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 | Covestro’s EBITDA Down Nearly 60% in 1Q; Shares Fairly Valued

No-moat Covestro reported first-quarter EBITDA of EUR $442 million, down 58% over the 2018 period. This was largely expected so the stock is trading flat. EBITDA was down 75% in polyurethanes and nearly 50% in polycarbonates. The coatings, adhesives, and specialties was the bright spot during the quarter with 7% growth in EBITDA. Guidance for EBITDA of EUR 1.5– 2 .0 billion in 2019 was confirmed. We don’t expect to make a material change to our forecast or EUR 47 fair value estimate. At current levels, the shares look fairly valued. Covestro continues to be mostly hit by falling prices in po...

Rob Hales

Covestro’s EBITDA Down Nearly 60% in 1Q; Shares Fairly Valued

No-moat Covestro reported first-quarter EBITDA of EUR $442 million, down 58% over the 2018 period. This was largely expected so the stock is trading flat. EBITDA was down 75% in polyurethanes and nearly 50% in polycarbonates. The coatings, adhesives, and specialties was the bright spot during the quarter with 7% growth in EBITDA. Guidance for EBITDA of EUR 1.5–2.0 billion in 2019 was confirmed. We don’t expect to make a material change to our forecast or EUR 47 fair value estimate. At current le...

An increasingly favourable environment allows COVESTRO AG to improve to Neutral

The independent financial analyst theScreener just upgraded the general evaluation of COVESTRO AG (DE), a company active in the Specialty Chemicals industry. As regards its fundamental valuation, the title confirms its rating of 3 out of 4 stars while its market behaviour remains as risky. theScreener believes, however, that a more enabling environment allows the title to increase its general evaluation to Neutral. As of the analysis date April 16, 2019, the closing price was EUR 52.90 and its expected value was estimated at EUR 49.90.

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 ...

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 | Covestro’s EBITDA Down Nearly 60% in 1Q; Shares Fairly Valued

No-moat Covestro reported first-quarter EBITDA of EUR $442 million, down 58% over the 2018 period. This was largely expected so the stock is trading flat. EBITDA was down 75% in polyurethanes and nearly 50% in polycarbonates. The coatings, adhesives, and specialties was the bright spot during the quarter with 7% growth in EBITDA. Guidance for EBITDA of EUR 1.5– 2 .0 billion in 2019 was confirmed. We don’t expect to make a material change to our forecast or EUR 47 fair value estimate. At current levels, the shares look fairly valued. Covestro continues to be mostly hit by falling prices in po...

Rob Hales

Covestro’s EBITDA Down Nearly 60% in 1Q; Shares Fairly Valued

No-moat Covestro reported first-quarter EBITDA of EUR $442 million, down 58% over the 2018 period. This was largely expected so the stock is trading flat. EBITDA was down 75% in polyurethanes and nearly 50% in polycarbonates. The coatings, adhesives, and specialties was the bright spot during the quarter with 7% growth in EBITDA. Guidance for EBITDA of EUR 1.5–2.0 billion in 2019 was confirmed. We don’t expect to make a material change to our forecast or EUR 47 fair value estimate. At current le...

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's EBITDA Down Nearly 70% in 4Q; Shares Fairly Valued

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...

Rob Hales

Morningstar | 1COV Updated Star Rating from 20 Nov 2018

No-moat Covestro shares are trading down 14% at time of writing due to the company announcing a profit warning. We have called out Covestro shares as overvalued for some time given we saw the share price implicitly assuming abnormal conditions in the MDI and TDI markets would last for several years while we expected the markets to normalize in the near term. Today’s profit warning confirms our view that the MDI and TDI markets are moving quickly to a balanced state. While the stock is now down 50% from the peak in February, we don’t see an opportunity yet. Shares are now trading in line with o...

An increasingly favourable environment allows COVESTRO AG to improve to Neutral

The independent financial analyst theScreener just upgraded the general evaluation of COVESTRO AG (DE), a company active in the Specialty Chemicals industry. As regards its fundamental valuation, the title confirms its rating of 3 out of 4 stars while its market behaviour remains as risky. theScreener believes, however, that a more enabling environment allows the title to increase its general evaluation to Neutral. As of the analysis date April 16, 2019, the closing price was EUR 52.90 and its expected value was estimated at EUR 49.90.

Ford Equity International Rating and Forecast Report

Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

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 ...

Covestro – Proxinvest Corporate Governance Rating ® : B

Proxinvest Corporate Governance Rating ® helps investors integrate governance into their investment decision and identify governance risks and opportunities within their portfolio. Proxinvest Corporate Governance Rating ® Service rates European issuers through the analysis of four main themes : Ownership & Shareholder rights, Board & Committees, Audit & Process, Remuneration. Each theme is rated taking into account several comprehensive sub-categories. Our unique two-step process to achieve each rating includes a first step quantitative valuation and a second step qualitative filter...

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 ...

Expert Corporate Governance Service (ECGS)

Etude de l'AG du 03/05/2017

General: Covestro 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, electrical and electronics, construction and the sports and leisure industries. Covestro has 30 production sites around the globe and as of 31 December 2016, employed approximately 15,600 people.Covestro AG was founded as a subsidiary of Bayer AG on 20 August 2015 as a consequence of Bayer AG's deci...

Jérôme VINERIER

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

The background trend is clearly bearish. Prices are falling again, but the movement has become hesitant. The next support is at €48.24. The background trend would be questioned should prices rise above €64.20.

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

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. Le mouvement se poursuit. Le prochain objectif est à 48,24 €, puis 43,68 €. Le franchissement de 64,20 € remettrait en cause la suite de la baisse.

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.

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