| Brenntag SE (DE000A1DAHH0) | |||
56,60 EURStand (close): 01.07.25 |
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| Datum / Uhrzeit | Titel | Bewertung |
| 21.04.25 16:45:02 | Is Brennt (BNTGY) a Solid Growth Stock? 3 Reasons to Think "Yes" |  |
| Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all. That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss. However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks. Brenntag AG (BNTGY) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank. Studies have shown that stocks with the best growth features consistently outperform the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). While there are numerous reasons why the stock of this company is a great growth pick right now, we have highlighted three of the most important factors below: Earnings Growth Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration. While the historical EPS growth rate for Brennt is 8.6%, investors should actually focus on the projected growth. The company's EPS is expected to grow 30.6% this year, crushing the industry average, which calls for EPS growth of 6.2%. Impressive Asset Utilization Ratio Growth investors often overlook asset utilization ratio, also known as sales-to-total-assets (S/TA) ratio, but it is an important feature of a real growth stock. This metric exhibits how efficiently a firm is utilizing its assets to generate sales. Right now, Brennt has an S/TA ratio of 1.44, which means that the company gets $1.44 in sales for each dollar in assets. Comparing this to the industry average of 0.73, it can be said that the company is more efficient. While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Brennt looks attractive from a sales growth perspective as well. The company's sales are expected to grow 3.8% this year versus the industry average of 2.5%. Story Continues Promising Earnings Estimate Revisions Superiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements. There have been upward revisions in current-year earnings estimates for Brennt. The Zacks Consensus Estimate for the current year has surged 13.6% over the past month. Bottom Line While the overall earnings estimate revisions have made Brennt a Zacks Rank #2 stock, it has earned itself a Growth Score of B based on a number of factors, including the ones discussed above. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. This combination positions Brennt well for outperformance, so growth investors may want to bet on it. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Brenntag AG (BNTGY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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| 21.04.25 13:40:10 | Is Brennt (BNTGY) Stock Outpacing Its Basic Materials Peers This Year? |  |
| The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Brenntag AG (BNTGY) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question. Brenntag AG is one of 232 individual stocks in the Basic Materials sector. Collectively, these companies sit at #13 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst. The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Brenntag AG is currently sporting a Zacks Rank of #2 (Buy). Within the past quarter, the Zacks Consensus Estimate for BNTGY's full-year earnings has moved 6.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving. According to our latest data, BNTGY has moved about 5.1% on a year-to-date basis. Meanwhile, the Basic Materials sector has returned an average of 1.8% on a year-to-date basis. As we can see, Brenntag AG is performing better than its sector in the calendar year. Another Basic Materials stock, which has outperformed the sector so far this year, is Contango ORE, Inc. (CTGO). The stock has returned 42.5% year-to-date. The consensus estimate for Contango ORE, Inc.'s current year EPS has increased 23.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy). Breaking things down more, Brenntag AG is a member of the Chemical - Diversified industry, which includes 28 individual companies and currently sits at #226 in the Zacks Industry Rank. On average, stocks in this group have lost 20.6% this year, meaning that BNTGY is performing better in terms of year-to-date returns. Contango ORE, Inc. however, belongs to the Mining - Miscellaneous industry. Currently, this 58-stock industry is ranked #156. The industry has moved +4.5% so far this year. Investors with an interest in Basic Materials stocks should continue to track Brenntag AG and Contango ORE, Inc. These stocks will be looking to continue their solid performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Story Continues Brenntag AG (BNTGY) : Free Stock Analysis Report Contango ORE, Inc. (CTGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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| 16.04.25 09:58:00 | New Strong Buy Stocks for April 16th | |
| Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today: Golden Ocean Group Limited GOGL: This shipping company has seen the Zacks Consensus Estimate for its current year earnings increasing 11.6% over the last 60 days. Golden Ocean Group Limited Price and ConsensusGolden Ocean Group Limited Price and Consensus Golden Ocean Group Limited price-consensus-chart | Golden Ocean Group Limited Quote Antero Resources Corporation AR: This oil and natural gas company has seen the Zacks Consensus Estimate for its current year earnings increasing 14.4% over the last 60 days. Antero Resources Corporation Price and ConsensusAntero Resources Corporation Price and Consensus Antero Resources Corporation price-consensus-chart | Antero Resources Corporation Quote Alithya Group Inc. ALYAF: This strategy and digital technology services company has seen the Zacks Consensus Estimate for its current year earnings increasing 75% over the last 60 days. Alithya Group Inc. Price and ConsensusAlithya Group Inc. Price and Consensus Alithya Group Inc. price-consensus-chart | Alithya Group Inc. Quote Brenntag SE BNTGY: This distributor of chemicals and ingredients has seen the Zacks Consensus Estimate for its current year earnings increasing 14.1% over the last 60 days. Brenntag AG Price and ConsensusBrenntag AG Price and Consensus Brenntag AG price-consensus-chart | Brenntag AG Quote KBC Group NV KBCSY: This banking, insurance, and asset management services company has seen the Zacks Consensus Estimate for its current year earnings increasing 10.8% over the last 60 days. KBC Group SA Price and ConsensusKBC Group SA Price and Consensus KBC Group SA price-consensus-chart | KBC Group SA Quote You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Antero Resources Corporation (AR) : Free Stock Analysis Report Golden Ocean Group Limited (GOGL) : Free Stock Analysis Report KBC Group SA (KBCSY) : Free Stock Analysis Report Brenntag AG (BNTGY) : Free Stock Analysis Report Alithya Group Inc. (ALYAF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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| 16.04.25 09:04:00 | Best Value Stocks to Buy for April 16th | |
| Here are three stocks with buy rank and strong value characteristics for investors to consider today, April 16th: Brenntag SE BNTGY: This distributor of chemicals and ingredients carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.1% over the last 60 days. Brenntag SE Price and ConsensusBrenntag AG Price and Consensus Brenntag AG price-consensus-chart | Brenntag AG Quote Brenntag has a price-to-earnings ratio (P/E) of 12.23, compared with 20.05 for the S&P 500. The company possesses a Value Score of A. Brenntag SE PE Ratio (TTM)Brenntag AG PE Ratio (TTM) Brenntag AG pe-ratio-ttm | Brenntag AG Quote Golden Ocean Group Limited GOGL: This shipping company a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11.6% over the last 60 days. Golden Ocean Group Limited Price and ConsensusGolden Ocean Group Limited Price and Consensus Golden Ocean Group Limited price-consensus-chart | Golden Ocean Group Limited Quote Golden Ocean Group has a price-to-earnings ratio (P/E) of 6.88, compared with 9.80 for the industry. The company possesses a Value Score of A. Golden Ocean Group Limited PE Ratio (TTM)Golden Ocean Group Limited PE Ratio (TTM) Golden Ocean Group Limited pe-ratio-ttm | Golden Ocean Group Limited Quote Alithya Group Inc. ALYAF: This strategy and digital technology services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 75% over the last 60 days. Alithya Group Inc. Price and ConsensusAlithya Group Inc. Price and Consensus Alithya Group Inc. price-consensus-chart | Alithya Group Inc. Quote Alithya Group has a price-to-earnings ratio (P/E) of 9.46, compared with 10.50 for the industry. The company possesses a Value Score of A. Alithya Group Inc. PE Ratio (TTM)Alithya Group Inc. PE Ratio (TTM) Alithya Group Inc. pe-ratio-ttm | Alithya Group Inc. Quote See the full list of top ranked stocks here. Learn more about the Value score and how it is calculated here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Golden Ocean Group Limited (GOGL) : Free Stock Analysis Report Brenntag AG (BNTGY) : Free Stock Analysis Report Alithya Group Inc. (ALYAF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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| 07.04.25 05:12:33 | Institutional owners may consider drastic measures as Brenntag SE's (ETR:BNR) recent €884m drop adds to long-term losses | |
| Key Insights Institutions' substantial holdings in Brenntag implies that they have significant influence over the company's share price 50% of the business is held by the top 10 shareholders Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. A look at the shareholders of Brenntag SE (ETR:BNR) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 54% ownership. Put another way, the group faces the maximum upside potential (or downside risk). And institutional investors saw their holdings value drop by 9.9% last week. This set of investors may especially be concerned about the current loss, which adds to a one-year loss of 25% for shareholders. Also referred to as "smart money", institutions have a lot of sway over how a stock's price moves. As a result, if the decline continues, institutional investors may be pressured to sell Brenntag which might hurt individual investors. Let's delve deeper into each type of owner of Brenntag, beginning with the chart below. Check out our latest analysis for Brenntag XTRA:BNR Ownership Breakdown April 7th 2025 What Does The Institutional Ownership Tell Us About Brenntag? Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. As you can see, institutional investors have a fair amount of stake in Brenntag. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Brenntag, (below). Of course, keep in mind that there are other factors to consider, too.XTRA:BNR Earnings and Revenue Growth April 7th 2025 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in Brenntag. The company's largest shareholder is Kühne Holding AG, with ownership of 15%. Artisan Partners Limited Partnership is the second largest shareholder owning 10.0% of common stock, and Flossbach & Von Storch Vermoegensmanagement AG holds about 5.1% of the company stock. Story Continues We did some more digging and found that 10 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily. Insider Ownership Of Brenntag While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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. 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 data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid. General Public Ownership The general public, who are usually individual investors, hold a 31% stake in Brenntag. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. Private Company Ownership It seems that Private Companies own 15%, of the Brenntag stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company. Next Steps: It's always worth thinking about the different groups who own shares in a company. But to understand Brenntag better, we need to consider many other factors. For example, we've discovered 1 warning sign for Brenntag that you should be aware of before investing here. But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future . 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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| 03.04.25 16:45:02 | Brennt (BNTGY) is an Incredible Growth Stock: 3 Reasons Why | |
| Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task. That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss. However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects, makes it pretty easy to find cutting-edge growth stocks. Brenntag AG (BNTGY) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank. Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better. Here are three of the most important factors that make the stock of this company a great growth pick right now. Earnings Growth Earnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration. While the historical EPS growth rate for Brennt is 8.6%, investors should actually focus on the projected growth. The company's EPS is expected to grow 30.6% this year, crushing the industry average, which calls for EPS growth of 8.2%. Impressive Asset Utilization Ratio Asset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric shows how efficiently a firm is utilizing its assets to generate sales. Right now, Brennt has an S/TA ratio of 1.44, which means that the company gets $1.44 in sales for each dollar in assets. Comparing this to the industry average of 0.73, it can be said that the company is more efficient. While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Brennt is well positioned from a sales growth perspective too. The company's sales are expected to grow 5.3% this year versus the industry average of 2.3%. Story Continues Promising Earnings Estimate Revisions Beyond the metrics outlined above, investors should consider the trend in earnings estimate revisions. A positive trend is a plus here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements. There have been upward revisions in current-year earnings estimates for Brennt. The Zacks Consensus Estimate for the current year has surged 13.6% over the past month. Bottom Line Brennt has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. This combination positions Brennt well for outperformance, so growth investors may want to bet on it. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Brenntag AG (BNTGY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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| 03.04.25 13:40:11 | Is Brennt (BNTGY) Outperforming Other Basic Materials Stocks This Year? | |
| The Basic Materials group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Brenntag AG (BNTGY) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question. Brenntag AG is a member of the Basic Materials sector. This group includes 232 individual stocks and currently holds a Zacks Sector Rank of #13. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group. The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Brenntag AG is currently sporting a Zacks Rank of #2 (Buy). The Zacks Consensus Estimate for BNTGY's full-year earnings has moved 6.1% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving. According to our latest data, BNTGY has moved about 7.2% on a year-to-date basis. Meanwhile, the Basic Materials sector has returned an average of 6.9% on a year-to-date basis. This shows that Brenntag AG is outperforming its peers so far this year. Another Basic Materials stock, which has outperformed the sector so far this year, is EMX Royalty Corp. (EMX). The stock has returned 15.6% year-to-date. For EMX Royalty Corp. the consensus EPS estimate for the current year has increased 66.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy). Breaking things down more, Brenntag AG is a member of the Chemical - Diversified industry, which includes 28 individual companies and currently sits at #208 in the Zacks Industry Rank. On average, stocks in this group have lost 5.8% this year, meaning that BNTGY is performing better in terms of year-to-date returns. In contrast, EMX Royalty Corp. falls under the Mining - Miscellaneous industry. Currently, this industry has 58 stocks and is ranked #162. Since the beginning of the year, the industry has moved +2.6%. Brenntag AG and EMX Royalty Corp. could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks. Story Continues Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Brenntag AG (BNTGY) : Free Stock Analysis Report EMX Royalty Corp. (EMX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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| 03.04.25 13:40:11 | Are Investors Undervaluing Brennt (BNTGY) Right Now? | |
| Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels. Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now. Brennt (BNTGY) is a stock many investors are watching right now. BNTGY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 13.55, while its industry has an average P/E of 15.88. Over the past 52 weeks, BNTGY's Forward P/E has been as high as 15.76 and as low as 11.28, with a median of 13.96. Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BNTGY has a P/S ratio of 0.53. This compares to its industry's average P/S of 0.57. Finally, investors should note that BNTGY has a P/CF ratio of 8.60. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.72. BNTGY's P/CF has been as high as 10.95 and as low as 7.55, with a median of 9.17, all within the past year. These are only a few of the key metrics included in Brennt's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BNTGY looks like an impressive value stock at the moment. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Brenntag AG (BNTGY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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| 21.03.25 10:29:32 | Is Brenntag SE (ETR:BNR) Trading At A 49% Discount? | |
| Key Insights The projected fair value for Brenntag is €126 based on 2 Stage Free Cash Flow to Equity Current share price of €63.74 suggests Brenntag is potentially 49% undervalued Analyst price target for BNR is €74.37 which is 41% below our fair value estimate Today we will run through one way of estimating the intrinsic value of Brenntag SE (ETR:BNR) by taking the expected future cash flows and discounting them to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Believe it or not, it's not too difficult to follow, as you'll see from our example! 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. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. The Model 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. In the first stage we need to estimate the cash flows to the business over the next ten years. 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. Generally we assume that a dollar today is more valuable than a dollar in the future, 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) €694.6m €720.1m €854.0m €917.4m €968.1m €1.01b €1.04b €1.07b €1.09b €1.11b Growth Rate Estimate Source Analyst x7 Analyst x7 Analyst x3 Est @ 7.42% Est @ 5.52% Est @ 4.19% Est @ 3.26% Est @ 2.61% Est @ 2.15% Est @ 1.84% Present Value (€, Millions) Discounted @ 6.4% €653 €637 €710 €717 €711 €697 €677 €653 €627 €600 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF) = €6.7b The second stage is also known as Terminal Value, this is the business's cash flow after 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 1.1%. We discount the terminal cash flows to today's value at a cost of equity of 6.4%. Story Continues Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = €1.1b× (1 + 1.1%) ÷ (6.4%– 1.1%) = €21b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €21b÷ ( 1 + 6.4%)10= €12b 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 €18b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of €63.7, the company appears quite undervalued at a 49% 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:BNR Discounted Cash Flow March 21st 2025 Important 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 Brenntag 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 6.4%, which is based on a levered beta of 1.217. 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. Check out our latest analysis for Brenntag SWOT Analysis for Brenntag Strength Debt is well covered by earnings and cashflows. Dividends are covered by earnings and cash flows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Trade Distributors market. Opportunity Annual earnings are forecast to grow faster than the German market. Good value based on P/E ratio and estimated fair value. Threat Annual revenue is forecast to grow slower than the German market. Looking Ahead: Although the valuation of a company is important, it ideally won't be the sole piece of analysis you scrutinize for a company. DCF models are not the be-all and end-all of investment valuation. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Can we work out why the company is trading at a discount to intrinsic value? For Brenntag, we've put together three additional factors you should consider: Risks: Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Brenntag , and understanding it should be part of your investment process. Future Earnings: How does BNR'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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| 13.03.25 07:04:43 | Brenntag SE (BNTGF) (FY 2024) Earnings Call Highlights: Navigating Challenges with Strategic ... | |
| Revenue: EUR16.2 billion, a 3% decline from the previous year. Operating Gross Profit: EUR4.03 billion, stable year-over-year. Operating EBITA: EUR1.1 billion, a 13% decrease from the prior year. Free Cash Flow: EUR893 million, down from EUR1.7 billion in 2023. Earnings Per Share (EPS): EUR3.71, compared to EUR4.73 last year. Dividend Proposal: EUR2.10 per share, maintaining or increasing for the 14th consecutive year. Net Financial Liabilities: EUR2.8 billion. Leverage Ratio: Net debt to operating EBITDA at 1.9x. ROCE: 14%, down from 17.7% in 2023. Store Closures: 33 locations closed in 2024. Acquisitions: Eight acquisitions with an enterprise value of around EUR550 million. Warning! GuruFocus has detected 2 Warning Signs with FRA:ER9. Release Date: March 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Brenntag SE (BNTGF) maintained a stable operating gross profit of EUR4.03 billion despite a challenging market environment. The company generated a strong free cash flow of EUR893 million, demonstrating effective cash management. Brenntag SE (BNTGF) proposed a stable dividend of EUR2.10, marking the 14th consecutive year of maintaining or increasing dividend payouts. The company successfully executed eight acquisitions in 2024, enhancing its market position and growth potential. Brenntag SE (BNTGF) achieved significant sustainability milestones, including winning the ICIS Best Digital Innovation Award 2024 and receiving a Platinum rating in the EcoVadis Sustainability Assessment. Negative Points Sales for the full year 2024 were EUR16.2 billion, a 3% decline compared to the previous year. Operating EBITA decreased by 13% year over year, reaching EUR1.1 billion, which was at the low end of the guidance. Earnings per share fell to EUR3.71 from EUR4.73 in the previous year, impacted by the sale of Raj Petro Specialties and other special items. The company faced intense competition and pressure on industrial chemical selling prices, affecting gross profit per unit. Operating expenses increased by 4.7% compared to the prior year, driven by inflationary effects and higher volume-related costs. Q & A Highlights Q: How should we think about the price and volume mix through 2025, and what are your thoughts on the phasing throughout the year? A: Christian Kohlpaintner, CEO: We expect a slight sequential improvement in volumes and pricing throughout 2025, similar to the trends seen in 2024. This improvement is expected to be consistent quarter-by-quarter rather than being concentrated in the second half of the year. Story Continues Q: Can you discuss the underlying assumptions for Essentials versus Specialties growth within your EBITA guidance for the full year? A: Christian Kohlpaintner, CEO: We expect progression in both divisions in 2025. Life Sciences within Specialties is showing positive development, while Essentials faces undefined variables due to political and geopolitical uncertainties. The lower end of guidance could be impacted by continued pricing pressure and weaker volume growth in Essentials. Q: Why did higher transport costs impact your earnings if they are typically passed through to customers? A: Kristin Neumann, CFO: Higher transport costs were volume-driven and came on top of increased volumes. The pressure on gross profit per unit numbers, combined with higher operating expenses, led to a decline in overall results. Q: What are your expectations for Q1 2025 compared to Q4 2024 in terms of EBITA? A: Christian Kohlpaintner, CEO: We expect a similar quarterly pattern as seen in previous years, with Q1 typically being slightly higher than Q4. There are no major changes anticipated in the absence of geopolitical shocks. Q: Can you provide more details on the cost base and moving parts for 2025, especially regarding advisory and audit expenses? A: Kristin Neumann, CFO: Advisory costs include DiDEX-related expenses and disentanglement project costs, which are expected to decrease next year. DiDEX costs will be slightly lower, while running costs remain stable. The cost-out program is expected to yield EUR100 million in savings for 2025. 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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