Covestro on the Capital Market

Performance of Covestro stock versus market in fiscal year 2019

€ (Covestro share)

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 EURO STOXX 50* 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 STOXX Europe 600 Chemicals** 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.

Dividend performance

Dividend per share carrying dividend rights (€)

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.

ADR program successful for third year

Since December 1, 2016, the American Depositary Receipt (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.