XTRA:WCH

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Wacker Chemie AG provides chemical products worldwide.


Snowflake Analysis

Moderate growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WCH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.8%

WCH

4.2%

DE Chemicals

3.1%

DE Market


1 Year Return

29.9%

WCH

1.7%

DE Chemicals

14.0%

DE Market

Return vs Industry: WCH exceeded the German Chemicals industry which returned 1.7% over the past year.

Return vs Market: WCH exceeded the German Market which returned 14% over the past year.


Shareholder returns

WCHIndustryMarket
7 Day2.8%4.2%3.1%
30 Day18.7%2.2%2.3%
90 Day63.6%21.0%18.4%
1 Year30.8%29.9%6.1%1.7%16.5%14.0%
3 Year-14.1%-20.2%-17.6%-26.4%7.4%-1.2%
5 Year20.3%7.0%-2.8%-18.7%23.8%7.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.02x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: WCH (€83.12) is trading above our estimate of fair value (€72.58)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WCH is overvalued based on its PB Ratio (2x) compared to the DE Chemicals industry average (1.4x).


Next Steps

Future Growth

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

43.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WCH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

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

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

Revenue vs Market: WCH's revenue (4.4% per year) is forecast to grow slower than the German market (5.8% per year).

High Growth Revenue: WCH's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WCH's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

How has Wacker Chemie performed over the past 5 years?

-44.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WCH is currently unprofitable.

Growing Profit Margin: WCH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WCH is unprofitable, and losses have increased over the past 5 years at a rate of 44.9% per year.

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

Earnings vs Industry: WCH is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-15.2%).


Return on Equity

High ROE: WCH has a negative Return on Equity (-29.61%), as it is currently unprofitable.


Next Steps

Financial Health

How is Wacker Chemie's financial position?


Financial Position Analysis

Short Term Liabilities: WCH's short term assets (€2.7B) exceed its short term liabilities (€634.3M).

Long Term Liabilities: WCH's short term assets (€2.7B) do not cover its long term liabilities (€4.1B).


Debt to Equity History and Analysis

Debt Level: WCH's debt to equity ratio (63.4%) is considered high.

Reducing Debt: WCH's debt to equity ratio has increased from 54.8% to 63.4% over the past 5 years.

Debt Coverage: WCH's debt is well covered by operating cash flow (59.2%).

Interest Coverage: WCH is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Wacker Chemie current dividend yield, its reliability and sustainability?

0.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WCH's dividend (0.6%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.23%).

High Dividend: WCH's dividend (0.6%) is low compared to the top 25% of dividend payers in the German market (3.78%).


Stability and Growth of Payments

Stable Dividend: WCH is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: WCH is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: WCH is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WCH's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

8.5yrs

Average management tenure


CEO

Rudolf Staudigl (66 yo)

12.25yrs

Tenure

€1,956,464

Compensation

Dr. Rudolf Staudigl serves as Deputy chairman of the Supervisory Board of Groz-Beckert U.K. Ltd. Dr. Staudigl has been a Member of Executive Board at Wacker Chemie AG since 1995 and as its President and Ch ...


CEO Compensation Analysis

Compensation vs Market: Rudolf's total compensation ($USD2.31M) is below average for companies of similar size in the German market ($USD3.41M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Rudolf Staudigl
CEO, President & Member of Executive Board12.25yrs€1.96mno data
Tobias Ohler
CFO & Member of the Executive Board4.75yrs€1.82mno data
Auguste Willems
Member of Executive Board14.58yrs€1.96mno data
Christian Hartel
Member of Executive Board4.75yrs€1.62mno data
Rainald Hagenhues
Head of Corproate Accounting & Taxno datano datano data
Jörg Hoffmann
Head of Investor Relationsno datano datano data
Goetz Neumann
Head of Legal Affairsno datano datano data
Jörg Hettmann
Head of Corporate Communicationsno datano datano data
Thomas Koini
Head of Sales & Distributionno datano datano data
Angela Wörl
Head of Human Resourceno datano datano data
Volker Radius
Head of Corporate Engineeringno datano datano data
Fridolin Stary
Head of Corporate Research & Developmentno datano datano data

8.5yrs

Average Tenure

56.5yo

Average Age

Experienced Management: WCH's management team is seasoned and experienced (8.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ernst-Ludwig Winnacker
Member of Supervisory Board14.92yrsno datano data
Peter-Alexander Wacker
Chairman of Supervisory Board12.25yrsno datano data
Franz-Josef Kortüm
Independent Member of Supervisory Boardno datano datano data
Eduard-Harald Klein
Employee Representative Member of Supervisory Board17.58yrsno datano data
Peter Áldozó
Employee Representative Member of Supervisory Boardno datano datano data
Manfred Köppl
Deputy Chairman of Supervisory Board3.58yrsno datano data
Susanne Weiss
Member of Supervisory Board12.25yrsno datano data
Matthias Biebl
Independent Member of Supervisory Board12.25yrsno datano data
Konrad Kammergruber
Employee Representative Member of Supervisory Board8.58yrsno datano data
Andreas Biagosch
Independent Member of Supervisory Board5.58yrsno datano data
Gregor Biebl
Independent Member of Supervisory Board7.25yrsno datano data
Barbara Kraller
Employee Representative Member of Supervisory Board3.33yrsno datano data

10.4yrs

Average Tenure

69yo

Average Age

Experienced Board: WCH's board of directors are seasoned and experienced ( 10.4 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

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


Key Information

  • Name: Wacker Chemie AG
  • Ticker: WCH
  • Exchange: XTRA
  • Founded: 1914
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: €4.129b
  • Shares outstanding: 49.68m
  • Website: https://www.wacker.com

Number of Employees


Location

  • Wacker Chemie AG
  • Hanns-Seidel-Platz 4
  • Munich
  • Bavaria
  • 81737
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WCHDB (Deutsche Boerse AG)YesCommon SharesDEEURApr 2006
WKCM.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDApr 2006
WCHXTRA (XETRA Trading Platform)YesCommon SharesDEEURApr 2006
0NR4LSE (London Stock Exchange)YesCommon SharesGBEURApr 2006
WCHDBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURApr 2006
WCHSWX (SIX Swiss Exchange)YesCommon SharesCHCHFApr 2006
WCHWBAG (Wiener Boerse AG)YesCommon SharesATEURApr 2006
WCHETLX (Eurotlx)YesCommon SharesITEURApr 2006

Biography

Wacker Chemie AG provides chemical products worldwide. It operates through four divisions: Wacker Silicones, Wacker Polymers, Wacker Biosolutions, and Wacker Polysilicon. The Wacker Silicones division offe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/14 10:13
End of Day Share Price2020/08/13 00:00
Earnings2020/06/30
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.