EMS-CHEMIE HOLDING AG (EMSN) AI Stock Analysis

• Market Cap: CHF14.44B
• Dividend Yield: 3.16%
• Average Volume (3M): 12.89K
• Price to Earnings (P/E): 31.3
• Beta (1Y): 0.63
• Revenue Growth: -4.25%
• EPS Growth: -0.03%
• Country: CH
• Employees: 2,824
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 10.71
• Shares Outstanding: 23,389,029
• 10 Day Avg. Volume: 16,584
• 30 Day Avg. Volume: 12,894
• PEG Ratio: 43.37
• Price to Book (P/B): 7.79
• Price to Sales (P/S): 6.91
• P/FCF Ratio: 31.96
• 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: CHF547.84
• Price Target Upside: -11.28% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: CHF665.00 ▲(7.69% Upside)

The score is mainly supported by strong financial quality (low leverage, high equity base, solid profitability and cash conversion). This is tempered by technically overbought conditions that raise short-term risk and a relatively expensive valuation (P/E ~31) that limits upside without improved growth.

Positive Factors

Balance Sheet Strength

Extremely low leverage and a very high equity ratio give EMS-CHEMIE durable financial flexibility. This capital structure supports investment in R&D and capacity, cushions cyclical downturns, and reduces refinancing risk, sustaining long-term strategic options.

High and Stable Profitability

Consistently strong gross and EBIT margins reflect pricing power and differentiated, high-value polymer products. Such margin durability supports reinvestment, product development and cash returns, underpinning competitive advantage over multiple cycles.

Solid Cash Generation

Near-parity of operating cash flow and net income shows high cash conversion quality. Reliable cash generation funds dividends, capex and R&D without heavy external financing, enabling sustained investment in product innovation and customer partnerships.

Negative Factors

Revenue Contraction

A multi-percent revenue decline signals potential demand softness or lost volumes in end markets. If persistent, shrinking top-line undermines operating leverage, constrains growth investment and could pressure margins despite current efficiency levels.

Declining Free Cash Flow

A double-digit drop in free cash flow reduces financial headroom for capex, R&D and shareholder returns. If this trend continues, the company may need to curtail investments or rely more on retained earnings, limiting long-term growth capacity.

End-market Cyclicality Exposure

Concentration in cyclically sensitive sectors like automotive and electronics exposes revenue to OEM cycles and macro swings. Structural downturns or slower vehicle/electronics demand can materially depress volumes and lengthen recovery timelines for specialty polymers.

EMS-CHEMIE HOLDING AG Business Overview & Revenue Model

Company Description

Ems-Chemie Holding AG engages in the high performance polymers and specialty chemicals businesses worldwide. The company's High Performance Polymers segment is involved in the manufacture and supply of high-performance polyamides granulates. Its Specialty Chemicals segment develops, produces, and sells fibers, bonding agent for tires, fusible adhesives, and adhesive yarns for technical and textile applications; powder coatings; and reactive diluents. The company also offers bonding, coating, sealing, and damping systems; and hotmelt adhesives, crosslinkers, epoxy systems, technical fibers, adhesion promoters, and fusible bonding yarns and granules. It serves automotive, electro and electronic, industry and consumer goods, optic, and packaging markets. The company was founded in 1936 and is based in Domat/Ems, Switzerland. EMS-CHEMIE HOLDING AG is a subsidiary of EMESTA HOLDING AG.

How the Company Makes Money

EMS-CHEMIE HOLDING AG generates revenue primarily through the sale of its high-performance polymer products and specialty chemicals. Key revenue streams include the production and distribution of engineering plastics, which are used in a range of applications such as automotive components, electronic devices, and medical equipment. The company benefits from long-term partnerships with major clients in diverse industries, ensuring stable demand for its products. Additionally, EMS-CHEMIE invests in research and development to create innovative materials that meet the evolving needs of its customers, which enhances its competitive edge and drives revenue growth. Market trends towards lightweight and sustainable materials also contribute positively to the company's earnings, as EMS-CHEMIE offers products that align with these trends.

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. The low Debt-to-Equity Ratio and high ROE further highlight financial stability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.00B	2.07B	2.19B	2.44B	2.25B	1.80B
Gross Profit	952.70M	970.46M	594.99M	713.92M	729.66M	596.97M
EBITDA	608.82M	603.52M	542.36M	658.40M	698.03M	566.20M
Net Income	461.84M	460.79M	457.58M	532.10M	550.32M	434.34M
Balance Sheet
Total Assets	2.48B	2.23B	2.17B	2.32B	2.32B	2.08B
Cash, Cash Equivalents and Short-Term Investments	613.49M	519.54M	465.24M	380.55M	137.40M	161.79M
Total Debt	24.77M	8.78M	32.34M	13.52M	19.41M	22.43M
Total Liabilities	375.50M	362.50M	398.56M	471.61M	496.35M	453.29M
Stockholders Equity	2.07B	1.83B	1.74B	1.82B	1.80B	1.60B
Cash Flow
Free Cash Flow	451.44M	447.51M	527.08M	746.15M	376.93M	401.31M
Operating Cash Flow	484.33M	480.37M	576.47M	840.12M	456.85M	472.13M
Investing Cash Flow	165.70M	176.63M	-146.93M	-198.52M	-99.25M	-87.78M
Financing Cash Flow	-388.47M	-403.72M	-451.24M	-500.49M	-405.48M	-473.39M

EMS-CHEMIE HOLDING AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 617.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:EMSN, the sentiment is Positive. The current price of 617.5 is above the 20-day moving average (MA) of 564.50, above the 50-day MA of 552.23, and above the 200-day MA of 581.75, indicating a bullish trend. The MACD of 14.45 indicates Negative momentum. The RSI at 78.15 is Negative, neither overbought nor oversold. The STOCH value of 94.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	72 Outperform	CHF24.74B	20.22	―	2.23%	-1.05%	-1.46%
EMSN	66 Neutral	CHF14.44B	31.27	22.08%	3.16%	-4.25%	-0.03%
CLN	62 Neutral	CHF2.47B	21.81	5.38%	5.97%	-2.40%	38.08%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%