OTCPK:BNTG.Y

Stock Analysis Report

Executive Summary

Brenntag AG, a chemical distribution company, purchases and supplies industrial and specialty chemicals in Europe, the Middle East, Africa, North America, Latin America, the Asia Pacific, and internationally.


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.5%

BNTG.Y

-0.6%

US Trade Distributors

-1.1%

US Market


1 Year Return

6.1%

BNTG.Y

9.2%

US Trade Distributors

17.8%

US Market

Return vs Industry: BNTG.Y underperformed the US Trade Distributors industry which returned 9.1% over the past year.

Return vs Market: BNTG.Y underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

BNTG.YIndustryMarket
7 Day-1.5%-0.6%-1.1%
30 Day-0.8%0.3%1.5%
90 Day-2.8%-0.5%6.6%
1 Year8.1%6.1%11.3%9.2%20.2%17.8%
3 Year-2.6%-6.9%20.5%14.9%47.5%38.1%
5 Year-3.8%-10.4%42.9%32.2%71.2%52.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

32.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BNTG.Y ($10.56) is trading below our estimate of fair value ($15.37)

Significantly Below Fair Value: BNTG.Y is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BNTG.Y is good value based on its PE Ratio (15.7x) compared to the Trade Distributors industry average (15.9x).

PE vs Market: BNTG.Y is good value based on its PE Ratio (15.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: BNTG.Y is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: BNTG.Y is overvalued based on its PB Ratio (2.2x) compared to the US Trade Distributors industry average (1.6x).


Next Steps

Future Growth

How is Brenntag forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BNTG.Y's forecast earnings growth (5.8% per year) is above the savings rate (1.7%).

Earnings vs Market: BNTG.Y's earnings (5.8% per year) are forecast to grow slower than the US market (14.1% per year).

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

Revenue vs Market: BNTG.Y's revenue (2.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: BNTG.Y's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BNTG.Y's Return on Equity is forecast to be low in 3 years time (11.9%).


Next Steps

Past Performance

How has Brenntag performed over the past 5 years?

5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BNTG.Y has high quality earnings.

Growing Profit Margin: BNTG.Y's current net profit margins (3.8%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: BNTG.Y's earnings have grown by 5.6% per year over the past 5 years.

Accelerating Growth: BNTG.Y's earnings growth over the past year (22.8%) exceeds its 5-year average (5.6% per year).

Earnings vs Industry: BNTG.Y earnings growth over the past year (22.8%) exceeded the Trade Distributors industry 5.2%.


Return on Equity

High ROE: BNTG.Y's Return on Equity (13.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Brenntag's financial position?


Financial Position Analysis

Short Term Liabilities: BNTG.Y's short term assets (€4.0B) exceed its short term liabilities (€2.2B).

Long Term Liabilities: BNTG.Y's short term assets (€4.0B) exceed its long term liabilities (€2.9B).


Debt to Equity History and Analysis

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

Reducing Debt: BNTG.Y's debt to equity ratio has reduced from 81.4% to 63.4% over the past 5 years.

Debt Coverage: BNTG.Y's debt is well covered by operating cash flow (35.4%).

Interest Coverage: BNTG.Y's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: BNTG.Y's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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

2.45%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BNTG.Y's dividend (2.45%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: BNTG.Y's dividend (2.45%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BNTG.Y has been paying a dividend for less than 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.4%), BNTG.Y's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BNTG.Y's dividends in 3 years are forecast to be well covered by earnings (44.8% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Christian Kohlpaintner (56yo)

0.08yrs

Tenure

Dr. Christian Kohlpaintner serves as Chief Executive Officer and Member of Management Board at Brenntag AG since January 1, 2020.Dr. Kohlpaintner served as Member of the Executive Committee at Clariant AG  ...


Leadership Team

NamePositionTenureCompensationOwnership
Georg Müller
CFO & Member of Board of Management7.6yrs€2.42mno data
Karsten Beckmann
Member of Board of Management and CEO of Europe4.6yrs€1.80mno data
Markus Klähn
Member of Board of Management4.6yrs€1.61mno data
Henri Nejade
Member of Board of Management & CEO of Asia Pacific Region4.6yrs€2.14mno data
Christian Kohlpaintner
CEO & Member of Management Board0.08yrsno datano data
Thomas Langer
Vice President of Corporate Finance & Investor Relations0yrsno datano data
Marion J. Mestrom
Global Human Resources Director4.8yrsno datano data

4.6yrs

Average Tenure

56.5yo

Average Age

Experienced Management: BNTG.Y's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stefan Zuschke
Chairman of Supervisory Board9.9yrs€225.00kno data
Andreas Rittstieg
Deputy Chairman of Supervisory Board2.7yrs€160.00kno data
Ulrich Harnacke
Member of Supervisory Board2.7yrs€205.00kno data
Doreen Nowotne
Member of Supervisory Board9.9yrs€145.00kno data
Wijnand Donkers
Member of Supervisory Board2.7yrs€130.00kno data
Stefanie Berlinger
Member of Supervisory Board4.7yrs€145.00kno data

3.7yrs

Average Tenure

57yo

Average Age

Experienced Board: BNTG.Y's board of directors are considered experienced (3.7 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

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


Key Information

  • Name: Brenntag AG
  • Ticker: BNTG.Y
  • Exchange: OTCPK
  • Founded: 1874
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: €7.581b
  • Listing Market Cap: €8.235b
  • Shares outstanding: 154.50m
  • Website: https://www.brenntag.com

Number of Employees


Location

  • Brenntag AG
  • Messeallee 11
  • Essen
  • North Rhine-Westphalia
  • 45131
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BNRNDB (Deutsche Boerse AG)NPVDEEURNo data
BNRDB (Deutsche Boerse AG)YesOrdinary Registered SharesDEEURMar 2010
BNRXTRA (XETRA Trading Platform)YesOrdinary Registered SharesDEEURMar 2010
0MPTLSE (London Stock Exchange)YesOrdinary Registered SharesGBEURMar 2010
BNTG.FOTCPK (Pink Sheets LLC)YesOrdinary Registered SharesUSUSDMar 2010
BNRDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary Registered SharesGBEURMar 2010
BNRSWX (SIX Swiss Exchange)YesOrdinary Registered SharesCHCHFMar 2010
BNRWBAG (Wiener Boerse AG)YesOrdinary Registered SharesATEURMar 2010
BNR NBMV (Bolsa Mexicana de Valores)YesOrdinary Registered SharesMXMXNMar 2010
BNRETLX (Eurotlx)YesOrdinary Registered SharesITEURMar 2010
BNTG.YOTCPK (Pink Sheets LLC)UNSP ADR EA REPR 1/10 ORD SHSUSUSDNov 2011
BNRABST (Boerse-Stuttgart)UNSP ADR EA REPR 1/10 ORD SHSDEEURNov 2011

Biography

Brenntag AG, a chemical distribution company, purchases and supplies industrial and specialty chemicals in Europe, the Middle East, Africa, North America, Latin America, the Asia Pacific, and internationally. It also provides surfactants, emulsifiers, emollients, waxes, preservatives, silicones, complexing agents, and actives for skin and hair care, sun care, personal hygiene and body cleansing, color cosmetics, and dental and oral care applications; and value-added services. The company serves customers in various end-market industries, including adhesives, paints, oil and gas, food, water treatment, personal care, and pharmaceuticals. Brenntag AG was founded in 1874 and is headquartered in Essen, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 00:31
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
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.