BASF SE (BASFY) AI Stock Analysis

• Market Cap: $44.45B
• Dividend Yield: 5%
• Average Volume (3M): 182.04K
• Price to Earnings (P/E): 147.0
• Beta (1Y): 0.90
• Revenue Growth: -1.26%
• EPS Growth: -45.61%
• Country: US
• Employees: 111,408
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.15
• Shares Outstanding: 3,570,088,600
• 10 Day Avg. Volume: 126,052
• 30 Day Avg. Volume: 182,043
• PEG Ratio: 0.06
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 50.24
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 1.09
• Enterprise Value/Gross Profit: 4.15
• Enterprise Value/Ebitda: 10.21
• 1Y Price Target: $11.00
• Price Target Upside: -11.72% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.76
• Revenue Forecast (FY): $72.43B

• Rating: 55 Neutral
• Price Target: $12.50 ▲(0.32% Upside)

BASF SE's overall stock score is primarily influenced by its mixed financial performance and high valuation. Technical analysis suggests potential downward pressure, while the earnings call highlights both strengths and challenges. The high P/E ratio and attractive dividend yield provide a nuanced view of the stock's valuation.

BASF SE Business Overview & Revenue Model

Company Description

BASF SE is a leading global chemical company based in Germany, renowned for its diverse portfolio that spans across various sectors including chemicals, plastics, agricultural solutions, performance products, and oil and gas. The company operates through six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions. BASF's core products include a wide range of chemical intermediates, high-performance plastics, crop protection products, and specialty additives, which serve numerous industries such as automotive, construction, and agriculture.

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 performance is mixed. The income statement shows declining revenue and profit margins, indicating profitability challenges. The balance sheet is stable but with increased leverage and lower ROE. Cash flow shows improvement in free cash flow growth, but low conversion ratios are concerning.

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	2.92B
Net Income	388.00M	1.30B	225.00M	-391.00M	5.52B	-1.47B
Balance Sheet
Total Assets	77.67B	80.42B	79.93B	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	43.28B	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: Positive
• Last Price: 12.46
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 above the 20-day moving average (MA) of 12.46, below the 50-day MA of 12.58, and below the 200-day MA of 12.47, indicating a bullish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 53.51 is Neutral, neither overbought nor oversold. The STOCH value of 68.94 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BASFY	55 Neutral	$44.45B	146.96	0.68%	5.00%	-1.26%	-45.61%
CE	50 Neutral	$4.52B	―	-54.74%	0.29%	-7.34%	-382.79%
DOW	49 Neutral	$15.71B	―	-6.39%	10.98%	-5.25%	-208.14%
HUN	48 Neutral	$1.44B	―	-10.65%	13.48%	-3.46%	-191.77%
BAK	46 Neutral	$1.05B	―	―	―	-3.33%	44.37%
TROX	43 Neutral	$572.37M	―	-18.65%	10.06%	-7.81%	-334.15%

BASF SE Corporate Events

BASF Earnings Call: Mixed Results Amid Challenges

BASF’s recent earnings call painted a mixed picture, highlighting both significant achievements and notable challenges. The company reported strong performances in Surface Technologies and Agricultural Solutions, alongside successful divestiture strategies and effective cost management. However, these positive aspects were counterbalanced by sales declines, currency impacts, and margin pressures across various segments.