Why is LANXESS AG ?
1
Weak Long Term Fundamental Strength with a -32.53% CAGR growth in Operating Profits over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 8.21% signifying low profitability per unit of shareholders funds
2
The company has declared Negative results for the last 5 consecutive quarters
- NET SALES(HY) At EUR 3,043.00 MM has Grown at -21.41 %
- DPR(Y) Lowest at 1.95 %
- DEBTORS TURNOVER RATIO(HY) Lowest at 7.81 times
3
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 -25.25%, its profits have risen by 80%
4
Below par performance in long term as well as near term
- Along with generating -25.25% returns in the last 1 year, the stock has also underperformed Germany DAX (TR) in the last 3 years, 1 year and 3 months
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 Chemicals & Petrochemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is LANXESS AG for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
LANXESS AG
-100.0%
-1.53
43.77%
Germany DAX (TR)
18.37%
1.26
19.31%
Quality key factors
Factor
Value
Sales Growth (5y)
-0.34%
EBIT Growth (5y)
-44.01%
EBIT to Interest (avg)
4.14
Debt to EBITDA (avg)
2.59
Net Debt to Equity (avg)
0.49
Sales to Capital Employed (avg)
0.88
Tax Ratio
32.81%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.00%
ROCE (avg)
5.01%
ROE (avg)
8.21%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.46
EV to EBIT
59.29
EV to EBITDA
5.57
EV to Capital Employed
0.64
EV to Sales
0.64
PEG Ratio
NA
Dividend Yield
0.05%
ROCE (Latest)
1.09%
ROE (Latest)
-4.11%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
Not enough Data to analyse Financial Trend
Not enough Data to analyse Financial Trend
Here's what is working for LANXESS AG
Operating Cash Flow - Annually
Highest at EUR 790.00 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (EUR MM)
Here's what is not working for LANXESS AG
Net Sales - Half Yearly
At EUR 3,043.00 MM has Grown at -21.41 %
Year on Year (YoY)MOJO Watch
Near term sales trend is very negative
Net Sales (EUR MM)
Operating Profit (PBDIT) - Quarterly
Lowest at EUR 101 MM.
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (EUR MM)
Operating Profit Margin - Quarterly
Lowest at 6.29%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales (EUR MM)
Profit Before Tax less Other Income (PBT) - Quarterly
At EUR -50 MM has Fallen at -77.0 %
over average PBT of the previous four periods of EUR -28 MMMOJO Watch
Near term PBT trend is negative
PBT less Other Income (EUR MM)
Debtors Turnover Ratio- Half Yearly
Lowest at 7.81 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Dividend Payout Ratio (DPR) - Annually
Lowest at 1.95 %
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)






