AlzChem Group AG (ACT) AI Stock Analysis

• Market Cap: €1.57B
• Dividend Yield: 1.4%
• Average Volume (3M): 20.69K
• Price to Earnings (P/E): 27.0
• Beta (1Y): 0.41
• Revenue Growth: 1.03%
• EPS Growth: 25.48%
• Country: DE
• Employees: 1,541
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.61
• Shares Outstanding: 10,176,335
• 10 Day Avg. Volume: 15,459
• 30 Day Avg. Volume: 20,688
• PEG Ratio: 0.19
• Price to Book (P/B): 2.82
• Price to Sales (P/S): 1.05
• P/FCF Ratio: 9.35
• 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: €165.25
• Price Target Upside: 28.30% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: €140.00 ▲(8.70% Upside)

AlzChem Group AG's strong financial performance and positive earnings call are significant strengths, contributing to a solid stock score. However, technical analysis indicates bearish momentum, and valuation metrics suggest potential overvaluation, which temper the overall score.

Positive Factors

Specialty Chemicals Growth

The strong growth in the Specialty Chemicals segment indicates a solid market position and potential for continued revenue expansion, enhancing long-term business stability.

Creatine Expansion

The expansion of creatine production and partnership with Ehrmann for high-protein products could drive future growth, leveraging new market opportunities.

EBITDA and Margin Improvement

Improved EBITDA and margins reflect effective cost management and operational efficiency, supporting sustainable profitability.

Negative Factors

Challenges in Basics & Intermediates

Declining sales in the Basics & Intermediates segment highlight vulnerabilities to economic fluctuations, particularly in the European steel industry.

High Electricity Costs

Rising electricity costs can erode margins, especially in energy-intensive segments, posing a risk to profitability if not managed effectively.

Potential Impact of U.S. Dollar Weakness

A weakening U.S. dollar could affect international sales and cost structures, impacting financial performance in foreign markets.

AlzChem Group AG Business Overview & Revenue Model

Company Description

AlzChem 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 Money

AlzChem Group AG generates revenue through multiple key streams, primarily by selling its specialty chemicals and performance materials to various industries. The company's main revenue sources include the production and sale of ammonium sulfate, which is used in fertilizers, and other chemical intermediates that serve sectors such as agriculture and pharmaceuticals. Additionally, AlzChem benefits from strategic partnerships with companies in its supply chain, which enhance its market reach and operational efficiency. The company's focus on research and development allows it to innovate and create high-value products, further driving revenue growth. Fluctuations in raw material prices and economic conditions can impact its earnings, but the company aims to maintain a competitive edge through quality and sustainability initiatives.

AlzChem Group AG Financial Statement Overview

Summary

AlzChem Group AG exhibits impressive financial health with strong revenue growth, efficient cost management, and improved profitability. The balance sheet reflects a stable financial position with manageable leverage, and cash flow metrics indicate robust cash generation, supporting sustainable growth.

Income Statement

AlzChem Group AG has demonstrated strong revenue growth, with a significant increase from 2023 to 2024. The gross profit margin is healthy, indicating efficient cost management. The net profit margin has improved, showcasing enhanced profitability. Both EBIT and EBITDA margins are strong, reflecting effective operational performance.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage. Return on equity has improved, demonstrating efficient use of equity capital. The equity ratio is stable, supporting asset financing through equity.

Cash Flow

AlzChem Group AG has shown robust growth in free cash flow, signifying improved operational efficiency. The operating cash flow to net income ratio is strong, indicating effective cash generation from operations. Free cash flow to net income ratio highlights the company's ability to convert earnings into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	553.74M	554.23M	540.65M	542.22M	422.29M	379.26M
Gross Profit	349.40M	163.08M	304.07M	282.72M	268.34M	250.58M
EBITDA	104.75M	103.96M	81.75M	68.06M	61.89M	51.39M
Net Income	57.92M	54.08M	34.62M	30.05M	27.59M	19.69M
Balance Sheet
Total Assets	552.95M	483.83M	424.68M	422.86M	377.67M	354.30M
Cash, Cash Equivalents and Short-Term Investments	64.28M	63.15M	13.92M	9.62M	8.73M	17.47M
Total Debt	47.72M	52.82M	62.49M	100.23M	55.64M	69.06M
Total Liabilities	333.63M	276.36M	261.12M	276.91M	288.10M	285.64M
Stockholders Equity	217.30M	205.54M	161.63M	144.01M	87.63M	66.89M
Cash Flow
Free Cash Flow	42.06M	62.05M	52.11M	-33.31M	14.48M	19.88M
Operating Cash Flow	112.56M	105.15M	72.67M	-4.24M	43.02M	48.71M
Investing Cash Flow	-59.05M	-30.99M	-20.55M	-28.51M	-28.48M	-28.83M
Financing Cash Flow	-34.74M	-24.66M	-49.17M	33.65M	-23.62M	-11.73M

AlzChem Group AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 128.80
• 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 DE:ACT, the sentiment is Negative. The current price of 128.8 is below the 20-day moving average (MA) of 136.38, below the 50-day MA of 145.86, and below the 200-day MA of 128.86, indicating a bearish trend. The MACD of -5.58 indicates Positive momentum. The RSI at 38.71 is Neutral, neither overbought nor oversold. The STOCH value of 25.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:ACT.

AlzChem Group AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACT	70 Neutral	€1.57B	26.96	29.12%	1.40%	1.03%	25.48%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BNR	60 Neutral	€6.80B	16.07	9.62%	4.25%	-3.35%	-23.06%
EVK	58 Neutral	€6.67B	15.73	1.08%	8.82%	-5.92%	-58.33%
WCH	58 Neutral	$3.34B	13.86	―	3.77%	-10.63%	-23.15%
1COV	52 Neutral	€10.95B	-29.67	-7.19%	―	-5.27%	-75.47%
LXS	45 Neutral	€1.51B	―	-5.69%	0.57%	-6.82%	71.94%

AlzChem Group AG Corporate Events

AlzChem Group AG Reports Strong Specialty Chemicals Growth Amid Challenges

AlzChem Group AG’s recent earnings call painted a picture of robust growth and strategic advancements, particularly in the Specialty Chemicals segment. The company reported a positive financial performance, bolstered by strategic partnerships and significant investments aimed at future expansion. However, challenges persist in the Basics & Intermediates segment, exacerbated by high electricity costs.