SWX:CLN

Stock Analysis Report

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Executive Summary

Clariant AG, together with its subsidiaries, develops, manufactures, distributes, and sells specialty chemicals worldwide.


Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.1%

CLN

-0.9%

CH Chemicals

-1.1%

CH Market


1 Year Return

0.4%

CLN

39.6%

CH Chemicals

5.0%

CH Market

Return vs Industry: CLN underperformed the Swiss Chemicals industry which returned 42.5% over the past year.

Return vs Market: CLN underperformed the Swiss Market which returned 5.4% over the past year.


Shareholder returns

CLNIndustryMarket
7 Day-1.1%-0.9%-1.1%
30 Day0.3%6.8%-0.7%
90 Day1.0%19.2%5.0%
1 Year17.9%0.4%44.2%39.6%8.6%5.0%
3 Year-2.0%-20.4%57.3%42.4%19.4%7.0%
5 Year17.8%-8.9%105.7%76.7%29.5%9.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

41.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CLN (CHF17.68) is trading above our estimate of fair value (CHF17.12)

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


Price To Earnings Ratio

PE vs Industry: CLN is poor value based on its PE Ratio (41.3x) compared to the CH Chemicals industry average (38.3x).

PE vs Market: CLN is poor value based on its PE Ratio (41.3x) compared to the Swiss market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: CLN is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: CLN is good value based on its PB Ratio (2.4x) compared to the CH Chemicals industry average (5.2x).


Next Steps

Future Growth

How is Clariant forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLN's forecast earnings growth (15.8% per year) is above the savings rate (-0.2%).

Earnings vs Market: CLN's earnings (15.8% per year) are forecast to grow faster than the Swiss market (9.3% per year).

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

Revenue vs Market: CLN's revenue (4.9% per year) is forecast to grow faster than the Swiss market (3.7% per year).

High Growth Revenue: CLN's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CLN's Return on Equity is forecast to be low in 3 years time (12%).


Next Steps

Past Performance

How has Clariant performed over the past 5 years?

-23.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLN has a large one-off gain of CHF78.0M impacting its June 30 2020 financial results.

Growing Profit Margin: CLN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CLN's earnings have declined by 23.5% per year over the past 5 years.

Accelerating Growth: CLN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CLN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (9.3%).


Return on Equity

High ROE: CLN's Return on Equity (6.6%) is considered low.


Next Steps

Financial Health

How is Clariant's financial position?


Financial Position Analysis

Short Term Liabilities: CLN's short term assets (CHF3.9B) exceed its short term liabilities (CHF2.3B).

Long Term Liabilities: CLN's short term assets (CHF3.9B) exceed its long term liabilities (CHF2.8B).


Debt to Equity History and Analysis

Debt Level: CLN's debt to equity ratio (81.1%) is considered high.

Reducing Debt: CLN's debt to equity ratio has reduced from 103.6% to 81.1% over the past 5 years.

Debt Coverage: CLN's debt is well covered by operating cash flow (22.8%).

Interest Coverage: CLN's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Next Steps

Dividend

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

3.11%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CLN's dividend (3.11%) is higher than the bottom 25% of dividend payers in the Swiss market (1.8%).

High Dividend: CLN's dividend (3.11%) is low compared to the top 25% of dividend payers in the Swiss market (3.88%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CLN has been paying a dividend for less than 10 years.

Growing Dividend: CLN's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (128.5%), CLN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CLN's dividends in 3 years are forecast to be covered by earnings (53.2% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Hariolf Kottmann (65 yo)

1.08yrs

Tenure

CHF788,806

Compensation

Dr. Hariolf Kottmann serves as Executive Chairman of Clariant International Ltd. He has been President of Conseil Européen De L'industrie Chimique - European since October 7, 2016. Dr. Kottmann had been th ...


CEO Compensation Analysis

Compensation vs Market: Hariolf's total compensation ($USD861.71K) is below average for companies of similar size in the Swiss market ($USD2.48M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Hariolf Kottmann
Interim CEO & Executive Chairman1.08yrsCHF788.81k0.13%
CHF 7.6m
Stephan Lynen
Head of Business Unit Additives0.33yrno datano data
Hans Bohnen
Executive VP & COO1.08yrsno data0.031%
CHF 1.8m
Martin Vollmer
CTO and Head of Group Technology & Innovationno datano datano data
Maria Ivek
Senior Investor Relations Officerno datano datano data
Alfred Muench
Head of Legal Departmentno datano datano data
Kai Rolker
Head of Corporate Communicationsno datano datano data
Vincent Gass
Head of Global Marketingno datano datano data
Klementina Pejic
Head of Group Human Resourcesno datano datano data
Renaud Spitz
Country Head of Switzerlandno datano datano data
John Dunne
Head of Business Unit Oil & Mining Services7.75yrsno datano data
Bernd Högemann
Executive VP & Chief Transformation Officer0.75yrno data0.017%
CHF 1.0m

1.1yrs

Average Tenure

60yo

Average Age

Experienced Management: CLN's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Hariolf Kottmann
Interim CEO & Executive Chairman1.08yrsCHF788.81k0.13%
CHF 7.6m
Eveline Saupper
Independent Lead Director1.08yrsCHF444.94k0.0061%
CHF 354.0k
Günter von Au
Independent Non-Executive Director9.58yrsCHF309.02k0.020%
CHF 1.1m
Peter Steiner
Independent Non-Executive Director4.33yrsCHF360.00k0.0043%
CHF 248.1k
Konstantin Winterstein
Independent Non Executive Director9.58yrsCHF290.00k1.85%
CHF 107.5m
Susanne Wamsler
Independent Non-Executive Director5.42yrsCHF299.70k0.36%
CHF 20.8m
Claudia Dyckerhoff
Independent Non-Executive Director4.33yrsCHF299.17k0.0046%
CHF 267.3k
Abdullah Alissa
Independent Vice Chairman of the Board0.58yrCHF295.69k0.00066%
CHF 38.4k
Calum MacLean
Independent Non-Executive Director1.83yrsCHF308.77k0.00066%
CHF 38.4k
Geoffery Merszei
Independent Director1.83yrsCHF303.28k0.00066%
CHF 38.4k
Nader Alwehibi
Non-Executive Director0.17yrno datano data
Thilo Mannhardt
Non-Executive Director0.17yrno datano data

1.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: CLN's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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

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


Key Information

  • Name: Clariant AG
  • Ticker: CLN
  • Exchange: SWX
  • Founded: 1886
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: CHF5.823b
  • Shares outstanding: 329.35m
  • Website: https://www.clariant.com

Number of Employees


Location

  • Clariant AG
  • Rothausstrasse 61
  • Muttenz
  • Basel-Landschaft
  • 4132
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLRNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1995
CLNSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJun 1995
0QJSLSE (London Stock Exchange)YesOrdinary SharesGBCHFJun 1995
CLRNXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJun 1995
CLZN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1995
CLZN.YOTCPK (Pink Sheets LLC)ADR EACH REPR 1 COMUSUSDOct 2008
CLRSDB (Deutsche Boerse AG)ADR EACH REPR 1 COMDEEUROct 2008

Biography

Clariant AG, together with its subsidiaries, develops, manufactures, distributes, and sells specialty chemicals worldwide. It operates in four segments: Care Chemicals, Catalysis, Natural Resources, and Pl ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/05 21:46
End of Day Share Price2020/08/04 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.