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Fuchs Petrolub (DE:FPE)
:FPE
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Fuchs Petrolub
(XETRA:FPE)
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Rating:67Neutral
Price Target:
€34.00
▲(8.97% Upside)
Fuchs Petrolub's overall stock score reflects a stable financial position with efficient operations and a solid balance sheet. However, the recent decline in revenue growth and bearish technical indicators pose concerns. The valuation is reasonable, supported by a decent dividend yield. The earnings call highlighted challenges in key regions and revised guidance, contributing to a cautious outlook.
Fuchs Petrolub (FPE) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€4.58B
Dividend Yield3.72%
Average Volume (3M)36.61K
Price to Earnings (P/E)14.1
Beta (1Y)0.78
Revenue Growth2.35%
EPS Growth-0.09%
CountryDE
Employees6,818
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.51
Shares Outstanding65,500,000
10 Day Avg. Volume61,402
30 Day Avg. Volume36,610
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€48.00Price Target Upside53.85% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Fuchs Petrolub Business Overview & Revenue Model
Company DescriptionFuchs Petrolub SE is a global leader in the production and distribution of lubricants and related specialty products. Founded in 1931 and headquartered in Mannheim, Germany, the company operates in various sectors including automotive, industrial, and metalworking. Fuchs offers a comprehensive range of high-performance lubricants, greases, and services tailored to meet the needs of diverse industries, ensuring optimal performance and protection for machinery and vehicles.
How the Company Makes MoneyFuchs Petrolub generates revenue primarily through the sale of its lubricants and specialty products across different industries. The company's revenue model is based on a combination of direct sales, contracts with large industrial clients, and distribution partnerships worldwide. Key revenue streams include automotive lubricants, industrial lubricants, and metalworking fluids, with a significant portion of sales derived from long-term contracts with major clients in sectors such as automotive manufacturing and heavy machinery. Additionally, Fuchs benefits from a global network of subsidiaries and distributors that enhance its market reach. Strategic partnerships with automotive manufacturers and industry leaders further contribute to its earnings by providing exclusive product lines and tailored solutions that meet specific industry requirements.
Fuchs Petrolub Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with modest sales growth and strong cash flow performance overshadowed by challenges in key regions, revised guidance, and increased costs. While there were some notable achievements, the impact of market conditions and inflation has led to a cautious outlook.Q2-2025 Updates
Positive Updates
Sales Growth Despite Challenging Conditions
FUCHS SE managed to grow sales by 2% year-over-year in the first half of 2025 despite challenging market conditions. This growth was driven by internal volume growth and recent acquisitions including BOSS, IRMCO, LUBCON, and the STRUB Group.
Strong Cash Flow Performance
Free cash flow before acquisitions was strong, coming in at EUR 81 million, well above the prior year's level of EUR 69 million, driven by net working capital reduction.
Positive Developments in Asia-Pacific
The Asia-Pacific region, specifically China and India, showed strong performance in the first half of the year, benefiting from local production investments and strategic market positioning.
Celebration of 40 Years on the Stock Exchange
FUCHS SE celebrated its 40th anniversary on the stock exchange, maintaining a record of annual profits and continuous dividend payments for 23 consecutive years.
Negative Updates
Revised 2025 Outlook
Due to weak demand and market uncertainties, FUCHS SE revised its full-year 2025 guidance, not expecting a significant market recovery for the rest of the year.
Decline in EBIT and Earnings Per Share
EBIT came in below expectations due to an unfavorable mix and higher costs, resulting in a 7% drop in earnings per share compared to the previous year.
Challenges in North America
The North American region faced significant challenges, with a decline in high-margin segments and increased costs due to inflation and strategic investments.
Impact of Inflation on Costs
Functional cost increases, driven by inflation and acquisitions, negatively impacted the company's financial performance.
Company Guidance
During the FUCHS SE Half Year Results 2025 Analyst Conference Call, the company provided revised financial guidance for the full year 2025, anticipating no significant market recovery. Despite a 2% year-over-year increase in sales for the first half, driven by internal growth and acquisitions, EBIT fell short of expectations. Factors such as an unfavorable product mix in the U.S., inflationary pressures, and pre-investments impacted margins. EBIT guidance was reduced by 6%, yet the company maintains its free cash flow before acquisitions target of EUR 260 million, supported by cost-saving measures. The company's strategic focus includes strengthening its presence in Switzerland through acquisitions and expanding production capabilities in Mexico.Fuchs Petrolub Financial Statement Overview
Summary
Fuchs Petrolub demonstrates strong financial health with efficient operations and a solid balance sheet. While profitability margins are commendable, the recent decline in revenue growth is a concern. The company maintains a conservative leverage position and generates healthy cash flows, although there is potential to enhance cash conversion efficiency. Overall, the financial statements indicate stability with some areas needing attention for sustained growth.Income Statement
Fuchs Petrolub's income statement shows a strong gross profit margin of 34.6% TTM, indicating efficient cost management. However, the net profit margin has slightly decreased to 8.2% TTM, reflecting some pressure on profitability. Revenue growth has been negative recently, with a decline of 19.6% TTM, which is a concern for future earnings potential. The EBIT and EBITDA margins remain healthy at 12.1% and 14.9% TTM, respectively, showcasing operational efficiency.75
Positive
Balance Sheet
The balance sheet is robust with a low debt-to-equity ratio of 0.11 TTM, indicating conservative leverage. The return on equity is strong at 15.6% TTM, demonstrating effective use of shareholder funds. The equity ratio is solid, reflecting a stable financial position with a significant portion of assets financed by equity.82
Very Positive
Cash Flow
Cash flow analysis reveals a positive free cash flow growth of 7.3% TTM, indicating improved cash generation. However, the operating cash flow to net income ratio is moderate at 0.62 TTM, suggesting room for improvement in cash conversion. The free cash flow to net income ratio is healthy at 86.5% TTM, reflecting good cash profitability.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.56B | 3.52B | 3.54B | 3.41B | 2.87B | 2.38B |
| Gross Profit | 1.23B | 1.22B | 1.15B | 1.05B | 965.00M | 854.00M |
| EBITDA | 533.00M | 537.00M | 514.00M | 457.00M | 438.00M | 393.00M |
| Net Income | 291.00M | 302.00M | 282.00M | 259.00M | 253.00M | 220.00M |
Balance Sheet | ||||||
| Total Assets | 2.60B | 2.61B | 2.42B | 2.52B | 2.31B | 2.12B |
| Cash, Cash Equivalents and Short-Term Investments | 134.00M | 153.00M | 175.00M | 119.00M | 146.00M | 209.00M |
| Total Debt | 193.00M | 112.00M | 63.00M | 179.00M | 49.00M | 30.00M |
| Total Liabilities | 785.00M | 710.00M | 619.00M | 682.00M | 555.00M | 540.00M |
| Stockholders Equity | 1.81B | 1.90B | 1.80B | 1.84B | 1.75B | 1.58B |
Cash Flow | ||||||
| Free Cash Flow | 351.00M | 307.00M | 460.00M | 59.00M | 89.00M | 238.00M |
| Operating Cash Flow | 406.00M | 390.00M | 543.00M | 128.00M | 169.00M | 360.00M |
| Investing Cash Flow | -211.00M | -185.00M | -82.00M | -69.00M | -108.00M | -236.00M |
| Financing Cash Flow | -186.00M | -228.00M | -400.00M | -86.00M | -132.00M | -134.00M |
Fuchs Petrolub Technical Analysis
Neutral
31.20
Price Trends
31.41
Negative
33.14
Negative
32.69
Negative
Market Momentum
-0.25
Negative
50.00
Neutral
58.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FPE, the sentiment is Neutral. The current price of 31.2 is above the 20-day moving average (MA) of 31.04, below the 50-day MA of 31.41, and below the 200-day MA of 32.69, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 50.00 is Neutral, neither overbought nor oversold. The STOCH value of 58.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:FPE.
Fuchs Petrolub Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | €1.46B | 25.13 | 26.31% | 1.25% | 1.03% | 25.48% | |
67 Neutral | €4.58B | 14.07 | 16.29% | 3.72% | 2.35% | -0.09% | |
66 Neutral | €7.33B | 17.34 | 10.04% | 4.13% | -1.30% | -28.95% | |
64 Neutral | €6.85B | 16.14 | 2.46% | 7.96% | -2.62% | ― | |
53 Neutral | €3.21B | 13.31 | 3.13% | 3.87% | -10.63% | -23.15% | |
46 Neutral | €1.88B | -11.42 | -4.13% | 0.46% | -2.75% | 83.47% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
DE:FPE
Fuchs Petrolub
31.20
-1.34
-4.12%
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-25.70%
DE:LXS
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-22.82%
DE:WCH
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64.55
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-24.27%
DE:ACT
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143.60
97.06
208.55%
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.