Latest news with #WackerChemieAG
Business Insider
02-08-2025
- Business
- Business Insider
Wall Street Analysts Are Bullish on Top Materials Picks
There's a lot to be optimistic about in the Materials sector as 2 analysts just weighed in on Titan Cement International N.V. (TTCIF – Research Report) and Wacker Chemie AG (WKCMF – Research Report) with bullish sentiments. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Titan Cement International N.V. (TTCIF) In a report issued on July 31, Auguste Deryckx Lienart from Kepler Capital maintained a Buy rating on Titan Cement International N.V., with a price target of EUR53.00. The company's shares closed last Friday at $42.50. According to Lienart is ranked #7973 out of 9914 analysts. Titan Cement International N.V. has an analyst consensus of Moderate Buy, with a price target consensus of $61.29. Wacker Chemie AG (WKCMF) In a report issued on July 31, Christian Faitz from Kepler Capital maintained a Buy rating on Wacker Chemie AG, with a price target of EUR104.00. The company's shares closed last Friday at $73.84. According to Faitz is ranked #1048 out of 9914 analysts. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Wacker Chemie AG with a $92.17 average price target, which is a 24.8% upside from current levels. In a report issued on July 18, Jefferies also maintained a Buy rating on the stock with a EUR81.00 price target.
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)
Business Insider
18-06-2025
- Business
- Business Insider
Analysts Offer Insights on Materials Companies: Wacker Chemie AG (OtherWKCMF) and Lynas Rare Earths (OtherLYSCF)
There's a lot to be optimistic about in the Materials sector as 2 analysts just weighed in on Wacker Chemie AG (WKCMF – Research Report) and Lynas Rare Earths (LYSCF – Research Report) with bullish sentiments. Confident Investing Starts Here: Wacker Chemie AG (WKCMF) In a report issued on June 16, Christian Faitz from Kepler Capital maintained a Buy rating on Wacker Chemie AG, with a price target of EUR104.00. The company's shares closed last Monday at $73.00, close to its 52-week low of $63.50. According to Faitz is ranked #915 out of 9621 analysts. Currently, the analyst consensus on Wacker Chemie AG is a Strong Buy with an average price target of $98.34, implying a 34.7% upside from current levels. In a report issued on June 2, Deutsche Bank also maintained a Buy rating on the stock with a EUR74.00 price target. Lynas Rare Earths (LYSCF) UBS analyst Dim Ariyasinghe maintained a Buy rating on Lynas Rare Earths today and set a price target of A$10.40. The company's shares closed last Tuesday at $6.17. According to Ariyasinghe is a 3-star analyst with an average return of 5.3% and a 58.1% success rate. Ariyasinghe covers the Basic Materials sector, focusing on stocks such as Iluka Resources Limited, Syrah Resources, and Boss Energy. Lynas Rare Earths has an analyst consensus of Hold, with a price target consensus of $5.20, representing a -16.1% downside. In a report issued on June 5, Ord Minnett also upgraded the stock to Buy with a A$8.70 price target.
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
Yahoo
01-05-2025
- Business
- Yahoo
Wacker Chemie AG (WKCMF) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Revenue: EUR1.48 billion, slightly below last year's level but higher than the previous quarter. Group EBITDA: EUR127 million, down from EUR172 million last year. Cumulative EBITDA for Operating Segments: EUR197 million, 3% lower year over year. Chemicals EBITDA: EUR145 million, up 6% year over year. Net Income: Negative EUR3 million, equating to a loss of EUR0.16 per share. Liquidity: EUR923 million. Net Debt: EUR880 million. Silicons Sales: EUR745 million, up 5% year over year. Silicons EBITDA Margin: 14.5%, up from 11.4% a year ago. Polymers Sales: EUR360 million, 3% below last year. Biosolutions Sales: EUR91 million, up 27% year over year. Polysilicon Sales: EUR245 million, 18% lower year over year. Gross Cash Flow: EUR32 million. Warning! GuruFocus has detected 6 Warning Signs with WKCMF. Release Date: April 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Wacker Chemie AG (WKCMF) reported a strong start to the year with sales reaching EUR1.48 billion, substantially higher than the previous quarter due to typical seasonality. The chemicals segment saw a 6% year-over-year increase in EBITDA, driven by strong growth in specialty silicon costs. The company is ramping up its new etching line in Burghausen, which will support the next generation of chip production and strengthen its leadership position in the semiconductor industry. Wacker Chemie AG (WKCMF) has initiated nearly 1,000 efficiency projects, yielding net savings of about EUR160 million, demonstrating a strong focus on cost-cutting and efficiency improvements. The company is actively working on sustainability initiatives, including a new global safety initiative and products with a lower carbon footprint, such as renewable raw material-based sealants and low carbon cement binders. Group EBITDA for the first quarter was EUR127 million, significantly lower than last year's EUR172 million, primarily due to weak demand for solar grade polysilicon and construction-related polymers. The company faces considerable risks from international trade relations and potential customs conflicts, which have increased uncertainty and volatility in order intake. Lower utilization rates and weak demand in certain segments, such as construction-related polymers, have negatively impacted financial performance. The potential impacts of a trade war are not included in the company's forecast, adding uncertainty to future financial outcomes. The EBITDA margin for the silicons segment, although improved, remains below target and unsatisfactory, indicating room for further improvement. Q: Could you provide insights on demand trends in your chemical activities during Q1, and how has Q2 started in terms of demand? Also, regarding silicones, your guidance suggests slightly higher margins compared to 2024. Could you clarify what "slightly" means numerically? A: Demand for our specialties in silicon remains strong, but order entry has become more volatile, particularly for standard products. March was slightly weaker than expected, but we anticipate a moderate seasonal uptake in Q2. For silicones, a slight increase in margins could mean an improvement of 1-2 percentage points. We had a strong start in Q1, but we do not expect the same level of performance to continue throughout the year. Q: How is Wacker Chemie adjusting its polysilicon business in response to anti-dumping duties, and what are the dynamics in the silicons business regarding input costs? A: With the final ruling on anti-dumping duties, supply chains are adjusting, with shifts towards countries like Laos and India. We sell at international prices, not at lower domestic prices. In silicons, while a softer upstream market isn't supportive due to high utilization needs, we are focusing on differentiated products. Lower silicon metal and energy costs are positives, but methanol prices are rising. Q: Can you update us on your market share and potential for sales increases in semi-grade polysilicon? Also, how confident are you about demand improvement in the second half of the year? A: We estimate our market share in semi-grade polysilicon at around 50%. Our new etching line in Burghausen will support further growth and potentially increase market share. We expect demand to improve in the second half as the US market remains a premium market for solar applications, driving demand for US-compliant polysilicon. Q: Regarding your silicones business, how is your trade position in North America, and what impact do tariffs have on your operations? A: Most chemicals, including silicones, are exempt from tariffs, minimizing the impact on our operations. We source silicon metal domestically for our US polysilicon production, so tariffs do not significantly affect us. Order entry in silicones has been volatile but not drastically declining, indicating a muted seasonal recovery in Q2. Q: How does the underutilization of infrastructure affect your financials, and is there a disadvantage in having Europe-only production for biosolutions? A: Underutilization in polysilicon affects infrastructure utilization, but other factors like lower equity income and hedging costs also contribute. In biosolutions, we have assets in the US, such as our cyclodextrin business, and regional setup is not a primary concern for project wins, so there's no significant disadvantage. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
