LXS GR

LANXESS AG

Industrial/Transportation


Presented:08/22/2022
Price:€31.92
Cap:$3.07B
Current Price:€28.81
Cap:$2.77B

Presented

Date08/22/2022
Price€31.92
Market Cap$3.07B
Ent Value$6.67B
P/E Ratio9.91x
Book Value€47.11
Div Yield3.29%
Shares O/S86.35M
Ave Daily Vol550,930
Short IntN/A

Current

Price€28.81
Market Cap$2.77B
LANXESS AG is a holding company, which engages in the provision of specialty chemicals. It operates through the following segments: Advanced Intermediates, Specialty Additives, Consumer Protection, and Engineering Materials. The Advanced Intermediates segment comprises operational business areas that essentially manufacture standardized and high-volume products in capital-intensive and predominantly continuous production processes. The Specialty Additives consists of operational business units that manufacture additives in chemical production processes. The Consumer Protection segment refers to operational business units that manufacture consumer protection products in chemical production processes. The Engineering Materials operates business units which manufacture high-tech plastics and high-performance composites using mainly continuous production processes. The company was founded on July 1, 2004 and is headquartered in Cologne, Germany.

Publicly traded companies mentioned herein: LANXESS AG (LXS GR)

Highlights

The presenter is long shares of LANXESS AG (LXS GR), a German specialty chemicals company that operates adjacent to the energy industry. Originally a spin-off of Bayer AG in 2004, the company has morphed into a major player in the German natural gas industry. Major players in the German natural gas industry have been severely impacted by the war in Ukraine, as many are expecting European gas supply to be adversely affected by the war this winter. The stock has since been included in many highly-publicized baskets of short stocks which has harmed investor sentiment. At around €32, the presenter believes it is cheaply priced not only because of fundamentals, but also because of the European geopolitical landscape. 

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Idea Discussion

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