XTRA:BNR

Stock Analysis Report

Executive Summary

Brenntag AG, a chemical distribution company, purchases and supplies industrial and specialty chemicals in Europe, the Middle East, Africa, North America, Latin America, the Asia Pacific, and internationally.

Snowflake

Fundamentals

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.1%

BNR

-1.3%

DE Trade Distributors

1.4%

DE Market


1 Year Return

-6.0%

BNR

-9.9%

DE Trade Distributors

3.7%

DE Market

Return vs Industry: BNR exceeded the German Trade Distributors industry which returned -9.9% over the past year.

Return vs Market: BNR underperformed the German Market which returned 3.7% over the past year.


Shareholder returns

BNRIndustryMarket
7 Day-0.1%-1.3%1.4%
30 Day-4.9%-5.2%1.8%
90 Day1.4%1.0%3.4%
1 Year-3.3%-6.0%-7.2%-9.9%7.0%3.7%
3 Year-7.0%-13.3%-7.5%-14.1%18.5%8.3%
5 Year31.5%17.7%23.0%9.7%42.2%22.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

9.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: BNR (€44.19) is trading below our estimate of fair value (€48.55)

Significantly Undervalued: BNR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BNR is poor value based on its PE Ratio (14.7x) compared to the Trade Distributors industry average (14.7x).

PE vs Market: BNR is good value based on its PE Ratio (14.7x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: BNR is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: BNR is overvalued based on its PB Ratio (2.1x) compared to the DE Trade Distributors industry average (1.3x).


Next Steps

Future Growth

How is Brenntag forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BNR's forecast earnings growth (7.1% per year) is above the savings rate (0.2%).

Earnings vs Market: BNR's earnings (7.1% per year) are forecast to grow slower than the German market (12.6% per year).

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

Revenue vs Market: BNR's revenue (3.7% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: BNR's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: BNR's Return on Equity is forecast to be low in 3 years time (13.6%).


Next Steps

Past Performance

How has Brenntag performed over the past 5 years?

4.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BNR's earnings have grown by 4.8% per year over the past 5 years.

Accelerating Growth: BNR's earnings growth over the past year (21.9%) exceeds its 5-year average (4.8% per year).

Earnings vs Industry: BNR earnings growth over the past year (21.9%) exceeded the Trade Distributors industry 17.4%.


Return on Equity

High ROE: BNR's Return on Equity (14.1%) is considered low.


Return on Assets

ROA vs Industry: BNR has a higher Return on Assets than the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: BNR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Brenntag's financial position?


Financial Position Analysis

Short Term Liabilities: BNR's short term assets (€3.8B) exceeds its short term liabilities (€2.2B)

Long Term Liabilities: BNR's short term assets (3.8B) exceeds its long term liabilities (2.9B)


Debt to Equity History and Analysis

Debt Level: BNR's debt to equity ratio (68.5%) is considered high

Reducing Debt: BNR's debt to equity ratio has reduced from 86.3% to 68.5% over the past 5 years.

Debt Coverage: BNR's debt is well covered by operating cash flow (27.4%).

Interest Coverage: BNR's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: BNR's debt is covered by short term assets (assets are 1.694430x debt).


Next Steps

Dividend

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

2.72%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.5%markettop25%3.8%industryaverage3.0%forecastin3Years3.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BNR's dividend (2.72%) is higher than the bottom 25% of dividend payers in the German market (1.46%).

High Dividend: BNR's dividend (2.72%) is low compared to the top 25% of dividend payers in the German market (3.8%).

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.8%), BNR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BNR's dividends in 3 years are forecast to be well covered by earnings (47% payout ratio).


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Steve Holland (62yo)

8.3yrs

Tenure

€3,420,000

Compensation

Mr. Steven E. Holland, also known as Steve, serves as the Chief Executive Officer of Brenntag AG at Brenntag Latin America, Inc. He serves as the Managing Director of Brenntag Quimica S.A.U. Mr. Holland se ...


CEO Compensation Analysis

Compensation vs. Market: Steve's total compensation ($USD3.81M) is about average for companies of similar size in the German market ($USD3.60M).

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


Management Age and Tenure

4.4yrs

Average Tenure

57.5yo

Average Age

Experienced Management: BNR's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

57yo

Average Age

Experienced Board: BNR's board of directors are considered experienced (3.3 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


Management Team

  • Karsten Beckmann (57yo)

    Member of Board of Management and CEO of Europe

    • Tenure: 4.3yrs
    • Compensation: €1.80m
  • Steve Holland (62yo)

    Chairman of Board of Management & CEO

    • Tenure: 8.3yrs
    • Compensation: €3.42m
  • Henri Nejade

    Member of Board of Management & CEO of Asia Pacific Region

    • Tenure: 4.3yrs
    • Compensation: €2.14m
  • Markus Klähn (51yo)

    Member of Board of Management

    • Tenure: 4.3yrs
    • Compensation: €1.61m
  • Georg Müller

    CFO & Member of Board of Management

    • Tenure: 7.3yrs
    • Compensation: €2.42m
  • Marion J. Mestrom (58yo)

    Global Human Resources Director

    • Tenure: 4.5yrs
  • Thomas Langer

    Vice President of Corporate Finance & Investor Relations

    • Tenure: 0yrs

Board Members

  • Stefan Zuschke (57yo)

    Chairman of Supervisory Board

    • Tenure: 9.6yrs
    • Compensation: €225.00k
  • Andreas Rittstieg (63yo)

    Deputy Chairman of Supervisory Board

    • Tenure: 2.3yrs
    • Compensation: €160.00k
  • Ulrich Harnacke (62yo)

    Member of Supervisory Board

    • Tenure: 2.3yrs
    • Compensation: €205.00k
  • Doreen Nowotne (47yo)

    Member of Supervisory Board

    • Tenure: 9.6yrs
    • Compensation: €145.00k
  • Wijnand Donkers (57yo)

    Member of Supervisory Board

    • Tenure: 2.3yrs
    • Compensation: €130.00k
  • Stefanie Berlinger (46yo)

    Member of Supervisory Board

    • Tenure: 4.3yrs
    • Compensation: €145.00k

Company Information

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


Key Information

  • Name: Brenntag AG
  • Ticker: BNR
  • Exchange: XTRA
  • Founded: 1874
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: €6.827b
  • Shares outstanding: 154.50m
  • Website: https://www.brenntag.com

Number of Employees


Location

  • Brenntag AG
  • Messeallee 11
  • Essen
  • North Rhine-Westphalia
  • 45131
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BNRDB (Deutsche Boerse AG)YesOrdinary Registered SharesDEEURMar 2010
BNRXTRA (XETRA Trading Platform)YesOrdinary Registered SharesDEEURMar 2010
0MPTLSE (London Stock Exchange)YesOrdinary Registered SharesGBEURMar 2010
BNTG.FOTCPK (Pink Sheets LLC)YesOrdinary Registered SharesUSUSDMar 2010
BNRDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary Registered SharesGBEURMar 2010
BNRSWX (SIX Swiss Exchange)YesOrdinary Registered SharesCHCHFMar 2010
BNRWBAG (Wiener Boerse AG)YesOrdinary Registered SharesATEURMar 2010
BNR NBMV (Bolsa Mexicana de Valores)YesOrdinary Registered SharesMXMXNMar 2010
BNTG.YOTCPK (Pink Sheets LLC)UNSP ADR EA REPR 1/10 ORD SHSUSUSDNov 2011
BNRABST (Boerse-Stuttgart)UNSP ADR EA REPR 1/10 ORD SHSDEEURNov 2011

Biography

Brenntag AG, a chemical distribution company, purchases and supplies industrial and specialty chemicals in Europe, the Middle East, Africa, North America, Latin America, the Asia Pacific, and international ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 21:01
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.