Clariant AG (CLN) AI Stock Analysis

2 Followers

Top Page

Clariant AG

(OTC:CLN)

70Neutral

Clariant AG's stock score reflects a balanced view of its financial performance, technical indicators, and valuation. Strengths in operational profitability and cost management are offset by challenges in revenue growth and cash flow. The stock's reasonable valuation and dividend yield provide some support, while the mixed sentiment from the earnings call suggests cautious optimism.

Positive Factors

Business Performance

The segment performance of agro surprised with double-digit growth, which is good news.

Growth Potential

Additives benefits from the better electronic/EV business in China and showed strong growth of over 25%.

Negative Factors

Guidance

Clariant reduced its guidance from 'flat to low single-digit growth' to a 'low single digit decline'.

Profitability

Care Chemicals saw a decline in profitability due to seasonality and low fixed cost absorption.

Clariant AG (CLN) vs. S&P 500 (SPY)

Market Cap

$3.15B

Dividend Yield4.18%

Average Volume (3M)1.40M

Price to Earnings (P/E)12.9

Beta (1Y)1.16

Revenue Growth-5.14%

EPS Growth82.31%

CountryCH

Employees10,465

SectorBasic Materials

Sector Strength60

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)0.00

Shares Outstanding331,939,200

10 Day Avg. Volume1,013,038

30 Day Avg. Volume1,402,118

Financial Highlights & Ratios

PEG Ratio-0.64

Price to Book (P/B)1.38

Price to Sales (P/S)0.00

P/FCF Ratio12.25

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$11.78

Price Target Upside23.69% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering10

Clariant AG Business Overview & Revenue Model

Company DescriptionClariant AG is a Swiss multinational specialty chemicals company headquartered in Muttenz, Switzerland. The company operates in several sectors, including Care Chemicals, Catalysis, and Natural Resources. Clariant's core products and services are designed to provide sustainable and innovative solutions across various industries such as personal care, oil and mining, automotive, and agriculture. The company is known for its focus on customer-specific solutions and its commitment to sustainability.

How the Company Makes MoneyClariant AG generates revenue primarily through the sale of specialty chemicals, which are tailored to meet specific customer needs across different industries. The company's revenue streams are divided into three main business units: Care Chemicals, which serves the personal care, home care, and industrial applications markets; Catalysis, which focuses on products and solutions for chemical and fuel production processes; and Natural Resources, which provides chemical solutions for the oil, mining, and agricultural sectors. Clariant's earnings are bolstered by its strategic partnerships and collaborations that enhance its product offerings and market reach. Additionally, the company's emphasis on sustainability and innovation drives demand for its eco-friendly and efficient chemical solutions, contributing to its overall financial performance.

Clariant AG Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
4.16B	4.15B	4.38B	5.20B	4.37B	3.86B
	Gross Profit
1.22B	1.26B	1.20B	1.02B	1.29B	1.17B
	EBIT
400.50M	440.00M	282.00M	72.00M	440.00M	298.00M
	EBITDA
652.00M	696.00M	562.00M	296.00M	679.00M	633.00M
	Net Income Common Stockholders
82.00M	244.00M	134.00M	-101.00M	344.00M	116.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
716.00M	471.00M	593.00M	758.00M	476.00M	1.05B
	Total Assets
5.87B	6.26B	5.35B	6.19B	7.04B	6.93B
	Total Debt
0.00	1.88B	1.35B	1.46B	1.95B	2.02B
	Net Debt
0.00	1.50B	861.00M	1.07B	1.53B	1.28B
	Total Liabilities
4.12B	3.76B	3.17B	3.67B	4.49B	4.55B
	Stockholders Equity
1.76B	2.33B	2.02B	2.34B	2.36B	2.24B
Cash Flow		Free Cash Flow
263.00M	209.00M	214.00M	290.00M	3.00M	70.00M
	Operating Cash Flow
467.00M	418.00M	421.00M	502.00M	363.00M	369.00M
	Investing Cash Flow
-972.00M	-805.00M	45.00M	140.00M	-143.00M	1.08B
	Financing Cash Flow
591.00M	277.00M	-356.00M	-652.00M	-538.00M	-1.33B

Clariant AG Technical Analysis

Technical Analysis Sentiment

Positive

Last Price9.52

Price Trends

50DMA

9.43

Positive

100DMA

9.85

Negative

200DMA

10.95

Negative

Market Momentum

MACD

0.06

Negative

RSI

58.06

Neutral

STOCH

69.64

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:CLN, the sentiment is Positive. The current price of 9.52 is above the 20-day moving average (MA) of 9.03, above the 50-day MA of 9.43, and below the 200-day MA of 10.95, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 58.06 is Neutral, neither overbought nor oversold. The STOCH value of 69.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:CLN.

Clariant AG Peers Comparison

Overall Rating

UnderperformOutperform

Sector (49)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIKA	77 Outperform	CHF34.31B	27.54		1.67%	4.67%	―
GIVN	73 Outperform	CHF36.70B	33.66		1.75%	7.19%	22.07%
CLN	70 Neutral	$3.15B	12.86	11.11%	4.18%	-5.14%	82.31%
EMSN	69 Neutral	$14.08B	30.56	25.54%	2.77%	-5.40%	0.70%
Sector *	49 Neutral	$1.99B	-1.09	-21.26%	3.60%	1.47%	-31.20%

* Basic Materials Sector Average

Performance Comparison

CH:CLN

Clariant AG

9.52

-4.38

-31.50%

CH:GIVN

Givaudan SA

3,994.00

-44.44

-1.10%

CH:SIKA

Sika AG

220.60

-58.31

-20.91%

CH:EMSN

EMS-CHEMIE HOLDING AG

616.00

-137.56

-18.26%

Clariant AG Earnings Call Summary

Earnings Call Date:Apr 29, 2025

(Q1-2025)

% Change Since: 3.14%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted positive aspects such as slight sales growth, EBITDA improvement, and successful cost savings initiatives. However, significant challenges were noted, including declines in the Catalysts segment, restructuring charges, and an uncertain economic environment due to trade tensions. Overall, while there are positive achievements, the negative aspects present significant challenges.

Q1-2025 Updates

Positive Updates

Slight Increase in Sales

Clariant reported sales of CHF 1.013 billion, representing a 1% increase in local currencies with stable performance in Swiss francs.

EBITDA Improvement

The company's EBITDA before exceptional items increased by 3% to CHF 190 million, with a margin improvement of 70 basis points to 18.8%.

Cost Savings Achievement

Completion of CHF 175 million cost savings program, contributing to margin improvements and operational leverage.

Lucas Meyer Cosmetics Performance

Strong operational performance with sales of CHF 25 million and high profitability. Recognized with six innovation awards at the in-cosmetics Global trade show.

Strong Performance in Care Chemicals

Recorded 2% organic growth in local currency with a strong margin of 21.7%.

Negative Updates

Catalysts Sales Decline

Sales declined by 13% in local currency due to a weak economic environment and lower utilization rates.

Restructuring Charges

CHF 38 million restructuring charges booked in Q1, with a total of CHF 75 million expected for 2025.

Uncertain Economic Environment

Increased risk and uncertainty due to tariffs and trade tensions, impacting global growth expectations.

Volume Decline in Organic Volumes

Organic volumes decreased by 2% overall, with growth in certain segments not offsetting declines in others.

Company Guidance

During the Clariant First Quarter Figures 2025 Conference Call, the company provided detailed guidance for the upcoming year. Clariant reported sales of CHF 1.013 billion, marking a 1% increase in local currencies, with EBITDA before exceptional items rising by 3% to CHF 190 million, resulting in a margin of 18.8%. The company completed a CHF 175 million cost savings program and launched a new initiative targeting CHF 80 million in savings by 2027, with CHF 3 million already achieved in Q1. Clariant maintained its guidance for 2025, expecting local currency sales growth at the lower end of the 3% to 5% range and an underlying EBITDA margin of 17% to 18% before exceptional items. The restructuring charges for 2025 are anticipated to be CHF 75 million. The company highlighted strong operational performance in its Lucas Meyer Cosmetics division, achieving sales of CHF 25 million. Despite a challenging environment, Clariant underscored its commitment to improving cash conversion and achieving medium-term targets by 2027.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.