WBAG:LNZ

Stock Analysis Report

Executive Summary

Lenzing Aktiengesellschaft produces and markets botanic cellulose fibers for the textile and nonwoven sectors worldwide.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Lenzing's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LNZ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.3%

LNZ

-0.6%

AT Chemicals

-1.3%

AT Market


1 Year Return

-23.0%

LNZ

9.5%

AT Chemicals

3.5%

AT Market

Return vs Industry: LNZ underperformed the Austrian Chemicals industry which returned 9.4% over the past year.

Return vs Market: LNZ underperformed the Austrian Market which returned 3.5% over the past year.


Shareholder returns

LNZIndustryMarket
7 Day-2.3%-0.6%-1.3%
30 Day-15.0%2.9%0.4%
90 Day-25.2%2.9%-1.2%
1 Year-19.1%-23.0%12.9%9.5%7.2%3.5%
3 Year-47.7%-53.9%18.6%7.9%27.3%15.8%
5 Year39.9%17.8%30.4%10.9%51.3%30.3%

Price Volatility Vs. Market

How volatile is Lenzing's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lenzing undervalued compared to its fair value and its price relative to the market?

13.79x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LNZ (€68.45) is trading above our estimate of fair value (€56.4)

Significantly Below Fair Value: LNZ is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LNZ is good value based on its PE Ratio (13.8x) compared to the Chemicals industry average (16.3x).

PE vs Market: LNZ is good value based on its PE Ratio (13.8x) compared to the Austrian market (14.1x).


Price to Earnings Growth Ratio

PEG Ratio: LNZ's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: LNZ is good value based on its PB Ratio (1.2x) compared to the XE Chemicals industry average (1.6x).


Next Steps

Future Growth

How is Lenzing forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LNZ's earnings are forecast to decline over the next 3 years (-9% per year).

Earnings vs Market: LNZ's earnings are forecast to decline over the next 3 years (-9% per year).

High Growth Earnings: LNZ's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LNZ's revenue (4.2% per year) is forecast to grow faster than the Austrian market (2.7% per year).

High Growth Revenue: LNZ's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LNZ's Return on Equity is forecast to be low in 3 years time (7.2%).


Next Steps

Past Performance

How has Lenzing performed over the past 5 years?

23.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LNZ has high quality earnings.

Growing Profit Margin: LNZ's current net profit margins (6%) are lower than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: LNZ's earnings have grown significantly by 23.5% per year over the past 5 years.

Accelerating Growth: LNZ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LNZ had negative earnings growth (-33%) over the past year, making it difficult to compare to the Chemicals industry average (2.5%).


Return on Equity

High ROE: LNZ's Return on Equity (9.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lenzing's financial position?


Financial Position Analysis

Short Term Liabilities: LNZ's short term assets (€1.1B) exceed its short term liabilities (€627.7M).

Long Term Liabilities: LNZ's short term assets (€1.1B) exceed its long term liabilities (€642.1M).


Debt to Equity History and Analysis

Debt Level: LNZ's debt to equity ratio (39.1%) is considered satisfactory.

Reducing Debt: LNZ's debt to equity ratio has reduced from 64.5% to 39.1% over the past 5 years.

Debt Coverage: LNZ's debt is well covered by operating cash flow (34%).

Interest Coverage: LNZ earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: LNZ has a high level of physical assets or inventory.

Debt Coverage by Assets: LNZ's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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

7.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LNZ's dividend (7.3%) is higher than the bottom 25% of dividend payers in the Austrian market (1.58%).

High Dividend: LNZ's dividend (7.3%) is in the top 25% of dividend payers in the Austrian market (4.58%)


Stability and Growth of Payments

Stable Dividend: LNZ's dividend payments have been volatile in the past 10 years.

Growing Dividend: LNZ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.5%), LNZ's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LNZ's dividends in 3 years are forecast to be covered by earnings (65.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average management tenure


CEO

Stefan Doboczky (52yo)

4.7yrs

Tenure

€1,366,000

Compensation

Dr. Stefan Doboczky, M.B.A., has been Chief Executive Officer at Lenzing Aktiengesellschaft since June 1, 2015 and serves as its Chairman of the Management Board. Dr. Doboczky has extensive international i ...


CEO Compensation Analysis

Compensation vs Market: Stefan's total compensation ($USD1.48M) is about average for companies of similar size in the Austrian market ($USD1.67M).

Compensation vs Earnings: Stefan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stefan Doboczky
Chairman of Management Board & CEO4.7yrs€1.37mno data
Thomas Obendrauf
CFO & Member of Management Board3.9yrs€647.00kno data
Robert van de Kerkhof
Chief Commercial Officer & Member of Management Board5.8yrs€650.00kno data
Stephanie Kniep
Head of Investor Relations0yrsno datano data
Filip Miermans
Vice President Corporate Communications & Investor Relations0yrsno datano data
Gottfried Rosenauer
Head of Business Unit Energy0yrsno datano data
Wolfgang Plasser
Head of Business Unit Nonwoven Fibers0yrsno datano data
Johann Huber
Managing Director of Plastics0yrsno datano data
Johann Weber
Co-Head of Engineering Unit0yrsno datano data
Wilhelm Feilmair
Head of Business Unit Pulp0yrsno datano data

4.7yrs

Average Tenure

52yo

Average Age

Experienced Management: LNZ's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Johann Schernberger
Member of Supervisory Board19.1yrsno datano data
Veit Sorger
Deputy Chairman of Supervisory Board8.9yrsno datano data
Franz Gasselsberger
Member of Supervisory Board6.8yrsno datano data
Helmut Bernkopf
Member of Supervisory Board10.8yrsno datano data
Patrick Prügger
Member of Supervisory Board8.9yrsno datano data
Christoph Kollatz
Deputy Chairman of Supervisory Board1.8yrsno datano data
Georg Liftinger
Member of Supervisory Board12.1yrsno datano data
Astrid Skala-Kuhmann
Member of Supervisory Board7.8yrsno datano data
Daniela Födinger
Member of Supervisory Board5.8yrsno datano data
Peter Edelmann
Chairman of the Supervisory Board0yrsno datano data

8.9yrs

Average Tenure

58.5yo

Average Age

Experienced Board: LNZ's board of directors are considered experienced (8.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lenzing Aktiengesellschaft's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Lenzing Aktiengesellschaft
  • Ticker: LNZ
  • Exchange: WBAG
  • Founded: 1892
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: €1.817b
  • Shares outstanding: 26.55m
  • Website: https://www.lenzing.com

Number of Employees


Location

  • Lenzing Aktiengesellschaft
  • Werkstrasse 2
  • Lenzing
  • Upper Austria
  • 4860
  • Austria

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LNZN.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
LENDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
LNZWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1992
0NCVLSE (London Stock Exchange)YesCommon StockGBEURJan 1992
LNZVBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEURJan 1992
LNZSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1992
LENXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1992

Biography

Lenzing Aktiengesellschaft produces and markets botanic cellulose fibers for the textile and nonwoven sectors worldwide. The company operates through Fibers, Lenzing Technik, and Other segments. It offers fibers for apparel; home and interiors, such as bed linens, mattresses, and towels; a range of industrial applications, such as automotive interiors, engineered products, work and protective wear, and agriculture and packaging products; nonwovens for hygiene and daily care products; and pulp and wood products, as well as biorefinery and co-products consisting of sodium sulfate, acetic acid, furfural, magnesium lignin sulfonate, soda, and xylose under the LENZING, TENCEL, VEOCEL, and LENZING ECOVERO brand names. The company also operates in the field of mechanical and plant engineering; and provides engineering services, as well as filtration and separation, and pulp technological and mechanical construction. In addition, it is involved in training and personnel development activities. The company was formerly known as Chemiefaser Lenzing AG and changed its name to Lenzing Aktiengesellschaft in 1984. The company was founded in 1892 and is headquartered in Lenzing, Austria. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 20:50
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.