BASF SE (BASFY) AI Stock Analysis

• Market Cap: $44.38B
• Dividend Yield: 5.08%
• Average Volume (3M): 115.65K
• Price to Earnings (P/E): 106.2
• Beta (1Y): 0.89
• Revenue Growth: -0.25%
• EPS Growth: N/A
• Country: US
• Employees: 111,408
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.14
• Shares Outstanding: 3,570,088,600
• 10 Day Avg. Volume: 175,732
• 30 Day Avg. Volume: 115,653
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 1.08
• Enterprise Value/Gross Profit: 4.13
• Enterprise Value/Ebitda: 10.17
• 1Y Price Target: $12.90
• Price Target Upside: 4.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: $13.00 ▲(4.84% Upside)

BASF SE's overall stock score is primarily influenced by mixed financial performance and a challenging earnings outlook. The high P/E ratio suggests overvaluation, while technical indicators point to potential bearish momentum. Despite strong segments, global uncertainties and operational challenges weigh on the stock's prospects.

BASF SE Business Overview & Revenue Model

Company Description

BASF SE operates as a chemical company worldwide. The company operates through six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions. The Chemicals segment provides petrochemicals and intermediates. The Materials segment offers advanced materials and their precursors for applications and systems, such as isocyanates and polyamides, as well as inorganic basic products and specialties for plastic and plastic processing industries. The Industrial Solutions segment develops and markets ingredients and additives for industrial applications, such as polymer dispersions, pigments, resins, electronic materials, antioxidants, light stabilizers, oilfield chemicals, mineral processing, and hydrometallurgical chemicals. The Surface Technologies segment offers chemical solutions and automotive OEM, which include refinish coatings, surface treatment, catalysts, battery materials, and precious and base metal services for the automotive and chemical industries. The Nutrition & Care segment provides nutrition and care ingredients for food and feed producers, as well as pharmaceutical, cosmetics, detergent, and cleaner industries. The Agricultural Solutions segment offers crop protection products and seeds, such as fungicides, herbicides, insecticides, and biological crop production products, as well as seed treatment products. The company has strategic partnerships with Contemporary Amperex TechnologyCo., Limited on battery materials solutions, including cathode active materials and battery recycling. BASF SE was founded in 1865 and is headquartered in Ludwigshafen am Rhein, Germany.

How the Company Makes Money

BASF SE generates revenue primarily through the production and sale of chemical products across its various segments. The Chemicals segment contributes significantly by providing intermediates used in diverse applications, while the Materials and Surface Technologies segments focus on high-performance plastics and coatings that cater to automotive and industrial needs. Agricultural Solutions provides crop protection and nutrient products, contributing to revenue from the agricultural sector. The company also engages in strategic partnerships, joint ventures, and collaborations that enhance its product offerings and market reach. Fluctuations in raw material prices, demand from key industries, and global economic conditions also play crucial roles in influencing BASF's earnings.

BASF SE Financial Statement Overview

Summary

BASF SE's financial statements present a mixed picture. The company faces challenges with declining revenue and profitability margins, impacting its income statement. The balance sheet remains relatively stable, but increased leverage and lower ROE are areas to watch. Cash flow shows some improvement in free cash flow growth, but low conversion ratios indicate potential issues in cash generation. Overall, while BASF SE maintains a solid foundation, it faces headwinds in profitability and cash conversion that need to be addressed.

Income Statement

BASF SE's income statement shows mixed results. The TTM data indicates a decline in revenue growth at -52.5%, reflecting a challenging market environment. Gross profit margin remains stable at around 26%, but the net profit margin has significantly decreased to 0.6% from 2% in the previous year, indicating pressure on profitability. EBIT and EBITDA margins have also declined, suggesting operational challenges. Overall, while the company maintains a decent gross margin, the declining revenue and profit margins are concerning.

Balance Sheet

The balance sheet of BASF SE shows a moderate financial position. The debt-to-equity ratio has increased slightly to 0.74, indicating a higher reliance on debt financing, but it remains within a manageable range. Return on equity has decreased to 1.1%, reflecting lower profitability. The equity ratio stands at approximately 41.7%, showing a stable capital structure. While the company maintains a solid equity base, the increased leverage and reduced ROE are potential risks.

Cash Flow

BASF SE's cash flow statement reveals some positive trends. The free cash flow growth rate has improved by 15.3% in the TTM period, indicating better cash generation. However, the operating cash flow to net income ratio is relatively low at 0.34, suggesting that cash generation from operations is not fully translating into net income. The free cash flow to net income ratio is also low at 0.08, highlighting potential challenges in converting earnings into cash. Overall, while there is improvement in free cash flow, the low conversion ratios are a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.77B	65.26B	68.90B	87.33B	78.60B	59.15B
Gross Profit	16.98B	17.09B	16.70B	21.07B	19.80B	15.11B
EBITDA	6.90B	7.77B	7.33B	10.22B	10.84B	3.57B
Net Income	388.00M	1.30B	225.00M	-391.00M	5.52B	-1.47B
Balance Sheet
Total Assets	77.67B	80.42B	77.39B	84.47B	87.38B	80.29B
Cash, Cash Equivalents and Short-Term Investments	2.57B	2.98B	2.68B	2.75B	2.83B	4.54B
Total Debt	23.85B	24.00B	21.35B	20.95B	19.14B	21.19B
Total Liabilities	44.16B	43.53B	40.75B	43.55B	45.30B	45.89B
Stockholders Equity	32.36B	35.60B	35.28B	36.60B	40.79B	33.73B
Cash Flow
Free Cash Flow	468.00M	748.00M	2.72B	3.33B	3.71B	2.28B
Operating Cash Flow	6.11B	6.95B	8.11B	7.71B	7.25B	5.41B
Investing Cash Flow	-3.86B	-5.08B	-4.99B	-3.78B	-2.62B	-1.90B
Financing Cash Flow	-1.86B	-1.55B	-2.90B	-4.01B	-6.46B	-1.56B

BASF SE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BASFY, the sentiment is Negative. The current price of 12.4 is below the 20-day moving average (MA) of 12.79, below the 50-day MA of 12.98, and above the 200-day MA of 12.22, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 39.21 is Neutral, neither overbought nor oversold. The STOCH value of 15.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BASFY.

BASF SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BASFY	54 Neutral	$44.38B	106.16	1.10%	5.08%	-0.25%	―
HUN	54 Neutral	1.56B	-4.99	-11.39%	11.14%	-1.56%	-259.58%
TROX	50 Neutral	640.44M	-2.56	-15188.34%	10.52%	0.20%	-292.54%
DOW	46 Neutral	16.28B	-16.39	-5.69%	10.67%	-2.82%	-186.41%
CE	45 Neutral	4.47B	-2.75	-30.71%	1.94%	-5.83%	-183.85%
BAK	38 Underperform	1.12B	-1.04	236.72%	―	-3.33%	44.37%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%