BASF SE (BASFY) AI Stock Analysis

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BASF SE

(OTC:BASFY)

Rating:64Neutral

Price Target:

$13.00

▲(1.17%Upside)

BASFY's stock score is primarily influenced by its financial performance and technical analysis. Despite the stable margins and operational efficiency, revenue volatility and high P/E ratio pose challenges. The technical indicators show some positive momentum, but the valuation concerns and risks highlighted in the earnings call, such as market uncertainties and volume declines, weigh down the overall score.

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

Market Cap

$44.44B

Dividend Yield4.93%

Average Volume (3M)123.66K

Price to Earnings (P/E)56.0

Beta (1Y)0.86

Revenue Growth-3.06%

EPS Growth1458.45%

CountryUS

Employees111,408

SectorBasic Materials

Sector Strength73

IndustryChemicals

Share Statistics

EPS (TTM)0.45

Shares Outstanding3,570,088,600

10 Day Avg. Volume108,077

30 Day Avg. Volume123,655

Financial Highlights & Ratios

PEG Ratio0.25

Price to Book (P/B)0.28

Price to Sales (P/S)0.00

P/FCF Ratio3.11

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$12.55

Price Target Upside-2.33% Downside

Rating ConsensusHold

Number of Analyst Covering2

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 SE generates revenue through its diversified portfolio of products and services across various industries. The company earns money primarily by manufacturing and selling chemicals, materials, and solutions to a wide array of industrial and consumer markets globally. Key revenue streams include the sale of petrochemicals, performance products, and agricultural solutions such as crop protection products and seeds. BASF also engages in strategic partnerships and joint ventures to expand its market reach and enhance its product offerings. Additionally, the company's focus on innovation and sustainability initiatives contributes to its earnings by meeting evolving consumer demands and regulatory standards.

BASF SE Earnings Call Summary

Earnings Call Date:May 02, 2025

(Q1-2025)

% Change Since: 4.64%|

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.

BASF SE Financial Statement Overview

Summary

BASF SE shows solid operational efficiency with stable margins, but revenue volatility and declining net income pose challenges. The balance sheet reflects prudent leverage use and financial stability, but returns on equity are modest. Cash flow management sees mixed results, with strong operating cash flows but declining free cash flow. Overall, the company needs to address profitability and cash flow sustainability to enhance financial health.

Income Statement

Positive

The TTM (Trailing-Twelve-Months) figures show a gross profit margin of 26.08% and a net profit margin of 1.13%, indicating some profitability but with pressure on the bottom line. Revenue has fluctuated with a recent decline, but EBIT and EBITDA margins are stable. This reflects moderate profitability and efficiency in operations despite revenue challenges.

Balance Sheet

Positive

The debt-to-equity ratio is 0.63, showing a reasonable use of leverage. ROE is low at 2.05%, signaling limited returns on equity. The equity ratio stands at 44.31%, indicating financial stability. Overall, the balance sheet presents a balanced leverage position with stability, though returns could be improved.

Cash Flow

Positive

The free cash flow growth rate shows a significant decline, reflecting cash flow challenges. Operating cash flow to net income ratio is strong at 8.76, demonstrating effective cash generation relative to net income. However, free cash flow to net income is weak at 0.55, highlighting potential issues in maintaining free cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	65.11B	65.26B	68.90B	87.33B	78.60B	59.15B
Gross Profit	16.99B	17.09B	16.70B	21.07B	19.80B	15.11B
EBITDA	7.03B	7.77B	7.33B	10.22B	10.84B	3.57B
Net Income	739.00M	1.30B	225.00M	-391.00M	5.52B	-1.47B
Balance Sheet
Total Assets	81.42B	80.42B	77.39B	84.47B	87.38B	80.29B
Cash, Cash Equivalents and Short-Term Investments	2.37B	2.98B	2.68B	2.75B	2.83B	4.54B
Total Debt	22.77B	24.00B	21.35B	20.95B	19.14B	21.19B
Total Liabilities	44.07B	43.53B	40.75B	43.55B	45.30B	45.89B
Stockholders Equity	36.09B	35.60B	35.28B	36.60B	40.79B	33.73B
Cash Flow
Free Cash Flow	406.00M	748.00M	2.72B	3.33B	3.71B	2.28B
Operating Cash Flow	6.48B	6.95B	8.11B	7.71B	7.25B	5.41B
Investing Cash Flow	-4.89B	-5.08B	-4.99B	-3.78B	-2.62B	-1.90B
Financing Cash Flow	-2.00B	-1.55B	-2.90B	-4.01B	-6.46B	-1.56B

BASF SE Technical Analysis

Technical Analysis Sentiment

Positive

Last Price12.85

Price Trends

50DMA

12.18

Positive

100DMA

12.31

Positive

200DMA

11.88

Positive

Market Momentum

MACD

0.14

Negative

RSI

60.06

Neutral

STOCH

78.59

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 12.85 is above the 20-day moving average (MA) of 12.28, above the 50-day MA of 12.18, and above the 200-day MA of 11.88, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 60.06 is Neutral, neither overbought nor oversold. The STOCH value of 78.59 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

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BASFY	64 Neutral	$44.44B	55.99	2.00%	4.93%	-3.06%	1458.45%
Sector *	62 Neutral	$10.21B	10.03	-0.16%	2.84%	2.22%	-32.59%
DOW	61 Neutral	$21.09B	75.56	1.60%	9.38%	-2.08%	-76.11%
CE	59 Neutral	$6.65B	6.84	-26.94%	0.20%	-5.98%	-183.27%
TROX	54 Neutral	$868.37M	―	-8.44%	9.12%	4.15%	57.25%
HUN	53 Neutral	$2.01B	―	-4.46%	8.63%	0.02%	-43.65%
BAK	44 Neutral	$1.44B	―	-8638.28%	―	0.81%	-34.74%

* Basic Materials Sector Average

Performance Comparison

BASFY

BASF SE

12.85

1.14

9.74%

Celanese

62.39

-78.18

-55.62%

BAK

Braskem SA

3.65

-3.50

-48.95%

HUN

Huntsman

11.88

-9.34

-44.02%

TROX

TRONOX

5.72

-9.87

-63.31%

DOW

Dow Inc

30.23

-19.01

-38.61%

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.Date of analysis: Jul 09, 2025