BASF SE (BASFY) AI Stock Analysis

• Market Cap: $46.08B
• Dividend Yield: 4.91%
• Average Volume (3M): 118.75K
• Price to Earnings (P/E): 151.2
• Beta (1Y): 0.85
• 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: 89,071
• 30 Day Avg. Volume: 118,752
• 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: 1.50
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 4.10
• Enterprise Value/Ebitda: 10.41
• 1Y Price Target: $11.00
• Price Target Upside: -11.72% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• 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 Business Overview & Revenue Model

Company Description

BASF SE is a leading global chemical company headquartered in Ludwigshafen, Germany. Operating in various sectors such as chemicals, plastics, performance products, agricultural solutions, and oil and gas, BASF focuses on providing innovative solutions and high-quality products that cater to diverse industries including automotive, construction, agriculture, and consumer goods. The company is known for its extensive portfolio that includes specialty chemicals, fertilizers, and advanced materials, positioning itself as a crucial player in the global chemical market.

How the Company Makes Money

BASF 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 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

• Technical Analysis Sentiment: Positive
• Last Price: 12.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 below the 20-day moving average (MA) of 12.85, below the 50-day MA of 12.61, and below the 200-day MA of 12.54, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 51.41 is Neutral, neither overbought nor oversold. The STOCH value of 33.69 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
BASFY	65 Neutral	$46.08B	151.18	0.68%	4.91%	-1.26%	-45.61%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CE	57 Neutral	$4.68B	-1.48	-54.74%	0.29%	-7.34%	-382.79%
TROX	57 Neutral	$692.87M	-2.07	-18.65%	8.27%	-7.81%	-334.15%
HUN	54 Neutral	$1.74B	-5.46	-10.65%	8.35%	-3.46%	-191.77%
DOW	49 Neutral	$16.53B	―	-6.39%	9.17%	-5.25%	-208.14%
BAK	47 Neutral	$1.16B	-1.24	―	―	-10.68%	36.31%

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.