WBAG:WCH

Stock Analysis Report

Executive Summary

Wacker Chemie AG provides chemical products worldwide.

Rewards

Trading at 37.8% below its fair value

Earnings are forecast to grow 129.12% per year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 3.9% is not well covered by earnings

Large one-off items impacting financial results

Profit margins (2.7%) are lower than last year (5.5%)



Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.4%

WCH

1.1%

AT Chemicals

-0.06%

AT Market


1 Year Return

-27.7%

WCH

12.9%

AT Chemicals

6.0%

AT Market

Return vs Industry: WCH underperformed the Austrian Chemicals industry which returned 13.2% over the past year.

Return vs Market: WCH underperformed the Austrian Market which returned 9.1% over the past year.


Shareholder returns

WCHIndustryMarket
7 Day-1.4%1.1%-0.06%
30 Day-7.8%-1.6%-1.4%
90 Day-11.5%2.8%-0.07%
1 Year-25.0%-27.7%16.8%12.9%9.8%6.0%
3 Yearn/a15.5%5.1%30.4%18.5%
5 Yearn/a37.4%16.9%69.7%45.9%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

7.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WCH (€64.74) is trading below our estimate of fair value (€104.02)

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


Price To Earnings Ratio

PE vs Industry: WCH is poor value based on its PE Ratio (23.5x) compared to the Chemicals industry average (16.9x).

PE vs Market: WCH is poor value based on its PE Ratio (23.5x) compared to the Austrian market (14.7x).


Price to Earnings Growth Ratio

PEG Ratio: WCH is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: WCH 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 Wacker Chemie forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

111.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WCH's forecast earnings growth (129.1% per year) is above the savings rate (-0.1%).

Earnings vs Market: WCH's earnings (129.1% per year) are forecast to grow faster than the Austrian market (8.8% per year).

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

Revenue vs Market: WCH's revenue (2.8% per year) is forecast to grow faster than the Austrian market (2.5% per year).

High Growth Revenue: WCH's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WCH's Return on Equity is forecast to be low in 3 years time (7.3%).


Next Steps

Past Performance

How has Wacker Chemie performed over the past 5 years?

-2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WCH has a large one-off gain of €109.7M impacting its September 30 2019 financial results.

Growing Profit Margin: WCH's current net profit margins (2.7%) are lower than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: WCH's earnings have declined by -2.1% per year over the past 5 years.

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

Earnings vs Industry: WCH had negative earnings growth (-50.2%) over the past year, making it difficult to compare to the Chemicals industry average (2.4%).


Return on Equity

High ROE: WCH's Return on Equity (5.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Wacker Chemie's financial position?


Financial Position Analysis

Short Term Liabilities: WCH's short term assets (€2.4B) exceed its short term liabilities (€904.6M).

Long Term Liabilities: WCH's short term assets (€2.4B) do not cover its long term liabilities (€4.0B).


Debt to Equity History and Analysis

Debt Level: WCH's debt to equity ratio (42.9%) is considered high.

Reducing Debt: WCH's debt to equity ratio has reduced from 73.7% to 42.9% over the past 5 years.

Debt Coverage: WCH's debt is well covered by operating cash flow (51.3%).

Interest Coverage: WCH's interest payments on its debt are not well covered by EBIT (0.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: WCH's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

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

4.03%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.6%markettop25%4.2%industryaverage3.0%forecastin3Years3.4%

Current dividend yield vs market & industry

Notable Dividend: WCH's dividend (3.9%) is higher than the bottom 25% of dividend payers in the Austrian market (1.6%).

High Dividend: WCH's dividend (3.9%) is low compared to the top 25% of dividend payers in the Austrian market (4.17%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (91.9%), WCH's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WCH's dividends in 3 years are forecast to be well covered by earnings (33.5% payout ratio).


Next Steps

Management

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

7.9yrs

Average management tenure


CEO

Rudolf Staudigl (65yo)

11.7yrs

Tenure

€2,566,916

Compensation

Dr. Rudolf Staudigl serves as Deputy chairman of the Supervisory Board of Groz-Beckert U.K. Ltd. Dr. Staudigl has been a Member of Executive Board at Wacker Chemie AG since 1995 and as its President and Ch ...


CEO Compensation Analysis

Compensation vs Market: Rudolf's total compensation ($USD2.86M) is above average for companies of similar size in the Austrian market ($USD2.18M).

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


Management Age and Tenure

7.9yrs

Average Tenure

55.5yo

Average Age

Experienced Management: WCH's management team is seasoned and experienced (7.9 years average tenure).


Board Age and Tenure

11.7yrs

Average Tenure

68.5yo

Average Age

Experienced Board: WCH's board of directors are seasoned and experienced ( 11.7 years average tenure).


Insider Trading

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.


Management Team

  • Rudolf Staudigl (65yo)

    CEO, President & Member of Executive Board

    • Tenure: 11.7yrs
    • Compensation: €2.57m
  • Auguste Willems (63yo)

    Member of Executive Board

    • Tenure: 14yrs
    • Compensation: €2.41m
  • Tobias Ohler (48yo)

    CFO & Member of the Executive Board

    • Tenure: 4.2yrs
    • Compensation: €2.21m
  • Jörg Hettmann

    Head of Corporate Communications

    • Goetz Neumann

      Head of Legal Affairs

      • Jörg Hoffmann

        Head of Investor Relations

        • Christian Hartel (48yo)

          Member of Executive Board

          • Tenure: 4.2yrs
          • Compensation: €1.38m
        • Thomas Koini

          Head of Sales & Distribution

          • Angela Wörl

            Head of Human Resource

            • Rainald Hagenhues

              Head of Corproate Accounting & Tax


              Board Members

              • Ernst-Ludwig Winnacker (78yo)

                Member of Supervisory Board

                • Tenure: 14.3yrs
              • Peter-Alexander Wacker (68yo)

                Chairman of Supervisory Board

                • Tenure: 11.7yrs
              • Franz-Josef Kortüm (69yo)

                Member of Supervisory Board

                • Eduard-Harald Klein

                  Employee Representative Member of Supervisory Board

                  • Tenure: 17yrs
                • Peter Áldozó

                  Employee Representative Member of Supervisory Board

                  • Manfred Köppl

                    Deputy Chairman of Supervisory Board

                    • Tenure: 3yrs
                  • Susanne Weiss (58yo)

                    Member of Supervisory Board

                    • Tenure: 11.7yrs
                  • Matthias Biebl

                    Member of Supervisory Board

                    • Tenure: 11.7yrs
                  • Konrad Kammergruber

                    Employee Representative Member of Supervisory Board

                    • Tenure: 8yrs
                  • Gregor Biebl

                    Member of Supervisory Board

                    • Tenure: 6.7yrs

                  Company Information

                  Wacker Chemie AG's company bio, employee growth, exchange listings and data sources


                  Key Information

                  • Name: Wacker Chemie AG
                  • Ticker: WCH
                  • Exchange: WBAG
                  • Founded: 1914
                  • Industry: Specialty Chemicals
                  • Sector: Materials
                  • Market Cap: €3.081b
                  • Shares outstanding: 49.68m
                  • Website: https://www.wacker.com

                  Number of Employees


                  Location

                  • Wacker Chemie AG
                  • Hanns-Seidel-Platz 4
                  • Munich
                  • Bavaria
                  • 81737
                  • Germany

                  Listings

                  TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                  WCHDB (Deutsche Boerse AG)YesCommon SharesDEEURApr 2006
                  WKCM.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDApr 2006
                  WCHXTRA (XETRA Trading Platform)YesCommon SharesDEEURApr 2006
                  0NR4LSE (London Stock Exchange)YesCommon SharesGBEURApr 2006
                  WCHDBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURApr 2006
                  WCHSWX (SIX Swiss Exchange)YesCommon SharesCHCHFApr 2006
                  WCHWBAG (Wiener Boerse AG)YesCommon SharesATEURApr 2006
                  WCHETLX (Eurotlx)YesCommon SharesITEURApr 2006

                  Biography

                  Wacker Chemie AG provides chemical products worldwide. It operates through four divisions: Wacker Silicones, Wacker Polymers, Wacker Biosolutions, and Wacker Polysilicon. The Wacker Silicones division offers silanes, silicones, silicone fluids, emulsions, elastomers, sealants and resins, and pyrogenic silicas for use in construction, paint and coating, chemical, cosmetic, textile and leather, paper and film coating, fabric coating, electrical and electronic engineering, insulation technology, mechanical engineering and metal processing, medical technology, automotive, communications technology, office equipment, household appliance, plastics and rubber processing, and mold making applications. The Wacker Polymers division provides dispersible polymer powder and dispersions, surface-coating resins, polyvinyl alcohol solutions, and polymer modifiers, which are used in automotive, construction chemical, adhesive, paint and coating, nonwoven, textile, and paper applications. The Wacker Biosolutions division offers bioengineered products, such as cyclodextrins, cyclodextrin complexes, cysteine, and cystine; biopharmaceutical products; fine chemicals; organosilanes; chiral alcohols; base chemicals; and polyvinyl acetate solid resins that are used in foodstuffs, pharmaceuticals and biologics, agrochemicals, household products, personal care and cosmetics, specialty chemicals, and chemical industrial applications. The Wacker Polysilicon division produces polysilicon for use in solar cells and electronics. The company was founded in 1914 and is headquartered in Munich, Germany. Wacker Chemie AG is a subsidiary of Dr. Alexander Wacker Familiengesellschaft mbH. 


                  Company Analysis and Financial Data Status

                  All financial data provided by Standard & Poor's Capital IQ.
                  DataLast Updated (UTC time)
                  Company Analysis2020/01/23 22:16
                  End of Day Share Price2020/01/23 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.