Clariant AG (CLN) AI Stock Analysis

• Market Cap: CHF2.29B
• Dividend Yield: 5.99%
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 20.2
• Beta (1Y): 1.08
• Revenue Growth: -2.40%
• EPS Growth: 38.08%
• Country: CH
• Employees: 10,465
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.00
• Shares Outstanding: 331,939,200
• 10 Day Avg. Volume: 1,023,368
• 30 Day Avg. Volume: 1,104,585
• PEG Ratio: 0.17
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 0.80
• P/FCF Ratio: 15.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF9.49
• Price Target Upside: 36.74% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: CHF7.50 ▲(8.07% Upside)

Clariant AG's overall stock score is driven by a mixed financial performance, with stable profitability but challenges in revenue growth and cash flow. Technical analysis indicates bearish momentum, while valuation metrics suggest potential overvaluation despite a strong dividend yield. The earnings call provided positive insights into margin improvements but highlighted sales growth challenges.

Positive Factors

Margin Improvement

The improvement in EBITDA margin indicates effective cost management and operational efficiency, which can enhance long-term profitability and competitive positioning.

Savings Program

The ongoing savings program reflects Clariant's commitment to cost efficiency, potentially leading to sustained profitability and financial health over the long term.

Care Chemicals Margin Uplift

The margin uplift in Care Chemicals suggests robust pricing power and product mix optimization, supporting Clariant's ability to maintain strong margins in key segments.

Negative Factors

Sales Decline

The decline in sales indicates potential challenges in market demand and competitive pressures, which could impact revenue growth and market share in the medium term.

Catalysts Segment Weakness

Weakness in the Catalysts segment, especially in China, suggests vulnerability to market fluctuations and could hinder overall growth prospects if not addressed.

Challenges in U.S. Renewable Fuels

Regulatory uncertainties and demand weakness in renewable fuels could pose risks to Clariant's growth in the Americas, affecting its strategic positioning in sustainable markets.

Clariant AG Business Overview & Revenue Model

Company Description

Clariant AG is a global specialty chemicals company headquartered in Switzerland, focusing on providing innovative solutions in various sectors including Personal Care, Home Care, Industrial & Consumer Care, Agro Solutions, and Plastics & Coatings. The company develops a wide range of products and services, including additives, pigments, and specialty chemicals that enhance the performance and sustainability of its customers' products across multiple industries.

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 shows mixed financial performance. Strong operational margins and stable profitability are offset by declining revenue growth and cash flow challenges. The balance sheet remains stable with moderate leverage, but 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.06B	4.15B	4.38B	5.20B	4.37B	3.86B
Gross Profit	1.29B	1.26B	1.20B	1.02B	1.29B	1.17B
EBITDA	568.00M	696.00M	562.00M	296.00M	679.00M	633.00M
Net Income	113.00M	244.00M	134.00M	-101.00M	344.00M	116.00M
Balance Sheet
Total Assets	5.82B	6.26B	5.35B	6.19B	7.04B	6.93B
Cash, Cash Equivalents and Short-Term Investments	449.00M	471.00M	593.00M	758.00M	476.00M	1.05B
Total Debt	2.05B	1.88B	1.35B	1.46B	1.95B	2.02B
Total Liabilities	3.74B	3.76B	3.17B	3.67B	4.49B	4.55B
Stockholders Equity	1.91B	2.33B	2.02B	2.34B	2.36B	2.24B
Cash Flow
Free Cash Flow	179.00M	209.00M	214.00M	290.00M	3.00M	70.00M
Operating Cash Flow	374.00M	418.00M	421.00M	502.00M	363.00M	369.00M
Investing Cash Flow	-216.00M	-805.00M	45.00M	140.00M	-143.00M	1.08B
Financing Cash Flow	-198.00M	277.00M	-356.00M	-652.00M	-538.00M	-1.33B

Clariant AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.94
• 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 6.94 is below the 20-day moving average (MA) of 7.15, below the 50-day MA of 7.53, and below the 200-day MA of 8.63, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 31.91 is Neutral, neither overbought nor oversold. The STOCH value of 22.79 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
GIVN	72 Outperform	CHF30.21B	27.61	―	2.15%	5.93%	6.00%
SIKA	67 Neutral	CHF23.99B	19.61	―	2.41%	-1.05%	-1.46%
CLN	62 Neutral	CHF2.29B	20.17	5.38%	5.99%	-2.40%	38.08%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
EMSN	60 Neutral	$12.45B	26.97	22.08%	3.14%	-4.25%	-0.03%

Clariant AG Corporate Events

Clariant AG Reports Improved Profitability Amid Sales Decline

Clariant AG is a Switzerland-based specialty chemical company focusing on sustainability and innovation, operating through its three business units: Care Chemicals, Catalysts, and Adsorbents & Additives.