net loss: €5.72m (loss narrowed 18% from 1H 2023). Revenue is forecast to grow 24% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Chemicals industry in Germany. New Risk • Apr 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of German stocks, typically moving 7.2% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Reported Earnings • Apr 03
Full year 2023 earnings released Full year 2023 results: Revenue: €200.1m (up 7.2% from FY 2022). Net loss: €11.2m (loss widened 156% from FY 2022). Revenue is forecast to grow 25% p.a. on average during the next 2 years, compared to a 3.8% growth forecast for the Chemicals industry in Germany. New Risk • Oct 11
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of German stocks, typically moving 8.5% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-€19m free cash flow). Share price has been highly volatile over the past 3 months (8.5% average weekly change). Minor Risk Shareholders have been diluted in the past year (9.3% increase in shares outstanding). Reported Earnings • Sep 25
First half 2023 earnings released First half 2023 results: Revenue: €89.8m (down 4.2% from 1H 2022). Net loss: €7.04m (loss widened 37% from 1H 2022). Revenue is forecast to grow 28% p.a. on average during the next 3 years, compared to a 8.7% growth forecast for the Electrical industry in Germany. Board Change • Sep 05
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 7 non-independent directors. Independent Chairman of the Board Roberto Maviglia was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model.