An exit from the recently observed accumulation phase to the upside could allow for the assumption that a clear upward trend is re-established with an increase in volatility.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
Strengths
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
Weaknesses
● As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
● The company is highly valued given the cash flows generated by its activity.
● Over the past twelve months, analysts' consensus has been significantly revised downwards.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener UK. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.
Brenntag SE is the world leader in distribution of industrial chemicals and specialty products (organic and inorganic chemicals, solvents, plastics, resins, additives, paints, etc.). The group also offers storage and processing services, custom mixing, logistics management, accompaniment, and training.
At the end of 2024, the group had around 600 distribution sites worldwide.
Net sales are distributed geographically as follows: Germany (7.4%), the United States (35.7%), the United Kingdom (5.1%), China (4.5%), Canada (3.9%), Italy (3.7%), Poland (3.4%), France (3.2%) and other (33.1%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
