company background image
LNZ

Lenzing WBAG:LNZ Stock Report

Last Price

€84.70

Market Cap

€2.2b

7D

2.5%

1Y

-23.7%

Updated

15 Aug, 2022

Data

Company Financials +
LNZ fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance1/6
Financial Health2/6
Dividends3/6

LNZ Stock Overview

Lenzing Aktiengesellschaft produces and markets wood-based cellulosic fibers for the textile and nonwoven sectors in Austria, rest of Europe, Asia, the Americas, and internationally.

Lenzing Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Lenzing
Historical stock prices
Current Share Price€84.70
52 Week High€134.20
52 Week Low€70.20
Beta0.91
1 Month Change18.46%
3 Month Change0.95%
1 Year Change-23.69%
3 Year Change-5.20%
5 Year Change-42.15%
Change since IPO761.79%

Recent News & Updates

Aug 14
Does Lenzing (VIE:LNZ) Have A Healthy Balance Sheet?

Does Lenzing (VIE:LNZ) Have A Healthy Balance Sheet?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Jul 30
Is Now An Opportune Moment To Examine Lenzing Aktiengesellschaft (VIE:LNZ)?

Is Now An Opportune Moment To Examine Lenzing Aktiengesellschaft (VIE:LNZ)?

Lenzing Aktiengesellschaft ( VIE:LNZ ), is not the largest company out there, but it saw a decent share price growth in...

Jun 14
Some Investors May Be Worried About Lenzing's (VIE:LNZ) Returns On Capital

Some Investors May Be Worried About Lenzing's (VIE:LNZ) Returns On Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Typically, we'll want to notice a...

May 08
Lenzing (VIE:LNZ) Takes On Some Risk With Its Use Of Debt

Lenzing (VIE:LNZ) Takes On Some Risk With Its Use Of Debt

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

LNZAT ChemicalsAT Market
7D2.5%1.6%1.7%
1Y-23.7%-15.8%-5.5%

Return vs Industry: LNZ underperformed the Austrian Chemicals industry which returned -16.9% over the past year.

Return vs Market: LNZ underperformed the Austrian Market which returned -6.7% over the past year.

Price Volatility

Is LNZ's price volatile compared to industry and market?
LNZ volatility
LNZ Average Weekly Movement4.5%
Chemicals Industry Average Movement5.4%
Market Average Movement4.9%
10% most volatile stocks in AT Market7.2%
10% least volatile stocks in AT Market2.8%

Stable Share Price: LNZ is not significantly more volatile than the rest of Austrian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LNZ's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18928,278Stephan Sielaffhttps://www.lenzing.com

Lenzing Aktiengesellschaft produces and markets wood-based cellulosic fibers for the textile and nonwoven sectors in Austria, rest of Europe, Asia, the Americas, and internationally. The company operates through Division Fiber, Division Pulp, and Others segments. It offers lyocell fibers for applications in sportswear, home textiles, and mattresses, as well as hygiene articles such as wet wipes and baby wipes; modal fibers; viscose fibers for use in clothing fabrics, wipes, tampons, and wound dressings; and filament yarns under the LENZING, TENCEL, VEOCEL, and LENZING ECOVERO brand names.

Lenzing Fundamentals Summary

How do Lenzing's earnings and revenue compare to its market cap?
LNZ fundamental statistics
Market Cap€2.25b
Earnings (TTM)€91.85m
Revenue (TTM)€2.45b

24.5x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LNZ income statement (TTM)
Revenue€2.45b
Cost of Revenue€1.95b
Gross Profit€504.41m
Other Expenses€412.56m
Earnings€91.85m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Nov 03, 2022

Earnings per share (EPS)3.46
Gross Margin20.55%
Net Profit Margin3.74%
Debt/Equity Ratio108.5%

How did LNZ perform over the long term?

See historical performance and comparison

Dividends

5.1%

Current Dividend Yield

126%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is LNZ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LNZ?

Other financial metrics that can be useful for relative valuation.

LNZ key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.6x
Enterprise Value/EBITDA13x
PEG Ratio0.5x

Price to Earnings Ratio vs Peers

How does LNZ's PE Ratio compare to its peers?

LNZ PE Ratio vs Peers
The above table shows the PE ratio for LNZ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average7.1x
WIE Wienerberger
5.3x-4.8%€2.7b
MMK Mayr-Melnhof Karton
9.6x0.06%€3.2b
VOE Voestalpine
3x-27.9%€3.9b
AMAG AMAG Austria Metall
10.6x-20.4%€1.1b
LNZ Lenzing
24.5x47.4%€2.2b

Price-To-Earnings vs Peers: LNZ is expensive based on its Price-To-Earnings Ratio (24.5x) compared to the peer average (7.1x).


Price to Earnings Ratio vs Industry

How does LNZ's PE Ratio compare vs other companies in the European Chemicals Industry?

Price-To-Earnings vs Industry: LNZ is expensive based on its Price-To-Earnings Ratio (24.5x) compared to the European Chemicals industry average (12.6x)


Price to Earnings Ratio vs Fair Ratio

What is LNZ's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LNZ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.5x
Fair PE Ratio37.6x

Price-To-Earnings vs Fair Ratio: LNZ is good value based on its Price-To-Earnings Ratio (24.5x) compared to the estimated Fair Price-To-Earnings Ratio (37.6x).


Share Price vs Fair Value

What is the Fair Price of LNZ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LNZ (€84.7) is trading below our estimate of fair value (€289.21)

Significantly Below Fair Value: LNZ is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


47.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LNZ's forecast earnings growth (47.4% per year) is above the savings rate (0.2%).

Earnings vs Market: LNZ's earnings (47.4% per year) are forecast to grow faster than the Austrian market (2.6% per year).

High Growth Earnings: LNZ's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LNZ's revenue (5.4% per year) is forecast to grow faster than the Austrian market (-1% per year).

High Growth Revenue: LNZ's revenue (5.4% 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 (16.6%).


Discover growth companies

Past Performance

How has Lenzing performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-33.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LNZ has a high level of non-cash earnings.

Growing Profit Margin: LNZ's current net profit margins (3.7%) are lower than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: LNZ's earnings have declined by 33.4% per year over the past 5 years.

Accelerating Growth: LNZ's earnings growth over the past year (6.8%) exceeds its 5-year average (-33.4% per year).

Earnings vs Industry: LNZ earnings growth over the past year (6.8%) underperformed the Chemicals industry 27.8%.


Return on Equity

High ROE: LNZ's Return on Equity (3.6%) is considered low.


Discover strong past performing companies

Financial Health

How is Lenzing's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: LNZ's short term assets (€2.1B) exceed its short term liabilities (€920.4M).

Long Term Liabilities: LNZ's short term assets (€2.1B) do not cover its long term liabilities (€2.7B).


Debt to Equity History and Analysis

Debt Level: LNZ's net debt to equity ratio (66.8%) is considered high.

Reducing Debt: LNZ's debt to equity ratio has increased from 36% to 108.5% over the past 5 years.

Debt Coverage: LNZ's debt is not well covered by operating cash flow (9.1%).

Interest Coverage: LNZ's interest payments on its debt are well covered by EBIT (11.9x coverage).


Balance Sheet


Discover healthy companies

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


5.14%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LNZ's dividend (5.14%) is higher than the bottom 25% of dividend payers in the Austrian market (1.94%).

High Dividend: LNZ's dividend (5.14%) is in the top 25% of dividend payers in the Austrian market (5.09%)


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.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (125.8%), LNZ's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: LNZ is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

2.4yrs

Average management tenure


CEO

Stephan Sielaff (56 yo)

2.42yrs

Tenure

Mr. Stephan Helmut Sielaff has been Member of Management Board at Lenzing Aktiengesellschaft since March 1, 2020 and serves as its Chief Executive Officer since April 1, 2022 and served as its Chief Techno...


Leadership Team

Experienced Management: LNZ's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: LNZ's board of directors are considered experienced (8.8 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 employee growth, exchange listings and data sources


Key Information

  • Name: Lenzing Aktiengesellschaft
  • Ticker: LNZ
  • Exchange: WBAG
  • Founded: 1892
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Implied Market Cap: €2.249b
  • Shares outstanding: 26.55m
  • Website: https://www.lenzing.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.