Covestro AG develops, produces, and markets polymer materials for various industries worldwide.
Very undervalued with flawless balance sheet.
Share Price & News
How has Covestro's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 1COV has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: 1COV underperformed the Swiss Chemicals industry which returned 16.8% over the past year.
Return vs Market: 1COV underperformed the Swiss Market which returned -0.5% over the past year.
Price Volatility Vs. Market
How volatile is Covestro's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Covestro undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 1COV (CHF40.2) is trading below our estimate of fair value (CHF54.65)
Significantly Below Fair Value: 1COV is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 1COV is good value based on its PE Ratio (15.7x) compared to the Chemicals industry average (32.6x).
PE vs Market: 1COV is good value based on its PE Ratio (15.7x) compared to the Swiss market (19.3x).
Price to Earnings Growth Ratio
PEG Ratio: 1COV is good value based on its PEG Ratio (0.3x)
Price to Book Ratio
PB vs Industry: 1COV is good value based on its PB Ratio (1.1x) compared to the CH Chemicals industry average (4.4x).
How is Covestro forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 1COV's forecast earnings growth (54.1% per year) is above the savings rate (-0.2%).
Earnings vs Market: 1COV's earnings (54.1% per year) are forecast to grow faster than the Swiss market (8.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 1COV's revenue (5.9% per year) is forecast to grow faster than the Swiss market (2.4% per year).
High Growth Revenue: 1COV's revenue (5.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 1COV's Return on Equity is forecast to be low in 3 years time (9%).
How has Covestro performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1COV has a large one-off gain of €114.0M impacting its March 31 2005 financial results.
Growing Profit Margin: 1COV's current net profit margins (3.3%) are lower than last year (9.7%).
Past Earnings Growth Analysis
Earnings Trend: 1COV's earnings have grown by 17.2% per year over the past 5 years.
Accelerating Growth: 1COV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 1COV had negative earnings growth (-71%) over the past year, making it difficult to compare to the Chemicals industry average (10.1%).
Return on Equity
High ROE: 1COV's Return on Equity (7%) is considered low.
How is Covestro's financial position?
Financial Position Analysis
Short Term Liabilities: 1COV's short term assets (€5.4B) exceed its short term liabilities (€2.5B).
Long Term Liabilities: 1COV's short term assets (€5.4B) exceed its long term liabilities (€3.8B).
Debt to Equity History and Analysis
Debt Level: 1COV's debt to equity ratio (28.9%) is considered satisfactory.
Reducing Debt: 1COV's debt to equity ratio has reduced from 247.7% to 28.9% over the past 5 years.
Debt Coverage: 1COV's debt is well covered by operating cash flow (70.6%).
Interest Coverage: 1COV's interest payments on its debt are well covered by EBIT (12.8x coverage).
What is Covestro current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 1COV's dividend (7.11%) is higher than the bottom 25% of dividend payers in the Swiss market (1.91%).
High Dividend: 1COV's dividend (7.11%) is in the top 25% of dividend payers in the Swiss market (3.78%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, 1COV has been paying a dividend for less than 10 years.
Growing Dividend: 1COV's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (111.6%), 1COV's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 1COV's dividends in 3 years are forecast to be covered by earnings (58.7% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Markus Steilemann (50yo)
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, 20 ...
CEO Compensation Analysis
Compensation vs Market: Markus's total compensation ($USD4.84M) is above average for companies of similar size in the Swiss market ($USD2.36M).
Compensation vs Earnings: Markus's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
|CEO & Chairman of Management Board||2.08yrs||€4.29m||no data|
|CFO, Labor Director & Member of Management Board||2.25yrs||€2.59m||no data|
|CTO & Member of Management Board||4.92yrs||€2.12m||no data|
|Chief Commercial Officer & Member of Management Board||0.83yr||€1.20m||no data|
|Head of Investor Relations||no data||no data||no data|
|Head of Polyurethanes Business Unit||16.5yrs||no data||no data|
|Head of Polyurethanes (PU) Segment||9yrs||no data||no data|
|Head of Polycarbonates Segment||4.5yrs||no data||no data|
|Head of S Coatings||2.83yrs||no data||no data|
|Head of MDI Site||no data||no data||no data|
Experienced Management: 1COV's management team is considered experienced (3.7 years average tenure).
|Independent Member of Supervisory Board||4.75yrs||€106.00k||no data|
|Independent Chairman of Supervisory Board||4.92yrs||€309.00k||no data|
|Vice Chairman of Supervisory Board||4.75yrs||€160.00k||no data|
|Independent Member of Supervisory Board||4.75yrs||€126.00k||no data|
|Employee Representative Member of Supervisory Board||4.75yrs||€153.00k||no data|
|Independent Member of Supervisory Board||4.92yrs||€154.00k||no data|
|Independent Member of Supervisory Board||4.75yrs||€106.00k||no data|
|Independent Member of Supervisory Board||4.92yrs||€159.00k||no data|
|Member of Supervisory Board||4.75yrs||€134.00k||no data|
|Member of Supervisory Board||3.83yrs||€106.00k||no data|
Experienced Board: 1COV's board of directors are considered experienced (4.8 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Covestro AG's company bio, employee growth, exchange listings and data sources
- Name: Covestro AG
- Ticker: 1COV
- Exchange: SWX
- Founded: 2005
- Industry: Specialty Chemicals
- Sector: Materials
- Market Cap: €6.172b
- Listing Market Cap: €6.567b
- Shares outstanding: 182.86m
- Website: https://www.covestro.com
Number of Employees
- Covestro AG
- Kaiser-Wilhelm-Allee 60
- North Rhine-Westphalia
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|COVT.Y||OTCPK (Pink Sheets LLC)||SPONSORED ADR||US||USD||No data|
|1COV||DB (Deutsche Boerse AG)||Yes||Share Capital||DE||EUR||Oct 2015|
|1COV||XTRA (XETRA Trading Platform)||Yes||Share Capital||DE||EUR||Oct 2015|
|1COVD||BATS-CHIXE (BATS 'Chi-X Europe')||Yes||Share Capital||GB||EUR||Oct 2015|
|0RBE||LSE (London Stock Exchange)||Yes||Share Capital||GB||EUR||Oct 2015|
|CVVT.F||OTCPK (Pink Sheets LLC)||Yes||Share Capital||US||USD||Oct 2015|
|1COV||SWX (SIX Swiss Exchange)||Yes||Share Capital||CH||CHF||Oct 2015|
|1COV||ETLX (Eurotlx)||Yes||Share Capital||IT||EUR||Oct 2015|
|1COV||WBAG (Wiener Boerse AG)||Yes||Share Capital||AT||EUR||Oct 2015|
|COVT.Y||OTCPK (Pink Sheets LLC)||SPONSORED ADR||US||USD||Feb 2016|
|1CO1||DB (Deutsche Boerse AG)||SPONSORED ADR||DE||EUR||Feb 2016|
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 an 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. Covestro AG was founded in 2005 and is headquartered in Leverkusen, Germany.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/07/01 21:49|
|End of Day Share Price||2020/07/01 00:00|
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.