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LANXESS (DE:LXS)
XETRA:LXS
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LANXESS
(XETRA:LXS)
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Rating:46Neutral
Price Target:
€17.00
▼(-4.82% Downside)
LANXESS is facing significant challenges, with declining financial performance and weak technical indicators. The negative P/E ratio and low dividend yield further reflect the company's struggles. Despite some stability in the Consumer Protection segment, the overall outlook is hindered by declining sales, weak demand, and geopolitical challenges.
Positive Factors
Stable Consumer Protection Segment
The stability in the Consumer Protection segment, with a high margin, indicates resilience and strategic development, providing a buffer against other struggling segments.
Effective Cash Management
Effective cash management contributes to a stable capital structure, ensuring LANXESS can meet its financial obligations and invest in strategic initiatives.
Cost and Efficiency Programs
The ongoing cost and efficiency programs are expected to enhance profitability and operational efficiency, positioning LANXESS for better long-term financial health.
Negative Factors
Significant Decline in Sales and EBITDA
The decline in sales and EBITDA reflects challenges in demand and pricing, which could hinder LANXESS's ability to achieve revenue growth and profitability.
Weak Demand in Key Segments
Weak demand in key segments like Specialty Additives and Advanced Intermediates limits revenue potential and exposes LANXESS to competitive pressures.
Geopolitical and Economic Challenges
Geopolitical tensions and economic challenges, especially in energy-intensive sectors, could increase costs and disrupt operations, impacting LANXESS's long-term stability.
LANXESS (LXS) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€1.54B
Dividend Yield0.59%
Average Volume (3M)709.84K
Price to Earnings (P/E)―
Beta (1Y)1.70
Revenue Growth-6.82%
EPS Growth71.94%
CountryDE
Employees12,320
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.07
Shares Outstanding86,346,306
10 Day Avg. Volume711,662
30 Day Avg. Volume709,842
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)0.44
Price to Sales (P/S)0.32
P/FCF Ratio10.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€17.22Price Target Upside-3.56% Downside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
LANXESS Business Overview & Revenue Model
Company DescriptionLANXESS Aktiengesellschaft, a specialty chemicals company, develops, manufactures, and markets chemical intermediates, additives, specialty chemicals, and plastics worldwide. It operates through four segments: Advanced Intermediates, Specialty Additives, Consumer Protection, and Engineering Materials. The Advanced Intermediates segment provides advanced industrial intermediates, basic and fine chemicals, organometallics, and inorganic pigments for the agrochemical, automotive, construction, aromas and flavors, semiconductors and photovoltaic, and color pigments industries. The Specialty Additives segment offers additives, including lubricants, flame retardants, plasticizers, and bromine derivatives for various applications of rubber, plastic, paint, construction, and electrical industries. The Consumer Protection segment provides material protection products; disinfectant, hygiene, and preservative solutions; flavors and fragrances; and precursors and intermediates for the agrochemicals, pharmaceuticals, and specialty chemicals industries, as well as technologies for the treatment of water and other liquids. The Engineering Materials segment produces technical plastics, glass fibers, fiber composites, and elastomers on a urethane basis for application in the automotive and electrical/electronics, construction, and medicine industries, as well as sports and leisure sectors. The company was founded in 1863 and is headquartered in Cologne, Germany.
How the Company Makes MoneyLANXESS generates revenue primarily through the sale of its specialty chemicals and intermediate products across several key industries. The company operates through multiple segments, including Advanced Intermediates, Specialty Additives, and Performance Chemicals, each contributing to its overall revenue. Key revenue streams include the sale of high-performance plastics used in automotive applications, additives utilized in various industrial processes, and specialty chemicals for agriculture. Additionally, LANXESS benefits from strategic partnerships and collaborations with other companies and organizations, enhancing its market presence and expanding its product offerings. The company's focus on sustainability also positions it to capitalize on growing demand for environmentally friendly and efficient chemical solutions.
LANXESS Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 19, 2026
Earnings Call Sentiment Negative
The earnings call highlighted stable performance in the Consumer Protection segment and effective cash management, along with ongoing cost and efficiency initiatives. However, significant declines in sales and EBITDA, weak demand in key segments, currency fluctuations, and geopolitical challenges indicate a challenging environment. The sentiment is further affected by the potential for job cuts and the need for structural improvements.Q3-2025 Updates
Positive Updates
Stable Consumer Protection Segment
The Consumer Protection segment maintained stable operating income with a margin just under 16%, attributed to strategic development and acquisitions, despite increased competition.
Effective Cash Management
The company's cash management was effective in maintaining a stable net financial debt, contributing to a stable capital structure.
Cost and Efficiency Programs
LANXESS is continuing with cost and efficiency programs, aiming for structural improvements of around EUR 100 million over the coming years.
Potential Market Recovery
There is optimism about potential market recovery due to anticipated infrastructure stimulus programs in Germany and successful antidumping procedures.
Negative Updates
Significant Decline in Sales and EBITDA
Sales declined by 16%, with a 2% price reduction and a 6% volume decline, impacting EBITDA, which decreased from EUR 173 million in the previous year.
Weak Demand in Specialty Additives and Advanced Intermediates
Specialty Additives suffered from weak demand in the building and construction industry, while Advanced Intermediates faced fierce competition from Asia and weak demand.
Impact of Currency Fluctuations
Unfavorable currency translations and a weak dollar negatively impacted sales and EBITDA, with an anticipated continuation of this trend.
Geopolitical and Economic Challenges
High geopolitical tensions and economic challenges, particularly in energy-intensive sectors, are affecting the company's performance.
Potential for Job Cuts
The company indicated potential job cuts, leveraging natural attrition, as part of its cost-cutting measures.
Company Guidance
During the call, LANXESS provided guidance for the remainder of the year and beyond, indicating that the company's EBITDA is expected to end at the lower end of their forecast range of EUR 520 million to CHF 580 million. This projection is influenced by a challenging economic environment, with sales declining by 16%, attributed to unfavorable currency translations, a weak American dollar, a more than 2% reduction in prices, and a 6% volume decline. The company highlighted the stability of its consumer protection segment, which maintains a high margin of just under 16%. In contrast, the Specialty Additives and Advanced Intermediates segments face difficulties due to weak demand, particularly in the building and construction industry, and fierce competition from Asia. LANXESS is implementing a cost and efficiency program to manage these challenges, aiming for structural improvements of around CHF 100 million over the coming years. The company also plans to complete its current cost-saving program of CHF 150 million by the end of the year and is preparing further measures, including potential job cuts through natural attrition, to enhance its financial position. Additionally, LANXESS is engaging with European policymakers to advocate for reforms in the European emissions trading system and competitive energy pricing to support the chemical industry.LANXESS Financial Statement Overview
Summary
LANXESS is experiencing financial pressure with declining revenues and profitability, particularly in the TTM period. While the balance sheet shows moderate leverage, the negative return on equity and declining cash flow metrics highlight operational and financial challenges. The company needs to address these issues to improve its financial health and shareholder value.Income Statement
LANXESS has faced declining revenue and profitability in recent periods, with a negative net profit margin of -2.68% in the TTM. The gross profit margin is relatively stable at 21.19%, but the EBIT and EBITDA margins are weak, indicating operational challenges. Revenue growth has been negative, reflecting a challenging market environment.Balance Sheet
The company maintains a moderate debt-to-equity ratio of 0.62, suggesting manageable leverage. However, the return on equity is negative at -3.81%, indicating inefficiencies in generating returns for shareholders. The equity ratio is reasonable, showing a stable capital structure.Cash Flow
LANXESS's cash flow situation is mixed, with a decline in free cash flow growth by -25.83% in the TTM. The operating cash flow to net income ratio is 0.38, indicating some ability to convert earnings into cash. However, the free cash flow to net income ratio is low, reflecting challenges in generating free cash flow.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.89B | 6.37B | 6.71B | 8.09B | 7.56B | 6.10B |
| Gross Profit | 1.21B | 1.30B | 1.27B | 1.94B | 1.84B | 1.56B |
| EBITDA | 450.00M | 543.00M | -143.00M | 865.00M | 673.00M | 1.60B |
| Net Income | -243.00M | -177.00M | 443.00M | 185.00M | 267.00M | 885.00M |
Balance Sheet | ||||||
| Total Assets | 8.18B | 9.71B | 9.66B | 11.29B | 10.52B | 8.88B |
| Cash, Cash Equivalents and Short-Term Investments | 606.00M | 615.00M | 496.00M | 403.00M | 1.23B | 1.79B |
| Total Debt | 2.48B | 3.06B | 3.06B | 4.23B | 3.48B | 2.80B |
| Total Liabilities | 4.28B | 5.12B | 5.16B | 6.86B | 6.76B | 5.88B |
| Stockholders Equity | 3.90B | 4.59B | 4.50B | 4.42B | 3.76B | 3.00B |
Cash Flow | ||||||
| Free Cash Flow | 112.00M | 188.00M | 512.00M | -248.00M | -72.00M | 129.00M |
| Operating Cash Flow | 432.00M | 508.00M | 838.00M | 159.00M | 407.00M | 585.00M |
| Investing Cash Flow | 242.00M | -263.00M | 423.00M | -1.05B | -432.00M | -353.00M |
| Financing Cash Flow | -622.00M | -97.00M | -1.47B | 613.00M | 389.00M | -247.00M |
LANXESS Technical Analysis
Neutral
17.86
Price Trends
17.59
Positive
20.02
Negative
22.80
Negative
Market Momentum
-0.02
Negative
55.97
Neutral
63.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:LXS, the sentiment is Neutral. The current price of 17.86 is above the 20-day moving average (MA) of 17.41, above the 50-day MA of 17.59, and below the 200-day MA of 22.80, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 55.97 is Neutral, neither overbought nor oversold. The STOCH value of 63.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:LXS.
LANXESS Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | €4.47B | 13.38 | 16.00% | 3.91% | 1.42% | -0.40% | |
64 Neutral | €7.21B | 17.26 | 9.62% | 4.30% | -3.35% | -23.06% | |
62 Neutral | €3.51B | 14.58 | ― | 3.75% | -10.63% | -23.15% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | €6.17B | 64.93 | 1.08% | 8.92% | -5.92% | -58.33% | |
46 Neutral | €1.54B | -6.35 | -5.69% | 0.59% | -6.82% | 71.94% |
* Basic Materials Sector Average
DE:LXS
LANXESS
17.86
-4.52
-20.21%
DE:BNR
Brenntag AG
49.95
-3.31
-6.22%
DE:EVK
Evonik
13.24
-2.36
-15.13%
DE:FPE
Fuchs Petrolub
30.10
1.03
3.54%
DE:WCH
Wacker Chemie AG
70.75
10.53
17.48%
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.