COVESTRO

Analysis of Covestro share price

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Do you want to trade Covestro shares online? In this article, you will find useful information and practical data about this company, which will help you in your analysis of this stock online. Below you will find information about the group's activities and sources of profit, information about its main competitors in the market and its recent partnerships. We will also explain how to perform a consistent fundamental analysis of this stock.

Elements that can influence the price of this asset:

Analysis N°1

In particular, we will be keeping an eye on the group's innovations and therefore on its investments in research and development which will enable it to stand out in the market by meeting the new needs of its customers and prospects.

Analysis N°2

Of course, you should also pay close attention to the competition and monitor the market share of each of the major players in the sector.

Analysis N°3

As the Group's activities are strongly linked to chemicals, it is also important to follow with great interest the regulations in the countries in which Covestro markets its products.

Analysis N°4

Finally, you will also need to consider the company's financial results as well as its strategic plans for growth and development.

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General presentation of Covestro

Let's take a few moments to discover a quick presentation of the Covestro group:

The Covestro Group is a German chemical company and one of the world's leading manufacturers of polymeric materials. The products sold by the group are mainly intended for the automotive, construction, electronics, furniture and textile industries.

To better understand the group's activities, they can be divided into different business segments according to the share of turnover they generate, as follows:

  • Polyurethanes alone account for nearly 46.5% of the company's sales, with flexible polyurethane foam used to make furniture, mattress and car seat covers and rigid polyurethane foams used in the composition of insulation for buildings or refrigeration equipment.
  • Polycarbonates account for 28% of the company's sales, with high performance polycarbonates used in automotive components, roofing structures and medical devices.
  • Finally, specialty products generate 19.1% of the group's turnover with raw materials for coatings, adhesives and films.
  • Finally, the remaining 6.4% of the company's turnover comes from related activities.

Currently, the Covestro Group operates and owns about 33 production sites worldwide.

It is also interesting to know the geographical distribution of the group's income, which only generates 12.5% of its turnover in Germany. The remainder comes from Europe Middle East Africa and Latin America (30.1%), China (19.8%), Asia Pacific (12.3%), the USA (21%) and the rest of the world (4.3%).

Analysis of Covestro share price
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The major competitors of Covestro

After learning about the Covestro Group's activities, we suggest you discover its main competitors:

Dow Chemical

Also known as The Dow Chemical Company, this American multinational company is currently one of the leaders in the manufacturing and distribution of chemical products worldwide and is also a direct competitor of Covestro.

BASF 

This other company, German this time, is none other than the largest company in the world today in the chemical sector. This company has a site located in Germany and covering more than 10 km2 where more than 34,000 employees work in the development, testing and production of thousands of products, some of which compete with those of Covestro.

Henkel 

Another German company competing with Covestro. Henkel is active in three different areas of activity, mainly adhesives and glues, but also detergents and household cleaning products and cosmetics.

Huntsman

 Finally, the last major competitor that we can mention here in relation to Covestro is the American company and multinational Huntsman, which is a manufacturer and distributor of chemical products for end consumers as well as for industry. Huntsman's products include assorted polyurethanes, performance products and pigments for customers such as BMW, General Electric, Chevron, Procter & Gamble and Unilever.


The major partners of Covestro

We have seen together that the Covestro Group has a number of opponents in its sector. Fortunately, however, the company can also count on the help and support of strategic partners as it regularly sets up alliances with other companies. Here are two concrete examples of past partnerships that have benefited this company:

Neste

In 2020, the Covestro Group entered into a strategic cooperation with the Finnish biofuel specialist Neste. More precisely, this is a European collaboration agreement whose main goal is to promote the use of sustainable raw materials in the production of plastics. Through this partnership, the Covestro Group intends to replace a large proportion of the fossil raw materials used in the manufacture of polycarbonates, plastics used in car headlights and LED lamps.

Air Liquide

Another important partnership that was also put in place in 2020 by the Covestro group is the one signed with the French group Air Liquide. Indeed, the two companies have signed a new long-term contract for the supply of hydrogen to Covestro's production site, which is located in Belgium, in the Antwerp port area. As part of this cooperation, the Air Liquide Group will invest 80 million euros to build a new generation hydrogen production unit. It will be a state-of-the-art, innovative plant equipped with new technology owned by Air Liquide and designed to improve the energy efficiency and overall environmental impact of the production process. Thus, the hydrogen that will be produced in this plant will also enable Air Liquide to supply customers throughout this industrial basin in Europe.

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Frequently Asked Questions

How was the Covestro company created?

Covestro is actually the result of a demerger from Bayer in 2015. This group still holds 53% of the shares in this company at that time. These shares will then drop to 24.6% in 2017 after several successive share sales. In 2018, Bayer will again sell a 10.4% stake in Covestro for 1.8 billion euros and will then only retain a 6.8% share of the capital. Covestro will then take over DSM's resin business in 2020.

Who owns the capital of Covestro today?

As of November 2020, Covestro Group's capital is owned by several shareholders, including Bayer with 7.54%, Norges Bank Investment Management with 5.31%, Allianz Global Investors with 2.99%, The Vanguard Group with 2.70%, Amundi Asset Management with 2.61%, DWS Investments with 2.54%, DWS Investment with 2.01%, APG Asset Management with 1.86% and Deka Investment with 1.75%.

Where can I find Covestro shares?

If you want to become a Covestro shareholder, you can buy shares in the company through an investment product such as a securities account or a PEA. But you can also take a direct position on the price of this stock by registering on an online trading platform and using CFD contracts.

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