Latest news with #WackerChemie
Yahoo
3 days ago
- Business
- Yahoo
Concerns Surrounding Wacker Chemie's (ETR:WCH) Performance
Explore Wacker Chemie's Fair Values from the Community and select yours Wacker Chemie AG's (ETR:WCH ) stock didn't jump after it announced some healthy earnings. We did some digging and believe investors may be worried about some underlying factors in the report. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. An Unusual Tax Situation We can see that Wacker Chemie received a tax benefit of €37m. This is meaningful because companies usually pay tax rather than receive tax benefits. We're sure the company was pleased with its tax benefit. However, the devil in the detail is that these kind of benefits only impact in the year they are booked, and are often one-off in nature. In the likely event the tax benefit is not repeated, we'd expect to see its statutory profit levels drop, at least in the absence of strong growth. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Our Take On Wacker Chemie's Profit Performance As we have already discussed Wacker Chemie reported that it received a tax benefit, rather than paying tax, in the last year. Given that sort of benefit is not recurring, a focus on the statutory profit might make the company seem better than it really is. Therefore, it seems possible to us that Wacker Chemie's true underlying earnings power is actually less than its statutory profit. But at least holders can take some solace from the 9.1% EPS growth in the last year. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. You'd be interested to know, that we found 1 warning sign for Wacker Chemie and you'll want to know about this. Today we've zoomed in on a single data point to better understand the nature of Wacker Chemie's profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
02-08-2025
- Business
- Yahoo
Wacker Chemie Second Quarter 2025 Earnings: €0.49 loss per share (vs €0.48 profit in 2Q 2024)
Wacker Chemie (ETR:WCH) Second Quarter 2025 Results Key Financial Results Revenue: €1.41b (down 3.7% from 2Q 2024). Net loss: €19.2m (down by 166% from €29.0m profit in 2Q 2024). €0.49 loss per share (down from €0.48 profit in 2Q 2024). AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. All figures shown in the chart above are for the trailing 12 month (TTM) period Wacker Chemie Earnings Insights Looking ahead, revenue is forecast to grow 3.8% p.a. on average during the next 3 years, compared to a 3.4% growth forecast for the Chemicals industry in Germany. Performance of the German Chemicals industry. The company's shares are down 10% from a week ago. Risk Analysis We don't want to rain on the parade too much, but we did also find 1 warning sign for Wacker Chemie that you need to be mindful of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Inicia sesión para acceder a tu cartera de valores
Fibre2Fashion
18-07-2025
- Business
- Fibre2Fashion
Wacker opens $348.84 mn polysilicon plant in Burghausen
Wacker Chemie AG commissioned the Etching Line Next, its new production line for the manufacture of ultra-pure semiconductor-grade polysilicon, at its Burghausen production site in Germany. Accompanied by customers, suppliers and project partners, high-profile figures including Bavaria's Minister- President Markus Söder and Gitta Connemann, Parliamentary State Secretary to the German Federal Ministry for Economic Affairs were among the guests who attended the official ceremony to mark the opening of the plant. Wacker Chemie has opened its €300 million (~$348.84 million) Etching Line Next in Burghausen, Germany, boosting hyperpure semiconductor-grade polysilicon output by 50 per cent. Backed by €50 million (~$58.14 million) in public funding, the plant supports digitalisation and AI chip demand. With 150 new jobs, it marks a major step in Wacker's aim to double semiconductor sales by 2030. 'Ultra-pure polycrystalline silicon is the purest man-made material. Everything regarding the semiconductor industry and, consequently, digital transformation revolves around this key raw material,' emphasized WACKER CEO Christian Hartel while addressing 100 guests in Burghausen, and added, 'We are the only company in Europe and the largest in the world who manufactures ultrapure polysilicon for the semiconductor industry. The Etching Line Next allows us to further consolidate our position as a global quality and technology leader.' Bavaria's Minister-president Markus Söder also lauded the expansion project at the opening ceremony. "A strong signal for Bavaria and Germany as a business location: the opening of a state-of-the-art production line at Wacker Chemie in Burghausen worth €300 million. Hyperpure semiconductor-grade polysilicon is the basis for digitalization. Wacker Chemie is the global leader in this field. Together with the federal government, Bavaria is supporting the investment with around €50 million (~$58.14 million) in innovation funding. This is a clear commitment to Burghausen, the Bavarian chemical triangle and the high-tech chemical industry. As a whole, we are working with the new federal government to restart the economy: we are reducing energy and electricity costs, and are committed to an energy price for energy-intensive companies. The rapid expansion of renewable energies and gas-fired power plants is also important for Bavaria. We are lowering corporate taxes and launching the investment booster. But we need a quick solution to the global tariff dispute. Instead of EU bureaucracy, 'quick & easy' must be the order of the day. Only with a strong industry will we be able to maintain our success and continue to create value in the country in the future. Thank you for your loyalty to the location and all the best," said Markus Söder in his address. Gitta Connemann, Parliamentary State Secretary to the Federal Minister for Economic Affairs and Energy (BMWE), also applauded the company's investment in the expansion of its polysilicon production. 'I congratulate WACKER on the commissioning of this groundbreaking plant. Semiconductors are the backbone of our modern economy. Without them, everything comes to a standstill. With this investment, supported by the federal and state governments, we are not only securing jobs in the region, but also strengthening Germany and Europe as a whole in the face of global competition. This is a strong signal for innovation, technological sovereignty and the future of our location.' Growing demand for hyperpure, semiconductor-grade polysilicon The internet, autonomous driving, Industry 4.0 – digital transformation and ever- growing data volumes in an ever-increasing number of data centers are driving the demand for polysilicon, one of the key raw materials in today's digital era. Polysilicon in the highest grade of purity is indispensable for producing high- performance chips required, for example, in artificial intelligence applications or supercomputers. Very few companies are able to meet the more stringent purity requirements of the semiconductor industry. In the polysilicon business for over 70 years, chemical company WACKER is the world's leading producer of this key raw material in the semiconductor industry. By investing in a new production line for semiconductor-grade polysilicon, WACKER continues to expand its activities in this sector. Compared to 2024, the company aims to double its sales to semiconductor customers by 2030. 'The new production line is a key project for our growth,' remarked WACKER CEO Christian Hartel, and elaborated further, "WACKER is a global leader in the semiconductor sector. Today, every second computer chip is made from polysilicon delivered by WACKER. Etching Line Next will not only allow us to meet the growing demands of the semiconductor industry, but also to achieve an exceptionally high product quality and a very high level of stability in production processes. Thanks to our new line, we can consistently produce polysilicon that will enable developers and manufacturers to come up with even more powerful logic and memory chips for the most demanding applications, such as artificial intelligence. In short: no polysilicon from WACKER, no AI.' With a total expenditure of over €300 million, Etching Line Next is currently the Group's largest investment project. Construction work began in fall 2022. Commissioning took place in stages from fall 2024. The plant recently went into operation and is already producing its first consignments. By virtue of the new production line, WACKER is increasing its production capacity for products that comply with the highest semiconductor-grade standards by more than 50 percent. This expansion in capacity will also create around 150 new jobs. Semiconductor-grade polysilicon: purity of over 99.9999999999 percent Cleaning the surface of the polysilicon chunks, which serve as a raw material for producing semiconductor wafers, is a complex and technically demanding process. Acids are used to remove the uppermost layer from the polysilicon surface. The chunks are then rinsed, packaged and shipped, whereby all operational steps are to a large extent automated and performed under cleanroom conditions. The ready-to-ship polysilicon now has a purity of over 99.9999999999 percent. The concentration of critical impurities is only in the parts-per-trillion range. This corresponds to not more than a grain of sugar in an Olympic-size swimming pool filled with water. Important research and innovation projects were also initiated at the start of the project. An innovative cleaning process in conjunction with highly automated processes consistently guarantees the highest level of product purity. This enables WACKER to meet the growing quality demands that are essential to produce hyperpure silicon wafers and semiconductor chips. Innovative technologies were also used during the planning phase. For example, production and logistics processes were planned virtually and simulated with the help of computer-aided simulation software. This resulted in significant cost savings and made it possible for the plant to be commissioned much earlier than the scheduled date. As part of the European Union's Important Projects of Common European Interest (IPCEI) program for microelectronics and communication technologies, funding of up to €46 million has been approved for research and innovation projects initiated by WACKER. The funding bodies include the German Federal Ministry for Economic Affairs and Energy, the Bavarian Ministry for Economic Affairs, Regional Development and Energy, and the European Union. Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged. ALCHEMPro News Desk (HU)
Yahoo
30-05-2025
- Business
- Yahoo
Wacker Chemie AG's (ETR:WCH) Intrinsic Value Is Potentially 81% Above Its Share Price
The projected fair value for Wacker Chemie is €114 based on 2 Stage Free Cash Flow to Equity Current share price of €63.05 suggests Wacker Chemie is potentially 45% undervalued Analyst price target for WCH is €85.80 which is 25% below our fair value estimate Does the May share price for Wacker Chemie AG (ETR:WCH) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by projecting its future cash flows and then discounting them to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (€, Millions) €219.3m €416.3m €382.3m €346.0m €325.1m €312.6m €305.4m €301.7m €300.2m €300.3m Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x3 Analyst x1 Est @ -6.03% Est @ -3.84% Est @ -2.31% Est @ -1.23% Est @ -0.48% Est @ 0.04% Present Value (€, Millions) Discounted @ 6.3% €206 €369 €319 €271 €240 €217 €200 €186 €174 €164 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = €2.3b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 1.3%. We discount the terminal cash flows to today's value at a cost of equity of 6.3%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = €300m× (1 + 1.3%) ÷ (6.3%– 1.3%) = €6.1b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €6.1b÷ ( 1 + 6.3%)10= €3.3b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is €5.7b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of €63.1, the company appears quite undervalued at a 45% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Wacker Chemie as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.3%, which is based on a levered beta of 1.152. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Wacker Chemie Strength Debt is well covered by earnings. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Chemicals market. Opportunity Annual earnings are forecast to grow faster than the German market. Good value based on P/E ratio and estimated fair value. Threat Debt is not well covered by operating cash flow. Paying a dividend but company has no free cash flows. Annual revenue is forecast to grow slower than the German market. Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Why is the intrinsic value higher than the current share price? For Wacker Chemie, we've compiled three fundamental factors you should assess: Risks: For example, we've discovered 1 warning sign for Wacker Chemie that you should be aware of before investing here. Future Earnings: How does WCH's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the XTRA every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
30-05-2025
- Business
- Yahoo
Wacker Chemie AG's (ETR:WCH) Intrinsic Value Is Potentially 81% Above Its Share Price
The projected fair value for Wacker Chemie is €114 based on 2 Stage Free Cash Flow to Equity Current share price of €63.05 suggests Wacker Chemie is potentially 45% undervalued Analyst price target for WCH is €85.80 which is 25% below our fair value estimate Does the May share price for Wacker Chemie AG (ETR:WCH) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by projecting its future cash flows and then discounting them to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (€, Millions) €219.3m €416.3m €382.3m €346.0m €325.1m €312.6m €305.4m €301.7m €300.2m €300.3m Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x3 Analyst x1 Est @ -6.03% Est @ -3.84% Est @ -2.31% Est @ -1.23% Est @ -0.48% Est @ 0.04% Present Value (€, Millions) Discounted @ 6.3% €206 €369 €319 €271 €240 €217 €200 €186 €174 €164 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = €2.3b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 1.3%. We discount the terminal cash flows to today's value at a cost of equity of 6.3%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = €300m× (1 + 1.3%) ÷ (6.3%– 1.3%) = €6.1b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €6.1b÷ ( 1 + 6.3%)10= €3.3b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is €5.7b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of €63.1, the company appears quite undervalued at a 45% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Wacker Chemie as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.3%, which is based on a levered beta of 1.152. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Wacker Chemie Strength Debt is well covered by earnings. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Chemicals market. Opportunity Annual earnings are forecast to grow faster than the German market. Good value based on P/E ratio and estimated fair value. Threat Debt is not well covered by operating cash flow. Paying a dividend but company has no free cash flows. Annual revenue is forecast to grow slower than the German market. Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Why is the intrinsic value higher than the current share price? For Wacker Chemie, we've compiled three fundamental factors you should assess: Risks: For example, we've discovered 1 warning sign for Wacker Chemie that you should be aware of before investing here. Future Earnings: How does WCH's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the XTRA every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
