BASF SE (BAS) AI Stock Analysis

• Market Cap: €39.06B
• Dividend Yield: 5.14%
• Average Volume (3M): 2.21M
• Price to Earnings (P/E): 143.1
• Beta (1Y): 1.19
• Revenue Growth: -2.94%
• EPS Growth: -45.21%
• Country: DE
• Employees: 111,408
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.52
• Shares Outstanding: 893,854,900
• 10 Day Avg. Volume: 2,467,251
• 30 Day Avg. Volume: 2,209,774
• PEG Ratio: 0.06
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 50.81
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €46.42
• Price Target Upside: 6.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: €47.00 ▲(7.40% Upside)

BASF SE's overall stock score is primarily influenced by its financial performance and technical analysis. The company's financials show challenges in profitability and cash flow, while technical indicators suggest a neutral to slightly positive trend. The high P/E ratio raises concerns about overvaluation, partially offset by a strong dividend yield.

Positive Factors

Stable Gross Margins

Stable gross margins indicate effective cost management, which supports long-term profitability and competitive positioning in the market.

Operational Efficiency

Improved EBIT and EBITDA margins suggest better operational efficiency, which can enhance profitability and shareholder value over time.

Diversified Product Portfolio

A diversified product portfolio reduces dependency on any single market, providing resilience against sector-specific downturns and supporting steady revenue streams.

Negative Factors

Declining Revenue

Declining revenue suggests potential market or operational challenges, which could impact long-term growth prospects and market share.

Increased Leverage

Higher leverage can increase financial risk, limit flexibility, and strain cash flow, potentially affecting the company's ability to invest in growth opportunities.

Decreased Free Cash Flow

A significant drop in free cash flow indicates potential liquidity challenges, which could hinder the company's ability to fund operations and strategic initiatives.

BASF SE Business Overview & Revenue Model

Company Description

BASF 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 Money

BASF generates revenue primarily through the sale of its chemical products and solutions across various sectors. Key revenue streams include the production and sale of chemicals, plastics, crop protection products, and performance materials. The company leverages its extensive research and development capabilities to innovate and expand its product offerings, thus driving sales. Significant partnerships with other companies and industries, as well as investments in sustainability and digitalization, further enhance its market position and profitability. Additionally, BASF benefits from economies of scale due to its global operations and diversified product portfolio, allowing it to optimize production costs and improve margins.

BASF SE Financial Statement Overview

Summary

BASF SE's financial performance is mixed. The income statement shows declining revenue and low profit margins, with a significant revenue decline of 5.25% and a net profit margin of 0.60%. The balance sheet indicates moderate leverage with a debt-to-equity ratio of 0.74, but low ROE at 1.12%. Cash flow analysis is positive with a 15.27% growth in free cash flow, though translating profits into free cash flow is challenging.

Income Statement

BASF SE's income statement reveals a challenging period with declining revenue and profit margins. The TTM data shows a significant revenue decline of 5.25% compared to the previous year, and the net profit margin is low at 0.60%. The gross profit margin remains stable at around 26%, but the EBIT and EBITDA margins are modest at 4.08% and 11.18%, respectively. The company faces pressure on profitability, indicating potential challenges in cost management or market conditions.

Balance Sheet

The balance sheet shows a moderate financial position with a debt-to-equity ratio of 0.74, indicating a balanced approach to leverage. The return on equity (ROE) is low at 1.12%, reflecting limited profitability relative to shareholder equity. The equity ratio stands at 41.67%, suggesting a stable capital structure. However, the increasing debt levels over the years may pose a risk if not managed carefully.

Cash Flow

Cash flow analysis indicates a positive trend in free cash flow growth at 15.27% in the TTM period, showing improved cash generation capabilities. The operating cash flow to net income ratio is 3.36, suggesting strong cash flow relative to net income. However, the free cash flow to net income ratio is low at 0.08, indicating potential challenges in translating earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.77B	65.26B	68.90B	87.33B	78.60B	59.15B
Gross Profit	16.98B	17.09B	16.70B	21.07B	19.80B	15.11B
EBITDA	7.24B	6.68B	7.33B	10.22B	10.84B	2.92B
Net Income	388.00M	1.30B	225.00M	-391.00M	5.52B	-1.47B
Balance Sheet
Total Assets	77.67B	80.42B	79.93B	84.47B	87.38B	80.29B
Cash, Cash Equivalents and Short-Term Investments	2.57B	2.98B	2.68B	2.75B	2.83B	4.54B
Total Debt	23.85B	24.00B	21.35B	20.95B	19.14B	21.19B
Total Liabilities	44.16B	43.53B	43.28B	43.55B	45.30B	45.89B
Stockholders Equity	32.36B	35.60B	35.28B	36.60B	40.79B	33.73B
Cash Flow
Free Cash Flow	468.00M	748.00M	2.72B	3.33B	3.71B	2.28B
Operating Cash Flow	6.11B	6.95B	8.11B	7.71B	7.25B	5.41B
Investing Cash Flow	-3.86B	-5.08B	-4.99B	-3.78B	-2.62B	-1.90B
Financing Cash Flow	-1.86B	-1.55B	-2.90B	-4.01B	-6.46B	-1.56B

BASF SE Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 43.76
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:BAS, the sentiment is Neutral. The current price of 43.76 is below the 20-day moving average (MA) of 44.18, above the 50-day MA of 43.52, and above the 200-day MA of 43.54, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 48.89 is Neutral, neither overbought nor oversold. The STOCH value of 49.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:BAS.

BASF SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NDA	74 Outperform	€5.18B	9.61	11.26%	1.26%	6.03%	29.57%
WCH	62 Neutral	€3.37B	13.98	―	3.69%	-10.63%	-23.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BAS	61 Neutral	€39.06B	143.05	0.71%	5.14%	-2.94%	-45.21%
SDF	55 Neutral	€2.18B	-1.28	-32.34%	1.23%	-1.67%	-6688.89%
1COV	52 Neutral	€12.42B	-24.64	-7.19%	―	-5.27%	-75.47%
LXS	46 Neutral	€1.47B	-6.04	-5.69%	0.59%	-6.82%	71.94%