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Brenntag Ag (BNTGY)
OTHER OTC:BNTGY
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Brenntag AG
(OTC:BNTGY)
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Rating:70Neutral
Price Target:
$13.00
▲(10.83% Upside)
Brenntag AG's overall stock score reflects stable financial performance and a reasonable valuation, supported by strong cash flow and balance sheet stability. However, technical analysis shows mixed signals, and the earnings call indicates caution due to economic uncertainties and competitive pressures.
Positive Factors
Cash Flow Generation
Strong free cash flow generation indicates robust operational efficiency and financial resilience, supporting long-term investment and growth.
Cost Management
Effective cost management enhances profitability and competitiveness, allowing Brenntag to better navigate economic uncertainties.
Balance Sheet Stability
A strong balance sheet with low leverage provides financial stability, enabling strategic investments and weathering economic downturns.
Negative Factors
Revenue Growth Challenges
Declining revenue growth can hinder market expansion and profitability, necessitating strategic adjustments to sustain long-term success.
Competitive Pressures
Increased competition from imports can erode market share and pricing power, challenging Brenntag's competitive position and margins.
Operating EBITDA Decline
A decline in operating EBITDA indicates pressure on profitability, potentially affecting cash flow and investment capacity over time.
Brenntag AG (BNTGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.39B
Dividend Yield4.14%
Average Volume (3M)3.47K
Price to Earnings (P/E)18.3
Beta (1Y)0.67
Revenue Growth-1.57%
EPS Growth-22.12%
CountryUS
Employees18,122
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.18
Shares Outstanding721,926,800
10 Day Avg. Volume0
30 Day Avg. Volume3,474
Financial Highlights & Ratios
PEG Ratio-0.72
Price to Book (P/B)1.77
Price to Sales (P/S)0.51
P/FCF Ratio14.81
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue0.47
Enterprise Value/Gross Profit1.86
Enterprise Value/Ebitda5.62
Forecast
1Y Price Target
$12.80Price Target Upside9.12% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Brenntag AG Business Overview & Revenue Model
Company DescriptionBrenntag AG (BNTGY) is a global market leader in chemical distribution, providing a comprehensive range of industrial and specialty chemicals. The company operates in two primary segments: Brenntag Essentials, which focuses on the distribution of commodity chemicals, and Brenntag Specialties, which offers tailored solutions and value-added services for specific industries, including pharmaceuticals, food and nutrition, and personal care. With a strong presence in Europe, North America, and Asia-Pacific, Brenntag serves a diverse customer base across various sectors, leveraging its extensive logistics network to ensure efficient supply chain solutions.
How the Company Makes MoneyBrenntag AG generates revenue primarily through the distribution of chemicals and related services. The company's revenue model is based on the mark-up on the products it sells, which includes a broad range of chemical products sourced from various manufacturers. Key revenue streams include sales from its Essentials segment, where Brenntag acts as a distributor for bulk chemicals, and from its Specialties segment, where it provides customized solutions and technical support. Significant partnerships with major chemical producers enhance Brenntag's product offerings and market reach. Additionally, the company benefits from its extensive logistics capabilities, which allow efficient delivery and inventory management, further contributing to its profitability.
Brenntag AG Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 11, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted Brenntag's successful cost containment efforts and resilient free cash flow, but also pointed to ongoing challenges such as declining EBITDA, economic uncertainty, and competitive pressures from Chinese imports. While strategic initiatives and executive restructuring aim to address these challenges, the guidance towards the lower end indicates caution.Q3-2025 Updates
Positive Updates
Cost Containment Program Success
The company's cost containment program delivered EUR 45 million of savings in Q3 2025, which is EUR 30 million more than the same period last year, demonstrating strong commitment to cost control.
Free Cash Flow Resilience
Brenntag generated a free cash flow of EUR 316 million in Q3 2025 compared to EUR 247 million in the same period last year, reflecting the business's resilience and countercyclical cash flow profile.
Strategic Focus on Sales and Customer Proximity
The company is prioritizing sales efforts and customer closeness, leveraging its global scale and commercial team commitment, with plans to empower local sales teams for growth.
Executive Team Restructuring
Brenntag is restructuring its executive team to include a new CHRO and COO, aiming to build a world-class distribution supply chain and improve operational management.
Negative Updates
Operating EBITDA Decline
Operating EBITDA declined by 6.7% year-over-year for Q3 2025, primarily due to volume pressure and a challenging market environment.
Guidance Towards Lower End
The company specified its operating EBITA guidance towards the lower end of the previously provided range for 2025, reflecting ongoing economic uncertainty and demand slowdown.
Impact of Chinese Imports
Regions like Latin America have been heavily impacted by Chinese imports, affecting market dynamics and presenting competitive challenges.
No Separation of Divisions
The decision not to split the company into two separate divisions highlights the need to manage internal synergies and external competitive pressures, impacting strategic flexibility.
Company Guidance
During the Brenntag SE 9M 2025 Results Call, the company provided specific guidance for the remainder of the year, focusing on operational improvements and cost management. The company specified its operating EBITA guidance towards the lower end of the previously provided range of EUR 950 million to EUR 1.050 billion, primarily due to ongoing economic uncertainties and geopolitical tensions affecting demand. The company highlighted a EUR 45 million cost saving in Q3 2025, driven by an accelerated cost containment program that includes headcount reductions and operational efficiencies. Brenntag's leverage ratio stood at 1.9x net debt to operating EBITDA, and they reported a free cash flow of EUR 316 million for Q3 2025. Despite a challenging market environment, Brenntag emphasized its commitment to drive sales and efficiencies, leveraging its existing scale and avoiding a full separation of its divisions. The company also noted a decline in volumes and pricing pressures, particularly from Chinese imports, but maintained focus on margin management and cost control measures to mitigate these impacts.Brenntag AG Financial Statement Overview
Summary
Brenntag AG demonstrates stable financial performance with strengths in cash flow generation and balance sheet stability. While revenue growth has faced some headwinds, the company maintains efficient operations and a strong equity position.Income Statement
Brenntag AG's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data reveals a slight decline in revenue growth, indicating potential challenges in maintaining sales momentum. However, the company maintains a stable gross profit margin of approximately 25%, reflecting efficient cost management. The net profit margin has decreased slightly to 2.67%, suggesting pressure on profitability. EBIT and EBITDA margins are relatively stable, indicating consistent operational efficiency.Balance Sheet
The balance sheet of Brenntag AG reflects a solid financial position with a low debt-to-equity ratio of 0.12 in the TTM, indicating prudent leverage management. Return on equity is at 9.30%, which is a moderate return for shareholders. The equity ratio stands at 47.47%, showcasing a strong equity base relative to total assets, which enhances financial stability.Cash Flow
Brenntag AG's cash flow statement indicates a positive trajectory with a 22.11% growth in free cash flow in the TTM, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is 2.40, suggesting strong cash flow relative to net income. The free cash flow to net income ratio is 0.68, indicating a healthy conversion of earnings into cash.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.65B | 16.24B | 16.82B | 19.43B | 14.38B | 11.78B |
| Gross Profit | 3.93B | 4.03B | 4.02B | 4.32B | 3.38B | 2.77B |
| EBITDA | 1.30B | 1.33B | 1.51B | 1.70B | 1.03B | 995.90M |
| Net Income | 436.96M | 536.20M | 714.90M | 886.80M | 448.30M | 466.50M |
Balance Sheet | ||||||
| Total Assets | 10.68B | 11.67B | 10.34B | 11.37B | 10.20B | 8.14B |
| Cash, Cash Equivalents and Short-Term Investments | 603.00M | 763.30M | 576.90M | 1.05B | 705.00M | 726.30M |
| Total Debt | 533.70M | 3.38B | 2.40B | 2.93B | 2.66B | 2.02B |
| Total Liabilities | 7.44B | 6.91B | 5.98B | 6.57B | 6.20B | 4.53B |
| Stockholders Equity | 5.07B | 4.73B | 4.30B | 4.75B | 3.91B | 3.55B |
Cash Flow | ||||||
| Free Cash Flow | 715.71M | 564.40M | 1.34B | 689.50M | 189.30M | 1.02B |
| Operating Cash Flow | 1.05B | 906.60M | 1.66B | 956.70M | 388.60M | 1.22B |
| Investing Cash Flow | -480.22M | -749.00M | -558.30M | -401.40M | -608.50M | -224.10M |
| Financing Cash Flow | -688.79M | 23.00M | -1.55B | -225.80M | 174.10M | -735.60M |
Brenntag AG Technical Analysis
Negative
11.73
Price Trends
11.36
Positive
11.69
Negative
12.37
Negative
Market Momentum
0.04
Positive
48.02
Neutral
18.14
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BNTGY, the sentiment is Negative. The current price of 11.73 is above the 20-day moving average (MA) of 11.59, above the 50-day MA of 11.36, and below the 200-day MA of 12.37, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 48.02 is Neutral, neither overbought nor oversold. The STOCH value of 18.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BNTGY.
Brenntag AG Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $7.85B | 11.47 | 12.24% | 5.33% | -3.33% | -19.59% | |
70 Neutral | $8.39B | 18.32 | 9.21% | 4.14% | -1.57% | -22.12% | |
67 Neutral | $23.63B | 19.17 | 16.31% | 2.71% | -12.98% | -11.34% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | $18.98B | -99.14 | -0.21% | 1.10% | -23.92% | 90.47% | |
56 Neutral | $10.20B | -10.71 | -9.48% | 2.88% | -5.32% | -1108.29% | |
48 Neutral | $8.22B | -99.01 | -1.48% | ― | -3.59% | -126.16% |
* Basic Materials Sector Average
BNTGY
Brenntag AG
11.49
0.45
4.11%
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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.