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Covestro

WBAG:1COV
Snowflake Description

Flawless balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
1COV
WBAG
€10B
Market Cap
  1. Home
  2. AT
  3. Materials
Company description

Covestro AG develops, produces, and markets polymer materials for various industries worldwide. The last earnings update was 52 days ago. More info.


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1COV Share Price and Events
7 Day Returns
-1.5%
WBAG:1COV
2.9%
Europe Chemicals
3.4%
AT Market
1 Year Returns
-35.2%
WBAG:1COV
-1.6%
Europe Chemicals
-2%
AT Market
1COV Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Covestro (1COV) -1.5% 10.7% 9.7% -35.2% - -
Europe Chemicals 2.9% 4.4% 11.7% -1.6% 21.6% 27.3%
AT Market 3.4% 6% 10.1% -2% 43.4% 29.5%
1 Year Return vs Industry and Market
  • 1COV underperformed the Chemicals industry which returned -1.6% over the past year.
  • 1COV underperformed the Market in Austria which returned -2% over the past year.
Price Volatility
1COV
Industry
5yr Volatility vs Market

1COV Value

 Is Covestro undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Covestro to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Covestro.

WBAG:1COV Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 20 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.5%
Perpetual Growth Rate 10-Year AT Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for WBAG:1COV
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AT Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.931 (1 + (1- 30%) (12.51%))
1.009
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.01
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.51% + (1.009 * 5.96%)
6.52%

Discounted Cash Flow Calculation for WBAG:1COV using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Covestro is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

WBAG:1COV DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 6.52%)
2019 518.89 Analyst x10 487.12
2020 498.18 Analyst x9 439.05
2021 372.00 Analyst x8 307.77
2022 335.50 Analyst x2 260.58
2023 325.00 Analyst x1 236.97
2024 318.26 Est @ -2.07% 217.84
2025 314.13 Est @ -1.3% 201.85
2026 311.75 Est @ -0.76% 188.06
2027 310.58 Est @ -0.38% 175.88
2028 310.23 Est @ -0.11% 164.93
Present value of next 10 years cash flows €2,680.05
WBAG:1COV DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €310.23 × (1 + 0.51%) ÷ (6.52% – 0.51%)
€5,186.64
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €5,186.64 ÷ (1 + 6.52%)10
€2,757.38
WBAG:1COV Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €2,680.05 + €2,757.38
€5,437.43
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €5,437.43 / 182.70
€29.76
WBAG:1COV Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in WBAG:1COV represents 0.99925x of DB:1COV
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99925x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (EUR) x Listing Adjustment Factor
= € 29.76 x 0.99925
€29.74
Value per share (EUR) From above. €29.74
Current discount Discount to share price of €53.02
= -1 x (€53.02 - €29.74) / €29.74
-78.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Covestro is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Covestro's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Covestro's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
WBAG:1COV PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in EUR €9.46
DB:1COV Share Price ** DB (2019-04-18) in EUR €53.06
Europe Chemicals Industry PE Ratio Median Figure of 93 Publicly-Listed Chemicals Companies 18.75x
Austria Market PE Ratio Median Figure of 51 Publicly-Listed Companies 14.73x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Covestro.

WBAG:1COV PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= DB:1COV Share Price ÷ EPS (both in EUR)

= 53.06 ÷ 9.46

5.61x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Covestro is good value based on earnings compared to the Europe Chemicals industry average.
  • Covestro is good value based on earnings compared to the Austria market.
Price based on expected Growth
Does Covestro's expected growth come at a high price?
Raw Data
WBAG:1COV PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.61x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
-21.9%per year
Europe Chemicals Industry PEG Ratio Median Figure of 62 Publicly-Listed Chemicals Companies 1.89x
Austria Market PEG Ratio Median Figure of 32 Publicly-Listed Companies 1.34x

*Line of best fit is calculated by linear regression .

WBAG:1COV PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.61x ÷ -21.9%

-0.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Covestro earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Covestro's assets?
Raw Data
WBAG:1COV PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in EUR €29.24
DB:1COV Share Price * DB (2019-04-18) in EUR €53.06
Europe Chemicals Industry PB Ratio Median Figure of 138 Publicly-Listed Chemicals Companies 1.85x
Austria Market PB Ratio Median Figure of 59 Publicly-Listed Companies 1.27x
WBAG:1COV PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= DB:1COV Share Price ÷ Book Value per Share (both in EUR)

= 53.06 ÷ 29.24

1.81x

* Primary Listing of Covestro.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Covestro is good value based on assets compared to the Europe Chemicals industry average.
X
Value checks
We assess Covestro's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check)
  5. Covestro has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

1COV Future Performance

 How is Covestro expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-21.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Covestro expected to grow at an attractive rate?
  • Covestro's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.5%.
Growth vs Market Checks
  • Covestro's earnings are expected to decrease over the next 1-3 years, this is below the Austria market average.
  • Covestro's revenue growth is positive but not above the Austria market average.
Annual Growth Rates Comparison
Raw Data
WBAG:1COV Future Growth Rates Data Sources
Data Point Source Value (per year)
WBAG:1COV Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts -21.9%
WBAG:1COV Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 0.7%
Europe Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 10%
Europe Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 3.5%
Austria Market Earnings Growth Rate Market Cap Weighted Average 9%
Austria Market Revenue Growth Rate Market Cap Weighted Average 2.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
WBAG:1COV Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
WBAG:1COV Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 16,828 1,578 1,152 1
2022-12-31 15,623 1,542 940 3
2021-12-31 14,272 1,593 859 17
2020-12-31 13,775 1,489 764 19
2019-12-31 13,412 1,489 741 20
WBAG:1COV Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-12-31 14,616 2,376 1,823
2018-09-30 14,866 2,625 2,310
2018-06-30 14,696 2,634 2,305
2018-03-31 14,331 2,528 2,185
2017-12-31 14,138 2,361 2,009
2017-09-30 13,633 2,081 1,567
2017-06-30 13,123 2,042 1,335
2017-03-31 12,615 1,947 1,081
2016-12-31 11,904 1,786 795
2016-09-30 11,685 1,726 587
2016-06-30 11,683 1,369 488
2016-03-31 11,903 1,413 410

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Covestro's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Covestro's revenue is expected to grow by 0.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
WBAG:1COV Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from Covestro Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WBAG:1COV Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 6.70 6.70 6.70 1.00
2022-12-31 5.71 6.75 4.67 2.00
2021-12-31 4.95 5.73 4.04 12.00
2020-12-31 4.34 4.94 3.66 15.00
2019-12-31 4.12 5.00 3.55 16.00
WBAG:1COV Past Financials Data
Date (Data in EUR Millions) EPS *
2018-12-31 9.46
2018-09-30 11.72
2018-06-30 11.52
2018-03-31 10.84
2017-12-31 9.93
2017-09-30 7.74
2017-06-30 6.59
2017-03-31 5.34
2016-12-31 3.93
2016-09-30 2.91
2016-06-30 2.62
2016-03-31 2.40

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Covestro is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Covestro's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Covestro has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

1COV Past Performance

  How has Covestro performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Covestro's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Covestro has delivered over 20% year on year earnings growth in the past 5 years.
  • Covestro's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Covestro's 1-year earnings growth is negative, it can't be compared to the Europe Chemicals industry average.
Earnings and Revenue History
Covestro's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Covestro Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WBAG:1COV Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 14,616.00 1,823.00 1,924.00 276.00
2018-09-30 14,866.00 2,310.00 1,922.00 275.00
2018-06-30 14,696.00 2,305.00 1,897.00 278.00
2018-03-31 14,331.00 2,185.00 1,859.00 278.00
2017-12-31 14,138.00 2,009.00 1,859.00 274.00
2017-09-30 13,633.00 1,567.00 1,874.00 267.00
2017-06-30 13,123.00 1,335.00 1,860.00 266.00
2017-03-31 12,615.00 1,081.00 1,846.00 260.00
2016-12-31 11,904.00 795.00 1,815.00 259.00
2016-09-30 11,685.00 587.00 1,755.00 261.00
2016-06-30 11,683.00 488.00 1,708.00 257.00
2016-03-31 11,903.00 410.00 1,691.00 258.00
2015-12-31 12,082.00 343.00 1,640.00 256.00
2015-09-30 12,264.00 422.00 1,593.00 243.00
2015-06-30 12,306.00 361.00 1,568.00 228.00
2015-03-31 11,955.50 298.00 1,483.00 220.00
2014-12-31 11,761.00 272.00 1,448.00 214.00
2013-12-31 11,357.00 180.00 1,441.00 222.00
2012-12-31 11,610.00 261.00 1,478.00 247.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Covestro has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Covestro used its assets more efficiently than the Europe Chemicals industry average last year based on Return on Assets.
  • Covestro has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Covestro's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Covestro has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

1COV Health

 How is Covestro's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Covestro's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Covestro is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Covestro's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Covestro's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 4.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Covestro Company Filings, last reported 3 months ago.

WBAG:1COV Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 5,375.00 1,213.00 865.00
2018-09-30 5,693.00 1,228.00 860.00
2018-06-30 5,505.00 1,246.00 563.00
2018-03-31 5,686.00 1,275.00 1,106.00
2017-12-31 5,365.00 1,787.00 1,232.00
2017-09-30 5,132.00 1,833.00 1,302.00
2017-06-30 4,746.00 1,935.00 765.00
2017-03-31 4,721.00 1,937.00 635.00
2016-12-31 4,216.00 1,898.00 267.00
2016-09-30 3,618.00 2,032.00 643.00
2016-06-30 3,411.00 2,170.00 177.00
2016-03-31 3,430.00 3,134.00 1,086.00
2015-12-31 3,612.00 2,850.00 642.00
2015-09-30 1,116.00 5,397.00 438.00
2015-06-30 1,728.00 5,214.00 645.00
2015-03-31 1,787.00 4,717.00 201.00
2014-12-31 1,787.00 4,717.00 201.00
2013-12-31 2,779.00 4,551.00 37.00
2012-12-31 2,579.00 4,744.00 44.00
  • Covestro's level of debt (22.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (163.9% vs 22.6% today).
  • Debt is well covered by operating cash flow (195.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 45.9x coverage).
X
Financial health checks
We assess Covestro's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Covestro has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

1COV Dividends

 What is Covestro's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.52%
Current annual income from Covestro dividends. Estimated to be 4.67% next year.
If you bought €2,000 of Covestro shares you are expected to receive €90 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Covestro's pays a higher dividend yield than the bottom 25% of dividend payers in Austria (1.44%).
  • Covestro's dividend is below the markets top 25% of dividend payers in Austria (4.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
WBAG:1COV Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
Europe Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 78 Stocks 3%
Austria Market Average Dividend Yield Market Cap Weighted Average of 49 Stocks 3.4%
Austria Minimum Threshold Dividend Yield 10th Percentile 1.1%
Austria Bottom 25% Dividend Yield 25th Percentile 1.4%
Austria Top 25% Dividend Yield 75th Percentile 4.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

WBAG:1COV Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 2.38 1.00
2021-12-31 2.55 17.00
2020-12-31 2.47 19.00
2019-12-31 2.43 18.00
WBAG:1COV Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-02-25 2.400 4.791
2018-02-20 2.200 3.405
2017-02-20 1.350 1.845
2016-02-23 0.700 1.584

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Covestro has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Covestro only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of Covestro's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Covestro's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Covestro afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Covestro has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

1COV Management

 What is the CEO of Covestro's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Markus Steilemann
COMPENSATION €3,556,000
AGE 48
TENURE AS CEO 0.8 years
CEO Bio

Dr. Markus Steilemann is Member of Management Board since August 20, 2015 of Covestro AG and serves its Chairman of Management Board. He serves as a Chief Executive Officer of Covestro AG since June 01, 2018 and also serves its Chief Commercial Officer. Dr. Steilemann is Chief Executive Officer of Covestro Aktiengesellschaft since May 2018. Dr. Steilemann was Chief Commercial Officer at Covestro Aktiengesellschaft from August 20, 2015 to June 2018. Dr. Steilemann served as Head of The Polyrethanes Segment at Covestro AG since 2016. Dr. Steilemann served as the Chief Innovation Officer Covestro AG, Leverkusen and served as its Head of Innovation. Dr. Steilemann served as the Head of Polycarbonates Business Unit at Covestro AG, Leverkusen(also known as Bayer MaterialScience AG) since April 1, 2013. He joined Bayer as an Internal Consultant within Bayer’s Corporate Organization and Planning function in 1999. Since then, he has held numerous positions with increasing responsibility and gained broad experience in business modeling, organizational development and supply chain. In January 2008 Dr. Steilemann joined the Polycarbonates business unit, heading a number of different regional business segments. In August 2011, he relocated to Shanghai and the global headquarters of the Polycarbonates business unit and served as Head of global Industrial Marketing since July 2012. Dr. Steilemann studied chemistry at the University of Aachen, Germany and the University of Zurich, Switzerland. He holds a PhD in technical chemistry from the University of Aachen and in addition, a Masters Degree in chemical economics.

CEO Compensation
  • Markus's compensation has increased by more than 20% in the past year.
  • Insufficient data for Markus to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure

Average tenure and age of the Covestro management team in years:

3.3
Average Tenure
53.5
Average Age
  • The tenure for the Covestro management team is about average.
Management Team

Markus Steilemann

TITLE
CEO, Chief Commercial Officer & Chairman of Management Board
COMPENSATION
€4M
AGE
48
TENURE
0.8 yrs

Thomas Toepfer

TITLE
CFO, Labor Director & Member of Management Board
COMPENSATION
€4M
AGE
46
TENURE
1 yrs

Klaus Schäfer

TITLE
CTO & Member of Management Board
COMPENSATION
€2M
AGE
56
TENURE
3.7 yrs

Ronald Kohler

TITLE
Head of Investor Relations

Joachim Wolff

TITLE
Head of Polyurethanes Business Unit
AGE
66
TENURE
15.3 yrs

Daniel Meyer

TITLE
Head of Polyurethanes (PU) Segment
AGE
51
TENURE
7.8 yrs

Richard Northcote

TITLE
Chief Sustainability Officer
AGE
59

Michelle Jou

TITLE
Head of Polycarbonates Segment
TENURE
3.3 yrs

Michael Friede

TITLE
Head of S Coatings
TENURE
1.6 yrs

Uwe Arndt

TITLE
Head of MDI Site
Board of Directors Tenure

Average tenure and age of the Covestro board of directors in years:

3.5
Average Tenure
59.5
Average Age
  • The tenure for the Covestro board of directors is about average.
Board of Directors

Richard Pott

TITLE
Chairman of Supervisory Board
COMPENSATION
€310K
AGE
65
TENURE
3.7 yrs

Petra Kronen

TITLE
Vice Chairman of Supervisory Board
COMPENSATION
€160K
AGE
54
TENURE
3.5 yrs

Rolf Nonnenmacher

TITLE
Member of Supervisory Board
COMPENSATION
€159K
AGE
64
TENURE
3.7 yrs

Johannes Dietsch

TITLE
Member of Supervisory Board
COMPENSATION
€155K
AGE
56
TENURE
3.7 yrs

Regine Stachelhaus

TITLE
Member of Supervisory Board
COMPENSATION
€125K
AGE
63
TENURE
3.5 yrs

Peter Hausmann

TITLE
Member of Supervisory Board
COMPENSATION
€153K
AGE
64
TENURE
3.5 yrs

Irena Küstner

TITLE
Member of Supervisory Board
COMPENSATION
€134K
AGE
52
TENURE
3.5 yrs

Nani Falco Beccalli

TITLE
Member of Supervisory Board
COMPENSATION
€104K
AGE
69
TENURE
3.5 yrs

Christine Bortenlänger

TITLE
Member of Supervisory Board
COMPENSATION
€105K
AGE
52
TENURE
3.5 yrs

Frank Werth

TITLE
Member of Supervisory Board
COMPENSATION
€105K
AGE
48
TENURE
2.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Covestro's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Covestro has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

1COV News

Simply Wall St News

1COV Company Info

Description

Covestro AG develops, produces, and markets polymer materials for various industries worldwide. The company operates in three segments: Polyurethanes; Polycarbonates; and Coatings, Adhesives, Specialties. The Polyurethanes segment offers precursors, such as flexible polyurethane foam primarily used in the furniture and automotive industries; and rigid foam used as insulating material in the construction industry and in refrigeration chains. The Polycarbonates segment provides high-performance plastic polycarbonates in the form of granules, composite materials, and semi-finished products for use in the automotive, construction, electrical and electronic, medical technology, and lighting industries. The Coatings, Adhesives, Specialties segment offers precursors for coatings, adhesives, and sealants, as well as specialties. This segment also provides polymer materials and aqueous dispersions for use in automotive and transportation, infrastructure and construction, wood processing, and furniture applications. It markets its products through trading houses and distributors. The company has partnership with Genomatica, Inc. to research and develop high-performance materials based on renewable feed-stocks. Covestro AG was founded in 2005 and is headquartered in Leverkusen, Germany.

Details
Name: Covestro AG
1COV
Exchange: WBAG
Founded: 2005
€9,694,306,182
182,704,602
Website: http://www.covestro.com
Address: Covestro AG
Kaiser-Wilhelm-Allee 60,
Leverkusen,
North Rhine-Westphalia, 51373,
Germany
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
DB 1COV Share Capital Deutsche Boerse AG DE EUR 06. Oct 2015
OTCPK CVVT.F Share Capital Pink Sheets LLC US USD 06. Oct 2015
XTRA 1COV Share Capital XETRA Trading Platform DE EUR 06. Oct 2015
LSE 0RBE Share Capital London Stock Exchange GB EUR 06. Oct 2015
SWX 1COV Share Capital SIX Swiss Exchange CH CHF 06. Oct 2015
WBAG 1COV Share Capital Wiener Boerse AG AT EUR 06. Oct 2015
OTCPK COVT.Y SPONSORED ADR Pink Sheets LLC US USD 04. Feb 2016
OTCPK COVT.Y SPONSORED ADR Pink Sheets LLC US USD 18. Apr 2019
DB 1CO1 SPONSORED ADR Deutsche Boerse AG DE EUR 04. Feb 2016
Number of employees
Current staff
Staff numbers
17,311
Covestro employees.
Industry
Specialty Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 22:36
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/02/25
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.