| LANXESS Aktiengesellschaft (DE0005470405) | |||
25,10 EURStand (close): 01.07.25 |
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| Datum / Uhrzeit | Titel | Bewertung |
| 09.05.25 07:06:58 | Lanxess AG (LNXSF) Q1 2025 Earnings Call Highlights: Strong EBITDA Growth Amidst Strategic ... |  |
| EBITDA Increase: Up by approximately 32% compared to Q1 2024. Working Capital: Increased at a lower rate than Q1 2024, driven by sales pickups and receivables. Net Debt: Increased due to the rise in working capital. Urethanes Business Divestiture: Closed earlier than anticipated, with proceeds to strengthen the balance sheet. Guidance: Reiterated at EUR600 million to EUR650 million, with a sequential improvement expected in Q2. Urethane Contribution Impact: EUR15 million reduction expected in Q2 due to the lack of urethanes. Warning! GuruFocus has detected 4 Warning Signs with LNXSF. Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Lanxess AG (LNXSF) reported a 32% increase in EBITDA compared to Q1 2024, indicating a significant improvement in profitability. The Consumer Protection segment saw a sharp increase in performance, driven by a recovery in agro orders. The divestiture of the Urethanes business was completed faster than anticipated, strengthening the company's balance sheet. Lanxess AG (LNXSF) has a strategic hedging plan in place, protecting against currency fluctuations and minimizing financial risk. The company expects a sequential improvement in Q2, with a focus on leveraging tariff advantages in the US market. Negative Points Working capital increased due to seasonal sales pickups, leading to higher net debt compared to Q4. Macroeconomic uncertainty has increased, with clients reducing order patterns to a one-to-two-week basis due to tariff-related volatility. The lack of urethanes contribution will result in a EUR15 million reduction in operational EBITDA for Q2. Energy costs have been a burden for the Advanced Intermediates segment, impacting profitability. The overall industry momentum remains weak, with the chemical industry operating at around 70% utilization, indicating a challenging trading environment. Q & A Highlights Q: Have you considered FX impacts in your guidance, and are there any indirect impacts included? Also, how do you see competition from Chinese exports affecting your markets? A: We have a strategic hedging approach and are fully protected against currency fluctuations for 2025 and largely for 2026. Direct impacts from tariffs are included in our numbers, but indirect impacts are difficult to quantify. We see competition from Chinese exports mainly in intermediates and pigments, but less so in consumer protection due to client proximity. Q: Can you provide insights into the demand momentum, especially the exit rate at the end of Q1? Also, what is your energy cost budget for this year? A: March 2025 was operationally better than January and February, but weaker than March 2024. The industry is still in a tough trading environment with low utilization rates. Regarding energy costs, we pass them through where they matter, and while there may be quarterly burdens, we avoid giving specific budget numbers due to volatility. Story Continues Q: What are you seeing in US-China chemical volumes, particularly US bromine shipments to China and biocide precursors from China to the USA? A: Bromine prices spiked due to supply shortages, not tariffs, and have since stabilized. Demand remains modest, but we are well-positioned in biocides, especially in the US, and expect positive developments as inventories are deployed. Q: Could you quantify the percentage of your portfolio exempt from tariffs and specify which products are exempt? A: Approximately 30-40% of our products are exempt from tariffs. Specifying products would be extensive, but for example, our Bayferrox pigments have multiple grades listed in the exemption annex. Q: What is the rationale for the expected pickup in activity in the second half of the year, and what are the drivers for volume recovery in the chemicals industry? A: We expect US pricing benefits from tariffs starting in June/July, but do not assume a fundamental change in business momentum. Construction and agro industries are expected to improve, driven by infrastructure programs and innovation, which should increase utilization rates. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. |
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| 29.03.25 19:02:50 | Standard Lithium Corp (SLI) Q2 2025 Earnings Call Highlights: Strategic Partnerships and ... | |
| Net Loss: $24.7 million for the three months ended December 31, 2024. Impairment Expense: $19.7 million due to the reduction of the carrying value of California properties to zero. General and Administrative Expenses: Reduced to approximately $2.7 million from $6.8 million quarter-over-quarter. Demonstration Plant Expenses: Decreased from approximately $2 million to $0.8 million. Management and Director Fees: Reduced from $1 million to $0.4 million. Working Capital: Approximately $27.5 million as of December 31, 2024. Cash Balance: Approximately $31.2 million at the end of 2024. Equinor Sole Funding: Development plans at East Texas and Southwest Arkansas are being sole funded up to $20 million and $40 million, respectively. Release Date: March 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Standard Lithium Corp (SLI) has formed a strategic partnership with Equinor, which validates the quality of their team and resources. The company successfully closed a $225 million grant from the DOE, indicating strong governmental support for their Southwest Arkansas project. Lithium recovery at the Southwest Arkansas project exceeded design criteria, recovering over 99% of lithium from brine. The company has made significant progress in securing leases in East Texas, with plans to publish a maiden inferred resource report. Operational cost reductions have been achieved, with a near $6 million reduction in quarter-over-quarter burn rate. Negative Points Standard Lithium Corp (SLI) reported a net loss of $24.7 million for the three months ended December 31, 2024, primarily due to an impairment of California assets. The company has reduced the carrying value of its California properties to zero, resulting in a $19.7 million impairment expense. Sole funding from Equinor for projects in East Texas and Southwest Arkansas is expected to run out next quarter, requiring Standard Lithium to start making capital contributions. There is continued uncertainty around pricing and demand in the lithium sector. The LANXESS project is not a current priority due to its relatively lesser grades and smaller scale compared to other projects. Q & A Highlights Q: What are your views on the recent executive order by the US administration to increase American mineral production, and how might it benefit Standard Lithium? A: David Park, CEO, stated that the executive order is viewed positively as it could facilitate and speed up regulatory approvals for projects like theirs and potentially open up additional funding sources. However, it's too early to provide specific details on the benefits. Story Continues Q: When do you expect to finalize the royalty structure in Arkansas? A: David Park, CEO, mentioned that they have been actively engaged with the Arkansas government and stakeholders since last November and are confident of a positive outcome regarding the Arkansas royalty by the end of the second quarter of this year. Q: Can you discuss the status and future of the LANXESS project? A: David Park, CEO, explained that while the LANXESS project remains important, the focus is currently on developing higher-grade resources in Southwest Arkansas and East Texas with well-funded partners. Andy Robinson, COO, added that the team is focused on the Southwest Arkansas project for commercialization. Q: How wide is the net cast for potential off-take agreements, and is there a competitive race to secure customers? A: David Park, CEO, stated they started with about 40 potential counterparties, narrowing down to a few with whom they are in advanced discussions. He does not believe they are in a race with others to secure off-take, as there is robust demand for lithium carbonate in the 2028 and beyond timeframe. Q: How will the learnings from Southwest Arkansas be applied to East Texas projects? A: Andrew Robinson, COO, noted that they plan to leverage relationships with vendors and partners developed in Southwest Arkansas to streamline and reduce costs for East Texas projects, aiming for quicker and more efficient project development. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. View Comments |
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| 22.03.25 08:08:59 | LANXESS Full Year 2024 Earnings: EPS Misses Expectations | |
| LANXESS (ETR:LXS) Full Year 2024 Results Key Financial Results Revenue: €6.37b (down 5.2% from FY 2023). Net loss: €177.0m (loss narrowed by 79% from FY 2023). €2.05 loss per share (improved from €9.76 loss in FY 2023).XTRA:LXS Earnings and Revenue Growth March 22nd 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period LANXESS EPS Misses Expectations Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 12%. Looking ahead, revenue is forecast to grow 2.4% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Chemicals industry in Germany. Performance of the German Chemicals industry. The company's shares are down 6.7% from a week ago. Risk Analysis You should learn about the 1 warning sign we've spotted with LANXESS. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 21.03.25 07:01:33 | Lanxess AG (LNXSF) Q4 2024 Earnings Call Highlights: Strong EBITDA Growth Amidst Challenging ... |  |
| EBITDA: Up 20% for the full year 2024. Free Cash Flow: Solid performance despite modest profitability, with a focus on debt reduction. Net Financial Debt: Decreased by approximately EUR 100 million, a reduction of 5 percentage points. Safety Performance: Achieved a top ranking in the European industry with an MAQ of 0.6. Consumer Protection Segment: Weakness due to severe destocking in agro chemicals, particularly affecting Saltigo. Additives Segment: Improvement over 2023, though still impacted by the construction industry. Advanced Intermediates Segment: Recovered from 2023 but not yet at normal profitability levels. Guidance for 2025: Expected EBITDA of EUR 600 million to EUR 650 million, with a 25% to 35% improvement in Q1 compared to the previous year. Warning! GuruFocus has detected 7 Warning Signs with LNXSF. Release Date: March 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Lanxess AG (LNXSF) reported a 20% increase in EBITDA for 2024, exceeding initial guidance. The company successfully implemented its cost savings program, FORWARD!, which contributed to increased profitability. Lanxess AG (LNXSF) secured long-term financing with a new sustainability-linked revolving credit facility. The company achieved a top safety performance ranking in the European industry for the third consecutive year. Lanxess AG (LNXSF) is on track with its portfolio transformation, focusing on chemicals and divesting from polymers, with expected cash proceeds to aid in debt reduction. Negative Points 2024 was a challenging year with weak macroeconomic demand and significant destocking in the agro industry. The Consumer Protection segment faced a downturn due to destocking in the agrochemical sector, particularly impacting Saltigo. The construction industry remained a drag on the Additives segment, affecting profitability. Advanced Intermediates have not returned to normal profitability levels, despite some recovery from 2023. The company anticipates only modest macroeconomic improvements in 2025, with ongoing political and economic uncertainties. Q & A Highlights Q: Can we expect faster growth in Consumer Protection compared to other divisions, and what are the drivers? Also, can we assume the free cash flow conversion from EBITDA in 2024 is the base case for 2025? A: Consumer Protection is expected to grow faster due to improvements in Saltigo, which faced destocking in 2024. The assumption is that destocking is over, leading to better performance in 2025. Regarding free cash flow, the focus remains on generating cash, and the conversion seen in 2024 is expected to continue into 2025, despite seasonal volatilities. (Matthias Zachert, CEO; Oliver Stratmann, CFO) Story Continues Q: Do you see volumes in Q1 2025 being affected by pre-buying in Q4 2024? Also, how might the German government's infrastructure fund impact Lanxess? A: Q1 profitability is expected to be 25% to 35% up, but specific volume details will be shared in the Q1 report. The German infrastructure fund could boost the economy, benefiting Lanxess, but its effects are likely to be seen in 2026 rather than 2025. (Matthias Zachert, CEO) Q: Can you elaborate on the transformation to a specialty chemicals company and the potential equity value in Envalior? A: The transformation to a specialty chemicals company is complete, focusing on maximizing profitability and cash flow from existing leadership positions. Regarding Envalior, based on Standard & Poor's reports, the valuation reflects a base case assumption, with potential for higher profitability than current estimates. (Matthias Zachert, CEO) Q: How have energy costs impacted Lanxess in 2024, and what is the outlook for 2025? A: Energy costs increased at the start of 2025 but have stabilized. Approximately one-third of energy needs are hedged, one-third are contractually protected, and one-third are open, reducing volatility compared to previous years. (Matthias Zachert, CEO) Q: What is the current demand environment in the United States, and which segments are most exposed? A: The U.S. market is currently in a wait-and-see mode, with Additives and Consumer Protection being the most exposed segments. The outlook remains cautious due to potential changes in the economic environment. (Matthias Zachert, CEO) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. View Comments |
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| 28.02.25 06:51:55 | LANXESS Aktiengesellschaft (ETR:LXS) is a favorite amongst institutional investors who own 59% | |
| Key Insights Institutions' substantial holdings in LANXESS implies that they have significant influence over the company's share price A total of 12 investors have a majority stake in the company with 52% ownership Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company If you want to know who really controls LANXESS Aktiengesellschaft (ETR:LXS), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are institutions with 59% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait. Let's take a closer look to see what the different types of shareholders can tell us about LANXESS. View our latest analysis for LANXESS XTRA:LXS Ownership Breakdown February 28th 2025 What Does The Institutional Ownership Tell Us About LANXESS? Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. LANXESS already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of LANXESS, (below). Of course, keep in mind that there are other factors to consider, too.XTRA:LXS Earnings and Revenue Growth February 28th 2025 Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Our data indicates that hedge funds own 10% of LANXESS. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. The company's largest shareholder is Merrill Lynch & Co. Inc., Banking Investments, with ownership of 6.0%. The second and third largest shareholders are Scott Ferguson and Sachem Head Capital Management LP, with an equal amount of shares to their name at 5.3%. Story Continues A closer look at our ownership figures suggests that the top 12 shareholders have a combined ownership of 52% implying that no single shareholder has a majority. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. Insider Ownership Of LANXESS The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our most recent data indicates that insiders own some shares in LANXESS Aktiengesellschaft. This is a big company, so it is good to see this level of alignment. Insiders own €206m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently. General Public Ownership The general public-- including retail investors -- own 21% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. Next Steps: While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that LANXESS is showing 1 warning sign in our investment analysis, you should know about... Ultimately the future is most important. You can access this freereport on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 31.01.25 04:23:09 | Is LANXESS Aktiengesellschaft (ETR:LXS) Trading At A 50% Discount? | |
| Key Insights Using the 2 Stage Free Cash Flow to Equity, LANXESS fair value estimate is €52.69 Current share price of €26.51 suggests LANXESS is potentially 50% undervalued The €28.50 analyst price target for LXS is 46% less than our estimate of fair value How far off is LANXESS Aktiengesellschaft (ETR:LXS) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by estimating the company's future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. There's really not all that much to it, even though it might appear quite complex. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. Check out our latest analysis for LANXESS Crunching The Numbers We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (€, Millions) €227.0m €266.3m €266.0m €309.0m €308.0m €308.2m €309.3m €310.9m €313.0m €315.3m Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x2 Analyst x1 Analyst x1 Est @ 0.08% Est @ 0.34% Est @ 0.53% Est @ 0.66% Est @ 0.75% Present Value (€, Millions) Discounted @ 7.2% €212 €232 €216 €234 €218 €203 €190 €178 €167 €157 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF) = €2.0b After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 1.0%. We discount the terminal cash flows to today's value at a cost of equity of 7.2%. Story Continues Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = €315m× (1 + 1.0%) ÷ (7.2%– 1.0%) = €5.1b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €5.1b÷ ( 1 + 7.2%)10= €2.5b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is €4.5b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of €26.5, the company appears quite good value at a 50% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent.XTRA:LXS Discounted Cash Flow January 31st 2025 The Assumptions The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at LANXESS as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 7.2%, which is based on a levered beta of 1.516. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. SWOT Analysis for LANXESS Strength No major strengths identified for LXS. Weakness Interest payments on debt are not well covered. Dividend is low compared to the top 25% of dividend payers in the Chemicals market. Opportunity Forecast to reduce losses next year. Has sufficient cash runway for more than 3 years based on current free cash flows. Trading below our estimate of fair value by more than 20%. Threat Debt is not well covered by operating cash flow. Looking Ahead: Whilst important, the DCF calculation shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. What is the reason for the share price sitting below the intrinsic value? For LANXESS, we've compiled three further factors you should assess: Risks: Take risks, for example - LANXESS has 1 warning sign we think you should be aware of. Future Earnings: How does LXS's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the XTRA every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 20.01.25 12:34:40 | Lanxess Q4 core profit to beat estimates by over 20% on US buying | |
| By Ozan Ergenay (Reuters) -German specialty chemicals maker Lanxess said on Monday it expected its fourth-quarter core profit to exceed market expectations by more than 20%, largely due to pre-buying by U.S. customers. The Cologne-based company expects its quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) pre-exceptionals to be around 159 million euros ($164 million), exceeding market analysts' forecast of 130 million, according to a Vara consensus. The chemicals group also expects EBITDA, adjusted for special items, of around 614 million euros for 2024, about 20% above the previous year's level and at the upper end of its guidance range of 10-20% growth. "The fourth quarter was positively influenced by a stronger than expected December, in particular due to customers’ pre-buying," the company said in a statement, flagging that the underlying macroeconomic environment had not improved. "This is a good indicator that volumes at German chemicals producers may have been surprisingly robust in Q4," Sebastian Bray, an analyst from Berenberg, told Reuters. He said the market would be focused on indicators of whether volume improvement was sustainable in 2025, as Lanxess has highlighted pre-buying in the U.S. as a potential driver for its specialty additive and consumer protection product segments. "We expect a positive share reaction," analysts at Jefferies said in a note. Shares in the company were up 5.6% in afternoon trading. Lanxess will release its full-year 2024 results on March 20. ($1 = 0.9689 euros) (Reporting by Ozan Ergenay, additional reporting by Anastasiia Kozlova, Editing by Rachel More, Matthias Williams and Bernadette Baum) View Comments |
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| 19.10.24 07:22:13 | Investors in LANXESS (ETR:LXS) from five years ago are still down 47%, even after 4.4% gain this past week | |
| LANXESS Aktiengesellschaft (ETR:LXS) shareholders should be happy to see the share price up 17% in the last quarter. But that doesn't change the fact that the returns over the last five years have been less than pleasing. You would have done a lot better buying an index fund, since the stock has dropped 52% in that half decade. While the last five years has been tough for LANXESS shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns. View our latest analysis for LANXESS LANXESS wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size. In the last half decade, LANXESS saw its revenue increase by 2.5% per year. That's far from impressive given all the money it is losing. It's likely this weak growth has contributed to an annualised return of 9% for the last five years. We want to see an acceleration of revenue growth (or profits) before showing much interest in this one. When a stock falls hard like this, some investors like to add the company to a watchlist (in case the business recovers, longer term). The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail). earnings-and-revenue-growth LANXESS is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling LANXESS stock, you should check out this freereport showing analyst consensus estimates for future profits. What About Dividends? It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, LANXESS' TSR for the last 5 years was -47%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence! A Different Perspective It's nice to see that LANXESS shareholders have received a total shareholder return of 44% over the last year. Of course, that includes the dividend. There's no doubt those recent returns are much better than the TSR loss of 8% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand LANXESS better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for LANXESS you should be aware of. Story continues For those who like to find winning investments this freelist of undervalued companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View comments |
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| 21.09.24 06:00:16 | A great week that adds to LANXESS Aktiengesellschaft's (ETR:LXS) one-year returns, institutional investors who own 57% must be happy | |
| Key Insights Significantly high institutional ownership implies LANXESS' stock price is sensitive to their trading actions A total of 12 investors have a majority stake in the company with 52% ownership Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock If you want to know who really controls LANXESS Aktiengesellschaft (ETR:LXS), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 57% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. And last week, institutional investors ended up benefitting the most after the company hit €2.3b in market cap. One-year return to shareholders is currently 8.3% and last week’s gain was the icing on the cake. In the chart below, we zoom in on the different ownership groups of LANXESS. View our latest analysis for LANXESS ownership-breakdown What Does The Institutional Ownership Tell Us About LANXESS? Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. We can see that LANXESS does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of LANXESS, (below). Of course, keep in mind that there are other factors to consider, too. earnings-and-revenue-growth Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. It would appear that 5.3% of LANXESS shares are controlled by hedge funds. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Our data shows that Merrill Lynch & Co. Inc., Banking Investments is the largest shareholder with 6.0% of shares outstanding. The second and third largest shareholders are Sachem Head Capital Management LP and Scott Ferguson, with an equal amount of shares to their name at 5.3%. A closer look at our ownership figures suggests that the top 12 shareholders have a combined ownership of 52% implying that no single shareholder has a majority. Story continues While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. Insider Ownership Of LANXESS The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our most recent data indicates that insiders own some shares in LANXESS Aktiengesellschaft. This is a big company, so it is good to see this level of alignment. Insiders own €189m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling. General Public Ownership The general public-- including retail investors -- own 28% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. Next Steps: I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 1 warning sign for LANXESS that you should be aware of. Ultimately the future is most important. You can access this freereport on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View comments |
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| 11.08.24 07:11:11 | LANXESS Second Quarter 2024 Earnings: EPS Beats Expectations, Revenues Lag | |
| LANXESS (ETR:LXS) Second Quarter 2024 Results Key Financial Results Revenue: €1.68b (down 5.6% from 2Q 2023). Net loss: €16.0m (loss narrowed by 89% from 2Q 2023). €0.18 loss per share (improved from €1.68 loss in 2Q 2023). earnings-and-revenue-growth All figures shown in the chart above are for the trailing 12 month (TTM) period LANXESS EPS Beats Expectations, Revenues Fall Short Revenue missed analyst estimates by 1.1%. Earnings per share (EPS) exceeded analyst estimates by 76%. Looking ahead, revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Chemicals industry in Germany. Performance of the German Chemicals industry. The company's share price is broadly unchanged from a week ago. Risk Analysis Be aware that LANXESS is showing 1 warning sign in our investment analysis that you should know about... Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View comments |
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