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Market Cap

€10.8b

Last Updated

2021/05/18 00:41 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

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.


Market Performance


7 Day Return

-3.5%

1COVD

-0.4%

GB Chemicals

0.2%

GB Market


1 Year Return

79.8%

1COVD

43.2%

GB Chemicals

22.8%

GB Market

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.


Shareholder returns

1COVDIndustryMarket
7 Day-3.5%-0.4%0.2%
30 Day-5.5%-0.4%0.1%
90 Day-7.1%3.5%5.1%
1 Year90.6%79.8%45.5%43.2%28.3%22.8%
3 Year-22.4%-30.0%8.8%-1.4%9.4%-3.1%
5 Year80.0%55.0%52.5%28.9%47.0%19.3%

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

Valuation

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

31.8%

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).


Future Growth

How is Covestro forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

-2.5%

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%).


Past Performance

How has Covestro performed over the past 5 years?

-10.3%

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.


Financial Health

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).


Balance Sheet


Dividend

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

2.33%

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).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Markus Steilemann (50 yo)

2.92yrs

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 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.


Leadership Team

Experienced Management: 1COVD's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: 1COVD's board of directors are considered experienced (5.1 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 been diluted in the past year, with total shares outstanding growing by 5.6%.


Top Shareholders

Company Information

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


Key Information

  • 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


Location

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

Listings


Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/18 00:41
End of Day Share Price2021/05/17 00:00
Earnings2021/03/31
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.