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AlzChem Group AG (DE:ACT)
XETRA:ACT
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AlzChem Group AG
(XETRA:ACT)
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Rating:74Outperform
Price Target:
€167.00
▼(-1.42% Downside)
Action:ReiteratedDate:03/02/26
The score is driven primarily by strong fundamentals (growth, rising margins, improved leverage) and supportive FY2026 guidance despite near-term operational and cash-flow headwinds from the planned shutdown and heavy CapEx. Offsetting factors are only neutral technicals and a valuation that looks relatively full versus a modest dividend yield.
Positive Factors
Revenue & Margin Expansion
The company delivered record sales and materially higher EBITDA and margins, demonstrating durable demand and operating leverage. Sustained top-line expansion and margin improvement indicate structural strength in pricing power and cost management, supporting cash generation over the medium term.
Specialty Chemicals Leadership
A strong specialty portfolio (creatine, custom manufacturing, defense) drives higher-margin revenue and lowers cyclicality versus commodity lines. Brand strength (Creapure/Creavitalis) and differentiated products create durable competitive advantages and support organic growth and margin resiliency over coming quarters.
Improved Balance Sheet & Cash Position
Material deleveraging and a net cash position provide financial flexibility to self-fund projects and weather cyclical swings. A stronger equity base and healthy ROE mean the company can sustain capital investments while limiting refinancing risk and protecting long-term solvency.
Negative Factors
Heavy CapEx & Funding Timing Risk
Large multi-year CapEx programs create execution, timing and funding risk. Even with net cash, expected near-zero free cash flow and reliance on contract liabilities/grants expose the company to project delays or subsidy timing, which can strain liquidity and delay returns on invested capital.
Planned Furnace Shutdown
A scheduled six-month production halt is a persistent operational risk that reduces output and cash flow for a sustained period. Beyond the immediate EUR 15m impact, prolonged downtime or execution issues could disrupt customer supply, push back project ramps and weaken medium-term revenue visibility.
Cyclical Basics & Intermediates Weakness
Exposure to commodity and industrial end-markets leaves a material business line vulnerable to steel demand, energy costs and FX swings. Weakness in this segment compresses group margins and increases earnings volatility, reducing overall predictability of cash flows and returns in adverse cycles.
AlzChem Group AG (ACT) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€1.72B
Dividend Yield1.24%
Average Volume (3M)20.69K
Price to Earnings (P/E)24.7
Beta (1Y)0.40
Revenue Growth1.03%
EPS Growth25.48%
CountryDE
Employees1,541
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.66
Shares Outstanding10,176,335
10 Day Avg. Volume15,459
30 Day Avg. Volume20,688
Financial Highlights & Ratios
PEG Ratio1.35
Price to Book (P/B)6.11
Price to Sales (P/S)2.79
P/FCF Ratio39.94
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€185.50Price Target Upside9.50% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)6.5
Revenue Forecast (FY)€605.92M
AlzChem Group AG Business Overview & Revenue Model
Company DescriptionAlzChem Group AG, together with its subsidiaries, develops, produces, and trades chemical products in Germany, European Union, rest of Europe, Asia, NAFTA region, and internationally. It operates through three segments: Specialty Chemicals, Basics & Intermediates, and Other & Holding. The company offers dietary supplements under the Creapure and Alipure brands; preparation of guanidinoacetic acid as a nutritional feed additives under the Creamino brand; creatine dietary supplements under the LIVADUR brand; products for pharmaceuticals under the Bioselect brand; curing agents, including accelerators for use in adhesives, powder coatings, printed circuit boards, and composites under the DYHARD name; and silicon nitride for ceramics, and electronics and solar applications under the SILZOT brand. It also provides fine and specialty chemicals, including products based on calcium carbide, calcium cyanamide, hydrogen cyanamide, dicyandiamide, guanidine, guanamines, and nitroguanidine, as well as aromatic and aliphatic nitriles; calcium cyanamide under the PERLKA name; germicide for use in pig pens under the ALZOGUR name; plant growth regulators under the Dormex and Sitofex name; and plant protection additives under the BREAK-THRU name. In addition, the company offers products for use in hot metal desulfurization and secondary metallurgy applications; and technical gases. Further, it provides chemical park operations and administrative services, as well as produces and distributes various infrastructure services. AlzChem Group AG was founded in 1908 and is based in Trostberg, Germany.
How the Company Makes MoneyAlzChem Group AG generates revenue through multiple streams, primarily by manufacturing and selling specialty chemicals. Key revenue streams include the production of fertilizers, which are sold to agricultural businesses, and the supply of chemical intermediates to pharmaceutical and industrial customers. The company also benefits from long-term contracts with major clients, ensuring a stable revenue base. Additionally, AlzChem actively engages in research and development, leading to innovative products that can command premium pricing. Strategic partnerships with other companies in related sectors further enhance its market position and contribute to its earnings.
AlzChem Group AG Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveys a positive operational and financial story: the company delivered a record year with strong margin expansion, robust specialty segment performance, improved net profit and a healthy cash position while advancing major growth projects (creatine, nitroguanidine, U.S. site). Near‑term challenges include a weak Basics & Intermediates segment, a planned six‑month furnace shutdown (≈EUR 15m headwind in 2026), FX and energy cost pressure, and sizeable ongoing CapEx that raises timing and funding risks. On balance, the achievements and growth investments materially outweigh the near‑term negatives, positioning the company for meaningful medium‑term upside if projects execute as planned.Q4-2025 Updates
Positive Updates
Record Annual Results and Sales
Consolidated sales of EUR 562 million (≈ +EUR 8 million YoY). Company states 2025 was the most successful financial year and largely achieved the guidance corridor (~EUR 580m midpoint).
Strong EBITDA Growth and Margin Expansion
Group EBITDA ~EUR 116.5 million, up ≈11% YoY (≈ +EUR 11m). EBITDA margin improved to 20.7% (exceeding the >20% long-term target and prior year ~19%).
Higher Net Profit and Increased Dividend
Group net result after tax of EUR 64 million, up ≈18% YoY. Earnings per share rose similarly and management proposed a dividend increase of +17% to EUR 2.10.
Specialty Chemicals Outperformance
Specialty Chemicals sales ≈ EUR 380 million, up 8.8% YoY (Q4 +9.2%). Segment EBITDA rose to ~EUR 107 million (+13.6% YoY from ≈EUR 94m). Growth driven by Human Nutrition (creatine), Custom Manufacturing and Defense.
Healthy Cash Position and Positive Free Cash Flow
Positive net cash position of EUR 31 million at year-end. Despite elevated CapEx, free cash flow remained positive; operating cash flow benefited from ~EUR 60 million customer grants and other timing effects.
Major Growth Investments on Track
Approved creatine expansion program (≈EUR 120 million) with phased commissioning from H2 2027 and expected additional annual sales potential in the initial 3‑digit million range. Nitroguanidine expansion progressing (installation ongoing; target commissioning mid‑2026). U.S. site selection nearly complete and initial cost submissions to DoD accepted.
Market Momentum & Strategic Positioning
Creapure/Creavitalis brand awareness rising; incremental capacity put on line in Q3/Q4 2025 provides ~20–25% more creatine quantities for 2026. Free float increased to ~74%, supporting market profile (toward MDAX range).
Negative Updates
Basics & Intermediates Segment Weakness
Sales in Basics & Intermediates ≈ EUR 155 million, down ≈EUR 19 million YoY. Segment EBITDA fell to ≈EUR 5.6 million (about half of prior year) and EBITDA margin declined by ~2.6 percentage points to 3.6%. Decline driven by weak European/German steel demand and higher electricity costs.
Services Segment Decline and One-Offs
Services sales decreased ~12% YoY. Segment EBITDA negatively impacted by reduced regulatory grid fees charged to external customers and one‑time year‑end closing effects.
Carbide Furnace Maintenance Causes Near‑Term Hit
Planned 6‑month shutdown for carbide oven maintenance (expected back in production around July 2026). Management estimates repair ≈EUR 9–10 million plus ≈EUR 5 million standstill costs (~EUR 15 million total headwind included in 2026 guidance).
Rising Operating Costs and FX Losses
Operating costs increased driven by higher personnel expenses, maintenance and noticeable FX losses due to a weak U.S. dollar, which weighed on the P&L.
Heavy CapEx, Balance Sheet and Funding Timing Risks
Substantial investment program (creatine ≈EUR 120m, nitroguanidine ≈EUR 140–150m, U.S. project ≈USD 150m). Balance sheet total rose by ≈EUR 134m, equity increased by EUR 51m but equity ratio declined to 41.8%. Contract liabilities/customer prepayments and timing of external subsidies (e.g., DoD) create financing/timing risks (management expects to self‑finance some months).
Competitive and Regulatory Uncertainties
Potential competition from Chinese suppliers (notably for Creamino), evolving tariffs/antidumping measures and EU mechanisms (ETS) create uncertainty. Management currently expects limited immediate financial burden but exposure exists and ETS purchases (~40,000 units/year) are unhedged beyond ~6–12 months.
Company Guidance
Management guided FY2026 sales of roughly EUR 600 million (≈+7% vs FY2025 sales of EUR 562m) and EBITDA of about EUR 126 million (≈+8%), implying further expansion of the EBITDA margin beyond the FY2025 level of 20.7%; guidance is for organic growth driven by Specialty Chemicals (FY2025 Specialty sales ≈EUR 380m) with Human Nutrition/creatine and Defense volumes (nitroguanidine commissioning mid‑2026 with ramp in Q3/Q4) as key drivers while Basics & Intermediates are expected to remain around FY2025 sales of ≈EUR 155m. The outlook incorporates a planned six‑month carbide furnace shutdown in H1‑2026 (repair ≈EUR 9–10m plus ≈EUR 5m standstill cost, ≈EUR 15m total included). Cash and investment context: FY2025 closed with net cash ≈EUR 31m and an equity ratio of 41.8%; FY2025 operating cash flow benefitted from ~EUR 60m customer grants and ~EUR 20m higher working capital, investing cash flow rose materially for ongoing CapEx, free cash flow for 2026 is expected to be around zero despite higher CapEx, and management has released ~EUR 120m for a creatine expansion (phased commissioning from H2‑2027 with initial annual sales potential in the low three‑digit million range); the nitroguanidine project is sized at roughly EUR 140–150m with ≈EUR 90m of contract liabilities/customer prepayments on the balance sheet.AlzChem Group AG Financial Statement Overview
Summary
Strong revenue growth and improving profitability with solid ROE and materially reduced leverage. Main offsets are gross-margin volatility and uneven free-cash-flow conversion due to higher investment/working-capital needs.Income Statement
Revenue has expanded meaningfully over the period, culminating in strong growth in 2025, while profitability has steadily improved: operating and EBITDA margins are higher than earlier years and net margin has risen to low-double-digits in 2025. EBIT and net income have grown alongside sales, indicating good operating leverage. Key weakness is volatility in gross margin (notably a sharp drop versus 2023), suggesting input-cost/pricing swings and a less stable margin profile year-to-year.86
Very Positive
Balance Sheet
Leverage has improved substantially, with debt-to-equity declining from elevated levels earlier in the period to a low level by 2025, alongside a much larger equity base. Returns on equity remain strong and consistent, supporting the view that the company is deploying capital effectively. The main risk is that historical leverage was higher and the business operates in a cyclical/commodity-influenced cost environment, which can pressure balance-sheet metrics if margins revert.84
Very Positive
Cash Flow
Operating cash flow is strong in the last two annual periods and exceeds net income in 2025, signaling solid cash earnings quality. However, free cash flow has been inconsistent: it was negative in 2022 and declined in 2025, and free cash flow conversion to net income is modest in 2025—pointing to heavier investment or working-capital usage that can dampen cash generation despite higher profits.72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 553.74M | 562.12M | 554.23M | 540.65M | 542.22M | 422.29M |
| Gross Profit | 349.40M | 177.59M | 163.08M | 304.07M | 282.72M | 268.34M |
| EBITDA | 104.75M | 109.44M | 103.96M | 81.75M | 68.06M | 61.89M |
| Net Income | 57.92M | 63.46M | 54.08M | 34.62M | 30.05M | 27.59M |
Balance Sheet | ||||||
| Total Assets | 552.95M | 617.68M | 483.83M | 424.68M | 422.86M | 377.67M |
| Cash, Cash Equivalents and Short-Term Investments | 64.28M | 78.20M | 63.15M | 13.92M | 9.62M | 8.73M |
| Total Debt | 47.72M | 45.47M | 52.82M | 62.49M | 100.23M | 55.64M |
| Total Liabilities | 333.63M | 359.45M | 276.36M | 261.12M | 276.91M | 288.10M |
| Stockholders Equity | 217.30M | 256.30M | 205.54M | 161.63M | 144.01M | 87.63M |
Cash Flow | ||||||
| Free Cash Flow | 42.06M | 39.22M | 62.05M | 52.11M | -33.31M | 14.48M |
| Operating Cash Flow | 112.56M | 137.01M | 105.15M | 72.67M | -4.24M | 43.02M |
| Investing Cash Flow | -59.05M | -96.90M | -30.99M | -20.55M | -28.51M | -28.48M |
| Financing Cash Flow | -34.74M | -29.36M | -24.66M | -49.17M | 33.65M | -23.62M |
AlzChem Group AG Technical Analysis
Positive
169.40
Price Trends
156.08
Positive
149.58
Positive
147.16
Positive
Market Momentum
2.72
Negative
62.35
Neutral
80.05
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:ACT, the sentiment is Positive. The current price of 169.4 is above the 20-day moving average (MA) of 156.31, above the 50-day MA of 156.08, and above the 200-day MA of 147.16, indicating a bullish trend. The MACD of 2.72 indicates Negative momentum. The RSI at 62.35 is Neutral, neither overbought nor oversold. The STOCH value of 80.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:ACT.
AlzChem Group AG Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | €1.72B | 24.68 | 27.29% | 1.24% | 1.03% | 25.48% | |
62 Neutral | €6.69B | 23.49 | 1.08% | 8.92% | -5.92% | -58.33% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | €7.10B | 27.05 | 6.03% | 4.30% | -3.35% | -23.06% | |
52 Neutral | $3.94B | -4.31 | ― | 3.75% | -10.63% | -23.15% | |
46 Neutral | €1.14B | -5.92 | -5.77% | 0.59% | -6.82% | 71.94% | |
45 Neutral | €12.42B | -17.78 | -10.04% | ― | ― | ― |
* Basic Materials Sector Average
DE:ACT
AlzChem Group AG
169.40
67.35
65.99%
DE:BNR
Brenntag AG
49.20
-13.50
-21.53%
DE:1COV
Covestro
59.82
1.62
2.78%
DE:EVK
Evonik
14.36
-6.15
-29.98%
DE:LXS
LANXESS
13.23
-18.05
-57.70%
DE:WCH
Wacker Chemie AG
79.30
-0.93
-1.16%
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.