Clariant AG (CLN) AI Stock Analysis

• Market Cap: $2.71B
• Dividend Yield: 5.11%
• Average Volume (3M): 653.80K
• Price to Earnings (P/E): 23.9
• Beta (1Y): 1.17
• Revenue Growth: -2.40%
• EPS Growth: 38.08%
• Country: CH
• Employees: 10,465
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals - Specialty
• EPS (TTM): 0.35
• Shares Outstanding: 331,939,200
• 10 Day Avg. Volume: 639,106
• 30 Day Avg. Volume: 653,800
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.68
• Enterprise Value/Revenue: 1.10
• Enterprise Value/Gross Profit: 3.53
• Enterprise Value/Ebitda: 7.32
• 1Y Price Target: $11.22
• Price Target Upside: 36.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 64 Neutral
• Price Target: CHF9.00 ▲(9.49% Upside)

Clariant AG's overall stock score reflects a balanced view of its financial performance, technical indicators, valuation, and recent earnings call insights. The company's strong profitability and strategic initiatives are tempered by revenue declines, cash flow challenges, and high valuation. Technical analysis suggests caution, with the stock trading below key moving averages.

Positive Factors

Financial Performance

Clariant's recent quarterly results beat the Vara Consensus adjusted EBITDA by 3%.

Growth Prospects

The new China flame retardant site is ramping up, giving Clariant access to local markets and driving good growth in the Additive segment.

Negative Factors

Currency Impact

The company is facing FX headwinds, which are a burden to the top line.

Litigation

There is a litigation overhang affecting Clariant.

Market Challenges

Softer growth prospects are capping Clariant's performance.

Clariant AG Business Overview & Revenue Model

Company Description

Clariant AG operates as a specialty chemical company worldwide. It operates through three segments: Care Chemicals, Catalysis, Natural Resources. The company offers flame retardants, performance additives, and advanced surface solutions for use in plastics, coatings, inks, and consumer applications; and catalysts for the petrochemical and fuel refining, synthesis gas, chemical, emissions control, specialty zeolites and zeolite-based, and custom catalyst markets. It also provides bentonite-based specialty products for the oil purification, foundry additive, feed additives, civil engineering, wastewater treatment, clay specialties, paper and detergent additive, PVC stabilizer, BTX-catalyst, and kerosene and jet fuel purification industries. In addition, the company offers industrial and consumer specialty chemicals and application solutions for the automotive brake fluid and coolant, aircraft anti-itching and deicing fluid, construction chemical, agrochemical and agricultural adjuvants, food ingredients, gas treatment, heat transfer fluid, home care, industrial cleaning, industrial lubricant additive, special solvent, paint and coating, healthcare, and personal care ingredient markets. Further, it offers oilfield production chemicals for enhanced oil recovery, offshore and deep water, conventional and unconventional oil and gas, heavy oil, paraffin control technologies, and well services additives, as well as Veritrax, an intelligent chemical management system; chemical solutions for the end-to-end mining process; refinery services' additives; biofuels and derivatives, such as sunliquid, an agricultural residue converted to cellulosic ethanol; and organic, inorganic, and anti-corrosive pigments, as well as pigment preparations, dyes, and specialty material for use in coatings, plastics, printing and digital printing, home, fabric, personal care, and other applications. Clariant AG was founded in 1886 and is headquartered in Muttenz, Switzerland.

How the Company Makes Money

Clariant AG generates revenue through the sale of specialty chemicals and products tailored to specific industry needs. The company operates through several key segments, each contributing to its overall revenue. The largest revenue streams come from the Personal Care and Home Care segments, which provide ingredients and formulations to the cosmetics and cleaning industries. Additionally, Clariant benefits from its Agro Solutions segment, which delivers crop protection products and solutions. The company's revenue model is supported by strategic partnerships with various industries, enabling it to innovate and adapt to market demands. Clariant also invests in research and development to create sustainable and high-performance products, which further enhances its competitive edge and profitability.

Clariant AG Financial Statement Overview

Summary

Clariant AG's financial performance is mixed, with stable profitability and moderate leverage. While operational margins have improved, revenue and cash flow growth face challenges. The balance sheet remains strong, though asset growth is limited.

Income Statement

Clariant AG's income statement shows mixed performance. The gross profit margin for 2024 stands at 30.31%, indicating solid cost management. However, the net profit margin is 5.88%, reflecting a slight improvement from previous years. The revenue growth rate from 2023 to 2024 is -5.14%, signaling a decline in revenue. EBIT and EBITDA margins are 10.60% and 16.77%, respectively, showing an improvement in operational profitability compared to last year.

Balance Sheet

The balance sheet analysis reveals a stable financial structure with a debt-to-equity ratio of 0.81, suggesting moderate leverage. The return on equity is 10.45%, indicating decent profitability. The equity ratio stands at 37.28%, reflecting a balanced capital structure. However, the total assets have slightly declined, suggesting potential constraints in asset growth.

Cash Flow

Clariant AG's cash flow statement presents a challenging picture. The free cash flow growth rate is -2.34%, indicating a slight decrease in liquidity. The operating cash flow to net income ratio is 1.71, showing strong cash generation. However, the free cash flow to net income ratio is 0.86, suggesting room for improvement in free cash flow relative to earnings.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.15B	4.38B	5.20B	4.37B	3.86B
Gross Profit	1.26B	1.20B	1.02B	1.29B	1.17B
EBITDA	696.00M	562.00M	296.00M	679.00M	633.00M
Net Income	244.00M	134.00M	-101.00M	344.00M	116.00M
Balance Sheet
Total Assets	6.26B	5.35B	6.19B	7.04B	6.93B
Cash, Cash Equivalents and Short-Term Investments	471.00M	593.00M	758.00M	476.00M	1.05B
Total Debt	1.88B	1.35B	1.46B	1.95B	2.02B
Total Liabilities	3.76B	3.17B	3.67B	4.49B	4.55B
Stockholders Equity	2.33B	2.02B	2.34B	2.36B	2.24B
Cash Flow
Free Cash Flow	209.00M	214.00M	290.00M	3.00M	70.00M
Operating Cash Flow	418.00M	421.00M	502.00M	363.00M	369.00M
Investing Cash Flow	-805.00M	45.00M	140.00M	-143.00M	1.08B
Financing Cash Flow	277.00M	-356.00M	-652.00M	-538.00M	-1.33B

Clariant AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:CLN, the sentiment is Negative. The current price of 8.22 is above the 20-day moving average (MA) of 8.20, below the 50-day MA of 8.44, and below the 200-day MA of 9.20, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 46.12 is Neutral, neither overbought nor oversold. The STOCH value of 36.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:CLN.

Clariant AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIKA	70 Outperform	CHF29.76B	24.33		1.94%	-1.05%	―
CLN	64 Neutral	$2.71B	23.87	5.38%	5.11%	-2.40%	38.08%
GIVN	64 Neutral	CHF31.10B	28.42		2.08%	5.93%	6.00%
Sector *	61 Neutral	$10.26B	6.13	0.71%	2.93%	3.45%	-36.02%
EMSHF	―	$17.92B	33.75	22.08%	2.85%	―	―