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LANXESS (DE:LXS)
XETRA:LXS
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LANXESS
(XETRA:LXS)
60Neutral
Positive Factors
Rebound in Segments
Q2 details showed a rebound in all three segments supported by 5% volume growth.
Sales Expansion
Lanxess highlights that the share of US sales has increased to 28% compared to just 15% before the major four acquisitions in the US.
Volume Growth
Advanced Intermediates achieved 16% year-over-year volume growth, driven by Inorganic Pigments due to market share gains.
Negative Factors
Decline in Automotive Demand
Envalior at equity contribution showed a decline due to low demand from automotive OEM in Q3.
High Leverage
Net debt at €2.57m translating to net debt / EBITDA of 4.4x on FY-24 earnings indicates high leverage.
Supply Issues
Supply issues at F&F look set to continue until year-end and agro demand at Saltigo is likely to remain weak.
LANXESS (LXS) vs. S&P 500 (SPY)
Market Cap
$2.36B
Dividend Yield0.33%
Average Volume (3M)388.23K
Price to Earnings (P/E)―
Beta (1Y)1.64
Revenue Growth-5.18%
EPS Growth-139.96%
CountryDE
Employees12,320
SectorBasic Materials
Sector Strength60
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.23
Shares Outstanding86,346,306
10 Day Avg. Volume329,885
30 Day Avg. Volume388,226
Financial Highlights & Ratios
PEG Ratio-0.24
Price to Book (P/B)0.62
Price to Sales (P/S)0.00
P/FCF Ratio56.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$27.78Price Target Upside1.75% Upside
Rating ConsensusHold
Number of Analyst Covering11
LANXESS Business Overview & Revenue Model
Company DescriptionLANXESS AG is a leading specialty chemicals company headquartered in Cologne, Germany. The company operates in various sectors including advanced intermediates, specialty additives, consumer protection, and engineering materials. LANXESS offers a diverse portfolio of products such as plastics, rubber, intermediates, and specialty chemicals that serve numerous industries, including automotive, construction, agriculture, and electronics. With a strong emphasis on innovation and sustainability, LANXESS is committed to providing high-quality solutions and services to its global customer base.
How the Company Makes MoneyLANXESS generates revenue primarily through the sale of its specialty chemicals and materials across its four main business segments: Advanced Intermediates, Specialty Additives, Consumer Protection, and Engineering Materials. Each segment contributes to the company's earnings by catering to specific industry needs. Advanced Intermediates provides basic and fine chemicals used in the agrochemical, pharmaceutical, and industrial sectors. Specialty Additives offers additives that enhance product performance in sectors such as plastics, lubricants, and flame retardants. The Consumer Protection segment focuses on products that ensure safety and hygiene, including preservatives and disinfectants. Engineering Materials supplies high-performance plastics and composites used in automotive and other industries. Revenue is further supported by strategic partnerships and collaborations, along with ongoing investments in research and development to innovate and expand the product portfolio, ensuring LANXESS remains competitive in the global market.
LANXESS Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 6.32B | 6.71B | 8.09B | 7.56B | 6.10B | 6.80B | Gross Profit |
| 1.23B | 1.27B | 1.94B | 1.84B | 1.56B | 1.76B | EBIT |
| -46.00M | -668.00M | 493.00M | 534.00M | 1.32B | 627.00M | EBITDA |
| 326.00M | -143.00M | 865.00M | 673.00M | 1.60B | 882.00M | Net Income Common Stockholders |
| -866.00M | 443.00M | 185.00M | 267.00M | 885.00M | 205.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.34B | 496.00M | 403.00M | 1.23B | 1.79B | 1.08B | Total Assets |
| 8.69B | 9.66B | 11.28B | 10.52B | 8.88B | 8.70B | Total Debt |
| 2.72B | 3.01B | 4.23B | 3.48B | 2.80B | 2.82B | Net Debt |
| 1.92B | 2.86B | 3.83B | 2.34B | 2.53B | 2.52B | Total Liabilities |
| 5.91B | 5.16B | 6.85B | 6.76B | 5.88B | 6.05B | Stockholders Equity |
| 2.78B | 4.50B | 4.42B | 3.76B | 3.00B | 2.67B |
| Cash Flow | Free Cash Flow | ||||
| 48.00M | 512.00M | -248.00M | -72.00M | 129.00M | 135.00M | Operating Cash Flow |
| 354.00M | 838.00M | 159.00M | 407.00M | 585.00M | 643.00M | Investing Cash Flow |
| -159.00M | 423.00M | -1.05B | -432.00M | -353.00M | -712.00M | Financing Cash Flow |
| -86.00M | -1.47B | 613.00M | 389.00M | -247.00M | -433.00M |
LANXESS Technical Analysis
Positive
27.30
Price Trends
27.47
Negative
26.80
Positive
26.19
Positive
Market Momentum
0.52
Negative
53.64
Neutral
71.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:LXS, the sentiment is Positive. The current price of 27.3 is above the 20-day moving average (MA) of 26.34, below the 50-day MA of 27.47, and above the 200-day MA of 26.19, indicating a neutral trend. The MACD of 0.52 indicates Negative momentum. The RSI at 53.64 is Neutral, neither overbought nor oversold. The STOCH value of 71.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:LXS.
LANXESS Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | €175.47B | 18.35 | 15.14% | 2.36% | -0.04% | 33.26% | |
67 Neutral | €5.19B | 19.53 | 15.87% | 2.47% | 2.58% | 8.02% | |
66 Neutral | $3.19B | 13.69 | 5.37% | 4.38% | -10.63% | -23.15% | |
62 Neutral | €38.74B | 53.62 | 2.02% | 7.63% | -2.04% | 2258.97% | |
60 Neutral | $2.36B | ― | -3.92% | 0.33% | -5.18% | -139.96% | |
55 Neutral | €9.19B | 41.39 | 2.47% | 5.93% | -0.72% | ― | |
50 Neutral | $1.98B | -1.12 | -21.33% | 3.61% | 1.68% | -30.56% |
* Basic Materials Sector Average
Performance Comparison
DE:LXS
LANXESS
27.30
1.41
5.46%
DE:BAS
BASF SE
43.40
-3.36
-7.18%
DE:EVK
Evonik
19.94
0.97
5.10%
DE:WCH
Wacker Chemie AG
64.30
-35.75
-35.73%
DE:SIE
Siemens
219.95
50.79
30.02%
DE:FPE3
Fuchs Petrolub
45.04
0.88
1.98%
LANXESS Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 4.44%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive achievements, such as EBITDA growth and successful divestitures, against a backdrop of macroeconomic uncertainty and operational challenges, particularly in terms of energy costs and industry utilization. While there are strategic plans to mitigate tariff impacts and leverage segment growth, the overall environment remains challenging.Q1-2025 Updates
Positive Updates
EBITDA Increase
EBITDA increased by approximately 32%, a significant improvement over Q1 2024, despite still being at low levels.
Consumer Protection Segment Growth
The Consumer Protection segment saw a sharp increase, largely due to a weak comparable base in Q1 2024.
Successful Divestiture of Urethanes Business
The divestiture of the Urethanes business to UBE was completed faster than expected, with proceeds intended to strengthen the balance sheet.
US Tariff Impact Management
Numerous product categories are exempted from tariffs, creating a relative price advantage over Chinese competitors, which the company plans to leverage for volume and price gains.
Negative Updates
Increased Working Capital and Net Debt
Working capital increased due to sales pickups, and net debt rose as a result, following a normal seasonal pattern.
Macroeconomic Uncertainty
Increased macroeconomic uncertainty and short-term ordering patterns among clients due to tariff announcements.
Energy Cost Burden
Energy costs were a burden for Advanced Intermediates in Q1, impacting profitability.
Low Industry Utilization
The chemical industry is operating at around 70% utilization, indicating a tough trading environment.
Company Guidance
During the Q1 2025 Conference Call, Lanxess reaffirmed its guidance for the fiscal year, projecting an EBITDA between €600 million and €650 million. The company reported a 32% increase in EBITDA for Q1 compared to the previous year, although it acknowledged the figure remained at low levels. The divestiture of the Urethanes business, completed faster than anticipated, will remove an operational EBITDA of approximately €11 million to €12 million from Q2 results. The call emphasized ongoing macroeconomic uncertainties, notably the impact of tariffs and fluctuating customer order patterns, which have shifted to a one-to-two-week basis. Despite challenges, Lanxess anticipates a sequential improvement in Q2 performance, buoyed by the end of pre-buying effects and local pricing adjustments in response to tariffs. The company also addressed cost management and strategic responses to market dynamics, including the planned closure of a loss-making plant, projected to save about €10 million in future contributions.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.