German stock alert


Afternoon Alert: Beiersdorf decreases 0.6%, leads Cosmetics/Personal care sector lower 18 January 2018 12:17 CET


Beiersdorf AG (ETR:BEI) has decreased 0.6% to trade at EUR96.54 vs. the Cosmetics/Personal care sector which weakened 5.1 points (or 0.04%) to 12,094.1. Representing a weighting of about 7.2% of the sector, the stock accounted for the loss. The shares have underperformed 91% of the market in the past month.

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

+ The negative 0.47 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The price decreased 1.2% in the last week and sank 4.3% in the last month.

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


+ Price/Sales of 3.6 [2.2]

+ Return on Capital Employed 18.3% [28.6%]

+ Return on Assets 9.6% [12.9%]

Other Bearish Signals include:

+ Tobin's Q Ratio is 3.2. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

+ Net profit margin has averaged 9.8% in the last 3 years. This is lower than the sector average of 13.3% and suggests a low margin of safety.


Bullish Signals:

The 5.3% discount to 12-month high of EUR102.0 against the 19.4% premium to 12-month low of EUR80.86 suggests the stock continues to push for new highs.

In the last three months the stock has hit a new 52-week high eight times, pointing to a significant uptrend.

Interest cover is less leveraged at 253.8 times.

Total Liabilities/EBITDA of 2.8 is comfortably below the Joseph Piotroski benchmark of <5.

Net Profit margin and EBIT margin are positive and have seen consecutive rises in recent years.

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


Price/Earnings of 30.8 [40.5]

Beiersdorf AG (DE:BEI; ETR:BEI; GR:BEI)

ISIN: DE0005200000

PermID: 4295869070