Lanxess AG, trading under the symbol LNXSY on the OTC exchange, is a specialty chemicals company based in Germany. It operates in various segments, including Advanced Intermediates, Specialty Additives, and Consumer Protection. The company faces competition from other chemical giants like BASF and Evonik. On November 7, 2025, Lanxess reported its earnings before the market opened, revealing an earnings per share (EPS) of -$0.01, which was below the estimated EPS of $0.002.
The company's actual revenue was approximately $1.54 billion, falling short of the estimated $1.64 billion. Following the earnings report, Lanxess shares experienced a significant decline, dropping 14%. The company adjusted its guidance to the lower end, with all business units underperforming expectations. This underperformance is attributed to challenges such as Chinese dumping, US trade policies, weak demand, and uncertainty surrounding the sale of Envalior.
Despite these challenges, Lanxess has managed to maintain steady EBITDA margins, showcasing its resilience. The company has a price-to-earnings (P/E) ratio of approximately -8.88, indicating negative earnings. The price-to-sales ratio stands at about 0.24, suggesting that the stock is valued at 24 cents for every dollar of sales. The enterprise value to sales ratio is approximately 0.19, reflecting the company's valuation relative to its sales.
The enterprise value to operating cash flow ratio is around 2.59, indicating how many times the operating cash flow can cover the enterprise value. The earnings yield is approximately -11.26%, consistent with the negative earnings situation. However, Lanxess maintains a strong liquidity position, with a current ratio of about 2.41, meaning its current assets are more than twice its current liabilities. This liquidity could help the company navigate its current challenges.
