Covestro AG (1COV) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Symrise AG

K+S AG

H&R GmbH & Co. KGaA

Verbio SE

CropEnergies AG

Decheng Technology AG

Covestro AG

Neschen AG

Why is Covestro AG ?

Weak Long Term Fundamental Strength with a -202.96% CAGR growth in Operating Profits over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

OPERATING CF(Y) Lowest at EUR 898.00 MM
NET SALES(HY) At EUR 6,856.00 MM has Grown at -11.04 %
PAT(HY) At EUR -226.00 MM has Grown at -11.04 %

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 2.64%, its profits have fallen by -15.1%

Underperformed the market in the last 1 year

The stock has generated a return of 2.64% in the last 1 year, much lower than market (Germany DAX (TR)) returns of 24.35%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Covestro AG for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Covestro AG

2.63%

1.58

14.96%

Germany DAX (TR)

18.37%

1.26

19.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.88%

EBIT Growth (5y)

-203.19%

EBIT to Interest (avg)

8.23

Debt to EBITDA (avg)

1.20

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

1.54

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

8.34%

ROE (avg)

5.83%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.82

EV to EBIT

-51.38

EV to EBITDA

20.32

EV to Capital Employed

1.54

EV to Sales

1.04

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.00%

ROE (Latest)

-6.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

Not enough Data to analyse Financial Trend

Here's what is working for Covestro AG

Profit Before Tax less Other Income (PBT) - Quarterly

At EUR 19 MM has Grown at 198.7 %

over average PBT of the previous four periods of EUR -19 MM

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (EUR MM)

Here's what is not working for Covestro AG

Operating Cash Flow - Annually

Lowest at EUR 898.00 MM and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (EUR MM)

Net Sales - Half Yearly

At EUR 6,856.00 MM has Grown at -11.04 %

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (EUR MM)

Profit After Tax (PAT) - Half-Yearly

At EUR -226.00 MM has Grown at -11.04 %

Year on Year (YoY)

MOJO Watch

Near term PAT trend is negative

PAT (EUR MM)

Debtors Turnover Ratio- Half Yearly

Lowest at 7.07 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

is 40.63 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT (EUR MM)

Inventory Turnover Ratio- Half Yearly

Lowest at 5.34 times

in the last five half yearly periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend Payout Ratio (DPR) - Annually

Lowest at 0.00 %

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)