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BASF SE (BASFY)
OTHER OTC:BASFY
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BASF SE
(OTC:BASFY)
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Rating:65Neutral
Price Target:
$14.00
▲(12.36% Upside)
BASFY's overall stock score is driven by stable financial performance and positive technical indicators, despite high valuation concerns. The earnings call highlighted both strengths in specific segments and challenges in sales and margins. The attractive dividend yield provides some support to the stock's valuation.
Positive Factors
Strong Performance in Surface Technologies
The Surface Technologies segment's earnings growth, supported by government grants and strong precious metal trading, indicates robust market positioning and operational efficiency, contributing to long-term profitability.
Agricultural Solutions Segment Success
The Agricultural Solutions segment's success, with improved margins and new product launches, highlights BASF's innovation and market adaptability, supporting sustained revenue growth.
Volume Growth in China
The 12% volume growth in China demonstrates BASF's strong market penetration and potential for continued expansion in a key growth market, enhancing long-term revenue prospects.
Negative Factors
Overall Sales Decline
The overall sales decline, driven by currency headwinds and pricing pressures, reflects challenges in maintaining revenue growth and could impact long-term financial stability.
Challenging Upstream Margins
The imbalance in supply and demand affecting upstream margins suggests ongoing challenges in cost management and profitability, potentially impacting future earnings.
Currency Impact on Earnings
Currency depreciation affecting earnings highlights the vulnerability to exchange rate fluctuations, which can undermine profitability and financial performance over time.
BASF SE (BASFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.76B
Dividend Yield4.91%
Average Volume (3M)96.27K
Price to Earnings (P/E)154.0
Beta (1Y)0.81
Revenue Growth-1.26%
EPS Growth-45.61%
CountryUS
Employees111,408
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)0.15
Shares Outstanding3,570,088,600
10 Day Avg. Volume81,831
30 Day Avg. Volume96,272
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)1.06
Price to Sales (P/S)0.58
P/FCF Ratio50.24
Enterprise Value/Market Cap1.48
Enterprise Value/Revenue1.05
Enterprise Value/Gross Profit4.10
Enterprise Value/Ebitda10.41
Forecast
1Y Price Target
$11.00Price Target Upside-11.72% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
BASF SE Business Overview & Revenue Model
Company DescriptionBASF 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 MoneyBASF generates revenue through a diversified model that includes the production and sale of chemicals, plastics, and agricultural products. Its key revenue streams arise from the sale of performance products, which encompass a range of specialty chemicals for various applications; agricultural solutions, which include crop protection products and seeds; and industrial solutions such as coatings and adhesives. The company also benefits from its extensive global network, allowing it to serve a wide array of industries while leveraging economies of scale. Significant partnerships and collaborations with major corporations in related fields enhance its market presence and innovation capabilities. Additionally, BASF's investments in research and development drive new product offerings and improve existing ones, contributing to sustained revenue growth.
BASF SE Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 27, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with notable achievements in the Agricultural Solutions and Surface Technologies segments, supported by strong cost savings initiatives. However, these were tempered by challenges in the Chemicals segment, decreased earnings, and global economic uncertainties.Q2-2025 Updates
Positive Updates
Strong Performance in Agricultural Solutions
The Agricultural Solutions segment achieved remarkable growth of 21% compared with the prior year quarter, with volumes increasing across most sectors. Earnings improved by EUR 282 million to EUR 417 million, resulting in a strong EBITDA margin before special items of 30%.
Surface Technologies Segment Growth
The Surface Technologies segment recorded robust volume growth, with volumes increasing by 6.5%. EBITDA before special items rose by around 10% to EUR 350 million, driven by strong contributions from Environmental Catalyst and Metal Solutions.
Portfolio Management Progress
BASF is executing its portfolio management strategy, including the sale of the Decorative Paints business to Sherwin-Williams for USD 1.15 billion and exploring strategic options for the Coatings activities.
Cost Savings and Financial Strength
BASF accelerated cost savings programs, now expecting to generate annual cost savings of EUR 1.6 billion by year-end 2025. Free cash flow increased to EUR 533 million in Q2 2025, compared to EUR 471 million in Q2 2024.
Negative Updates
Decrease in EBITDA and Net Income
EBITDA before special items decreased to EUR 1.8 billion in Q2 2025 from EUR 2 billion in the prior year quarter. Net income decreased to EUR 887 million, with significant declines in net income from shareholdings.
Challenges in the Chemicals Segment
The Chemicals segment faced unfavorable supply and demand conditions, leading to a decline in earnings. Startup costs for the new Verbund site in Zhanjiang burdened earnings by around EUR 70 million in Q2 2025.
Impact of Currency Effects
Currency effects, mainly due to the depreciation of the U.S. dollar, dampened sales in all segments during the second quarter of 2025.
Global Economic Uncertainty
The business environment was challenging, with high uncertainty and cautiousness among customers globally, contributing to significantly lower EBITDA before special items in upstream businesses.
Company Guidance
During the BASF SE half-year press conference for 2025, the company reported financial figures and provided guidance for the remainder of the year. BASF adjusted its full-year outlook due to elevated macroeconomic and geopolitical uncertainties, particularly highlighting the ongoing margin pressure in the chemical market. The company reported an EBITDA before special items of EUR 1.8 billion for Q2 2025, a decline from EUR 2 billion in the prior year. The Agricultural Solutions segment achieved considerable earnings growth with volumes rising 21% compared to the previous year. The Surface Technologies segment also showed robust performance, with a 10% rise in EBITDA before special items to EUR 350 million. However, the Chemicals segment faced challenges due to unfavorable supply and demand conditions, and startup costs for the new Verbund site in Zhanjiang burdened earnings by EUR 70 million. For the full year 2025, BASF expects EBITDA before special items to range between EUR 7.3 billion and EUR 7.7 billion and free cash flow between EUR 0.4 billion and EUR 0.8 billion. The company is focused on executing portfolio management strategies, including the potential IPO of its Agricultural Solutions segment by 2027 and the divestiture of its Decorative Paints business.BASF SE Financial Statement Overview
Summary
BASF SE demonstrates stable revenue and gross profit margins, but faces challenges in profitability and cash flow generation. The balance sheet reflects moderate leverage and a solid equity base, providing some financial stability. Overall, while the company shows resilience in revenue growth, it needs to improve profitability and cash flow management to enhance financial health.Income Statement
BASF SE shows a modest revenue growth of 1.55% in the TTM, recovering from previous declines. The gross profit margin remains stable at around 26%, indicating consistent cost management. However, the net profit margin is low at 0.60%, reflecting challenges in converting revenue into profit. EBIT and EBITDA margins have decreased slightly, suggesting pressure on operational efficiency.Balance Sheet
The company's debt-to-equity ratio is 0.74, indicating a moderate level of leverage. Return on equity is low at 1.12%, pointing to limited profitability relative to shareholder equity. The equity ratio stands at 42.86%, showing a solid equity base compared to total assets, which provides some financial stability.Cash Flow
Free cash flow has decreased by 36.24% in the TTM, highlighting potential liquidity concerns. The operating cash flow to net income ratio is 3.36, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio is low at 0.08, suggesting limited free cash flow generation relative to profits.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 65.77B | 65.26B | 68.90B | 87.33B | 78.60B | 59.15B |
| Gross Profit | 16.84B | 17.09B | 16.70B | 21.07B | 19.80B | 15.11B |
| EBITDA | 6.64B | 7.77B | 7.33B | 10.22B | 10.84B | 2.92B |
| Net Income | 301.99M | 1.30B | 225.00M | -391.00M | 5.52B | -1.47B |
Balance Sheet | ||||||
| Total Assets | 89.82B | 80.42B | 79.93B | 84.47B | 87.38B | 80.29B |
| Cash, Cash Equivalents and Short-Term Investments | 2.22B | 2.98B | 2.68B | 2.75B | 2.83B | 4.54B |
| Total Debt | 26.77B | 24.00B | 21.35B | 20.95B | 19.14B | 21.19B |
| Total Liabilities | 49.97B | 43.53B | 43.28B | 43.55B | 45.30B | 45.89B |
| Stockholders Equity | 38.49B | 35.60B | 35.28B | 36.60B | 40.79B | 33.73B |
Cash Flow | ||||||
| Free Cash Flow | 298.41M | 748.00M | 2.72B | 3.33B | 3.71B | 2.28B |
| Operating Cash Flow | 5.63B | 6.95B | 8.11B | 7.71B | 7.25B | 5.41B |
| Investing Cash Flow | -4.50B | -5.08B | -4.99B | -3.78B | -2.62B | -1.90B |
| Financing Cash Flow | -1.68B | -1.55B | -2.90B | -4.01B | -6.46B | -1.56B |
BASF SE Technical Analysis
Positive
12.46
Price Trends
12.72
Positive
12.76
Positive
12.51
Positive
Market Momentum
0.07
Positive
54.27
Neutral
71.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BASFY, the sentiment is Positive. The current price of 12.46 is below the 20-day moving average (MA) of 12.94, below the 50-day MA of 12.72, and below the 200-day MA of 12.51, indicating a bullish trend. The MACD of 0.07 indicates Positive momentum. The RSI at 54.27 is Neutral, neither overbought nor oversold. The STOCH value of 71.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BASFY.
BASF SE Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $46.76B | 154.01 | 0.68% | 4.91% | -1.26% | -45.61% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
57 Neutral | $4.99B | -1.62 | -54.74% | 0.29% | -7.34% | -382.79% | |
57 Neutral | $892.65M | ― | -18.65% | 8.27% | -7.81% | -334.15% | |
56 Neutral | $2.04B | -6.34 | -10.65% | 8.44% | -3.46% | -191.77% | |
49 Neutral | $18.71B | -16.39 | -6.39% | 9.17% | -5.25% | -208.14% | |
47 Neutral | $1.21B | -1.38 | ― | ― | -10.68% | 36.31% |
* Basic Materials Sector Average
BASFY
BASF SE
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24.19%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.