Fuchs Petrolub (FPE3) AI Stock Analysis

• Market Cap: €4.41B
• Dividend Yield: 3.1%
• Average Volume (3M): 115.31K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.80
• Revenue Growth: 1.42%
• EPS Growth: -0.40%
• Country: DE
• Employees: 6,818
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.64
• Shares Outstanding: 65,500,000
• 10 Day Avg. Volume: 93,774
• 30 Day Avg. Volume: 115,305
• PEG Ratio: 1.90
• Price to Book (P/B): 2.89
• Price to Sales (P/S): 1.56
• P/FCF Ratio: 17.85
• 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: €50.00
• Price Target Upside: 32.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: €40.00 ▲(5.82% Upside)

The overall stock score of 63 reflects a stable financial performance with strong profitability and a solid balance sheet. However, bearish technical indicators and challenges in revenue growth and cash flow generation weigh on the stock's outlook. The reasonable valuation and attractive dividend yield provide some support, but the current market momentum suggests caution.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability and provides flexibility for strategic investments and growth.

Efficient Cost Management

Efficient cost management, as indicated by a strong gross profit margin, supports sustained profitability and competitive pricing strategies.

Strong Cash Conversion

Strong cash conversion ensures liquidity and the ability to reinvest in business operations, supporting long-term growth and shareholder returns.

Negative Factors

Revenue Decline

A significant decline in revenue can impact market position and profitability, posing challenges for future growth and competitive advantage.

Free Cash Flow Decline

Declining free cash flow growth may limit the company's ability to fund new projects and return capital to shareholders, affecting long-term financial health.

Decreased EBIT Margin

A decrease in EBIT margin suggests pressure on operational efficiency, which could hinder profitability and competitive positioning over time.

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 lubricants and related specialty products. The company's revenue model is based on multiple key streams, including direct sales to industrial customers, automotive manufacturers, and distributors. Fuchs also benefits from long-term contracts with major clients, which provide a stable income base. Additionally, the company invests in research and development to innovate and improve its product offerings, enabling it to command premium pricing in competitive markets. Significant partnerships with OEMs and strong brand recognition in the lubricant industry further contribute to Fuchs' earnings, as they enhance customer loyalty and expand market reach.

Fuchs Petrolub Financial Statement Overview

Summary

Fuchs Petrolub demonstrates strong financial health with efficient operations and a solid balance sheet. Despite challenges in revenue growth, the company maintains healthy profit margins and cash flow metrics. The low leverage and strong equity position provide a stable financial foundation.

Income Statement

Fuchs Petrolub's income statement shows a solid 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. The revenue growth rate has been negative at -19.6% TTM, which is a concern. Despite this, EBIT and EBITDA margins remain healthy at 12.1% and 14.9% respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.11 TTM, indicating low leverage and financial stability. Return on equity is robust at 15.6% TTM, reflecting effective use of equity to generate profits. The equity ratio stands at 69.7%, suggesting a solid equity base relative to total assets.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate of 7.3% TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.62 TTM, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is high at 0.86 TTM, showing strong cash flow relative to net income.

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	530.00M	537.00M	514.00M	457.00M	438.00M	393.00M
Net Income	295.00M	302.00M	282.00M	259.00M	253.00M	220.00M
Balance Sheet
Total Assets	2.64B	2.61B	2.42B	2.52B	2.31B	2.12B
Cash, Cash Equivalents and Short-Term Investments	142.00M	153.00M	175.00M	119.00M	146.00M	209.00M
Total Debt	112.00M	112.00M	63.00M	179.00M	49.00M	30.00M
Total Liabilities	747.00M	710.00M	619.00M	682.00M	555.00M	540.00M
Stockholders Equity	1.89B	1.90B	1.80B	1.84B	1.75B	1.58B
Cash Flow
Free Cash Flow	326.00M	307.00M	460.00M	59.00M	89.00M	238.00M
Operating Cash Flow	382.00M	390.00M	543.00M	128.00M	169.00M	360.00M
Investing Cash Flow	-113.00M	-185.00M	-82.00M	-69.00M	-108.00M	-236.00M
Financing Cash Flow	-260.00M	-228.00M	-400.00M	-86.00M	-132.00M	-134.00M

Fuchs Petrolub Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:FPE3, the sentiment is Negative. The current price of 37.8 is below the 20-day moving average (MA) of 38.47, below the 50-day MA of 38.77, and below the 200-day MA of 42.12, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 43.93 is Neutral, neither overbought nor oversold. The STOCH value of 67.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:FPE3.

Fuchs Petrolub Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACT	77 Outperform	€1.43B	24.54	29.12%	1.28%	1.03%	25.48%
BNR	64 Neutral	€7.18B	17.18	9.62%	4.22%	-3.35%	-23.06%
FPE3	63 Neutral	€4.41B	16.81	16.00%	3.10%	1.42%	-0.40%
WCH	62 Neutral	€3.37B	13.98	―	3.69%	-10.63%	-23.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
EVK	54 Neutral	€6.13B	64.49	1.08%	8.90%	-5.92%	-58.33%
LXS	46 Neutral	€1.47B	-6.04	-5.69%	0.59%	-6.82%	71.94%