AlzChem Group AG (ACT.DE) | Investment Case

1. Company Snapshot

1.a. Company Description

AlzChem Group AG, together with its subsidiaries, develops, produces, and trades chemical products in Germany, European Union, rest of Europe, Asia, NAFTA region, and internationally.It operates through three segments: Specialty Chemicals, Basics & Intermediates, and Other & Holding.The company offers dietary supplements under the Creapure and Alipure brands; preparation of guanidinoacetic acid as a nutritional feed additives under the Creamino brand; creatine dietary supplements under the LIVADUR brand; products for pharmaceuticals under the Bioselect brand; curing agents, including accelerators for use in adhesives, powder coatings, printed circuit boards, and composites under the DYHARD name; and silicon nitride for ceramics, and electronics and solar applications under the SILZOT brand.

It also provides fine and specialty chemicals, including products based on calcium carbide, calcium cyanamide, hydrogen cyanamide, dicyandiamide, guanidine, guanamines, and nitroguanidine, as well as aromatic and aliphatic nitriles; calcium cyanamide under the PERLKA name; germicide for use in pig pens under the ALZOGUR name; plant growth regulators under the Dormex and Sitofex name; and plant protection additives under the BREAK-THRU name.In addition, the company offers products for use in hot metal desulfurization and secondary metallurgy applications; and technical gases.Further, it provides chemical park operations and administrative services, as well as produces and distributes various infrastructure services.

AlzChem Group AG was founded in 1908 and is based in Trostberg, Germany.

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1.b. Last Insights on ACT

AlzChem Group AG's recent performance has been positively driven by robust financials, high insider ownership, and growth prospects. The company's strong alignment between management and shareholder interests, with significant insider ownership, signals confidence in its strategic direction. Additionally, AlzChem Group's financial health and potential for up to 70% earnings growth have drawn investor attention. Its stock may be undervalued, offering potential opportunities for growth as European markets experience a notable upswing.

1.c. Company Highlights

Last Price	152.8
Change Percentage	-1.29%
Open	155.4
Previous Close	154.8
Market Cap ( Millions)	1544
Volume	16931
Year High	171
Year Low	73.7
M A 50	154.2
M A 200	145.72

FCF Yield	2.72%
Dividend Yield	1.18%
ROE	28.12%
Debt / Equity	0.00%
Net Debt / EBIDTA	-72.34%
Price To Book	6.55
Price Earnings Ratio	24.96
Price To FCF	36.7
Price To sales	2.75
EV / EBITDA	13.31

2. Alzchem Group AG Delivers Strong FY 2025 Results, Exceeds Guidance

Alzchem Group AG reported a robust financial performance for FY 2025, with consolidated sales reaching EUR 562 million, just shy of the company's sales forecast corridor of approximately EUR 580 million. The Group EBITDA increased disproportionately to sales, exceeding the forecast at around EUR 116.5 million, driven primarily by the Specialty Chemicals segment. The EBITDA margin expanded to 20.7%, surpassing the guidance of 19.5%. The company also reported a group net result of EUR 64 million, representing an 18% increase. Earnings per share (EPS) came in at EUR 1.49, beating analyst estimates of EUR 1.17.

Publication Date: 09:08

                                    📋 Highlights
                                    2025 Financial Performance:
                                                Consolidated sales reached EUR 562M (vs. EUR 580M forecast), with Group EBITDA exceeding EUR 116.5M and a 20.7% margin (up from 19.5% guidance).
2026 Growth Projections:
                                                Targeting EUR 600M sales (+7%) and EUR 126M EBITDA (+8%), driven by Specialty Chemicals volume growth in Human Nutrition and Defense sectors.
U.S. Investment Update:
                                                Finalizing a $150M CapEx project for a new U.S. production site, supported by a $90M DoD subsidy contingent on completion by 2029.
Carbide Oven Refurbishment:
                                                On-time and within budget, with EUR 15M profitability impact expected in 2026 due to maintenance shutdowns and nitroguanidine ramp-up delays.
Capacity Expansion:
                                                Creatine capacity to grow 20-25% in 2026, with full operational readiness by 2028 and USD 0 free cash flow anticipated in 2026 despite higher CapEx.

                                

Segment Performance and Outlook

The Specialty Chemicals segment was the main driver of growth, with the creatine business expected to see an additional 20% to 25% increase in quantities available in 2026, supporting the company's growth plans. As Andreas Niedermaier noted, "our creatine business will be supported by our last incremental capacity expansion, and we expect volume and revenue growth from our Defense business expansion in the second half of 2026." The company is also progressing with its U.S. investment, with the DoD offering a subsidy of $90 million, pending the completion of a new production site by the end of 2029.

Valuation and Metrics

With a P/E Ratio of 24.64 and an EV/EBITDA of 13.13, the market appears to be pricing in a certain level of growth and profitability. The ROE of 28.12% and ROIC of 12.99% indicate a strong return on equity and invested capital. The Net Debt / EBITDA ratio of -0.72 suggests a healthy balance sheet with significant cash reserves.

Guidance and Future Prospects

Looking ahead to 2026, Alzchem expects sales to grow to approximately EUR 600 million and EBITDA to reach around EUR 126 million, representing a sales increase of approximately 7% and EBITDA growth of approximately 8%. The company's guidance is supported by its healthy balance sheet and cash flows, with increased CapEx spending for nitroguanidine expansion and customer grants received contributing to the increase in balance sheet total.

3. NewsRoom

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European Growth Companies With Insider Ownership Up To 28%

Nov -25

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Is AlzChem Group AG (ETR:ACT) Trading At A 44% Discount?

Nov -24

Source:

We Think AlzChem Group's (ETR:ACT) Profit Is Only A Baseline For What They Can Achieve

Nov -08

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.13%)

6. Segments

Specialty Chemicals

Expected Growth: 6%

AlzChem Group AG's Specialty Chemicals segment growth is driven by increasing demand for sustainable and eco-friendly products, expansion into emerging markets, and strategic partnerships. Additionally, the company's focus on research and development, as well as its ability to adapt to changing market trends, contribute to its growth.

Basics and Intermediates

Expected Growth: 4%

AlzChem Group AG's Basics and Intermediates segments demonstrate 4% growth driven by increasing demand for specialty chemicals, expanding customer base, and strategic capacity expansions. Additionally, the company's focus on sustainability and eco-friendly products contributes to growth, as customers prioritize environmentally responsible solutions.

Other and Holding

Expected Growth: 3%

AlzChem Group AG's Other and Holding segment growth is driven by strategic investments in sustainable projects, diversification of revenue streams, and optimization of operational costs. Additionally, the company's focus on innovation and R&D enables it to capitalize on emerging trends, further fueling growth.

7. Detailed Products

Creapure

High-quality creatine monohydrate for sports nutrition and pharmaceutical applications

Alzchem Fertilizers

Specialty fertilizers for agriculture, horticulture, and landscaping

Dytek

Amino acids and specialty chemicals for pharmaceutical, cosmetic, and industrial applications

Calcipan

Calcium carbonate for food, pharmaceutical, and technical applications

Alzchem Fine Chemicals

Custom manufacturing of fine chemicals for pharmaceutical, agrochemical, and specialty chemical industries

8. AlzChem Group AG's Porter Forces

Forces Ranking

Threat Of Substitutes

AlzChem Group AG operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the availability of alternative products.

Bargaining Power Of Customers

AlzChem Group AG has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are specialized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

AlzChem Group AG relies on a few key suppliers for raw materials, which gives them some bargaining power. However, the company's long-term relationships with suppliers and its diversified supply chain mitigate this risk.

Threat Of New Entrants

The chemical industry has high barriers to entry, including significant capital requirements, regulatory hurdles, and the need for specialized expertise. This makes it difficult for new entrants to compete with AlzChem Group AG.

Intensity Of Rivalry

The chemical industry is highly competitive, with many established players competing for market share. AlzChem Group AG faces intense rivalry from other companies in the industry, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	26.78%
Debt Cost	5.79%
Equity Weight	73.22%
Equity Cost	9.16%
WACC	8.26%
Leverage	36.57%

11. Quality Control: AlzChem Group AG passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Uzin Utz

A-Score: 6.0/10

Value: 7.2

Growth: 5.0

Quality: 6.5

Yield: 4.4

Momentum: 8.5

Volatility: 4.3

1-Year Total Return ->

Sniezka

A-Score: 5.7/10

Value: 5.9

Growth: 3.9

Quality: 6.9

Yield: 6.9

Momentum: 5.5

Volatility: 5.3

1-Year Total Return ->

AlzChem

A-Score: 5.4/10

Value: 2.7

Growth: 8.0

Quality: 6.3

Yield: 4.4

Momentum: 10.0

Volatility: 1.3

1-Year Total Return ->

Borregaard

A-Score: 5.4/10

Value: 2.9

Growth: 5.7

Quality: 6.8

Yield: 3.8

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

Corbion

A-Score: 5.1/10

Value: 6.5

Growth: 7.4

Quality: 4.4

Yield: 4.4

Momentum: 2.0

Volatility: 6.0

1-Year Total Return ->

EPC

A-Score: 4.6/10

Value: 3.7

Growth: 7.4

Quality: 3.2

Yield: 0.6

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

12.77%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.26%

AlzChem Group AG - DE000A2YNT30

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ACT

1.c. Company Highlights

Strong Momentum

Better Quality

Fairly Valued

Revenues Beats

Medium Volatility

Average Growth

Higher Growth

Earnings Beats

Revenues Miss

Expensive

2. Alzchem Group AG Delivers Strong FY 2025 Results, Exceeds Guidance

Segment Performance and Outlook

Valuation and Metrics

Guidance and Future Prospects

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.13%)

6. Segments

Specialty Chemicals

Expected Growth: 6%

Basics and Intermediates

Expected Growth: 4%

Other and Holding

Expected Growth: 3%

7. Detailed Products

Creapure

Alzchem Fertilizers

Dytek

Calcipan

Alzchem Fine Chemicals

8. AlzChem Group AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: AlzChem Group AG passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

152.8$

Current Price

152.8$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA