CPSE:CHR

Stock Analysis Report

Chr. Hansen Holding

Executive Summary

Chr. Hansen Holding A/S, a bioscience company, develops and sells natural ingredient solutions for food, nutritional, pharmaceutical, and agricultural industries in Europe, the Middle East, Africa, North America, Latin America, and the Asia-Pacific.


Snowflake Analysis

Proven track record with moderate growth potential.


Similar Companies

Share Price & News

How has Chr. Hansen Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.7%

CHR

4.6%

DK Chemicals

1.9%

DK Market


1 Year Return

-23.5%

CHR

-11.7%

DK Chemicals

6.0%

DK Market

Return vs Industry: CHR underperformed the Danish Chemicals industry which returned -17.1% over the past year.

Return vs Market: CHR underperformed the Danish Market which returned 4.1% over the past year.


Shareholder returns

CHRIndustryMarket
7 Day0.7%4.6%1.9%
30 Day5.0%-4.4%-4.3%
90 Day0.4%-15.1%-4.4%
1 Year-21.7%-23.5%-9.1%-11.7%8.2%6.0%
3 Year27.7%19.3%-4.6%-13.2%36.1%24.7%
5 Year61.7%44.8%3.2%-11.8%30.3%13.8%

Price Volatility Vs. Market

How volatile is Chr. Hansen Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Chr. Hansen Holding undervalued compared to its fair value and its price relative to the market?

36.31x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CHR (DKK512) is trading above our estimate of fair value (DKK275.64)

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


Price To Earnings Ratio

PE vs Industry: CHR is poor value based on its PE Ratio (36.3x) compared to the Chemicals industry average (12.9x).

PE vs Market: CHR is poor value based on its PE Ratio (36.3x) compared to the Danish market (12.8x).


Price to Earnings Growth Ratio

PEG Ratio: CHR is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: CHR is overvalued based on its PB Ratio (12.4x) compared to the XE Chemicals industry average (1.2x).


Next Steps

Future Growth

How is Chr. Hansen Holding forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

8.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHR's forecast earnings growth (8.1% per year) is above the savings rate (-0.3%).

Earnings vs Market: CHR's earnings (8.1% per year) are forecast to grow slower than the Danish market (12% per year).

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

Revenue vs Market: CHR's revenue (6.2% per year) is forecast to grow faster than the Danish market (6% per year).

High Growth Revenue: CHR's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CHR's Return on Equity is forecast to be high in 3 years time (27.7%)


Next Steps

Past Performance

How has Chr. Hansen Holding performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHR has high quality earnings.

Growing Profit Margin: CHR's current net profit margins (21.4%) are higher than last year (20.9%).


Past Earnings Growth Analysis

Earnings Trend: CHR's earnings have grown by 11.5% per year over the past 5 years.

Accelerating Growth: CHR's earnings growth over the past year (7%) is below its 5-year average (11.5% per year).

Earnings vs Industry: CHR earnings growth over the past year (7%) exceeded the Chemicals industry 1.6%.


Return on Equity

High ROE: Whilst CHR's Return on Equity (34.24%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Chr. Hansen Holding's financial position?


Financial Position Analysis

Short Term Liabilities: CHR's short term assets (€455.5M) do not cover its short term liabilities (€488.3M).

Long Term Liabilities: CHR's short term assets (€455.5M) do not cover its long term liabilities (€881.3M).


Debt to Equity History and Analysis

Debt Level: CHR's debt to equity ratio (106.6%) is considered high.

Reducing Debt: CHR's debt to equity ratio has increased from 77.1% to 106.6% over the past 5 years.

Debt Coverage: CHR's debt is well covered by operating cash flow (41.7%).

Interest Coverage: CHR's interest payments on its debt are well covered by EBIT (37.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Chr. Hansen Holding's current dividend yield, its reliability and sustainability?

2.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CHR's dividend (2.59%) is higher than the bottom 25% of dividend payers in the Danish market (1.66%).

High Dividend: CHR's dividend (2.59%) is low compared to the top 25% of dividend payers in the Danish market (4.52%).


Stability and Growth of Payments

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

Growing Dividend: CHR's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.3%), CHR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CHR's dividends in 3 years are forecast to be well covered by earnings (49.5% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Mauricio Graber (56yo)

1.83s

Tenure

€3,101,000

Compensation

Mr. Mauricio Graber has been Chief Executive Officer, President and Member of Executive Board of Chr. Hansen Holding A/S since joining it on June 1, 2018. Mr. Graber serves as Director of Jungbunzlauer Sui ...


CEO Compensation Analysis

Compensation vs Market: Mauricio's total compensation ($USD3.35M) is about average for companies of similar size in the Danish market ($USD3.18M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mauricio Graber
CEO, President & Member of Executive Board1.83yrs€3.10m0.013% 9.0m
Søren Lonning
CFO, Executive VP & Member of Executive Board4.67yrs€966.00k0.0035% 2.3m
Thomas Schäfer
Executive VP2.42yrs€636.00k0.0017% 1.2m
Torsten Steenholt
Executive Vice President of Global Operations3.25yrsno datano data
Martin Riise
Head of Investor Relationsno datano datano data
Winnie Bügel
Corporate Vice President of Compliance & Corporate Affairs3.83yrsno datano data
Camilla Lercke
Head of Media Relationsno datano datano data
Alice Larsen
Corporate Vice President of Global Human Resources3.75yrsno datano data
Jacob Paulsen
Executive Vice President of Food Cultures & Enzymes3.58yrsno datano data
Christian Barker
Executive Vice President of Health & Nutritionno datano datano data

3.6yrs

Average Tenure

50.5yo

Average Age

Experienced Management: CHR's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jesper Brandgaard
Independent Vice Chairmanno data€127.00k0.0027% 1.9m
Dominique J. Reiniche
Independent Chairman of the Board1.42yrs€217.00k0.0011% 751.0k
Luis Cantarell Rocamora
Independent Director3.42yrs€88.00k0.0017% 1.1m
Mark Wilson
Independent Director9.5yrs€129.00k0.0023% 1.5m
Heidi Kleinbach-Sauter
Director2.42yrs€87.00k0.00057% 385.7k
Kristian Villumsen
Independent Director5.42yrs€91.00k0.0038% 2.6m
Per Poulsen
Employee Representative Director6.42yrs€54.00k0.00011% 74.4k
Lisbeth Grubov
Employee Representative Director2.42yrs€57.00k0.000080% 54.1k
Charlotte Hemmingsen
Employee Representative Director2.42yrs€54.00k0.00083% 561.6k
Kim Soerensen
Employee Representative Director2.42yrs€57.00k0.000020% 13.5k

2.4yrs

Average Tenure

59yo

Average Age

Experienced Board: CHR's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


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

Chr. Hansen Holding A/S's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chr. Hansen Holding A/S
  • Ticker: CHR
  • Exchange: CPSE
  • Founded: 1874
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: ø67.660b
  • Shares outstanding: 131.69m
  • Website: https://www.chr-hansen.com

Number of Employees


Location

  • Chr. Hansen Holding A/S
  • Bøge Allé 10-12
  • Hørsholm
  • Capital Region of Denmark
  • 2970
  • Denmark

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHRCPSE (OMX Nordic Exchange Copenhagen)YesShare CapitalDKDKKJun 2010
51CDB (Deutsche Boerse AG)YesShare CapitalDEEURJun 2010
0MR6LSE (London Stock Exchange)YesShare CapitalGBDKKJun 2010
CRTS.FOTCPK (Pink Sheets LLC)YesShare CapitalUSUSDJun 2010
CHRCBATS-CHIXE (BATS 'Chi-X Europe')YesShare CapitalGBDKKJun 2010
CHYH.YOTCPK (Pink Sheets LLC)SPONSORED ADSUSUSDMay 2012

Biography

Chr. Hansen Holding A/S, a bioscience company, develops and sells natural ingredient solutions for food, nutritional, pharmaceutical, and agricultural industries in Europe, the Middle East, Africa, North America, Latin America, and the Asia-Pacific. The company operates in three segments: Food Cultures & Enzymes, Health & Nutrition, and Natural Colors. The Food Cultures & Enzymes segment produces and sells various cultures, enzymes, and probiotic products that determine the taste, flavor, texture, shelf life, nutritional value, and health benefits of various consumer products in the food industry, primarily in the dairy industry. The Health & Nutrition segment produces and sells products for the dietary supplement, over-the-counter pharmaceutical, infant formula, animal feed, and plant protection industries. The Natural Colors segment supplies natural color solutions to the food and beverage industry. Chr. Hansen Holding A/S was founded in 1874 and is headquartered in Hørsholm, Denmark. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 23:16
End of Day Share Price2020/04/07 00:00
Earnings2019/11/30
Annual Earnings2019/08/31


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.