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BASF SE
(OTC:BASFY)
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Rating:65Neutral
Price Target:
$15.50
▲(24.40% Upside)
Action:Reiterated
Date:08/01/26
The score is supported by attractive valuation (low P/E and solid dividend) and a constructive price trend (trading above key moving averages). It is held back mainly by weak and volatile cash generation versus earnings (low cash conversion and negative H1 free cash flow), despite improved profitability and a generally manageable balance sheet. Earnings-call updates were moderately positive with raised EBITDA guidance and strong capital allocation, but near-term cash and uncertainty remain key risks.
Positive Factors
Integrated 'Verbund' production & diversified portfolio
BASF's Verbund integration and broad segment mix provide durable cost and supply advantages, improving unit economics and resilience to end-market cycles. Local-for-local capacity (Zhanjiang start-up) supports volume growth and reduces logistics exposure, helping sustain margins over time.
Negative Factors
Weak, volatile free cash flow and cash conversion
Sharp, persistent free cash flow weakness and low cash conversion constrain the firm's ability to sustainably fund capex, dividends and buybacks. Volatility in FCF undermines the apparent earnings recovery and raises risk around financing transformation and growth without further balance sheet action.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated 'Verbund' production & diversified portfolio
BASF's Verbund integration and broad segment mix provide durable cost and supply advantages, improving unit economics and resilience to end-market cycles. Local-for-local capacity (Zhanjiang start-up) supports volume growth and reduces logistics exposure, helping sustain margins over time.
Read all positive factors
BASF SE (BASFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$53.07B
Dividend Yield4.44%
Average Volume (3M)162.95K
Price to Earnings (P/E)7.8
Beta (1Y)0.66
Revenue Growth-2.15%
EPS Growth1559.90%
CountryUS
Employees108,251
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)1.63
Shares Outstanding3,570,088,600
10 Day Avg. Volume143,715
30 Day Avg. Volume162,951
Financial Highlights & Ratios
PEG Ratio1.27
Price to Book (P/B)1.19
Price to Sales (P/S)0.69
P/FCF Ratio30.50
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.87
Revenue Forecast (FY)$72.33B
BASF SE Business Overview & Revenue Model
Company Description
BASF SE stands as a globally operating chemical enterprise, diversifying its extensive activities across six key segments. The Chemicals division primarily supplies foundational building blocks such as petrochemicals and intermediate products. The...
How the Company Makes Money
BASF makes money primarily by selling chemical products and solutions to industrial and agricultural customers worldwide. Revenue is generated across its major segments: (1) Chemicals: sales of petrochemicals and intermediates used as building blo...
BASF SE Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and strategic picture: BASF delivered strong EBITDA growth (Q2 +54%), progress on cost savings (EUR 2.0bn run rate vs EUR 2.3bn target), successful portfolio moves (Coatings sale, Harbour Energy sell-down) and balance sheet strengthening (net debt down EUR 4.2bn). However, significant near-term cash generation weakness (H1 free cash flow -EUR 1.6bn), transformation one-time costs, Surface Technologies weakness, working capital absorption and geopolitical uncertainty temper the outlook. Management upgraded group EBITDA guidance while retaining a cautious range due to external risks, and reiterated full-year free cash flow guidance despite H1 cash outflows.Positive Updates
Strong Q2 EBITDA Growth
EBITDA before special items rose 54% year-on-year to EUR 2.4 billion in Q2 2026, driven by stronger prices, higher volumes and lower cash fixed costs; H1 EBITDA before special items was EUR 4.8 billion, up EUR 715 million versus prior year.
Negative Updates
Negative Free Cash Flow and Working Capital Build-Up
H1 2026 free cash flow decreased to minus EUR 1.6 billion; Q2 free cash flow was minus EUR 189 million (versus +EUR 533 million in Q2 2025). Cash flow from operating activities declined to EUR 524 million in Q2, primarily due to higher trade receivables and inventory values tied up from rising raw material prices and hedging positions.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Q2 EBITDA Growth
EBITDA before special items rose 54% year-on-year to EUR 2.4 billion in Q2 2026, driven by stronger prices, higher volumes and lower cash fixed costs; H1 EBITDA before special items was EUR 4.8 billion, up EUR 715 million versus prior year.
Read all positive updates
Company Guidance
BASF raised its 2026 EBITDA before special items guidance to EUR 6.9–7.7 billion (range width unchanged at EUR 0.8 billion) and kept full‑year free cash flow guidance at EUR 1.5–2.3 billion, with payments for property, plant and equipment now expected below the prior EUR 3.4 billion forecast and CapEx to remain below depreciation through 2028; CO2 guidance unchanged. The company reaffirmed cost and portfolio targets: achieve around EUR 2.3 billion annual run‑rate savings by year‑end 2026 (EUR 2.0 billion run rate reached end‑June), incur at least EUR 1.9 billion of one‑time costs by year‑end, and pursue CoreShift to lower core net cash fixed costs by up to 20% versus 2024 (a 4% reduction was delivered in H1 2026). Capital allocation actions include a EUR 2.25 per‑share dividend for 2025, continued buybacks (≈EUR 1.5 billion spent to repurchase ~3.5% of shares since Nov‑2025) and a new EUR 1 billion tranche (Aug‑2026–Apr‑2027) as part of ≥EUR 4 billion total buybacks by end‑2028, plus accelerated deleveraging (net debt down EUR 4.2 billion to ~EUR 17 billion, equity ratio 44.6%, total assets ≈EUR 84 billion) and planned early redemptions/repayments of roughly EUR 1.6 billion (including EUR 1.25 billion in August) plus H2 maturities of EUR 900 million; management kept the range wide because of ongoing geopolitical uncertainty.BASF SE Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
64
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 61.68B | 57.30B | 65.26B | 68.90B | 87.33B | 78.60B |
| Gross Profit | 14.79B | 13.68B | 17.09B | 16.70B | 21.07B | 19.80B |
| EBITDA | 7.48B | 6.01B | 7.77B | 7.33B | 10.22B | 11.73B |
| Net Income | 5.81B | 1.56B | 1.30B | 225.00M | -391.00M | 5.52B |
Balance Sheet | ||||||
| Total Assets | 83.87B | 77.99B | 80.42B | 79.93B | 84.47B | 87.38B |
| Cash, Cash Equivalents and Short-Term Investments | 7.89B | 2.76B | 2.98B | 2.68B | 2.75B | 2.83B |
| Total Debt | 25.00B | 24.41B | 24.00B | 21.35B | 20.95B | 19.14B |
| Total Liabilities | 46.47B | 43.67B | 43.53B | 43.28B | 43.55B | 45.30B |
| Stockholders Equity | 36.32B | 33.18B | 35.60B | 35.28B | 39.57B | 40.79B |
Cash Flow | ||||||
| Free Cash Flow | 880.94M | 1.29B | 748.00M | 2.72B | 12.07B | 3.71B |
| Operating Cash Flow | 4.57B | 5.39B | 6.95B | 8.11B | 16.45B | 7.25B |
| Investing Cash Flow | 3.67B | -3.08B | -5.08B | -4.99B | -3.78B | -2.62B |
| Financing Cash Flow | -3.04B | -2.32B | -1.55B | -3.16B | -4.01B | -6.46B |
BASF SE Technical Analysis
Positive
12.46
Price Trends
14.07
Positive
14.52
Positive
13.69
Positive
Market Momentum
0.25
Negative
64.26
Neutral
92.88
Negative
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 14.22, below the 50-day MA of 14.07, and below the 200-day MA of 13.69, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 64.26 is Neutral, neither overbought nor oversold. The STOCH value of 92.88 is Negative, 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 | $53.07B | 7.75 | 17.00% | 4.91% | -2.15% | 1559.90% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
53 Neutral | $21.19B | -16.94 | -6.58% | 4.69% | -1.20% | -30.03% | |
52 Neutral | $1.77B | -10.42 | -6.28% | 4.00% | 0.65% | 45.36% | |
51 Neutral | $4.82B | -4.16 | -28.81% | 0.26% | -2.28% | 27.94% | |
49 Neutral | $1.04B | -1.80 | -51.44% | 3.21% | 3.53% | -118.53% | |
42 Neutral | $826.44M | -0.69 | 142.56% | ― | -13.10% | -0.68% |
* Basic Materials Sector Average
BASFY
BASF SE
14.88
2.25
17.80%
CE
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44.46
-2.85
-6.02%
BAK
Braskem SA
2.23
-0.71
-24.15%
HUN
Huntsman
10.36
1.69
19.49%
TROX
TRONOX
6.22
3.18
104.61%
DOW
Dow Inc
30.58
10.75
54.20%
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.