Brenntag AG (BNTGY) AI Stock Analysis

• Market Cap: $8.15B
• Dividend Yield: 4.25%
• Average Volume (3M): 3.47K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.71
• Revenue Growth: -1.57%
• EPS Growth: -22.12%
• Country: US
• Employees: 18,122
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.18
• Shares Outstanding: 721,926,800
• 10 Day Avg. Volume: 10,422
• 30 Day Avg. Volume: 3,474
• PEG Ratio: -0.72
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 14.81
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 2.94
• Enterprise Value/Ebitda: 9.04
• 1Y Price Target: $12.80
• Price Target Upside: 9.12% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.78
• Revenue Forecast (FY): $17.89B

• Rating: 60 Neutral
• Price Target: $11.50 ▼(-1.96% Downside)

Brenntag AG's overall stock score reflects stable financial performance and attractive valuation, offset by bearish technical indicators and cautious earnings guidance. The company's strong cost management and cash flow resilience are positive, but challenges in revenue growth and competitive pressures weigh on the outlook.

Positive Factors

Cost Management

Effective cost management enhances profitability and operational efficiency, allowing Brenntag to maintain margins despite market pressures.

Cash Flow Resilience

Strong free cash flow indicates robust cash generation capabilities, providing financial flexibility and supporting long-term investments.

Executive Team Restructuring

Leadership changes aim to enhance operational management and build a world-class distribution supply chain, strengthening strategic execution.

Negative Factors

Revenue Growth Challenges

Declining revenue growth can hinder Brenntag's ability to expand market share and may pressure future financial performance.

Competitive Pressures

Increased competition from imports can erode market position and pricing power, impacting long-term profitability.

Operating EBITDA Decline

A decline in operating EBITDA suggests challenges in maintaining profitability amidst volume pressures and a tough market environment.

Brenntag AG Business Overview & Revenue Model

Company Description

Brenntag SE purchases and supplies various industrial and specialty chemicals, and ingredients in Europe, the Middle East, Africa, North America, Latin America, the Asia Pacific, and internationally. The company operates through the divisions Brenntag Essentials and Brenntag Specialties. It provides value-added services, such as just-in-time delivery, product mixing, blending, repackaging, inventory management, and drum return handling, as well as technical and laboratory services for specialty chemicals. The company serves customers in various end-market industries, including nutrition, pharma, personal care, water treatment, and lubricants; and home, industrial, and institutional markets, as well as coatings and constructions, polymers, and rubber industries. Brenntag SE was founded in 1874 and is based in Essen, Germany.

How the Company Makes Money

Brenntag 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 Financial Statement Overview

Summary

Brenntag AG demonstrates stable financial performance with strong profitability and balance sheet management. Despite challenges in revenue growth, the company maintains solid margins and effective cash flow management. Low leverage and strong return on equity position Brenntag well within the industry.

Income Statement

Brenntag AG's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a slight decline in revenue growth rate, which is concerning. However, the company maintains stable gross and net profit margins, suggesting operational efficiency. The EBIT and EBITDA margins are consistent, reflecting steady profitability despite revenue challenges.

Balance Sheet

The balance sheet of Brenntag AG is relatively strong, with a low debt-to-equity ratio in the TTM period, indicating prudent financial management. The return on equity remains healthy, showcasing effective use of shareholder funds. The equity ratio is stable, reflecting a solid financial position with manageable leverage.

Cash Flow

Cash flow analysis reveals positive trends, with a slight growth in free cash flow and a healthy operating cash flow to net income ratio. The free cash flow to net income ratio is robust, indicating efficient cash generation relative to profits. However, the growth rate of free cash flow has slowed, which could be a potential area of concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.00B	16.24B	16.82B	19.43B	14.38B	11.78B
Gross Profit	4.01B	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	423.00M	536.20M	714.90M	886.80M	448.30M	466.50M
Balance Sheet
Total Assets	10.79B	11.67B	10.34B	11.37B	10.20B	8.14B
Cash, Cash Equivalents and Short-Term Investments	531.70M	763.30M	576.90M	1.05B	705.00M	726.30M
Total Debt	551.90M	3.38B	2.40B	2.93B	2.66B	2.02B
Total Liabilities	6.55B	6.91B	5.98B	6.57B	6.20B	4.53B
Stockholders Equity	4.21B	4.73B	4.30B	4.75B	3.91B	3.55B
Cash Flow
Free Cash Flow	586.10M	564.40M	1.34B	689.50M	189.30M	1.02B
Operating Cash Flow	907.80M	906.60M	1.66B	956.70M	388.60M	1.22B
Investing Cash Flow	-523.00M	-749.00M	-558.30M	-401.40M	-608.50M	-224.10M
Financing Cash Flow	-495.00M	23.00M	-1.55B	-225.80M	174.10M	-735.60M

Brenntag AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 11.31, above the 50-day MA of 11.43, and below the 200-day MA of 12.58, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 46.56 is Neutral, neither overbought nor oversold. The STOCH value of 26.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BNTGY.

Brenntag AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMN	67 Neutral	$7.02B	10.26	12.24%	5.47%	-3.33%	-19.59%
PPG	67 Neutral	$22.31B	17.75	16.31%	2.77%	-12.98%	-11.34%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BNTGY	60 Neutral	$8.15B	17.66	9.21%	4.25%	-1.57%	-22.12%
ALB	58 Neutral	$14.97B	―	-0.21%	1.22%	-23.92%	90.47%
WLK	52 Neutral	$8.67B	―	-9.48%	2.90%	-5.32%	-1108.29%
AVTR	45 Neutral	$7.30B	―	-1.48%	―	-3.59%	-126.16%

Brenntag AG Corporate Events

Brenntag AG Earnings Call: Strategic Moves Amid Financial Challenges

Brenntag AG’s latest earnings call painted a complex picture of strategic achievements overshadowed by financial challenges. The company highlighted its strategic expansions and sustainability accolades, but these were tempered by a notable decline in financial performance, impairments, and a reduction in full-year guidance. The sentiment was a mix of optimism for strategic initiatives and caution due to market challenges.

Brenntag AG Reports Challenging H1 2025 Results

Brenntag AG is a global leader in chemical and ingredients distribution, providing a wide range of industrial and specialty chemicals and services through its divisions, Brenntag Essentials and Brenntag Specialties. The company operates across more than 70 countries, connecting chemical industry customers and suppliers.