SWX:CLN

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Adequate balance sheet with reasonable 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.5%

CLN

2.9%

CH Chemicals

3.6%

CH Market


1 Year Return

-25.6%

CLN

7.6%

CH Chemicals

-6.9%

CH Market

Return vs Industry: CLN underperformed the Swiss Chemicals industry which returned 7.6% over the past year.

Return vs Market: CLN underperformed the Swiss Market which returned -6.9% over the past year.


Shareholder returns

CLNIndustryMarket
7 Day1.5%2.9%3.6%
30 Day-26.9%-8.7%-12.1%
90 Day-28.1%-11.6%-16.3%
1 Year-23.7%-25.6%10.9%7.6%-2.2%-6.9%
3 Year-13.6%-17.6%30.9%21.6%11.6%0.5%
5 Year-13.4%-21.3%57.1%37.8%16.1%-2.9%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CLN (CHF15.57) is trading below our estimate of fair value (CHF35.93)

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


Price To Earnings Ratio

PE vs Industry: CLN is unprofitable, so we can't compare its PE Ratio to the Chemicals industry average.

PE vs Market: CLN is unprofitable, so we can't compare its PE Ratio to the Swiss market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CLN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CLN is good value based on its PB Ratio (2x) compared to the CH Chemicals industry average (3.6x).


Next Steps

Future Growth

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

36.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.6%).

Earnings vs Market: CLN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CLN's is expected to become profitable in the next 3 years.

Revenue vs Market: CLN's revenue (3.5% per year) is forecast to grow faster than the Swiss market (2.4% per year).

High Growth Revenue: CLN's revenue (3.5% 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?

-12.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLN is currently unprofitable.

Growing Profit Margin: CLN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CLN is unprofitable, and losses have increased over the past 5 years at a rate of -12.3% per year.

Accelerating Growth: Unable to compare CLN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CLN is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (10.1%).


Return on Equity

High ROE: CLN has a negative Return on Equity (-1.27%), as it is currently unprofitable.


Next Steps

Financial Health

How is Clariant's financial position?


Financial Position Analysis

Short Term Liabilities: CLN's short term assets (CHF4.0B) exceed its short term liabilities (CHF2.7B).

Long Term Liabilities: CLN's short term assets (CHF4.0B) exceed its long term liabilities (CHF2.6B).


Debt to Equity History and Analysis

Debt Level: CLN's debt to equity ratio (77.4%) is considered high.

Reducing Debt: CLN's debt to equity ratio has reduced from 80.3% to 77.4% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: CLN's debt is covered by short term assets (assets are 1.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CLN has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: CLN has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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

3.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CLN's dividend (3.53%) is higher than the bottom 25% of dividend payers in the Swiss market (2.16%).

High Dividend: CLN's dividend (3.53%) is low compared to the top 25% of dividend payers in the Swiss market (4.34%).


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: CLN is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: CLN's dividends in 3 years are forecast to be covered by earnings (50.3% payout ratio).


Next Steps

Management

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

3.9yrs

Average board tenure


CEO

Clariant has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Hariolf Kottmann
Executive Chairman1.42yrsCHF788.81k0.13% CHF6.7m
Eveline Saupper
Independent Lead Director0.67yrCHF444.94k0.0061% CHF311.8k
Günter von Au
Independent Non-Executive Director9.17yrsCHF309.02k0.020% CHF1.0m
Peter Steiner
Independent Non-Executive Director3.92yrsCHF360.00k0.0043% CHF218.5k
Carlo Soave
Independent Non Executive Director11.92yrsCHF337.42k0.012% CHF634.8k
Konstantin Winterstein
Independent Non Executive Director9.17yrsCHF290.00k1.85% CHF94.7m
Susanne Wamsler
Independent Non-Executive Director5yrsCHF299.70k0.36% CHF18.3m
Claudia Dyckerhoff
Independent Non-Executive Director3.92yrsCHF299.17k0.0046% CHF235.4k
Abdullah Alissa
Independent Director1.42yrsCHF295.69k0.00066% CHF33.8k
Khaled Homza Nahas
Independent Vice Chairman2.17yrsCHF345.03k0.00079% CHF40.5k

3.9yrs

Average Tenure

60.5yo

Average Age

Experienced Board: CLN's board of directors are considered experienced (3.9 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

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: CHF5.128b
  • 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)ADRUSUSDOct 2008
CLRSDB (Deutsche Boerse AG)ADRDEEUROct 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 Plastics & Coatings. The company offers flame retardants, performance additives, and advanced surface solutions for use in plastics, coatings, inks, and other applications; and catalysts for the petrochemical and refining, synthesis gas, chemical, emissions control, specialty zeolites and zeolite-based, and custom catalyst markets. It also provides bentonite based specialty products for the oil purification, foundry additive, desiccant, oxygen absorber, humidity, sediment management, civil engineering, waste water treatment, clay specialties, paper and detergent additive, PVC stabilizer, BTX-catalyst, and kerosene and jet fuel purification industries. In addition, the company offers industrial and consumer specialty chemicals and application solutions for the automotive brake fluid and coolant, aircraft anti-itching and deicing fluid, construction chemical, agrochemical, gas treatment, heat transfer fluid, home care, industrial and institutional cleaning, industrial lubricant additive, special solvent, paint and coating, and personal care and cosmetic ingredient markets. Further, it provides masterbatches for the agriculture, consumer goods, healthcare packaging, healthcare polymer solutions, packaging, fibers, and transportation markets; oil, mining, and refinery services to the oil and mining industries; and organic pigments, pigment preparations, and dyes for coatings, printing, plastics, consumer products, non-impact printing, and other special applications. Additionally, the company offers biotech and bio-based chemicals; electronic materials; food ingredients; VitiSpheres encapsulated active ingredients; and 3D printing filaments. Clariant AG was founded in 1886 and is headquartered in Muttenz, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 21:19
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.