WBAG:LXS

Stock Analysis Report

Executive Summary

LANXESS Aktiengesellschaft, a specialty chemicals company, develops, manufactures, and markets chemical intermediates, specialty chemicals, and plastics worldwide.


Snowflake Analysis

Solid track record average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LXS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.4%

LXS

-0.6%

AT Chemicals

-1.3%

AT Market


1 Year Return

13.0%

LXS

9.5%

AT Chemicals

3.5%

AT Market

Return vs Industry: LXS exceeded the Austrian Chemicals industry which returned 9.5% over the past year.

Return vs Market: LXS exceeded the Austrian Market which returned 3.5% over the past year.


Shareholder returns

LXSIndustryMarket
7 Day-3.4%-0.6%-1.3%
30 Day1.0%2.9%0.4%
90 Day-9.4%2.9%-1.2%
1 Year15.2%13.0%12.9%9.5%7.2%3.5%
3 Yearn/a18.6%7.9%27.3%15.8%
5 Yearn/a30.4%10.9%51.3%30.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

18.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LXS (€55.4) is trading below our estimate of fair value (€67.64)

Significantly Below Fair Value: LXS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: LXS is poor value based on its PE Ratio (20.5x) compared to the Chemicals industry average (16.3x).

PE vs Market: LXS is poor value based on its PE Ratio (20.5x) compared to the Austrian market (14.1x).


Price to Earnings Growth Ratio

PEG Ratio: LXS is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: LXS is overvalued based on its PB Ratio (1.7x) compared to the XE Chemicals industry average (1.6x).


Next Steps

Future Growth

How is LANXESS forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

16.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LXS's forecast earnings growth (16.9% per year) is above the savings rate (-0.1%).

Earnings vs Market: LXS's earnings (16.9% per year) are forecast to grow faster than the Austrian market (2.3% per year).

High Growth Earnings: LXS's earnings are forecast to grow, but not significantly.

Revenue vs Market: LXS's revenue (2.4% per year) is forecast to grow slower than the Austrian market (2.7% per year).

High Growth Revenue: LXS's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LXS's Return on Equity is forecast to be low in 3 years time (12.8%).


Next Steps

Past Performance

How has LANXESS performed over the past 5 years?

22.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LXS has high quality earnings.

Growing Profit Margin: LXS's current net profit margins (3.4%) are higher than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: LXS has become profitable over the past 5 years, growing earnings by 22.3% per year.

Accelerating Growth: LXS's earnings growth over the past year (67.4%) exceeds its 5-year average (22.3% per year).

Earnings vs Industry: LXS earnings growth over the past year (67.4%) exceeded the Chemicals industry 2.5%.


Return on Equity

High ROE: LXS's Return on Equity (9.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is LANXESS's financial position?


Financial Position Analysis

Short Term Liabilities: LXS's short term assets (€3.8B) exceed its short term liabilities (€1.4B).

Long Term Liabilities: LXS's short term assets (€3.8B) do not cover its long term liabilities (€4.7B).


Debt to Equity History and Analysis

Debt Level: LXS's debt to equity ratio (102.1%) is considered high.

Reducing Debt: LXS's debt to equity ratio has increased from 82% to 102.1% over the past 5 years.

Debt Coverage: LXS's debt is well covered by operating cash flow (24.1%).

Interest Coverage: LXS's interest payments on its debt are well covered by EBIT (8.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: LXS's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

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

1.63%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.6%markettop25%4.6%industryaverage3.0%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: LXS's dividend (1.63%) is higher than the bottom 25% of dividend payers in the Austrian market (1.58%).

High Dividend: LXS's dividend (1.63%) is low compared to the top 25% of dividend payers in the Austrian market (4.58%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.4%), LXS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LXS's dividends in 3 years are forecast to be well covered by earnings (30.1% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Matthias Zachert (52yo)

5.8yrs

Tenure

€5,556,000

Compensation

Mr. Matthias Zachert serves as the Chairman of Executive Board at Rhein Chemie Rheinau GmbH. Mr. Zachert has been the Chairman of the Board of Management at Lanxess AG since April 1, 2014. He serves as Cha ...


CEO Compensation Analysis

Compensation vs Market: Matthias's total compensation ($USD6.04M) is above average for companies of similar size in the Austrian market ($USD2.46M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Matthias Zachert
Chairman of the Board of Management & CEO5.8yrs€5.56mno data
Michael Pontzen
CFO & Member of the Board of Management4.8yrs€2.19mno data
Hubert Fink
Member of the Board of Management4.3yrs€2.04mno data
Anno Borkowsky
Head of Rhein Chemie Additives Business Unit & Member of the Board of Management0.7yrsno datano data
Stephanie Coßmann
Labor Relations Director & Member of Management Board0.08yrsno datano data
André Simon
Head of Investor Relations0yrsno datano data
Luis Lopez-Remon
Head of Leather Business Unit0yrsno datano data
Jorge Nogueira
Head of Tire & Speciality Rubbers Business Unit5.1yrsno datano data
Michael Zobel
Head of High Performance Materials Business Unit0yrsno datano data
Jörg Hellwig
Head of Inorganic Pigments Business Unit0yrsno datano data

4.6yrs

Average Tenure

54yo

Average Age

Experienced Management: LXS's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rolf Heinrich Stomberg
Honorary Chairman of Supervisory Board1.8yrs€119.94kno data
Ralf Sikorski
Vice Chairman of Supervisory Board0yrs€181.50kno data
Friedrich Janssen
Member of Supervisory Board15.1yrs€212.75kno data
Matthias Wolfgruber
Chairman of Supervisory Board1.8yrs€258.14kno data
Lawrence Rosen
Member of Supervisory Board4.8yrs€143.00kno data
Theo Walthie
Member of the Supervisory Board9.8yrs€162.25kno data
Werner Czaplik
Member of Supervisory Board4.8yrs€143.00kno data
Thomas Meiers
Member of Supervisory Board8.7yrs€141.50kno data
Hans-Dieter Gerriets
Member of Supervisory Board5.6yrs€143.00kno data
Manuela Strauch
Member of Supervisory Board4.6yrs€144.50kno data

4.8yrs

Average Tenure

62yo

Average Age

Experienced Board: LXS's board of directors are considered experienced (4.8 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

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


Key Information

  • Name: LANXESS Aktiengesellschaft
  • Ticker: LXS
  • Exchange: WBAG
  • Founded: 1863
  • Industry: Diversified Chemicals
  • Sector: Materials
  • Market Cap: €4.834b
  • Shares outstanding: 87.45m
  • Website: https://lanxess.com

Number of Employees


Location

  • LANXESS Aktiengesellschaft
  • Kennedyplatz 1
  • Cologne
  • North Rhine-Westphalia
  • 50569
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LNXS.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDJan 2005
LXSDB (Deutsche Boerse AG)YesBearer SharesDEEURJan 2005
0H7ILSE (London Stock Exchange)YesBearer SharesGBEURJan 2005
LXSSWX (SIX Swiss Exchange)YesBearer SharesCHCHFJan 2005
LXSXTRA (XETRA Trading Platform)YesBearer SharesDEEURJan 2005
LXSDBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURJan 2005
LXSWBAG (Wiener Boerse AG)YesBearer SharesATEURJan 2005
2046021SWX (SIX Swiss Exchange)YesBearer SharesCHCHFJan 2005
LXSETLX (Eurotlx)YesBearer SharesITEURJan 2005
LNXS.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDJan 2011

Biography

LANXESS Aktiengesellschaft, a specialty chemicals company, develops, manufactures, and markets chemical intermediates, specialty chemicals, and plastics worldwide. It operates in four segments: Advanced Intermediates, Specialty Additives, Performance Chemicals, and Engineering Materials. The Advanced Intermediates segment offers high-grade intermediates for the agrochemical and coating industries; fine chemicals as precursors and intermediates for the pharmaceutical, agrochemical, and specialty chemical industries; customer-specific specialties; organometallics; and tire chemicals. The Specialty Additives segment provides additives, including lubricants, flame retardants, plasticizers, and bromine derivatives for various applications for rubber, plastic, and paint industries. The Performance Chemicals segment offers material protection products; and inorganic pigments for the coloring of concrete, and emulsion paint and other coatings. It also offers finishing agents for the leather industry; and reverse osmosis membranes and ion exchange resins for water treatment, as well as disinfectant and hygiene solutions. The Engineering Materials segment produces technical plastics, glass fibers, fiber composites, and elastomers on a urethane basis for application in the automotive and electrical/electronics, and construction and medicine industries, as well as sports and leisure sectors. The company was founded in 1863 and is headquartered in Cologne, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 22:53
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.