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Clariant AG (CH:CLN)
:CLN
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Clariant AG
(OTC:CLN)
Rating:67Neutral
Price Target:
CHF9.50
▲(10.34%Upside)
Positive Factors
Financial Performance
Clariant remains confident on its financial year targets, with both 3-5% local currency growth at the lower end and EBITDA margin target on track.
Market Expansion
The new China flame retardant site is ramping up, giving Clariant access to local markets and driving good growth in the Additive segment.
Segment Growth
Additives benefits from the better electronic/EV business in China and showed strong growth of over 25%.
Negative Factors
Foreign Exchange Impact
The company is facing FX headwinds, which are a burden to the top line.
Legal Issues
A number of parties have filed a claim in relation to the ethylene purchase cartel, with a total claim amount of CHF 1.8bn, and the timeline of the process is unclear.
Segment Performance
Care Chemicals saw a decline in profitability due to seasonality and low fixed cost absorption.
Clariant AG (CLN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF2.84B
Dividend Yield3.99%
Average Volume (3M)1.08M
Price to Earnings (P/E)11.6
Beta (1Y)1.13
Revenue Growth-5.14%
EPS Growth82.31%
CountryCH
Employees10,465
SectorBasic Materials
Sector Strength63
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.00
Shares Outstanding331,939,200
10 Day Avg. Volume1,276,246
30 Day Avg. Volume1,077,891
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)2.06
Price to Sales (P/S)0.00
P/FCF Ratio16.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF11.39Price Target Upside32.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
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 primarily through the sale of specialty chemicals, which are tailored to meet specific customer needs across different industries. The company's revenue streams are divided into three main business units: Care Chemicals, which serves the personal care, home care, and industrial applications markets; Catalysis, which focuses on products and solutions for chemical and fuel production processes; and Natural Resources, which provides chemical solutions for the oil, mining, and agricultural sectors. Clariant's earnings are bolstered by its strategic partnerships and collaborations that enhance its product offerings and market reach. Additionally, the company's emphasis on sustainability and innovation drives demand for its eco-friendly and efficient chemical solutions, contributing to its overall financial performance.
Clariant AG Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: -2.29%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted positive aspects such as slight sales growth, EBITDA improvement, and successful cost savings initiatives. However, significant challenges were noted, including declines in the Catalysts segment, restructuring charges, and an uncertain economic environment due to trade tensions. Overall, while there are positive achievements, the negative aspects present significant challenges.Q1-2025 Updates
Positive Updates
Slight Increase in Sales
Clariant reported sales of CHF 1.013 billion, representing a 1% increase in local currencies with stable performance in Swiss francs.
EBITDA Improvement
The company's EBITDA before exceptional items increased by 3% to CHF 190 million, with a margin improvement of 70 basis points to 18.8%.
Cost Savings Achievement
Completion of CHF 175 million cost savings program, contributing to margin improvements and operational leverage.
Lucas Meyer Cosmetics Performance
Strong operational performance with sales of CHF 25 million and high profitability. Recognized with six innovation awards at the in-cosmetics Global trade show.
Strong Performance in Care Chemicals
Recorded 2% organic growth in local currency with a strong margin of 21.7%.
Negative Updates
Catalysts Sales Decline
Sales declined by 13% in local currency due to a weak economic environment and lower utilization rates.
Restructuring Charges
CHF 38 million restructuring charges booked in Q1, with a total of CHF 75 million expected for 2025.
Uncertain Economic Environment
Increased risk and uncertainty due to tariffs and trade tensions, impacting global growth expectations.
Volume Decline in Organic Volumes
Organic volumes decreased by 2% overall, with growth in certain segments not offsetting declines in others.
Company Guidance
During the Clariant First Quarter Figures 2025 Conference Call, the company provided detailed guidance for the upcoming year. Clariant reported sales of CHF 1.013 billion, marking a 1% increase in local currencies, with EBITDA before exceptional items rising by 3% to CHF 190 million, resulting in a margin of 18.8%. The company completed a CHF 175 million cost savings program and launched a new initiative targeting CHF 80 million in savings by 2027, with CHF 3 million already achieved in Q1. Clariant maintained its guidance for 2025, expecting local currency sales growth at the lower end of the 3% to 5% range and an underlying EBITDA margin of 17% to 18% before exceptional items. The restructuring charges for 2025 are anticipated to be CHF 75 million. The company highlighted strong operational performance in its Lucas Meyer Cosmetics division, achieving sales of CHF 25 million. Despite a challenging environment, Clariant underscored its commitment to improving cash conversion and achieving medium-term targets by 2027.Clariant AG Financial Statement Overview
Summary
Clariant AG shows mixed financial performance with stable profitability and a moderate capital structure. Improved operational margins are offset by challenges in revenue growth and cash flow generation.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
Neutral
8.61
Price Trends
8.68
Negative
9.14
Negative
9.93
Negative
Market Momentum
-0.10
Negative
50.11
Neutral
81.28
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:CLN, the sentiment is Neutral. The current price of 8.61 is above the 20-day moving average (MA) of 8.58, below the 50-day MA of 8.68, and below the 200-day MA of 9.93, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 50.11 is Neutral, neither overbought nor oversold. The STOCH value of 81.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CH:CLN.
Clariant AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (70)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | CHF35.28B | 28.33 | 1.64% | 4.67% | ― | ||
72 Outperform | CHF36.05B | 33.06 | 1.79% | 7.19% | 22.07% | ||
70 Neutral | ¥172.92B | 11.04 | 6.37% | 3.58% | 3.93% | 6.24% | |
67 Neutral | CHF2.84B | 11.60 | 11.11% | 3.99% | -5.14% | 82.31% | |
63 Neutral | CHF14.09B | 30.58 | 25.54% | 2.12% | -5.40% | 0.70% |
* Basic Materials Sector Average
Performance Comparison
CH:CLN
Clariant AG
8.61
-5.35
-38.31%
CH:GIVN
Givaudan SA
3,907.00
-318.04
-7.53%
CH:SIKA
Sika AG
219.90
-31.16
-12.41%
CH:EMSN
EMS-CHEMIE HOLDING AG
602.50
-120.28
-16.64%
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.