Covestro on the Capital Market

Performance of Covestro stock versus market in fiscal year 2019

€ (Covestro share)

Performance of Covestro stock versus market in fiscal year 2019 (line chart)

Cyclical chemical stocks under further pressure despite positive equity environment

European stock markets performed well in 2019, thereby recovering from a weak year on stock markets in 2018. Many indices such as the * posted positive performances for the year. At the end of 2019, the DAX, which is relevant for Covestro, was up 25.5% compared with its value at year-end 2018, while the ** index gained 28.5% during the same period.

Cyclical chemical stocks continued to experience downward pressure, however, driven by uncertainties arising from ongoing trade conflicts and the slowing of global economic growth and industrial production. In this capital market environment, Covestro stock finished 2019 at a Xetra closing price of €41.45. Covestro reached its low for the year with a closing price of €37.95 on August 15, 2019. The high for the year was €55.32 on April 12, 2019.

* EURO STOXX 50: European stock index that reflects the share price performance of the 50 most important and highest revenue companies in Europe.

** STOXX Europe 600 Chemicals: Sector index put together by index provider STOXX. The STOXX Europe 600 comprises 600 companies across Europe.

Dividend performance

Dividend per share carrying dividend rights (€)

Dividend performance (bar chart)

1 Short fiscal year of Covestro AG

2 Proposed dividend

In 2019, Covestro’s share price was down 4.0% from its closing price of €43.18 in 2018. Including the dividend for the 2018 fiscal year of €2.40 per share paid out in April 2019, Covestro’s stock performance (with dividend reinvestment) was 0.3%.

At the end of the reporting period, Covestro’s market capitalization stood at around €7.6 billion based on the capital stock of 183 million shares. The average daily trading volume was approximately 1.3 million shares. In a ranking by German stock indices, Covestro therefore came in 24th in terms of trading volume and 39th in terms of market capitalization at the end of 2019.

Covestro share at a glance

 

 

 

 

 

 

 

 

 

 

 

2018

 

2019

Covestro closing prices Xetra; source: Bloomberg

Average daily turnover

 

million shares

 

1.2

 

1.3

Year-end closing price

 

 

43.18

 

41.45

High

 

 

95.00

 

55.32

Low

 

 

41.90

 

37.95

Outstanding shares (closing date)

 

million shares

 

182.7

 

182.9

Market capitalization (closing date)

 

€ billion

 

7.9

 

7.6

Stock price development

 

%

 

–49.8

 

–4.0

Stock price performance (with dividend reinvestment)

 

%

 

–48.4

 

+0.3

Dividend per share

 

 

2.40

 

2.40

ADR program successful for third year

Since December 1, 2016, the (ADR) program has granted global investors simplified access to Covestro stock. The Covestro ADR is traded over the counter in the United States under the COVTY ticker symbol. The total number of outstanding depositary receipts reached some 1.9 million at the end of 2019 (previous year: around 1.2 million) with monthly growth rates remaining high.

Moody’s confirms credit rating

At the end of the first half of 2019, rating agency Moody’s Investors Service, London (UK), reviewed Covestro’s existing investment-grade rating and confirmed the company’s rating on July 2, 2019. The Baa1 rating with a stable outlook puts Covestro in an excellent position for obtaining financing, particularly on the international debt market.

Buy recommendation from eleven analysts

At the end of 2019, Covestro was covered by 28 securities brokers. Of these, eleven analysts issued buy recommendations, and ten were neutral. Seven analysts recommended selling Covestro stock. The average share price target was approximately €46 at year-end.

Basic Covestro share information

 

 

 

Capital stock

 

€183,000,000

Outstanding shares (year-end)

 

182,864,685

Share class

 

No-par ordinary bearer shares

ISIN

 

DE0006062144

WKN

 

606214

Ticker symbol

 

1COV

Reuters symbol

 

1COV.DE

Bloomberg symbol

 

1COV GY

Market segment

 

Regulated market

Transparency level

 

Prime standard

Sector

 

Chemicals

Index

 

DAX

EURO STOXX 50
A European stock index that tracks the performance of the 50 most important and most actively traded companies in the eurozone
STOXX Europe 600 Chemicals
A sector index provided by STOXX. The STOXX Europe 600 is comprised of 600 companies across Europe.
ADR/American Depositary Receipt
A depositary receipt issued by U.S. banks that documents ownership of a certain number of deposited shares of a foreign company and is traded on U.S. stock markets as representation of the original shares