Covestro AG

Covestro AG is a global supplier of high-tech polymer materials and application solutions developed for these materials. Co. produces precursors for polyurethane foams and the high-performance plastic polycarbonate in addition to raw materials for coatings, adhesives and sealants as well as specialty products, including high-quality films. Other precursors such as chlorine and by-products like styrene are part of Co.'s range of products.
  • Ticker606214
  • ISINDE0006062144
  • SectorChemicals
  • CountryGermany

Analysts

Rob Hales

Morningstar | 1COV Updated Forecasts and Estimates from 08 Apr 2019

No-moat Covestro reported fourth-quarter EBITDA of EUR 293 million, down 67% from the prior-year period. Polyurethanes profits collapsed because of unsustainable prices, as we have argued for several quarters. While EBITDA missed consensus and our estimate, the expected deterioration in performance is now largely priced in, given that the shares were down a paltry 3%-4% intraday despite EBITDA falling off a cliff. The shares are also now trading in line with our EUR 47 fair value estimate, which we don’t expect to change materially on the back of fourth-quarter results. Covestro is guiding fo...

Expert Corporate Governance Service (ECGS)

Covestro April 12th, 2019

Item 3: We recommend to oppose the discharge of the Management Board. On 20 November 2018, the Company issued a profit warning and lowered its guidance for financial year 2018 with respect to core volume growth, EBITDA, free operating cash flow (FOCF) and return on capital employed (ROCE). According to the Company, this was due to "intense competition, increased costs and formation of provisions". The profit warning, which led to a drop in the Company's share price by 15.6%, came only four weeks after the Company had confirmed its full-year guidance on 25 October 2018. In our view this raises ...

1 director bought

A director at Covestro Ag bought 1,030 shares at 47.988EUR and the significance rating of the trade was 55/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of board m...

Rob Hales

Covestro Has More Room To Fall

No-moat Covestro reported third-quarter EBITDA of EUR 859 million, flat over the prior-year period. This officially ends a 14-quarter streak of uninterrupted growth. Shares are reacting mildly today; however, the stock is down 25% in the last month and around 40% from the peak in February. We have been calling out the stock as significantly overvalued for some time as we expected temporary supply disruptions in the polyurethanes market to fade. Consequently, the significant share decline this ye...

Jérôme VINERIER

Analyse court terme - COVESTRO AG : La tendance de fond est clairement orientée à la baisse.

La tendance de fond est clairement orientée à la baisse. Les prix baissent à nouveau, mais le mouvement est devenu hésitant. Le prochain support est à 48,24 €. La tendance de fond serait remise en cause en cas de franchissement de 64,20 €.

Covestro AG: Update to Discussion of Key Credit Factors

CORPORATES CREDIT OPINION 23 June 2017 Update RATINGS Covestro AG Domicile Germany Long Term Rating Baa2 Type LT Issuer Rating - Dom Curr Outlook Stable Please see the ratings section at the end of this report for more information. The ratings and outlook shown reflect information as of the publication date. Contacts Francois Lauras 44-20-7772-5397 VP-Sr Credit Officer [email protected] A

Rob Hales

Morningstar | 1COV Updated Forecasts and Estimates from 08 Apr 2019

No-moat Covestro reported fourth-quarter EBITDA of EUR 293 million, down 67% from the prior-year period. Polyurethanes profits collapsed because of unsustainable prices, as we have argued for several quarters. While EBITDA missed consensus and our estimate, the expected deterioration in performance is now largely priced in, given that the shares were down a paltry 3%-4% intraday despite EBITDA falling off a cliff. The shares are also now trading in line with our EUR 47 fair value estimate, which we don’t expect to change materially on the back of fourth-quarter results. Covestro is guiding fo...

Rob Hales

Covestro Has More Room To Fall

No-moat Covestro reported third-quarter EBITDA of EUR 859 million, flat over the prior-year period. This officially ends a 14-quarter streak of uninterrupted growth. Shares are reacting mildly today; however, the stock is down 25% in the last month and around 40% from the peak in February. We have been calling out the stock as significantly overvalued for some time as we expected temporary supply disruptions in the polyurethanes market to fade. Consequently, the significant share decline this ye...

Rob Hales

Morningstar | Covestro’s EBITDA Flatlines in 3Q; Shares Fairly Valued

No-moat Covestro reported third-quarter EBITDA of EUR 859 million, flat over the prior-year period. This officially ends a 14-quarter streak of uninterrupted growth. Shares are reacting mildly today; however, the stock is down 25% in the last month and around 40% from the peak in February. We have been calling out the stock as significantly overvalued for some time as we expected temporary supply disruptions in the polyurethanes market to fade. Consequently, the significant share decline this year has only brought the stock back into fairly valued territory with our EUR 52 fair value estimate....

Rob Hales

Growth Baton Within Covestro Passed to Polycarbonates in 2Q; Shares Overvalued

No-moat Covestro reported solid results in the second quarter with EBITDA of EUR 985 million, a 16% increase over 2017 and slightly ahead of our estimates. The company also raised its 2018 guidance. EBITDA for the year is now expected to be above the 2017 level of EUR 3,435 million, whereas previous expectations were for around the same level. The guidance upgrade will cause us to boost our near-term estimates slightly, but we don’t expect to make a material change to our EUR 52 fair value estim...

Rob Hales, CFA

Covestro Profits Grow Swiftly Again in 1Q, but Likely Topping Out Soon; Shares Overvalued

No-moat Covestro reported another strong quarter with EBITDA of EUR 1.1 billion, a 25% increase over the prior-year period. Results slightly beat consensus and our estimates, yet the stock is moving south today, despite these consensus-beating results and confirmation of 2018 guidance. It appears that a 25% increase in EBITDA is no longer enough to satisfy shareholders who have grown accustomed to 50% to 100%-plus gains in 2017. If anything, the polycarbonates segment was a positive surprise in ...

1 director bought

A director at Covestro Ag bought 1,030 shares at 47.988EUR and the significance rating of the trade was 55/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of board m...

Expert Corporate Governance Service (ECGS)

Covestro April 12th, 2019

Item 3: We recommend to oppose the discharge of the Management Board. On 20 November 2018, the Company issued a profit warning and lowered its guidance for financial year 2018 with respect to core volume growth, EBITDA, free operating cash flow (FOCF) and return on capital employed (ROCE). According to the Company, this was due to "intense competition, increased costs and formation of provisions". The profit warning, which led to a drop in the Company's share price by 15.6%, came only four weeks after the Company had confirmed its full-year guidance on 25 October 2018. In our view this raises ...

Expert Corporate Governance Service (ECGS)

Proxy Report - 13/04/2018

General: Covestro AG is among the world's largest polymer producers. The Company's business activities are focused on the manufacturing of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, construction, wood processing and furniture, and electrical and electronics industries. Other sectors include sports and leisure, cosmetics, health, and the chemical industry itself. Covestro has about 30 production sites around the globe and employs approximately 16,200 people. Covestro AG was ...

Jérôme VINERIER

Analyse court terme - COVESTRO AG : La tendance de fond est clairement orientée à la baisse.

La tendance de fond est clairement orientée à la baisse. Les prix baissent à nouveau, mais le mouvement est devenu hésitant. Le prochain support est à 48,24 €. La tendance de fond serait remise en cause en cas de franchissement de 64,20 €.

Jérôme VINERIER

Short term view - COVESTRO AG : The background trend is clearly bearish.

The background trend is clearly bearish. The movement goes on. The next target is at €48.24, then €43.68. Passing €64.20 would question the continuation of the fall.

Jérôme VINERIER

Medium term view - COVESTRO AG : The trend is uncertain.

The trend is uncertain. Prices are falling and they may accelerate to the downside. A new bearish trend is attempting to emerge.

Jérôme VINERIER

Analyse moyen terme - COVESTRO AG : La tendance est incertaine.

La tendance est incertaine. Les cours baissent, et il y a une possibilité d'accélération baissière. Une nouvelle tendance baissière tente de démarrer.

Valérie GASTALDY

Medium term view - COVESTRO AG : The trend is bullish.

The trend is bullish. The recent fall is getting more vigorous. The next support is at €60.25. A break below €60.25 would challenge the trend.

ResearchPool Subscriptions

Get the most out of your insights

Get in touch