Covestro AG (DE:1COV)
FRANKFURT:1COV
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Covestro
(Frankfurt:1COV)
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Rating:45Neutral
Price Target:
€59.00
Action:Reiterated
Date:03/07/26
The score is driven primarily by weak financial performance—multi-year losses, negative EBIT in 2025, and a shift to negative free cash flow—partly cushioned by a relatively resilient balance sheet with moderate leverage. Technicals are neutral near major moving averages, while valuation is pressured by a negative P/E tied to loss-making results.
Positive Factors
Market & Product Leadership
Covestro's position as a leading global maker of high-performance polymers (polycarbonate, polyurethane, specialty coatings) is a durable competitive strength. Scale and technical expertise support long-term customer relationships, product breadth across industries, and the ability to invest in innovation that sustains premium offerings and differentiation.
Negative Factors
Revenue Decline Trend
Multi-year revenue contraction signals structural demand or market-share challenges rather than a single-quarter blip. Persisting top-line declines reduce scale benefits, limit pricing leverage, and constrain margins and reinvestment capacity. If underlying end-market weakness or competitive pressure continues, restoring growth will require sustained strategic action.
Read all positive and negative factors
Positive Factors
Negative Factors
Market & Product Leadership
Covestro's position as a leading global maker of high-performance polymers (polycarbonate, polyurethane, specialty coatings) is a durable competitive strength. Scale and technical expertise support long-term customer relationships, product breadth across industries, and the ability to invest in innovation that sustains premium offerings and differentiation.
Read all positive factors
Covestro (1COV) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€12.42B
Dividend YieldN/A
Average Volume (3M)10.68K
Price to Earnings (P/E)―
Beta (1Y)0.07
Revenue Growth-8.72%
EPS Growth-140.66%
CountryDE
Employees17,578
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-3.16
Shares Outstanding207,900,000
10 Day Avg. Volume11,737
30 Day Avg. Volume10,682
Financial Highlights & Ratios
PEG Ratio-0.12
Price to Book (P/B)1.63
Price to Sales (P/S)0.88
P/FCF Ratio-40.23
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.3
Revenue Forecast (FY)€12.92B
Covestro Business Overview & Revenue Model
Company Description
Covestro AG supplies high-tech polymer materials and related application solutions. It operates in two segments, Performance Materials, and Solutions & Specialties. The Performance Materials segment develops, produces, and supplies high-performanc...
How the Company Makes Money
Covestro makes money primarily by manufacturing and selling chemical and polymer materials to industrial customers, generating revenue from product sales (typically priced per unit/ton and influenced by product mix, capacity utilization, and marke...
Covestro Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
58
Neutral
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 12.94B | 14.18B | 14.38B | 17.97B | 15.90B |
| Gross Profit | 1.72B | 2.18B | 2.31B | 2.56B | 4.43B |
| EBITDA | 752.00M | 1.12B | 1.14B | 1.65B | 3.06B |
| Net Income | -644.00M | -266.00M | -198.00M | -281.00M | 1.62B |
Balance Sheet | |||||
| Total Assets | 13.47B | 13.63B | 13.64B | 14.59B | 15.57B |
| Cash, Cash Equivalents and Short-Term Investments | 767.00M | 518.00M | 625.00M | 1.20B | 714.00M |
| Total Debt | 3.13B | 3.10B | 3.39B | 3.66B | 2.53B |
| Total Liabilities | 6.45B | 6.95B | 7.02B | 7.46B | 7.81B |
| Stockholders Equity | 7.00B | 6.66B | 6.59B | 7.09B | 7.70B |
Cash Flow | |||||
| Free Cash Flow | -283.00M | 89.00M | 232.00M | 138.00M | 1.43B |
| Operating Cash Flow | 487.00M | 870.00M | 997.00M | 970.00M | 2.19B |
| Investing Cash Flow | -1.29B | -423.00M | -925.00M | -477.00M | -2.00B |
| Financing Cash Flow | 968.00M | -565.00M | -639.00M | 64.00M | -965.00M |
Covestro Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | €4.41B | 13.32 | 16.38% | 3.91% | 0.03% | 5.54% | |
64 Neutral | €8.30B | 15.61 | 1.89% | 8.92% | -9.37% | -47.49% | |
63 Neutral | €8.87B | 21.10 | 5.27% | 4.30% | -9.48% | -56.88% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
53 Neutral | €4.93B | 100.12 | -20.12% | 3.75% | ― | ― | |
49 Neutral | €1.60B | -2.86 | -17.77% | 0.59% | -14.31% | -386.04% | |
45 Neutral | €12.42B | -7.53 | -10.04% | ― | -8.72% | -140.66% |
* Basic Materials Sector Average
DE:1COV
Covestro
59.80
-0.62
-1.03%
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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.