COVESTRO AG ● On the basis of various fundamental qualitative criteria, the company appears to be particularly poorly ranked from a medium and long-term investment perspective.
● The company's Refinitiv ESG score, based on a ranking of the company relative to its industry, comes out particularly well.
Strengths
● The company's earnings per share (EPS) are expected to grow significantly over the next few years according to the consensus of analysts covering the stock.
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
Weaknesses
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
● The company sustains low margins.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 66.88 times its estimated earnings per share for the ongoing year.
● The company is highly valued given the cash flows generated by its activity.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● For the past year, analysts have significantly revised downwards their profit estimates.
● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The group usually releases earnings worse than estimated.
