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Clariant AG (CH:CLN)
:CLN
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Clariant AG
(OTC:CLN)
Rating:64Neutral
Price Target:
CHF9.00
▲(9.49% Upside)
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.
Recovery Momentum
Crop chemicals continue to rebound with both volume and pricing positive, as the company sees recovery post a year of destocking.
Negative Factors
Foreign Exchange Impact
The company is facing FX headwinds, which are a burden to the top line.
Litigation and Legal Challenges
There is a litigation overhang affecting Clariant.
Market and Performance Outlook
Softer growth prospects are capping Clariant's performance.
Clariant AG (CLN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF2.71B
Dividend Yield5.11%
Average Volume (3M)696.51K
Price to Earnings (P/E)23.9
Beta (1Y)1.18
Revenue Growth-2.40%
EPS Growth38.08%
CountryCH
Employees10,465
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.35
Shares Outstanding331,939,200
10 Day Avg. Volume783,963
30 Day Avg. Volume696,509
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF10.87Price Target Upside32.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Clariant AG Business Overview & Revenue Model
Company DescriptionClariant 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 MoneyClariant 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 Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: -3.18%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed performance with strong profitability improvements and effective cost-saving measures, balanced by challenges such as currency impacts, revised sales guidance, and declines in certain segments. Despite these challenges, Clariant remains confident in sustaining profitability improvements and executing its strategic initiatives.Q2-2025 Updates
Positive Updates
Improved Profitability
Clariant delivered strong profitability with an EBITDA margin improvement of 200 basis points to 17.5% in Q2 2025, driven by increased profitability in Catalysts and Adsorbents and Additives.
Cost Savings Program
A savings program set to deliver CHF 80 million by 2027 showed significant contributions with CHF 12 million achieved in H1 2025, supporting performance.
Positive Free Cash Flow Conversion
Free cash flow conversion improved to 37% for the last 12 months, up from 32% at the end of 2024, indicating enhanced cash generation.
Catalyst Segment Performance
Catalyst sales increased by 5% in local currency due to a significant order, contributing to a 20% increase in EBITDA in this segment with a margin improvement to 22.5%.
Greenhouse Gas Reduction Targets
Clariant's new greenhouse gas emissions reduction targets were approved by the Science Based Targets Initiative, aiming for significant reductions by 2030.
CLARITY Digital Platform Expansion
The rollout of the CLARITY digital service platform was accelerated, now operational at over 185 plants and used by over 700 users in 35 countries.
Negative Updates
Currency Translation Impact
An 8% negative currency translation effect impacted the reported sales figures for Q2 2025.
Sales Guidance Revision
Clariant revised its 2025 sales growth guidance to a range of 1% to 3% in local currency, reflecting weak industrial production and uncertainty in end markets.
Care Chemicals Volume Decline
Care Chemicals recorded a 2% organic decline in local currency sales due to lower volumes, particularly in Oil Services and Base Chemicals.
Reported EBITDA Decline
Reported EBITDA decreased by 16% to CHF 139 million, including CHF 22 million in restructuring charges, representing a margin of 14.4%.
Net Income Decline
Net income for the first half of 2025 was CHF 44 million, compared to CHF 176 million in the previous year, impacted by restructuring costs and impairments.
Company Guidance
During the Clariant Second Quarter 2025 Conference Call, the company reported sales of CHF 968 million, which remained flat in local currencies but saw an 8% decrease in Swiss francs. EBITDA before exceptional items rose by 3% to CHF 169 million, achieving a margin improvement of 200 basis points to 17.5%. The savings program is projected to deliver CHF 80 million by 2027, with CHF 12 million already achieved in the first half of the year. Clariant's free cash flow conversion increased to 37% over the last 12 months. The company maintained its 2025 sales growth guidance in local currency at 1% to 3%, despite ongoing market challenges, and confirmed its full-year profitability guidance of a 17% to 18% EBITDA margin before exceptional items. Clariant also reported progress in safety performance and greenhouse gas emissions reduction targets, with the latter approved by the Science Based Targets Initiative.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.72
Positive
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.68
Positive
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.60
Neutral
| 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
Negative
8.22
Price Trends
8.57
Negative
8.72
Negative
9.45
Negative
Market Momentum
-0.13
Positive
42.28
Neutral
15.37
Positive
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 below the 20-day moving average (MA) of 8.52, below the 50-day MA of 8.57, and below the 200-day MA of 9.45, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 42.28 is Neutral, neither overbought nor oversold. The STOCH value of 15.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:CLN.
Clariant AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | CHF30.97B | 25.31 | 1.87% | -1.05% | ― | ||
64 Neutral | CHF2.71B | 23.87 | 5.38% | 5.11% | -2.40% | 38.08% | |
64 Neutral | CHF31.34B | 28.64 | 2.06% | 5.93% | 6.00% | ||
44 Neutral | AU$1.51B | -7.20 | -27.95% | 4.55% | -2.91% | -36.73% | |
| ― | $18.63B | 36.36 | 25.54% | 2.24% | ― | ― |
* Basic Materials Sector Average
Performance Comparison
CH:CLN
Clariant AG
8.22
-3.48
-29.76%
CH:GIVN
Givaudan SA
3,396.00
-666.99
-16.42%
CH:SIKA
Sika AG
193.00
-50.48
-20.73%
EMSHF
EMS-CHEMIE HOLDING AG
813.42
-1.08
-0.13%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.