Fact based stock research
Covestro (XTRA:1COV)
DE0006062144
How to read the free ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Covestro stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 38 (worse than 62% compared with investment alternatives), Covestro (Specialty Chemicals, Germany) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Covestro are low in value (priced high) with a consolidated Value Rank of 20 (worse than 80% of alternatives), and are riskily financed (Safety Rank of 22, which means above-average debt burdens) but show above-average growth (Growth Rank of 90). ...read more
RECOMMENDATION: A Combined Rank of 38, is a hold recommendation based on Covestro's financial characteristics. As the company Covestro shows low value with an Obermatt Value Rank of 20 (80% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 90% of comparable companies (Obermatt Growth Rank is 90). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 22 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Covestro, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Germany |
| Industry | Specialty Chemicals |
| Index | CDAX, DAX 40, Low Emissions, Energy Efficient, Diversity Europe |
| Size class | XX-Large |
This stock has achievements: Top 10 Stock.
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.
Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Covestro
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 100 |
|
79 |
|
27 |
|
20 |
|
| GROWTH | ||||||||
| GROWTH | 84 |
|
39 |
|
97 |
|
90 |
|
| SAFETY | ||||||||
| SAFETY | 53 |
|
80 |
|
40 |
|
22 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
9 |
|
34 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
53 |
|
51 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 38 (worse than 62% compared with investment alternatives), Covestro (Specialty Chemicals, Germany) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Covestro are low in value (priced high) with a consolidated Value Rank of 20 (worse than 80% of alternatives), and are riskily financed (Safety Rank of 22, which means above-average debt burdens) but show above-average growth (Growth Rank of 90). ...read more
RECOMMENDATION: A Combined Rank of 38, is a hold recommendation based on Covestro's financial characteristics. As the company Covestro shows low value with an Obermatt Value Rank of 20 (80% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 90% of comparable companies (Obermatt Growth Rank is 90). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 22 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for Covestro, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 100 |
|
79 |
|
27 |
|
20 |
|
| GROWTH | ||||||||
| GROWTH | 84 |
|
39 |
|
97 |
|
90 |
|
| SAFETY | ||||||||
| SAFETY | 53 |
|
80 |
|
40 |
|
22 |
|
| COMBINED | ||||||||
| COMBINED | 98 |
|
76 |
|
62 |
|
38 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 20 (worse than 80% compared with alternatives), Covestro shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for Covestro. Price-to-Sales (P/S) is 60, which means that the stock price compared with what market professionals expect for future sales is lower than 60% of comparable companies, indicating a good value concerning to Covestro's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 22, meaning that dividends are expected to be lower than for 78% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 53% of alternatives (only 47% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 97% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 20, is a sell recommendation based on Covestro's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in Covestro could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, Covestro looks like an expensive investment today. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 94 |
|
83 |
|
64 |
|
60 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 100 |
|
93 |
|
10 |
|
3 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 84 |
|
72 |
|
49 |
|
47 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 88 |
|
24 |
|
22 |
|
22 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 100 |
|
79 |
|
27 |
|
20 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 90 (better than 90% compared with alternatives) for 2024, Covestro shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for Covestro. Sales Growth has a value of 68, which means that, currently, professionals expect the company to grow more than 68% of its competitors. The same is valid for Profit Growth with a value of 79 and for Capital Growth with 67. In addition, Stock Returns had an above-average rank value of 80, which means they have been higher than 80% of comparable investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 90, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Covestro exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 68 |
|
16 |
|
54 |
|
68 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 6 |
|
86 |
|
96 |
|
79 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
58 |
|
67 |
|
67 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 76 |
|
31 |
|
95 |
|
80 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 84 |
|
39 |
|
97 |
|
90 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 22 (better than 22% compared with alternatives), the company Covestro has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Covestro is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Covestro and the other two below average. Leverage is at a rank of 55 meaning the company has a below-average debt-to-equity ratio. It has less debt than 55% of its competitors.Refinancing is at a rank of 42, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 58% of its competitors. Liquidity is at a rank of 18, meaning that the company generates less profit to service its debt than 82% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 22 (worse than 78% compared with alternatives), Covestro has a financing structure that is significantly riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Covestro are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Covestro and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 20 |
|
57 |
|
53 |
|
55 |
|
| REFINANCING | ||||||||
| REFINANCING | 90 |
|
78 |
|
54 |
|
42 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 44 |
|
58 |
|
23 |
|
18 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 53 |
|
80 |
|
40 |
|
22 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
56 |
|
62 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
13 |
|
38 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
29 |
|
10 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
26 |
|
54 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
9 |
|
34 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Covestro from November 14, 2024.
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