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1COV

CovestroXTRA:1COV Stock Report

Market Cap

€10.9b

7D

0.4%

1Y

31.8%

Updated

26 Oct, 2021

Data

Company Financials +
1COV fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance4/6
Financial Health6/6
Dividends3/6

1COV Overview

Covestro AG develops, produces, and markets polymer materials for various industries.

Covestro Competitors

Evonik Industries

XTRA:EVK

€13.2b

Reliance Industries

NSEI:RELIANCE

₹16.6t

Honeywell International

NasdaqGS:HON

US$150.3b

Saudi Basic Industries

SASE:2010

ر.س408.6b

Price History & Performance

Summary of all time highs, changes and price drops for Covestro
Historical stock prices
Current Share Price€56.34
52 Week High€39.50
52 Week Low€63.24
Beta1.33
1 Month Change0%
3 Month Change2.51%
1 Year Change31.76%
3 Year Change1.19%
5 Year Change4.33%
Change since IPO112.60%

Recent News & Updates

Jul 08
Is It Time To Consider Buying Covestro AG (ETR:1COV)?

Is It Time To Consider Buying Covestro AG (ETR:1COV)?

Covestro AG ( ETR:1COV ) saw significant share price movement during recent months on the XTRA, rising to highs of...

Jun 23
Is Covestro (ETR:1COV) A Risky Investment?

Is Covestro (ETR:1COV) A Risky Investment?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...

May 10
An Intrinsic Calculation For Covestro AG (ETR:1COV) Suggests It's 32% Undervalued

An Intrinsic Calculation For Covestro AG (ETR:1COV) Suggests It's 32% Undervalued

Today we will run through one way of estimating the intrinsic value of Covestro AG ( ETR:1COV ) by taking the expected...

Shareholder Returns

1COVDE ChemicalsDE Market
7D0.4%0.5%1.8%
1Y31.8%25.2%31.3%

Return vs Industry: 1COV exceeded the German Chemicals industry which returned 23.9% over the past year.

Return vs Market: 1COV exceeded the German Market which returned 29.1% over the past year.

Price Volatility

Is 1COV's price volatile compared to industry and market?
1COV volatility
1COV Beta1.33
Industry Beta1.3
Market Beta1

Stable Share Price: 1COV is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 1COV's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
186318,039Markus Steilemannhttps://www.covestro.com

Covestro AG develops, produces, and markets polymer materials for various industries. The company operates in three segments: Polyurethanes; Polycarbonates; and Coatings, Adhesives, Specialties (CAS). The Polyurethanes segment develops, produces, and markets chemical precursors, such as diphenylmethane diisocyanate, toluene diisocyanate, and polyether polyol, which are used primarily in the furniture, construction, and automotive industries.

Covestro Fundamentals Summary

How do Covestro's earnings and revenue compare to its market cap?
1COV fundamental statistics
Market Cap€10.88b
Earnings (TTM)€1.33b
Revenue (TTM)€13.03b

8.2x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1COV income statement (TTM)
Revenue€13.03b
Cost of Revenue€9.23b
Gross Profit€3.80b
Expenses€2.47b
Earnings€1.33b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 08, 2021

Earnings per share (EPS)6.90
Gross Margin29.15%
Net Profit Margin10.23%
Debt/Equity Ratio33.1%

How did 1COV perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

19%

Payout Ratio

Valuation

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

35.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1COV (€56.34) is trading below our estimate of fair value (€87.29)

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 (8.2x) compared to the German Chemicals industry average (19.2x).

PE vs Market: 1COV is good value based on its PE Ratio (8.2x) compared to the German market (22.4x).


Price to Earnings Growth Ratio

PEG Ratio: 1COV's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 1COV is good value based on its PB Ratio (1.6x) compared to the DE Chemicals industry average (2.2x).


Future Growth

How is Covestro forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

-12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1COV's earnings are forecast to decline over the next 3 years (-12.6% per year).

Earnings vs Market: 1COV's earnings are forecast to decline over the next 3 years (-12.6% per year).

High Growth Earnings: 1COV's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 1COV's revenue (3.1% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: 1COV's revenue (3.1% 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 (14.1%).


Past Performance

How has Covestro performed over the past 5 years?

-12.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1COV has high quality earnings.

Growing Profit Margin: 1COV's current net profit margins (10.2%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: 1COV's earnings have declined by 12% per year over the past 5 years.

Accelerating Growth: 1COV's earnings growth over the past year (777%) exceeds its 5-year average (-12% per year).

Earnings vs Industry: 1COV earnings growth over the past year (777%) exceeded the Chemicals industry 49.1%.


Return on Equity

High ROE: 1COV's Return on Equity (19.9%) is considered low.


Financial Health

How is Covestro's financial position?


Financial Position Analysis

Short Term Liabilities: 1COV's short term assets (€6.5B) exceed its short term liabilities (€3.4B).

Long Term Liabilities: 1COV's short term assets (€6.5B) exceed its long term liabilities (€4.6B).


Debt to Equity History and Analysis

Debt Level: 1COV's debt to equity ratio (33.1%) is considered satisfactory.

Reducing Debt: 1COV's debt to equity ratio has reduced from 55.3% to 33.1% over the past 5 years.

Debt Coverage: 1COV's debt is well covered by operating cash flow (97.2%).

Interest Coverage: 1COV's interest payments on its debt are well covered by EBIT (41x coverage).


Balance Sheet


Dividend

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

2.31%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1COV's dividend (2.31%) is higher than the bottom 25% of dividend payers in the German market (1%).

High Dividend: 1COV's dividend (2.31%) is low compared to the top 25% of dividend payers in the German market (3.25%).


Stability and Growth of Payments

Stable Dividend: 1COV has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1COV's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.5%), 1COV's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1COV's dividends in 3 years are forecast to be covered by earnings (53.5% payout ratio).


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Markus Steilemann (51 yo)

3.33yrs

Tenure

€4,426,000

Compensation

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 the Chief Executive Officer of Covestro AG since June 01,...


CEO Compensation Analysis

Compensation vs Market: Markus's total compensation ($USD5.13M) is about average for companies of similar size in the German market ($USD4.49M).

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


Leadership Team

Experienced Management: 1COV's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: 1COV's board of directors are considered experienced (5.5 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

Covestro AG's employee growth, exchange listings and data sources


Key Information

  • Name: Covestro AG
  • Ticker: 1COV
  • Exchange: XTRA
  • Founded: 1863
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: €10.883b
  • Shares outstanding: 193.16m
  • Website: https://www.covestro.com

Number of Employees


Location

  • Covestro AG
  • Kaiser-Wilhelm-Allee 60
  • Leverkusen
  • North Rhine-Westphalia
  • 51373
  • Germany

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 21:18
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.