Assessing Fuchs' Value After Recent Market Decline and New Asia-Pacific Expansion Plans

If you have Fuchs stock on your radar, you are not alone. Whether you are weighing up your next move or simply keeping tabs on recent performance, Fuchs is definitely a name that pops up in conversations about steady, long-term performers. The big question for many investors right now remains: is it still a good value, especially after some choppy weeks?

Let’s take a look at how things have moved. Over the last seven days, Fuchs saw a slight dip of -1.6%, while the past month brought a bigger decline of -8.8%. That kind of short-term pullback might sound concerning, but zooming out paints a more positive picture. Year-to-date, the stock is down -6.9%, but over the last three years it has climbed an impressive 68.8%, and grown just over 5% in the last five years. The one-year return currently sits at 0.7%. This is a modest figure, but it hints at underlying resilience, especially in a market where confidence can shift quickly in response to industrial and chemical sector trends.

What truly stands out for Fuchs is its valuation score. Out of six standard checks for undervaluation, Fuchs scores a 5. That means it looks attractive on the vast majority of key measures analysts look for when hunting for bargains. However, headline metrics can only tell part of the story.

Let’s break down which valuation methods Fuchs passes with flying colors, and why sometimes, even a great score does not tell you everything. A deeper dive may change how you look at value altogether.

Fuchs delivered 0.7% returns over the last year. See how this stacks up to the rest of the Chemicals industry.

Approach 1: Fuchs Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model estimates what a company is worth by projecting its future cash flows and discounting them back to today's value. In Fuchs' case, the model uses recent Free Cash Flow figures as well as forecasts to build a detailed view of likely future performance, then calculates their present value in euros.

Currently, Fuchs generates Free Cash Flow of approximately €324.6 million per year. Analysts forecast a modest but steady increase in cash flows, projecting about €360.1 million in 2035. Notably, estimates from analysts are incorporated for the first five years. Further out, projections are automatically extrapolated. All calculations use the euro as the reporting currency.

Based on this methodology, the DCF model calculates Fuchs' fair value at €62.63 per share. The current share price sits at a substantial 38% discount to this intrinsic value. This suggests the stock is significantly undervalued according to future cash flow projections and their discounted value in today's money.

Result: UNDERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Fuchs.

Our Discounted Cash Flow (DCF) analysis suggests Fuchs is undervalued by 38.0%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

Approach 2: Fuchs Price vs Earnings (PE Ratio)

The Price-to-Earnings (PE) ratio is a widely used yardstick for valuing profitable businesses like Fuchs. It gives investors a snapshot of how much they are paying for each euro of reported earnings. Since Fuchs maintains stable profits and ongoing cash generation, this metric offers a clear lens for comparing value.

In general, higher growth prospects and lower risk tend to push a "normal" or "fair" PE ratio higher. Slower growth or increased business risks, on the other hand, warrant a more modest multiple. This is why benchmarking against the right peers and the broader chemicals sector provides important context.

Fuchs’ current PE ratio sits at 17.5x. This is less expensive than the average seen among its industry peers at 20.1x, and well below the broader chemicals industry average of 22.6x. But standard benchmarks only tell half the story. This is where Simply Wall St's "Fair Ratio" comes in, as it adjusts for more nuanced factors like Fuchs’ actual earnings growth, profit margins, market cap, industry position, and specific risks. For Fuchs, the calculated Fair Ratio is 17.2x, landing almost exactly on the company’s current PE.

Comparing the two, Fuchs stock appears priced about right relative to its growth outlook and risk profile, not standing out as a major bargain or looking costly on today’s numbers.

Result: ABOUT RIGHT

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Fuchs Narrative

Earlier, we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is simply your story about a company, combining your perspective on its future with specific financial assumptions such as fair value or estimated future revenue, earnings, and margins, rather than just relying on static numbers from models or consensus.

Instead of seeing a company as only a set of ratios and figures, Narratives let you link the story behind Fuchs to your financial forecasts and, crucially, to a dynamic fair value. This shows how your view matches up against the current share price. Narratives are an easy and intuitive tool within the Community page on Simply Wall St’s platform, used by millions of investors.

They help you decide when to buy or sell by comparing the fair value implied by your Narrative with the real-time market price, and they automatically update as new information such as news or earnings emerges. For example, some investors believe Fuchs’ expansion in Asia-Pacific and new EV lubricants will drive future revenues and set a fair value at €56.0, while others are more cautious and expect a value closer to €39.0.

Do you think there's more to the story for Fuchs? Create your own Narrative to let the Community know!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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