ENXTAM:IMCD

Stock Analysis Report

Executive Summary

IMCD N.V. sells, markets, and distributes specialty chemicals, and pharmaceutical and food ingredients in Europe, the Middle East, Africa, the Asia-Pacific, and the Americas.

Rewards

Earnings are forecast to grow 11.69% per year

Earnings grew by 25.4% over the past year

Risk Analysis

Debt is not well covered by operating cash flow



Snowflake Analysis

Adequate balance sheet with proven track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

3.6%

IMCD

0.8%

NL Trade Distributors

0.5%

NL Market


1 Year Return

36.4%

IMCD

21.6%

NL Trade Distributors

14.5%

NL Market

Return vs Industry: IMCD exceeded the Dutch Trade Distributors industry which returned 21.6% over the past year.

Return vs Market: IMCD exceeded the Dutch Market which returned 14.5% over the past year.


Shareholder returns

IMCDIndustryMarket
7 Day3.6%0.8%0.5%
30 Day6.8%1.7%-0.5%
90 Day19.1%7.2%4.0%
1 Year38.0%36.4%26.8%21.6%19.7%14.5%
3 Year101.3%94.7%38.3%25.1%41.2%25.1%
5 Year231.1%214.3%76.3%51.7%73.9%39.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

37.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IMCD (€78.25) is trading above our estimate of fair value (€61.49)

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


Price To Earnings Ratio

PE vs Industry: IMCD is poor value based on its PE Ratio (37.1x) compared to the Trade Distributors industry average (14.4x).

PE vs Market: IMCD is poor value based on its PE Ratio (37.1x) compared to the Dutch market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: IMCD is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: IMCD is overvalued based on its PB Ratio (5x) compared to the XE Trade Distributors industry average (1.3x).


Next Steps

Future Growth

How is IMCD forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IMCD's forecast earnings growth (11.7% per year) is above the savings rate (-0.2%).

Earnings vs Market: IMCD's earnings (11.7% per year) are forecast to grow slower than the Dutch market (11.8% per year).

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

Revenue vs Market: IMCD's revenue (5.7% per year) is forecast to grow faster than the Dutch market (5.5% per year).

High Growth Revenue: IMCD's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IMCD's Return on Equity is forecast to be low in 3 years time (17.1%).


Next Steps

Past Performance

How has IMCD performed over the past 5 years?

28.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IMCD has high quality earnings.

Growing Profit Margin: IMCD's current net profit margins (4.2%) are higher than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: IMCD has become profitable over the past 5 years, growing earnings by 28% per year.

Accelerating Growth: IMCD's earnings growth over the past year (25.4%) is below its 5-year average (28% per year).

Earnings vs Industry: IMCD earnings growth over the past year (25.4%) exceeded the Trade Distributors industry 5.8%.


Return on Equity

High ROE: IMCD's Return on Equity (13.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is IMCD's financial position?


Financial Position Analysis

Short Term Liabilities: IMCD's short term assets (€929.1M) exceed its short term liabilities (€641.1M).

Long Term Liabilities: IMCD's short term assets (€929.1M) exceed its long term liabilities (€638.8M).


Debt to Equity History and Analysis

Debt Level: IMCD's debt to equity ratio (98.1%) is considered high.

Reducing Debt: IMCD had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: IMCD's debt is not well covered by operating cash flow (17.4%).

Interest Coverage: IMCD's interest payments on its debt are well covered by EBIT (10.5x coverage).


Balance Sheet

Inventory Level: IMCD has a high level of physical assets or inventory.

Debt Coverage by Assets: IMCD's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

What is IMCD's current dividend yield, its reliability and sustainability?

1.02%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%2.2%markettop25%5.6%industryaverage2.4%forecastin3Years1.3%

Current dividend yield vs market & industry

Notable Dividend: IMCD's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the Dutch market (2.19%).

High Dividend: IMCD's dividend (1.02%) is low compared to the top 25% of dividend payers in the Dutch market (5.65%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: IMCD is not paying a notable dividend for the Dutch market.


Future Payout to Shareholders

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


Next Steps

Management

What is the CEO of IMCD's salary, the management and board of directors tenure and is there insider trading?

23.9yrs

Average management tenure


CEO

Piet Slikke (63yo)

24.9yrs

Tenure

€1,502,000

Compensation

Mr. Pieter C.J. van der Slikke, also known as Piet, has been Chief Executive Officer and Member of Management Board of IMCD N.V. since 1995. Mr. Slikke serves as the Chief Executive Officer at IMCD Group B ...


CEO Compensation Analysis

Compensation vs Market: Piet's total compensation ($USD1.67M) is about average for companies of similar size in the Dutch market ($USD2.38M).

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


Management Age and Tenure

23.9yrs

Average Tenure

58yo

Average Age

Experienced Management: IMCD's management team is seasoned and experienced (23.9 years average tenure).


Board Age and Tenure

3.6yrs

Average Tenure

53yo

Average Age

Experienced Board: IMCD's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell€301,39228 Feb 19
Hans J. Kooijmans
EntityIndividual
Role
Chief Financial Officer
CFO & Member of Management Board
Shares4,368
Max Price€69.00
Sell€409,86028 Feb 19
Pieter C.J. van Slikke
EntityIndividual
Role
Chief Executive Officer
CEO & Member of Management Board
Shares5,940
Max Price€69.00

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Piet Slikke (63yo)

    CEO & Member of Management Board

    • Tenure: 24.9yrs
    • Compensation: €1.50m
  • Hans J. Kooijmans (58yo)

    CFO & Member of Management Board

    • Tenure: 23.9yrs
    • Compensation: €1.15m
  • Olivier Champault (52yo)

    Director Advanced Materials & MD of France

    • Tenure: 1.9yrs

Board Members

  • Michel G. Plantevin (63yo)

    Chairman of Supervisory Board

    • Tenure: 3.1yrs
  • Janus Smalbraak (52yo)

    Member of Supervisory Board

    • Tenure: 3.6yrs
  • Stephan Nanninga (62yo)

    Member of Supervisory Board

    • Tenure: 1.6yrs
  • Arjan J. T. Kaaks (53yo)

    Vice Chairman of Supervisory Board

    • Tenure: 4.8yrs
  • Julia Van Lemke-Pears (51yo)

    Member of Supervisory Board

    • Tenure: 3.6yrs

Company Information

IMCD N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: IMCD N.V.
  • Ticker: IMCD
  • Exchange: ENXTAM
  • Founded: 1995
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: €3.975b
  • Shares outstanding: 52.45m
  • Website: https://www.imcdgroup.com

Number of Employees


Location

  • IMCD N.V.
  • Wilhelminaplein 32
  • Rotterdam
  • Zuid-Holland
  • 3072 DE
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IMCDENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEURJun 2014
INXDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2014
IMCDABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJun 2014
0QVULSE (London Stock Exchange)YesOrdinary SharesGBEURJun 2014
IMDZ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2014
IMCD.YOTCPK (Pink Sheets LLC)ADRUSUSDMay 2016

Biography

IMCD N.V. sells, markets, and distributes specialty chemicals, and pharmaceutical and food ingredients in Europe, the Middle East, Africa, the Asia-Pacific, and the Americas. The company offers detergent s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 21:42
End of Day Share Price2019/12/06 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.