BASF SE (BASFY) AI Stock Analysis

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BASF SE

(OTC:BASFY)

68Neutral

BASFY's overall stock score reflects its stable financial base and operational efficiencies, balanced by challenges in revenue growth and market conditions. Technical indicators show mixed signals, while high P/E ratio suggests potential overvaluation, offset partially by a solid dividend yield. Earnings call insights highlight both risks and opportunities, with investments in future growth areas offering long-term potential.

BASF SE (BASFY) vs. S&P 500 (SPY)

Market Cap

$41.40B

Dividend Yield5.08%

Average Volume (3M)301.28K

Price to Earnings (P/E)30.1

Beta (1Y)0.95

Revenue Growth-5.19%

EPS Growth491.11%

CountryUS

Employees109,717

SectorBasic Materials

Sector Strength59

IndustryChemicals

Share Statistics

EPS (TTM)0.16

Shares Outstanding3,570,088,600

10 Day Avg. Volume352,825

30 Day Avg. Volume301,279

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.51

Price to Cash Flow (P/CF)2.50

P/FCF Ratio3.80

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$13.00

Price Target Upside4.92% Upside

Rating ConsensusHold

Number of Analyst Covering1

BASF SE Business Overview & Revenue Model

Company DescriptionBASF SE is a leading global chemical company headquartered in Ludwigshafen, Germany. The company operates in various sectors, including Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions. BASF's core products and services range from chemicals, plastics, performance products, and crop protection products, to oil and gas exploration and production. With a strong emphasis on innovation and sustainability, BASF aims to create chemistry for a sustainable future by combining economic success with environmental protection and social responsibility.

How the Company Makes MoneyBASF SE makes money primarily through the production and sale of chemicals and related products across its diverse business segments. The Chemicals segment, which includes products such as petrochemicals and intermediates, serves as a cornerstone for BASF's operations, supplying essential materials to other segments and industries. The Materials segment focuses on performance materials and monomers, catering to sectors like automotive and construction. Industrial Solutions offers solutions in the form of chemical-based products for various industries including electronics and energy. Surface Technologies is a leading supplier of coatings and catalysts, predominantly serving the automotive industry. In Nutrition & Care, BASF provides ingredients for consumer goods, pharmaceuticals, and animal nutrition. The Agricultural Solutions segment offers a comprehensive portfolio of crop protection products. Additionally, BASF generates revenue from its oil and gas segment through Wintershall Dea, a joint venture focusing on exploration and production of oil and gas resources. Strategic partnerships, diversified product offerings, and a global presence significantly contribute to BASF’s revenue streams.

BASF SE Financial Statement Overview

Summary

BASF SE's financial statements show mixed performance. While operational efficiency is solid, with a stable gross profit margin and a balanced capital structure, challenges are evident in revenue growth, net profit margin, and cash flow generation. The company needs to enhance profitability and improve cash generation.

Income Statement

Positive

BASF SE shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin of 25.54% and EBIT margin of 6.59% are stable, indicating solid operational efficiency. However, the net profit margin is weak at 0.76%, reflecting challenges in cost management or pricing strategy. Revenue has decreased by 5.26% in the latest TTM period compared to the previous year, indicating negative growth momentum.

Balance Sheet

Positive

The balance sheet reflects a moderately strong financial position. The debt-to-equity ratio of 0.64 suggests a balanced capital structure, and the equity ratio of 43.76% indicates a solid proportion of equity financing. However, the return on equity (ROE) is low at 1.43%, pointing to inefficiencies in generating returns for shareholders.

Cash Flow

Neutral

Cash flow analysis reveals a decrease in free cash flow growth rate and a free cash flow to net income ratio of 3.64, suggesting limited cash generation relative to profits. The operating cash flow to net income ratio is strong at 15.57, highlighting robust cash operations despite lower profitability.

Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
68.90B	87.33B	78.60B	59.15B	59.32B
	Gross Profit
16.70B	21.07B	19.80B	15.11B	16.25B
	EBIT
2.24B	2.47B	7.68B	233.00M	4.05B
	EBITDA
7.33B	6.11B	11.73B	5.87B	8.36B
	Net Income Common Stockholders
225.00M	-391.00M	5.52B	-1.47B	2.55B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.68B	2.75B	2.83B	4.54B	2.87B
	Total Assets
77.39B	84.47B	87.38B	80.29B	86.95B
	Total Debt
21.35B	20.95B	19.14B	21.19B	20.38B
	Net Debt
18.72B	18.43B	16.51B	16.86B	17.95B
	Total Liabilities
40.75B	43.55B	45.30B	45.89B	44.60B
	Stockholders Equity
35.28B	39.57B	40.79B	33.73B	41.50B
Cash Flow		Free Cash Flow
2.72B	3.33B	3.71B	2.28B	3.65B
	Operating Cash Flow
8.11B	7.71B	7.25B	5.41B	7.47B
	Investing Cash Flow
-4.99B	-3.78B	-2.62B	-1.90B	-1.19B
	Financing Cash Flow
-2.90B	-4.01B	-6.46B	-1.56B	-6.41B

BASF SE Technical Analysis

Technical Analysis Sentiment

Negative

Last Price12.39

Price Trends

50DMA

12.89

Negative

100DMA

12.27

Positive

200DMA

12.17

Positive

Market Momentum

MACD

0.02

Negative

RSI

48.16

Neutral

STOCH

68.24

Neutral

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 12.39 is above the 20-day moving average (MA) of 12.09, below the 50-day MA of 12.89, and above the 200-day MA of 12.17, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 48.16 is Neutral, neither overbought nor oversold. The STOCH value of 68.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BASFY.

BASF SE Peers Comparison

Overall Rating

UnderperformOutperform

Sector (49)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BASFY	68 Neutral	$41.40B	30.10	3.76%	5.08%	-5.19%	491.11%
DOW	61 Neutral	$21.50B	76.03	1.60%	9.20%	-2.08%	-76.11%
HUN	54 Neutral	$2.11B	―	-4.46%	7.48%	-1.23%	-277.52%
Sector *	49 Neutral	$1.95B	-1.37	-21.20%	3.73%	0.84%	-29.84%
TROX	48 Neutral	$906.41M	―	-8.44%	8.74%	4.15%	57.25%
CE	48 Neutral	$5.14B	6.84	-24.69%	3.18%	-6.03%	-177.29%
BAK	43 Neutral	$1.50B	―	-8638.28%	―	1.97%	-121.00%

* Basic Materials Sector Average

Performance Comparison

BASFY

BASF SE

12.39

-0.96

-7.19%

Celanese

45.95

-111.26

-70.77%

BAK

Braskem SA

3.68

-4.07

-52.52%

HUN

Huntsman

12.12

-11.45

-48.58%

TROX

TRONOX

5.72

-12.24

-68.15%

DOW

Dow Inc

30.42

-23.60

-43.69%

BASF SE Earnings Call Summary

Earnings Call Date:May 02, 2025

(Q1-2025)

% Change Since: -2.75%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a challenging environment with notable achievements in local production and investments in future growth areas like semiconductors. However, significant volume declines in North America, negative cash flow, and impacts from tariffs create a balanced outlook with both risks and opportunities.

Q1-2025 Updates

Positive Updates

Strong Local Production Footprint

In Europe and North America, 90% of BASF's sales come from locally manufactured products, and in the United States, 80% in 2024, highlighting resilience and commitment to local economies.

Volume Growth in Asia Pacific and Greater China

BASF increased sales volumes by 2% in Asia Pacific and a remarkable 7% in Greater China in Q1 2025.

Investment in Semiconductor Industry

BASF plans a high double-digit million euro investment at the Ludwigshafen site to expand production capacity for semiconductor grade sulfuric acid, expected to start operations by 2027.

Stable EBITDA Performance

EBITDA before special items remained stable at about the level of the prior year quarter, despite challenging conditions.

Strong Balance Sheet

BASF maintains a healthy equity ratio of 45.9%, and credit ratings were affirmed by major agencies, ensuring favorable financing conditions.

Negative Updates

Considerable Volume Decline in North America

BASF observed a 9% volume decline in North America and the United States in Q1 2025 compared to the prior year quarter.

Impact of Tariffs and Market Uncertainty

Market uncertainty and changes in demand due to U.S. tariffs and counter-tariffs are expected to have indirect impacts on BASF's business.

Negative Cash Flow and High Net Debt

Cash flows from operating activities were negative at €982 million, and net debt increased by €1.6 billion to €20.4 billion.

Loss from Wind Farm Sale

BASF incurred a non-cash effective disposal loss of €325 million from the sale of its 49% share in the Nordlicht 1 and 2 wind farms.

Challenges in Chemicals and Nutrition & Care Segments

EBITDA before special items decreased in these segments due to long markets and the aftermath of a plant fire.

Company Guidance

During BASF's Q1 2025 conference call, the company reported that EBITDA before special items remained consistent with the prior year at €2.6 billion, despite a challenging environment. Sales for the quarter were €17.4 billion, with a 1% decline in volumes, attributed to segments like Agricultural Solutions, Chemicals, and Nutrition & Care. BASF saw a significant volume decline of 9% in North America and the U.S., while Asia Pacific and Greater China experienced a 2% and 7% increase, respectively. In terms of regional manufacturing, 90% of sales in Europe and North America were from locally produced goods, with 80% in Asia Pacific and South America, Africa, and the Middle East. The adjusted EBITDA margin was stable at 6.5%, and the company noted an investment in semiconductor-grade sulfuric acid production in Ludwigshafen, expected to start operations by 2027. Looking ahead, BASF maintains its full-year guidance but acknowledges increased risks due to tariffs and macroeconomic uncertainties.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.