Fuchs Petrolub (FPE) AI Stock Analysis

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Fuchs Petrolub

(XETRA:FPE)

Rating:72Outperform

Price Target:

€35.00

▲(8.53%Upside)

Fuchs Petrolub's strong financial performance and positive earnings call, featuring record sales and strategic acquisitions, are key strengths. However, technical analysis reveals bearish sentiment, which impacts the overall stock score.

Fuchs Petrolub (FPE) vs. iShares MSCI Germany ETF (EWG)

Market Cap

€4.88B

Dividend Yield7.01%

Average Volume (3M)24.57K

Price to Earnings (P/E)14.0

Beta (1Y)0.73

Revenue Growth2.58%

EPS Growth8.02%

CountryDE

Employees6,818

SectorEnergy

Sector Strength44

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)0.59

Shares Outstanding65,500,000

10 Day Avg. Volume46,255

30 Day Avg. Volume24,567

Financial Highlights & Ratios

PEG Ratio57.65

Price to Book (P/B)3.18

Price to Sales (P/S)0.00

P/FCF Ratio19.27

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

€41.00

Price Target Upside27.13% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Fuchs Petrolub Business Overview & Revenue Model

Company DescriptionFuchs Petrolub SE develops, produces, and sells lubricants and related specialties worldwide. The company offers automotive lubricants, such as biodegradable lubricants, central and mobile hydraulic oils, dry coatings, engine and gear oils, motorcycle/two wheelers, and service fluids, as well as various oils for agriculture sector. It also provides industrial lubricants, including chain lubricants, compressor oils, dry coatings, gear oils, hydraulic oils, machine oils, open gear lubricants, rapidly biodegradable lubricants, refrigeration oils, release agents, slideways oils, industrial oils, textile machine oils, and turbine oils. In addition, the company offers lubricating greases comprising assembly pastes, biodegradable greases, food grade greases, long-life greases, pastes for extreme temperatures, perfluorinated pastes, and wheel bearing greases, as well as gear boxes, greases for central lubricating system, extreme temperature, machine tools, plain and roller bearings, rail vehicles, spray cans or rattle cans, and solid lubricants. Further, it provides metal processing lubricants, including cleaners, corrosion preventives, cutting and grinding, forming lubricants, and quenching oils; and special application lubricants for application equipment, chain, dry coatings, food and beverage, gears, sugar processing, railway traffic, plain and roller bearings, glass manufacturing process, hot forming, maintenance, open gears, pastes, release agents, other specialties, special greases, and wind power plants. Additionally, the company offers open gear and surface coating services. Fuchs Petrolub SE was founded in 1931 and is based in Mannheim, Germany.

How the Company Makes MoneyFuchs Petrolub generates revenue primarily through the sale of its lubricant products and specialty solutions. The company operates a global network of subsidiaries and production facilities that enable it to efficiently manufacture and distribute its products worldwide. Revenue streams are driven by its extensive product range, catering to various sectors such as automotive, industrial, and mining, where lubricants are essential for equipment maintenance and performance. Fuchs Petrolub also invests significantly in research and development to innovate and expand its product offerings, ensuring they meet evolving market demands and regulatory standards. Strategic partnerships with original equipment manufacturers (OEMs) and industry leaders further bolster its market position and sales. Additionally, Fuchs Petrolub's commitment to sustainability and tailored customer solutions enhances its brand reputation and customer loyalty, contributing to its financial success.

Fuchs Petrolub Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q1-2025)

% Change Since: -2.21%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Neutral

Fuchs SE reported strong sales growth and record EBIT for Q1, driven by strategic acquisitions and regional expansions, particularly in Asia-Pacific. However, EBIT margin growth was underwhelming due to higher costs, and challenges remain in South America and due to global economic uncertainty. The company's strategic partnerships and acquisitions are expected to bolster future growth.

Q1-2025 Updates

Positive Updates

Record First Quarter EBIT

Fuchs SE reported the best first quarter EBIT ever, despite it being slightly under proportionate to sales growth.

5% Sales Growth

Sales increased by 5% year-over-year, driven by both internal growth and the acquisitions of LUBCON, STRUB, and Boss Lubricants.

Successful Acquisitions

The acquisitions of LUBCON, STRUB, and Boss Lubricants contributed significantly to the company's external growth.

Strong Performance in Asia-Pacific

The Asia-Pacific region, particularly China, showed strong growth with an 8% increase in sales and 14% EBIT growth.

Positive Free Cash Flow

Free cash flow was slightly higher than last year, indicating strong cash conversion despite challenging market conditions.

Mercedes-Benz Partnership

The partnership with Mercedes-Benz is expected to significantly boost Fuchs' presence in the U.S. automotive aftermarket.

Negative Updates

Underwhelming EBIT Margin Growth

Despite 5% sales growth, EBIT grew only slightly, influenced by temporary higher costs related to new contracts and acquisitions.

Challenges in South America

The economic environment in South America remains challenging, particularly in Brazil and Argentina.

Higher Functional Costs

Functional costs experienced higher growth rates due to investments in new contracts and acquisitions.

Impact of Tariffs and Economic Uncertainty

Uncertainty around global tariffs could impact the raw material supply chain and customer base.

Company Guidance

In the first quarter of 2025, Fuchs SE reported a 5% year-over-year increase in sales, driven by both internal volume growth and strategic acquisitions, including LUBCON, STRUB, and the recently acquired Boss Lubricants and IRMCO. Despite the sales increase, EBIT growth was slightly under proportionate due to investments in new contracts and integration costs for acquisitions. The company's free cash flow was also slightly higher than the previous year, with earnings per share up 2% due to a share buyback completed in Q3. Fuchs SE reaffirmed its full-year guidance, anticipating around €3.7 billion in sales with a 5% growth rate, and an EBIT of €460 million, which would mark another record year in its history. The company remains well-positioned in the face of potential tariff impacts due to its local-for-local production strategy, especially in China, and expects stable raw material prices moving forward.

Fuchs Petrolub Financial Statement Overview

Summary

Fuchs Petrolub demonstrates strong financial performance with consistent revenue growth, stable net profit margins, and a robust balance sheet characterized by low leverage. However, recent fluctuations in EBIT and free cash flow slightly detract from its overall financial standing.

Income Statement

Positive

Fuchs Petrolub has shown consistent revenue growth over the years, with a slight decrease in the most recent period. The company maintains a strong gross profit margin, though there was a notable drop in EBIT margin in the latest year due to zero EBIT, impacting profitability analysis. Net profit margin remains stable, reflecting effective cost management.

Balance Sheet

Very Positive

The company exhibits a strong equity position with a low debt-to-equity ratio, indicating low financial leverage and risk. The return on equity shows stability, supporting efficient use of resources. The equity ratio suggests a healthy balance sheet with substantial equity financing.

Cash Flow

Positive

Fuchs Petrolub displays fluctuating free cash flow, with a decrease in the latest year. However, operating cash flow remains strong, consistently exceeding net income, which is a positive indicator of cash generation ability. The free cash flow to net income ratio has decreased, suggesting areas for improvement in cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.52B	3.54B	3.41B	2.87B	2.38B
Gross Profit	1.22B	1.15B	1.05B	965.00M	854.00M
EBITDA	537.00M	514.00M	457.00M	438.00M	393.00M
Net Income	302.00M	282.00M	259.00M	253.00M	220.00M
Balance Sheet
Total Assets	2.61B	2.42B	2.52B	2.31B	2.12B
Cash, Cash Equivalents and Short-Term Investments	153.00M	175.00M	119.00M	146.00M	209.00M
Total Debt	112.00M	63.00M	179.00M	49.00M	30.00M
Total Liabilities	710.00M	619.00M	682.00M	555.00M	540.00M
Stockholders Equity	1.90B	1.80B	1.84B	1.75B	1.58B
Cash Flow
Free Cash Flow	307.00M	460.00M	59.00M	89.00M	238.00M
Operating Cash Flow	390.00M	543.00M	128.00M	169.00M	360.00M
Investing Cash Flow	-185.00M	-82.00M	-69.00M	-108.00M	-236.00M
Financing Cash Flow	-228.00M	-400.00M	-86.00M	-132.00M	-134.00M

Fuchs Petrolub Technical Analysis

Technical Analysis Sentiment

Negative

Last Price32.25

Price Trends

50DMA

34.87

Negative

100DMA

34.01

Negative

200DMA

32.88

Negative

Market Momentum

MACD

-0.48

Positive

RSI

33.76

Neutral

STOCH

16.27

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FPE, the sentiment is Negative. The current price of 32.25 is below the 20-day moving average (MA) of 35.12, below the 50-day MA of 34.87, and below the 200-day MA of 32.88, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 33.76 is Neutral, neither overbought nor oversold. The STOCH value of 16.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:FPE.

Fuchs Petrolub Peers Comparison

Overall Rating

UnderperformOutperform

Sector (67)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FPE	72 Outperform	€4.88B	14.02	15.87%	7.01%	2.58%	8.02%
Sector *	67 Neutral	$15.20B	9.67	6.33%	6.14%	4.05%	-66.98%
0MPT	―	€8.05B	15.21	11.49%	7.66%	―	―
0QDS	―	€8.19B	27.43	3.25%	13.31%	―	―
LNXSF	―	$2.57B	―	-3.92%	0.71%	―	―
WKCMF	―	$3.84B	14.71	5.37%	7.72%	―	―
ACT	78 Outperform	€1.61B	29.73	29.46%	1.14%	2.51%	56.13%

* Energy Sector Average

Performance Comparison

DE:FPE

Fuchs Petrolub

32.25

0.86

2.74%

GB:0MPT

Brenntag AG

55.73

-7.38

-11.69%

GB:0QDS

Evonik

17.60

-0.27

-1.51%

LNXSF

LANXESS

29.88

2.31

8.38%

WKCMF

Wacker Chemie AG

77.17

-29.16

-27.42%

DE:ACT

AlzChem Group AG

158.00

108.50

219.19%

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.Date of analysis: Jul 17, 2025