BASF SE (BAS) AI Stock Analysis

• Market Cap: €40.48B
• Dividend Yield: 4.96%
• Average Volume (3M): 2.46M
• Price to Earnings (P/E): 104.3
• Beta (1Y): 1.24
• Revenue Growth: -0.77%
• EPS Growth: N/A
• Country: DE
• Employees: 111,408
• Sector: Basic Materials
• Sector Strength: 72
• Industry: Chemicals
• EPS (TTM): 0.48
• Shares Outstanding: 893,854,900
• 10 Day Avg. Volume: 1,932,962
• 30 Day Avg. Volume: 2,457,884
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €49.10
• Price Target Upside: 8.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 54 Neutral
• Price Target: €46.00 ▲(1.50% Upside)

BASF SE's overall stock score is driven by mixed financial performance and a high valuation. The financials show declining revenues and low profitability, while technical indicators suggest a neutral to slightly positive trend. The high P/E ratio indicates potential overvaluation, but the strong dividend yield provides some support. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Growth Performance

Agro showed an outstanding performance with a volume growth of +18% and prices were up slightly with +2%.

Market Position

BASF sees itself well positioned to gain share in Europe.

Product Innovation

BASF introduced a new patented form L-GA, which is more effective and adds value to farmers.

Negative Factors

Financial Performance

Q4 showed weak outcome in the core segments, which were significantly below market expectations except for Nutrition & Care.

Production Challenges

Glufosinate ammonium has seen significant price pressure and BASF closed its production plant in Germany.

Trade Policy

BASF faces headwinds in Q2 2025, with uncertain earnings due to restrictive US trade policy and low chemical spreads in China.

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 through multiple streams, primarily by selling a wide array of chemical products to various industries. Its revenue model is diversified across several segments, including Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions. Each segment contributes significantly to overall earnings, with Chemicals and Materials being the largest revenue sources due to their vast application in manufacturing and production processes. Additionally, BASF benefits from strategic partnerships and collaborations with other companies in research and development, enhancing its product offerings and market reach. Factors such as global economic conditions, demand for chemical products, and commodity prices also play a critical role in influencing its earnings. The company is focused on sustainability and innovation, which further positions it to capitalize on emerging market trends and customer needs, thereby driving revenue growth.

BASF SE Financial Statement Overview

Summary

BASF SE's financial performance is mixed. The income statement shows declining revenues and low profit margins, with a significant revenue decline of 5.25% and a net profit margin of 0.60%. The balance sheet is moderately stable with a debt-to-equity ratio of 0.74, but low ROE at 1.12%. Cash flow is improving with a 15.27% growth in free cash flow, but challenges remain in translating earnings into free cash flow.

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	3.57B
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: Positive
• Last Price: 45.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:BAS, the sentiment is Positive. The current price of 45.32 is below the 20-day moving average (MA) of 45.89, above the 50-day MA of 44.16, and above the 200-day MA of 43.47, indicating a neutral trend. The MACD of 0.61 indicates Positive momentum. The RSI at 48.83 is Neutral, neither overbought nor oversold. The STOCH value of 8.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:BAS.

BASF SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.26B	6.13	0.71%	2.87%	3.45%	-36.02%
BAS	54 Neutral	€40.48B	104.35	1.15%	4.96%	-0.77%	―
0K7F	―	€4.23B	6.87	13.06%	―	―	―
0RBE	―	€11.03B	―	-5.90%	―	―	―
0Q2N	―	€2.07B	93.32	-32.36%	―	―	―
LNXSF	―	$2.45B	―	-3.72%	0.75%	―	―
WKCMF	―	$3.79B	14.58	5.37%	3.70%	―	―