DB:ALX

Stock Analysis Report

Executive Summary

Alexanderwerk Aktiengesellschaft engages in the development, production, and sale of compaction and granulation machines for the chemical, pharmaceutical, and powder industries worldwide.

Rewards

PE ratio (7.5x) is below the German market (20.4x)

Earnings grew by 14.7% over the past year

Risk Analysis

High level of non-cash earnings

Unstable dividend track record

Does not have a meaningful market cap (€33M)



Snowflake Analysis

Excellent balance sheet with proven track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.6%

ALX

-0.7%

DE Machinery

-0.3%

DE Market


1 Year Return

0.5%

ALX

-5.6%

DE Machinery

14.9%

DE Market

Return vs Industry: ALX exceeded the German Machinery industry which returned -5.6% over the past year.

Return vs Market: ALX underperformed the German Market which returned 14.9% over the past year.


Shareholder returns

ALXIndustryMarket
7 Day-1.6%-0.7%-0.3%
30 Day5.7%-0.6%0.08%
90 Day12.1%7.2%7.5%
1 Year4.4%0.5%-2.6%-5.6%18.4%14.9%
3 Year392.4%374.4%-9.2%-15.7%20.0%9.5%
5 Year738.7%707.9%21.5%7.6%38.0%19.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

7.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ALX (€18.5) is trading above our estimate of fair value (€14.19)

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


Price To Earnings Ratio

PE vs Industry: ALX is good value based on its PE Ratio (7.5x) compared to the Machinery industry average (16.7x).

PE vs Market: ALX is good value based on its PE Ratio (7.5x) compared to the German market (20.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ALX is overvalued based on its PB Ratio (2.6x) compared to the DE Machinery industry average (1.5x).


Next Steps

Future Growth

How is Alexanderwerk forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.2%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Alexanderwerk has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Alexanderwerk performed over the past 5 years?

36.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALX has a high level of non-cash earnings.

Growing Profit Margin: ALX's current net profit margins (15.8%) are higher than last year (15%).


Past Earnings Growth Analysis

Earnings Trend: ALX's earnings have grown significantly by 36.4% per year over the past 5 years.

Accelerating Growth: ALX's earnings growth over the past year (14.7%) is below its 5-year average (36.4% per year).

Earnings vs Industry: ALX earnings growth over the past year (14.7%) exceeded the Machinery industry -0.6%.


Return on Equity

High ROE: ALX's Return on Equity (34.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Alexanderwerk's financial position?


Financial Position Analysis

Short Term Liabilities: ALX's short term assets (€18.3M) exceed its short term liabilities (€6.2M).

Long Term Liabilities: ALX's short term assets (€18.3M) exceed its long term liabilities (€3.6M).


Debt to Equity History and Analysis

Debt Level: ALX's debt to equity ratio (13%) is considered satisfactory.

Reducing Debt: ALX had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: ALX's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: ALX's interest payments on its debt are well covered by EBIT (44.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: ALX's debt is covered by short term assets (assets are 10.9x debt).


Next Steps

Dividend

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

4.49%

Current Dividend Yield


Dividend Yield vs Market

company4.5%marketbottom25%1.4%markettop25%3.6%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: ALX's dividend (4.49%) is higher than the bottom 25% of dividend payers in the German market (1.37%).

High Dividend: ALX's dividend (4.49%) is in the top 25% of dividend payers in the German market (3.6%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether ALX's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if ALX's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.7%), ALX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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


CEO

Alexander Schmidt 0

3.9yrs

Tenure

0

Dr. -Ing. Alexander Schmidt has been Chief Executive Officer and Member of Management Board at Alexanderwerk AG since January 10, 2016. 


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

  • Alexander Schmidt

    CEO & Member of Management Board

    • Tenure: 3.9yrs

Board Members

  • Juergen Kullmann

    Vice Chairman of Supervisory Board

    • Tenure: 1.9yrs
    • Compensation: €37.51k
  • Thomas Mariotti

    Chairman of Supervisory Board

    • Tenure: 0yrs
  • Ronald Kroll

    Member of Supervisory Board

    • Tenure: 0yrs

Company Information

Alexanderwerk Aktiengesellschaft's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alexanderwerk Aktiengesellschaft
  • Ticker: ALX
  • Exchange: DB
  • Founded: 1885
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: €33.300m
  • Shares outstanding: 1.80m
  • Website: https://www.alexanderwerk.com

Number of Employees


Location

  • Alexanderwerk Aktiengesellschaft
  • Kippdorfstrasse 6-24
  • Remscheid
  • 42857
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALXDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
0DK0LSE (London Stock Exchange)YesCommon StockGBEURJan 1992

Biography

Alexanderwerk Aktiengesellschaft engages in the development, production, and sale of compaction and granulation machines for the chemical, pharmaceutical, and powder industries worldwide. Its products incl ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 20:46
End of Day Share Price2019/12/06 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.