EMS-CHEMIE HOLDING AG (EMSN) AI Stock Analysis

• Market Cap: $13.94B
• Dividend Yield: 2.14%
• Average Volume (3M): 13.78K
• Price to Earnings (P/E): 30.3
• Beta (1Y): 0.71
• Revenue Growth: -5.40%
• EPS Growth: 0.70%
• Country: CH
• Employees: 2,824
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): 9.04
• Shares Outstanding: 23,389,029
• 10 Day Avg. Volume: 12,374
• 30 Day Avg. Volume: 13,776
• PEG Ratio: -8.30
• Price to Book (P/B): 8.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.62
• 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: $578.55
• Price Target Upside: -2.93% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 63 Neutral
• Price Target: CHF649.00 ▲(8.89%Upside)

EMS-CHEMIE HOLDING AG shows strong financial performance with robust profitability and balance sheet strength, which is the most significant factor. Technical indicators suggest consolidation with no strong momentum. Valuation remains a concern due to a high P/E ratio, which impacts the overall score.

Positive Factors

Dividend Increase

The dividend will increase from CHF 16.00 to CHF 17.25.

Earnings Performance

FY-24 EBIT increased by +9.5% y/y, indicating strong earnings performance.

Growth Initiatives

The marketing initiatives in the US and China are paying off with solid growth in both regions.

Negative Factors

Automotive Sector Weakness

EMS could not decouple from the weak automotive trend in Europe.

Foreign Exchange Impact

Due to lower prices and ongoing FX headwind, the reported sales might decline slightly, according to the company guidance.

Sales Decline

Company guidance is for a slight sales decline in FY-25, which speaks for a weak H1.

EMS-CHEMIE HOLDING AG Business Overview & Revenue Model

Company Description

EMS-CHEMIE HOLDING AG (EMSN) is a Switzerland-based company that operates primarily in the specialty chemicals sector. The company specializes in the development, production, and sale of high-performance polymers and specialty chemicals. Its products are used in various industries, including automotive, electronics, industrial, and consumer goods. EMS-CHEMIE is recognized for its innovative solutions that enhance product performance and efficiency.

How the Company Makes Money

EMS-CHEMIE HOLDING AG generates revenue through the sale of its high-performance polymers and specialty chemicals. The company's key revenue streams include the automotive industry, where its materials are used for lightweight construction and energy efficiency, as well as the electronics sector, which requires advanced polymers for durable and reliable components. Additionally, EMS-CHEMIE partners with manufacturers and industries to deliver customized solutions, contributing to its revenue. The company's strong focus on innovation and research and development helps maintain its competitive edge and drive sales in its target markets.

EMS-CHEMIE HOLDING AG Financial Statement Overview

Summary

EMS-CHEMIE HOLDING AG demonstrates strong financial health with solid profitability and a robust balance sheet. Despite a slight decline in revenue and free cash flow, the company maintains strong margins and effective cash flow conversion. Monitoring of revenue trends is advisable.

Income Statement

EMS-CHEMIE HOLDING AG demonstrates stable financial performance with respectable margins. The Gross Profit Margin for the latest year is approximately 46.86%, and the Net Profit Margin stands at 22.25%. However, the company experienced a revenue decline of 5.38% from the previous year, which impacts overall performance. EBIT and EBITDA margins are strong at 26.02% and 29.10%, respectively, indicating efficient cost management.

Balance Sheet

The balance sheet of EMS-CHEMIE HOLDING AG reflects financial stability with a low Debt-to-Equity Ratio of 0.005, suggesting minimal leverage and a strong equity position. The Return on Equity (ROE) is high at 25.11%, demonstrating effective utilization of shareholder funds. The Equity Ratio is robust at 82.39%, indicating a strong capital structure.

Cash Flow

Cash flow analysis shows a solid Free Cash Flow to Net Income Ratio of 0.97, demonstrating strong cash generation relative to net income. However, there is a decline in Free Cash Flow by 15.10% year-over-year, which could pose a concern if it continues. The Operating Cash Flow to Net Income Ratio is 1.04, indicating good cash flow conversion.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.07B	2.19B	2.44B	2.25B	1.80B
	Gross Profit
970.46M	594.99M	713.92M	729.66M	596.97M
	EBIT
539.10M	492.55M	602.78M	632.16M	502.55M
	EBITDA
603.52M	542.36M	658.40M	698.03M	566.20M
	Net Income Common Stockholders
460.79M	457.58M	532.10M	550.32M	434.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
519.54M	465.24M	380.55M	137.40M	161.79M
	Total Assets
2.23B	2.17B	2.32B	2.32B	2.08B
	Total Debt
8.78M	32.34M	13.52M	19.41M	22.43M
	Net Debt
-509.59M	-232.05M	-235.04M	-91.18M	-132.91M
	Total Liabilities
362.50M	398.56M	471.61M	496.35M	453.29M
	Stockholders Equity
1.83B	1.74B	1.82B	1.80B	1.60B
Cash Flow		Free Cash Flow
447.51M	527.08M	746.15M	376.93M	401.31M
	Operating Cash Flow
480.37M	576.47M	840.12M	456.85M	472.13M
	Investing Cash Flow
176.63M	-146.93M	-198.52M	-99.25M	-87.78M
	Financing Cash Flow
-403.72M	-451.24M	-500.49M	-405.48M	-473.39M

EMS-CHEMIE HOLDING AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 596.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:EMSN, the sentiment is Negative. The current price of 596 is below the 20-day moving average (MA) of 616.42, below the 50-day MA of 599.72, and below the 200-day MA of 637.96, indicating a bearish trend. The MACD of 0.34 indicates Positive momentum. The RSI at 40.45 is Neutral, neither overbought nor oversold. The STOCH value of 26.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:EMSN.

EMS-CHEMIE HOLDING AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIKA	77 Outperform	CHF33.54B	26.92		1.72%	4.67%	―
CLN	67 Neutral	CHF2.78B	11.38	11.11%	4.97%	-5.14%	82.31%
EMSN	63 Neutral	$13.94B	30.25	25.54%	2.14%	-5.40%	0.70%
Sector *	51 Neutral	$2.03B	-1.27	-21.09%	3.98%	2.91%	-30.50%