| Wacker Chemie AG (DE000WCH8881) | |||
62,00 EURStand (close): 01.07.25 |
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| Datum / Uhrzeit | Titel | Bewertung |
| 01.05.25 07:13:18 | Wacker Chemie AG (WKCMF) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic ... |  |
| Revenue: EUR1.48 billion, slightly below last year's level but higher than the previous quarter. Group EBITDA: EUR127 million, down from EUR172 million last year. Cumulative EBITDA for Operating Segments: EUR197 million, 3% lower year over year. Chemicals EBITDA: EUR145 million, up 6% year over year. Net Income: Negative EUR3 million, equating to a loss of EUR0.16 per share. Liquidity: EUR923 million. Net Debt: EUR880 million. Silicons Sales: EUR745 million, up 5% year over year. Silicons EBITDA Margin: 14.5%, up from 11.4% a year ago. Polymers Sales: EUR360 million, 3% below last year. Biosolutions Sales: EUR91 million, up 27% year over year. Polysilicon Sales: EUR245 million, 18% lower year over year. Gross Cash Flow: EUR32 million. Warning! GuruFocus has detected 6 Warning Signs with WKCMF. Release Date: April 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Wacker Chemie AG (WKCMF) reported a strong start to the year with sales reaching EUR1.48 billion, substantially higher than the previous quarter due to typical seasonality. The chemicals segment saw a 6% year-over-year increase in EBITDA, driven by strong growth in specialty silicon costs. The company is ramping up its new etching line in Burghausen, which will support the next generation of chip production and strengthen its leadership position in the semiconductor industry. Wacker Chemie AG (WKCMF) has initiated nearly 1,000 efficiency projects, yielding net savings of about EUR160 million, demonstrating a strong focus on cost-cutting and efficiency improvements. The company is actively working on sustainability initiatives, including a new global safety initiative and products with a lower carbon footprint, such as renewable raw material-based sealants and low carbon cement binders. Negative Points Group EBITDA for the first quarter was EUR127 million, significantly lower than last year's EUR172 million, primarily due to weak demand for solar grade polysilicon and construction-related polymers. The company faces considerable risks from international trade relations and potential customs conflicts, which have increased uncertainty and volatility in order intake. Lower utilization rates and weak demand in certain segments, such as construction-related polymers, have negatively impacted financial performance. The potential impacts of a trade war are not included in the company's forecast, adding uncertainty to future financial outcomes. The EBITDA margin for the silicons segment, although improved, remains below target and unsatisfactory, indicating room for further improvement. Story Continues Q & A Highlights Q: Could you provide insights on demand trends in your chemical activities during Q1, and how has Q2 started in terms of demand? Also, regarding silicones, your guidance suggests slightly higher margins compared to 2024. Could you clarify what "slightly" means numerically? A: Demand for our specialties in silicon remains strong, but order entry has become more volatile, particularly for standard products. March was slightly weaker than expected, but we anticipate a moderate seasonal uptake in Q2. For silicones, a slight increase in margins could mean an improvement of 1-2 percentage points. We had a strong start in Q1, but we do not expect the same level of performance to continue throughout the year. Q: How is Wacker Chemie adjusting its polysilicon business in response to anti-dumping duties, and what are the dynamics in the silicons business regarding input costs? A: With the final ruling on anti-dumping duties, supply chains are adjusting, with shifts towards countries like Laos and India. We sell at international prices, not at lower domestic prices. In silicons, while a softer upstream market isn't supportive due to high utilization needs, we are focusing on differentiated products. Lower silicon metal and energy costs are positives, but methanol prices are rising. Q: Can you update us on your market share and potential for sales increases in semi-grade polysilicon? Also, how confident are you about demand improvement in the second half of the year? A: We estimate our market share in semi-grade polysilicon at around 50%. Our new etching line in Burghausen will support further growth and potentially increase market share. We expect demand to improve in the second half as the US market remains a premium market for solar applications, driving demand for US-compliant polysilicon. Q: Regarding your silicones business, how is your trade position in North America, and what impact do tariffs have on your operations? A: Most chemicals, including silicones, are exempt from tariffs, minimizing the impact on our operations. We source silicon metal domestically for our US polysilicon production, so tariffs do not significantly affect us. Order entry in silicones has been volatile but not drastically declining, indicating a muted seasonal recovery in Q2. Q: How does the underutilization of infrastructure affect your financials, and is there a disadvantage in having Europe-only production for biosolutions? A: Underutilization in polysilicon affects infrastructure utilization, but other factors like lower equity income and hedging costs also contribute. In biosolutions, we have assets in the US, such as our cyclodextrin business, and regional setup is not a primary concern for project wins, so there's no significant disadvantage. 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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| 21.04.25 20:31:57 | Wacker Chemie AG (WKCMF) Q4 2024 Earnings Call Highlights: Navigating Challenges with Strategic ... | |
| Revenue: EUR5.72 billion for 2024, down 11% year over year. EBITDA: EUR763 million, 7% lower year over year. Chemicals EBITDA: EUR542 million, up 11% year over year. Silicones EBITDA: EUR347 million, up 47% year over year. Polymers EBITDA: EUR194 million, down 23% year over year. Biosolutions EBITDA: EUR35 million, up from EUR7 million in 2023. Polysilicon EBITDA: EUR193 million, down 40% year over year. Net Income: EUR261 million, equating to an EPS of EUR4.85. Dividend Proposal: EUR2.50 per share, payout ratio of 52% of EPS. Net Cash Flow: EUR310 million. Net Debt: EUR691 million at year-end 2024. CapEx: EUR666 million in 2024, expected to be slightly above depreciation in 2025. 2025 Revenue Guidance: EUR6.1 billion to EUR6.4 billion. 2025 EBITDA Guidance: EUR700 million to EUR900 million. Warning! GuruFocus has detected 6 Warning Signs with WKCMF. Release Date: March 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Wacker Chemie AG (WKCMF) increased specialty volumes in silicones and polymers despite challenging market conditions. The company set up Europe's latest biotech facility to support German pandemic preparedness programs, indicating a strategic focus on biosolutions. Wacker Chemie AG (WKCMF) reported a strong performance in its Chemicals business, with an 11% year-over-year increase in EBITDA driven by specialty silicones. The company achieved a top A score from the CDP for its sustainability efforts, highlighting its commitment to reducing CO2 emissions. Wacker Chemie AG (WKCMF) maintained its dividend policy, proposing a EUR2.50 per share dividend, equating to a payout ratio of 52% of EPS. Negative Points Group EBITDA was 7% lower year-over-year, primarily due to challenges in the polysilicon segment. Polysilicon sales were significantly impacted by overcapacities in China and US tariff uncertainties, leading to a 40% year-over-year decline in EBITDA. The company faced a challenging market environment in the construction sector, affecting polymer sales and earnings. Wacker Chemie AG (WKCMF) anticipates a challenging market environment in 2025 with higher risks for trade disputes. The company reported a decline in sales during 2024, primarily due to lower prices and volumes sold in polysilicon. Q & A Highlights Q: Can you elaborate on the demand increase in silicon specialties and the regions and end markets driving this growth? A: Christian Hartel, CEO: We see demand increase across various segments and regions. Our recent investments in downstream specialty capabilities are now allowing us to leverage and grow the business. Demand is picking up, and we expect additional volumes in 2025. Story Continues Q: Regarding polysilicon, are there any initiatives by US authorities to address gray imports, and what are your plans if demand recovers? A: Christian Hartel, CEO: US authorities are checking imports, but not at a 100% rate. If demand recovers, our priority is to sell inventory before increasing production. Tobias Ohler, CFO: We would first work down inventory and then increase production once demand picks up. Q: Why is the margin outlook for silicones relatively muted despite a forecasted 10% growth in specialties? A: Tobias Ohler, CFO: We are not seeing a significant turn in pricing yet, and we need to compensate for base cost inflation. Although we are growing in specialties, the standard business remains at low profitability levels. We expect a slight improvement in margins as we are not yet at mid-cycle. Q: Can you provide insights into the semiconductor business growth mentioned in your annual report? A: Christian Hartel, CEO: Our semiconductor growth is based on long-term contractual volumes. We see higher demand from customers this year, supported by our new hedging line coming on stream mid-year. We have contracted customers for this new plant, which contributes to the growth. Q: How much inventory do you have in polysilicon, and is there pressure from auditors to reevaluate it? A: Tobias Ohler, CFO: We are running at demand rate from firm contracts and have inventory in our hubs. We sell inventory at attractive economic rates, and there is no pressure from auditors to reevaluate it. The shelf life of polysilicon is years, allowing us flexibility. Q: What is the outlook for the polymers market, and have there been any changes in the competitive landscape? A: Christian Hartel, CEO: The construction market remains challenging, but we see slightly higher volumes in dispersions and powders with slightly lower prices. Some competitors are more aggressive on pricing, trying to fill capacities, which adds pressure. Q: Can you explain the mix improvement in silicones and its impact on margins? A: Christian Hartel, CEO: We see an improvement in specialty volumes and margins, but we are not yet at mid-cycle margins. Pricing has not turned substantially, and the drag from standard pricing is still visible. There is potential for silicon prices to improve going forward. Q: What are the expectations for the Biosolutions segment, given its current EBIT loss? A: Christian Hartel, CEO: The focus is on filling capacities acquired through past acquisitions. Acquiring projects takes time, and financing challenges for smaller biotechs have slowed the pipeline. The priority is to fill projects and improve profitability. 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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| 15.03.25 06:58:36 | Wacker Chemie AG Just Beat EPS By 18%: Here's What Analysts Think Will Happen Next | |
| Investors in Wacker Chemie AG (ETR:WCH) had a good week, as its shares rose 7.2% to close at €82.54 following the release of its yearly results. Revenues were €5.7b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of €4.85 were also better than expected, beating analyst predictions by 18%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year. Check out our latest analysis for Wacker Chemie XTRA:WCH Earnings and Revenue Growth March 15th 2025 Taking into account the latest results, the current consensus from Wacker Chemie's 14 analysts is for revenues of €6.06b in 2025. This would reflect a reasonable 5.9% increase on its revenue over the past 12 months. Statutory earnings per share are expected to decline 12% to €4.25 in the same period. Before this earnings report, the analysts had been forecasting revenues of €6.18b and earnings per share (EPS) of €5.47 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates. It might be a surprise to learn that the consensus price target was broadly unchanged at €96.87, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Wacker Chemie, with the most bullish analyst valuing it at €133 and the most bearish at €74.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business. These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wacker Chemie's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 5.9% growth on an annualised basis. That is in line with its 6.5% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.9% annually. So although Wacker Chemie is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry. Story Continues The Bottom Line The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Wacker Chemie. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Wacker Chemie going out to 2027, and you can see them free on our platform here.. You still need to take note of risks, for example - Wacker Chemie has 1 warning sign we think you should be aware of. 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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| 14.03.25 04:32:40 | Wacker Chemie Full Year 2024 Earnings: EPS Beats Expectations, Revenues Lag | |
| Wacker Chemie (ETR:WCH) Full Year 2024 Results Key Financial Results Revenue: €5.72b (down 11% from FY 2023). Net income: €241.0m (down 23% from FY 2023). Profit margin: 4.2% (down from 4.9% in FY 2023). The decrease in margin was driven by lower revenue. EPS: €4.85 (down from €6.31 in FY 2023).XTRA:WCH Revenue and Expenses Breakdown March 14th 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period Wacker Chemie EPS Beats Expectations, Revenues Fall Short Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) exceeded analyst estimates by 18%. The primary driver behind last 12 months revenue was the Wacker Silicones segment contributing a total revenue of €2.81b (49% of total revenue). Notably, cost of sales worth €4.74b amounted to 83% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to €348.6m (47% of total expenses). Explore how WCH's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 5.1% 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 up 1.7% from a week ago. Risk Analysis Be aware that Wacker Chemie 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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| 25.02.25 06:15:03 | The three-year earnings decline is not helping Wacker Chemie's (ETR:WCH share price, as stock falls another 3.1% in past week |  |
| As an investor its worth striving to ensure your overall portfolio beats the market average. But its virtually certain that sometimes you will buy stocks that fall short of the market average returns. Unfortunately, that's been the case for longer term Wacker Chemie AG (ETR:WCH) shareholders, since the share price is down 49% in the last three years, falling well short of the market return of around 15%. And more recent buyers are having a tough time too, with a drop of 27% in the last year. Contrary to the longer term story, the last month has been good for stockholders, with a share price gain of 8.8%. However, this may be a matter of broader market optimism, since stocks are up 4.6% in the same time. After losing 3.1% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance. See our latest analysis for Wacker Chemie While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During the three years that the share price fell, Wacker Chemie's earnings per share (EPS) dropped by 41% each year. In comparison the 20% compound annual share price decline isn't as bad as the EPS drop-off. This suggests that the market retains some optimism around long term earnings stability, despite past EPS declines. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).XTRA:WCH Earnings Per Share Growth February 25th 2025 Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here. What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Wacker Chemie the TSR over the last 3 years was -39%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return. A Different Perspective While the broader market gained around 19% in the last year, Wacker Chemie shareholders lost 25% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 6% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Wacker Chemie better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Wacker Chemie you should be aware of, and 1 of them is a bit concerning. Story Continues But note: Wacker Chemie may not be the best stock to buy. So take a peek at this freelist of interesting companies with past earnings growth (and further growth forecast). 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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| 28.01.25 07:14:32 | Wacker Chemie core profit falls on lower prices and high energy costs | |
| (Reuters) - German chemical company Wacker Chemie reported a 7% fall year-on-year in its annual core profit on Tuesday, citing lower prices and sales volumes, particularly for solar-grade polysilicon, as well as high energy costs in Germany. The specialty chemicals maker's preliminary earnings before interest, taxes, depreciation and amortisation (EBITDA) for 2024 declined to 770 million euros ($803.96 million) from 824 million euros a year earlier but beat the 753.1 million euros expected by analysts in a company-provided poll. It added that its preliminary 2024 sales reached 5.72 billion euros, down 11% from 2023. "The economic environment in 2024 was challenging. We faced persistent weak demand in many of our customer sectors, with many of our customers in the construction and automotive industries, in particular, curbing their production," CEO Christian Hartel said in a statement. The polysilicon division's sales plunged 41% compared to 2023, impacted by weakening demand for solar-grade polysilicon and the sustained excess capacity in China, according to Hartel. He noted that the debate surrounding U.S. anti-dumping tariffs on solar imports from some Southeast Asian countries unsettled the markets. By contrast, the hyperpure semiconductor-grade polysilicon business "performed well", the company said, adding that it is aiming to increase the share of hyperpure polysilicon in the semiconductor industry going forward. The Munich-based chemical group also said the chemical divisions achieved sales at the previous year's level with total earnings exceeding the 2023 figure. Sales and earnings in the biotechnology division were also up year-on-year, it added. ($1 = 0.9578 euros) (Reporting by Antonis Pothitos in Gdansk; Editing by Sonali Paul and Janane Venkatraman) View Comments |
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| 15.10.24 06:32:12 | Is It Time To Consider Buying Wacker Chemie AG (ETR:WCH)? | |
| While Wacker Chemie AG (ETR:WCH) might not have the largest market cap around , it saw a decent share price growth of 12% on the XTRA over the last few months. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine Wacker Chemie’s valuation and outlook in more detail to determine if there’s still a bargain opportunity. See our latest analysis for Wacker Chemie Is Wacker Chemie Still Cheap? Wacker Chemie is currently expensive based on our price multiple model, where we look at the company's price-to-earnings ratio in comparison to the industry average. In this instance, we’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. We find that Wacker Chemie’s ratio of 35.12x is above its peer average of 16.64x, which suggests the stock is trading at a higher price compared to the Chemicals industry. But, is there another opportunity to buy low in the future? Given that Wacker Chemie’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility. What does the future of Wacker Chemie look like? earnings-and-revenue-growth Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Wacker Chemie's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value. What This Means For You Are you a shareholder? WCH’s optimistic future growth appears to have been factored into the current share price, with shares trading above industry price multiples. However, this brings up another question – is now the right time to sell? If you believe WCH should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you’ve been keeping tabs on WCH for some time, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the optimistic prospect is encouraging for WCH, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop. If you'd like to know more about Wacker Chemie as a business, it's important to be aware of any risks it's facing. For instance, we've identified 2 warning signs for Wacker Chemie (1 is a bit concerning) you should be familiar with. If you are no longer interested in Wacker Chemie, you can use our free platform to see our list of over 50 other stocks with a high growth potential. 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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| 18.09.24 05:43:53 | The three-year loss for Wacker Chemie (ETR:WCH) shareholders likely driven by its shrinking earnings | |
| In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But its virtually certain that sometimes you will buy stocks that fall short of the market average returns. We regret to report that long term Wacker Chemie AG (ETR:WCH) shareholders have had that experience, with the share price dropping 46% in three years, versus a market decline of about 9.8%. And over the last year the share price fell 40%, so we doubt many shareholders are delighted. The falls have accelerated recently, with the share price down 17% in the last three months. Although the past week has been more reassuring for shareholders, they're still in the red over the last three years, so let's see if the underlying business has been responsible for the decline. View our latest analysis for Wacker Chemie To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. Wacker Chemie saw its EPS decline at a compound rate of 32% per year, over the last three years. This fall in the EPS is worse than the 19% compound annual share price fall. So the market may not be too worried about the EPS figure, at the moment -- or it may have previously priced some of the drop in. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). earnings-per-share-growth Dive deeper into Wacker Chemie's key metrics by checking this interactive graph of Wacker Chemie's earnings, revenue and cash flow. What About Dividends? It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Wacker Chemie, it has a TSR of -36% for the last 3 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence! A Different Perspective Wacker Chemie shareholders are down 38% for the year (even including dividends), but the market itself is up 10.0%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 9% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 2 warning signs for Wacker Chemie (1 is concerning!) that you should be aware of before investing here. Story continues But note: Wacker Chemie may not be the best stock to buy. So take a peek at this freelist of interesting companies with past earnings growth (and further growth forecast). 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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| 06.08.24 06:06:55 | Weak Statutory Earnings May Not Tell The Whole Story For Wacker Chemie (ETR:WCH) | |
| Last week's earnings announcement from Wacker Chemie AG (ETR:WCH) was disappointing to investors, with a sluggish profit figure. Our analysis has found some reasons to be concerned, beyond the weak headline numbers. View our latest analysis for Wacker Chemie earnings-and-revenue-history The Impact Of Unusual Items On Profit For anyone who wants to understand Wacker Chemie's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit gained from €20m worth of unusual items. While we like to see profit increases, we tend to be a little more cautious when unusual items have made a big contribution. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. And, after all, that's exactly what the accounting terminology implies. Assuming those unusual items don't show up again in the current year, we'd thus expect profit to be weaker next year (in the absence of business growth, that is). That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Our Take On Wacker Chemie's Profit Performance We'd posit that Wacker Chemie's statutory earnings aren't a clean read on ongoing productivity, due to the large unusual item. Therefore, it seems possible to us that Wacker Chemie's true underlying earnings power is actually less than its statutory profit. Sadly, its EPS was down over the last twelve months. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. So while earnings quality is important, it's equally important to consider the risks facing Wacker Chemie at this point in time. For example, Wacker Chemie has 2 warning signs (and 1 which is concerning) we think you should know about. Today we've zoomed in on a single data point to better understand the nature of Wacker Chemie's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. 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. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com View comments |
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| 28.07.24 06:32:32 | Wacker Chemie Second Quarter 2024 Earnings: Misses Expectations | |
| Wacker Chemie (ETR:WCH) Second Quarter 2024 Results Key Financial Results Revenue: €1.47b (down 16% from 2Q 2023). Net income: €29.0m (down 75% from 2Q 2023). Profit margin: 2.0% (down from 6.7% in 2Q 2023). The decrease in margin was driven by lower revenue. EPS: €0.58 (down from €2.38 in 2Q 2023). earnings-and-revenue-growth All figures shown in the chart above are for the trailing 12 month (TTM) period Wacker Chemie Revenues and Earnings Miss Expectations Revenue missed analyst estimates by 3.5%. Earnings per share (EPS) also missed analyst estimates by 27%. Looking ahead, revenue is forecast to grow 5.6% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Chemicals industry in Germany. Performance of the German Chemicals industry. The company's shares are down 6.1% from a week ago. Risk Analysis You still need to take note of risks, for example - Wacker Chemie has 2 warning signs (and 1 which makes us a bit uncomfortable) we think 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. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com View comments |
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