Fuchs Petrolub (FPE3) AI Stock Analysis

• Market Cap: €5.52B
• Dividend Yield: 2.11%
• Average Volume (3M): 115.88K
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.79
• Revenue Growth: 2.58%
• EPS Growth: 8.02%
• Country: DE
• Employees: 6,818
• Sector: Industrials
• Sector Strength: 86
• Industry: Chemicals - Specialty
• EPS (TTM): 0.59
• Shares Outstanding: 65,500,000
• 10 Day Avg. Volume: 139,306
• 30 Day Avg. Volume: 115,884
• PEG Ratio: 6.37
• Price to Book (P/B): 2.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 76.79
• 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: €50.50
• Price Target Upside: 5.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 64 Neutral
• Price Target: €53.00 ▲(10.32%Upside)

The company has a strong financial foundation with consistent revenue growth and stable profitability, supported by a robust balance sheet. Technical indicators suggest caution due to overbought conditions, although the overall trend remains positive. The stock is fairly valued with a decent dividend yield, making it an attractive option for investors.

Positive Factors

Financial Performance

The specialty-driven growth model and robust cash generation support the analyst's buy recommendation for Fuchs.

Profitability

Fuchs is expected to have an EBIT margin expansion of 190 basis points to 14.2%, indicating improved profitability.

Negative Factors

Earnings

Q4-24 group EBIT at €100m was -5% below consensus.

Free Cash Flow

FCF guidance of €260m is lower y/y despite higher earnings given temporarily higher capex of €95m and NWC build-up.

Regional Performance

The Americas saw an organic decline of -6%, probably due to uncertainty around tariffs.

Fuchs Petrolub Business Overview & Revenue Model

Company Description

Fuchs Petrolub SE develops, produces, and sells lubricants and related specialties worldwide. It offers engine and gear oils, central hydraulic oils, greases, shock absorber fluids, biodegradable lubricants; brake fluids and radiator antifreeze products; multi-purpose/long-life, wheel bearing, food grade, and biodegradable greases; greases for plain and roller bearings, extreme temperatures, rail vehicles, machine tools, and central lubricating systems; gear boxes; and assembly pastes and greases in spray cans; slide way, heat transfer, hydraulic, refrigerator, compressor, machine, textile machine, transformer, turbine, and cylinder oils; and biodegradable and adhesive lubricants. The company also offers quenching fluids, corrosion preventives, minimum lubricating products, cleaners, cutting and grinding lubricants, and forming lubricants; and food-compliant lubricants, adhesive lubricants for open transmissions, anti-friction coatings and films for dry coating, pastes and special greases, concrete release agents and high-temperature chain oils, as well as lubricants for the glass manufacturing, hot forming, the wind energy, and sugar industries. In addition, it is involved in the provision of metal-working fluids, corrosion preventatives, hydraulic and gear oils, greases, and other specialties, as well as in toll blending, chemical process management, and trading activities. Further, the company offers analytical, condition monitoring, tailor-made development, technical, open gear, and coating services; and special services for food and beverage processing. It provides its products to automotive suppliers and OEMs; mechanical engineering, metalworking, mining and exploration, aerospace, power generation, construction and transport, agriculture, and forestry sectors; and steel, metal, casting and forging, and cement industries, as well as food industry and glass manufacturing sectors. Fuchs Petrolub SE was founded in 1931 and is headquartered in Mannheim, Germany.

How the Company Makes Money

Fuchs Petrolub generates revenue primarily through the sale of its comprehensive range of lubricants and related specialties. The company operates a global network of production sites and sales offices, allowing it to cater to a diverse customer base across numerous industries. Key revenue streams include the sale of automotive lubricants for passenger vehicles, commercial vehicles, and motorcycles, as well as industrial lubricants for machinery and equipment in various sectors such as manufacturing, mining, and metalworking. The company also benefits from strategic partnerships and collaborations with major automotive and industrial manufacturers, ensuring a steady demand for its high-performance products. Additionally, Fuchs Petrolub invests in research and development to innovate and expand its product offerings, enhancing its competitive advantage and contributing to its financial performance.

Fuchs Petrolub Financial Statement Overview

Summary

Strong financial position with consistent revenue growth and stable profitability. The balance sheet reveals low leverage and high equity, while cash flow remains robust despite slowing growth. Monitoring of EBIT and cash flow trends is advisable.

Income Statement

The company shows a consistent revenue growth trend over the years, although there was a slight decline from 2023 to 2024. Gross Profit Margin remains robust, reflecting efficient cost management. However, the EBIT margin is weak in the latest year due to unspecified EBIT, impacting profitability analysis. The EBITDA margin remains stable, highlighting good operational efficiency. Overall, the income statement reflects solid growth and profitability with some recent challenges.

Balance Sheet

The balance sheet highlights strong financial health with a low Debt-to-Equity Ratio, suggesting low financial leverage. The Equity Ratio is high, indicating strong equity financing. Return on Equity (ROE) is stable, showcasing effective use of equity capital. The balance sheet is well-positioned, demonstrating stability and low risk.

Cash Flow

The cash flow statement shows a decrease in Free Cash Flow from 2023 to 2024, but the company maintains a positive Operating Cash Flow to Net Income Ratio, indicating strong cash conversion. The Free Cash Flow to Net Income Ratio suggests efficient cash management, although growth has slowed recently. Overall cash flow performance is solid but with potential room for improvement in cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.57B	3.52B	3.54B	3.41B	2.87B	2.38B
Gross Profit	1.24B	1.22B	1.15B	1.05B	965.00M	854.00M
EBITDA	537.00M	537.00M	514.00M	457.00M	438.00M	393.00M
Net Income	302.00M	302.00M	282.00M	259.00M	253.00M	220.00M
Balance Sheet
Total Assets	2.74B	2.61B	2.42B	2.52B	2.31B	2.12B
Cash, Cash Equivalents and Short-Term Investments	199.00M	153.00M	175.00M	119.00M	146.00M	209.00M
Total Debt	0.00	112.00M	63.00M	179.00M	49.00M	30.00M
Total Liabilities	775.00M	710.00M	619.00M	682.00M	555.00M	540.00M
Stockholders Equity	1.96B	1.90B	1.80B	1.84B	1.75B	1.58B
Cash Flow
Free Cash Flow	281.00M	307.00M	460.00M	59.00M	89.00M	238.00M
Operating Cash Flow	394.00M	390.00M	543.00M	128.00M	169.00M	360.00M
Investing Cash Flow	-209.00M	-185.00M	-82.00M	-69.00M	-108.00M	-236.00M
Financing Cash Flow	-154.00M	-228.00M	-400.00M	-86.00M	-132.00M	-134.00M

Fuchs Petrolub Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 48.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FPE3, the sentiment is Positive. The current price of 48.04 is above the 20-day moving average (MA) of 47.37, above the 50-day MA of 45.68, and above the 200-day MA of 43.22, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 58.91 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:FPE3.

Fuchs Petrolub Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	€4.07B	9.20	18.29%	3.43%	3.84%	-103.41%
FPE3	64 Neutral	€5.52B	20.92	15.87%	2.11%	2.58%	8.02%
0BFA		€37.66B	51.91	2.02%	4.58%	―	―
0P6S		€25.59B	―	-9.56%	0.37%	―	―
0QDS		€8.13B	27.14	3.25%	5.82%	―	―
0MPL		€438.32M	6.82	-16.90%	―	―	―
WKCMF		$3.86B	14.76	5.37%	3.64%	―	―