German stock alert

GFR

Afternoon Alert: Lanxess continues significant uptrend, increases 1.1% 19 January 2018 12:18 CET

NEWS BITES - EUROPE

Lanxess (ETR:LXS) continued its significant uptrend and increased 82.0c (or 1.1%) to trade at EUR73.96 today.

Current indications of bullish signals that support the trend in the unusual trading:

+ The positive 1.98 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the Xetra market, the stock's relative price strength percentile is improving at 50 for 6 months, 67 for 3 months and 89 for 1 month.

+ The price jumped 7.0% in the last week and soared 14.1% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Price/Sales of 0.9 [1.7]

+ Dividend yield of 0.9% [0.6%]

Other Bullish Signals include:

+ The company is cash rich with Cash to Market Capitalisation at 32.1%.

+ Interest cover is less leveraged at 6.4 times.

+ Tobin's Q Ratio is 0.7. Compared with the rest of the market the stock is undervalued.

Note

Bearish Signals:

Net profit margin has averaged 1.7% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

Overbought/Bearish:

The 0.5% discount to 12-month high of EUR74.30 against the 24.9% premium to 12-month low of EUR59.23 suggests the climb might be peaking.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Return on Assets 2% [4.7%]

Return on Equity 7.8% [12.0%]

Price/Earnings of 35.2 [23.6]

Return on Capital Employed 5.6% [7.6%]

Lanxess (DE:LXS; ETR:LXS; GR:LXS)

ISIN: DE0005470405

PermID: 4295870205

Source: www.BuySellSignals.com