Covestro AG develops, produces, and markets polymer materials for various industries. More Details
Flawless balance sheet and undervalued.
Share Price & News
How has Covestro's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 1COVD is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: 1COVD's weekly volatility (5%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: 1COVD exceeded the UK Chemicals industry which returned 44% over the past year.
Return vs Market: 1COVD exceeded the UK Market which returned 23.3% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Covestro's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Covestro undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 1COVD (€55.36) is trading below our estimate of fair value (€81.13)
Significantly Below Fair Value: 1COVD is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 1COVD is good value based on its PE Ratio (12.6x) compared to the UK Chemicals industry average (42.1x).
PE vs Market: 1COVD is good value based on its PE Ratio (12.6x) compared to the UK market (25.6x).
Price to Earnings Growth Ratio
PEG Ratio: 1COVD's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: 1COVD is good value based on its PB Ratio (1.7x) compared to the GB Chemicals industry average (3.4x).
How is Covestro forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 1COVD's earnings are forecast to decline over the next 3 years (-2.5% per year).
Earnings vs Market: 1COVD's earnings are forecast to decline over the next 3 years (-2.5% per year).
High Growth Earnings: 1COVD's earnings are forecast to decline over the next 3 years.
Revenue vs Market: 1COVD's revenue (3.8% per year) is forecast to grow slower than the UK market (5.3% per year).
High Growth Revenue: 1COVD's revenue (3.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 1COVD's Return on Equity is forecast to be low in 3 years time (14.3%).
How has Covestro performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1COVD has high quality earnings.
Growing Profit Margin: 1COVD's current net profit margins (7.4%) are higher than last year (3.3%).
Past Earnings Growth Analysis
Earnings Trend: 1COVD's earnings have declined by 10.3% per year over the past 5 years.
Accelerating Growth: 1COVD's earnings growth over the past year (111.7%) exceeds its 5-year average (-10.3% per year).
Earnings vs Industry: 1COVD earnings growth over the past year (111.7%) exceeded the Chemicals industry -12.7%.
Return on Equity
High ROE: 1COVD's Return on Equity (12.9%) is considered low.
How is Covestro's financial position?
Financial Position Analysis
Short Term Liabilities: 1COVD's short term assets (€7.1B) exceed its short term liabilities (€2.6B).
Long Term Liabilities: 1COVD's short term assets (€7.1B) exceed its long term liabilities (€4.7B).
Debt to Equity History and Analysis
Debt Level: 1COVD's debt to equity ratio (32.7%) is considered satisfactory.
Reducing Debt: 1COVD's debt to equity ratio has reduced from 82.6% to 32.7% over the past 5 years.
Debt Coverage: 1COVD's debt is well covered by operating cash flow (84.1%).
Interest Coverage: 1COVD's interest payments on its debt are well covered by EBIT (26.9x coverage).
What is Covestro current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 1COVD's dividend (2.33%) is higher than the bottom 25% of dividend payers in the UK market (1.36%).
High Dividend: 1COVD's dividend (2.33%) is low compared to the top 25% of dividend payers in the UK market (4.1%).
Stability and Growth of Payments
Stable Dividend: 1COVD has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: 1COVD's dividend payments have increased, but the company has only paid a dividend for 5 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (29.3%), 1COVD's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 1COVD's dividends in 3 years are forecast to be well covered by earnings (43.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Markus Steilemann (50 yo)
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 a Chief Executive Officer of Covestro AG since June 01, 20...
CEO Compensation Analysis
Compensation vs Market: Markus's total compensation ($USD5.38M) is above average for companies of similar size in the UK market ($USD3.64M).
Compensation vs Earnings: Markus's compensation has been consistent with company performance over the past year.
Experienced Management: 1COVD's management team is considered experienced (4.5 years average tenure).
Experienced Board: 1COVD's board of directors are considered experienced (5.1 years average tenure).
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.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.6%.
Covestro AG's company bio, employee growth, exchange listings and data sources
- Name: Covestro AG
- Ticker: 1COVD
- Exchange: BATS-CHIXE
- Founded: 1863
- Industry: Specialty Chemicals
- Sector: Materials
- Market Cap: €10.794b
- Shares outstanding: 193.16m
- Website: https://www.covestro.com
Number of Employees
- Covestro AG
- Kaiser-Wilhelm-Allee 60
- North Rhine-Westphalia
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 ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/18 00:41|
|End of Day Share Price||2021/05/17 00:00|
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.