Fuchs (XTRA:FPE3) has drawn fresh investor attention after raising its 2026 EBIT guidance, following preliminary first half figures that exceeded prior internal expectations and external consensus, while still flagging potential pressure on second half volumes and margins.
See our latest analysis for Fuchs.
Fuchs shares have reacted to the raised 2026 EBIT guidance, with a 1-day share price return of 2.29% and a 90-day share price return of 9.26%. The 3-year total shareholder return of 18.73% points to steadier long term compounding.
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Fuchs now trades at a discount to both analyst targets and an estimated intrinsic value after this guidance upgrade. The next step is weighing that pricing gap against the market’s caution on future volumes and margins.
Preferred P/E of 16.9x for Fuchs: Is it justified?
At a last close of €41.06, Fuchs is flagged as trading at what appears to be good value, with a P/E of 16.9x that sits below both its peer group and the wider European chemicals industry.
The P/E multiple links the current share price to earnings per share and is commonly used for companies like Fuchs that already generate consistent profits. Here, Fuchs is described as having high quality earnings, with profit growth of 5.3% over the past year and 4.5% per year over five years. Earnings are still forecast to grow, although not significantly.
Against that backdrop, the stock is described as trading at good value versus peers. Its 16.9x P/E is below the peer average of 36.7x and below the European chemicals industry average of 20x. It is also assessed as good value relative to an estimated fair P/E of 18.4x. This is presented as the level the multiple could trend toward if the market fully reflected those earnings characteristics.
Explore the SWS fair ratio for Fuchs
Result: Price-to-Earnings of 16.9x (UNDERVALUED)
However, investors still need to watch for weaker second half volumes or tighter margins at Fuchs, as well as any reset to the new 2026 EBIT guidance.
Find out about the key risks to this Fuchs narrative.
Another view on Fuchs using the SWS DCF model
The P/E of 16.9x presents Fuchs as good value, but the SWS DCF model tells a stronger story, with an estimated future cash flow value of €75.84 against a share price of €41.06. That 45.9% gap points to a very different margin of safety, so which signal do you trust more?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Fuchs for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 247 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
Given the mix of optimism and caution around Fuchs, it may be helpful to review the numbers yourself and promptly form your own view with 4 key rewards
Looking for more investment ideas beyond Fuchs?
If you like how Fuchs is shaping up, do not stop here. Use the screener to keep building a watchlist that fits your own risk and income preferences.
- Target potential mispricings by checking stocks that screen as high quality and trading below estimated value through the 247 high quality undervalued stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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