BASF SE (BAS) AI Stock Analysis

• Market Cap: €43.15B
• Dividend Yield: 5.16%
• Average Volume (3M): 2.21M
• Price to Earnings (P/E): 24.5
• Beta (1Y): 1.08
• Revenue Growth: -2.94%
• EPS Growth: -45.21%
• Country: DE
• Employees: 111,408
• Sector: General
• Sector Strength: N/A
• Industry: Chemicals
• EPS (TTM): -0.34
• Shares Outstanding: 893,854,900
• 10 Day Avg. Volume: 2,467,251
• 30 Day Avg. Volume: 2,209,774
• PEG Ratio: 0.96
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 29.50
• 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: €50.38
• Price Target Upside: 4.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 2.46
• Revenue Forecast (FY): €60.29B

• Rating: 57 Neutral
• Price Target: €50.00 ▲(3.41% Upside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is primarily constrained by weak/volatile profitability and soft TTM revenue, partially offset by a manageable balance sheet and positive free cash flow. Technicals are mildly supportive with price above key longer-term averages, while valuation is balanced between a strong dividend yield and a relatively high P/E.

Positive Factors

Diversified global portfolio and scale

BASF’s wide presence across chemicals, materials, industrial solutions, surface technologies, nutrition and agriculture provides durable demand diversification. Scale and cross-sector exposure smooth cyclical volatility, support long-term customer relationships and R&D leverage for sustained product innovation.

Manageable leverage and balance-sheet resilience

Leverage at roughly 0.7x and stable equity/assets imply financial flexibility to fund capex and portfolio moves without immediate refinancing stress. A solid balance-sheet supports investment in transition projects and cushions cyclical earnings swings over the next several quarters.

Strategic refocus: examining options for non-core trinamiX

Active reassessment and potential divestment of non-core trinamiX signals management focus on core chemical operations. Portfolio pruning can free capital, simplify operations, and improve return profiles over months, reflecting a structural shift toward higher-return core activities.

Negative Factors

Very thin net profitability

A TTM net margin near 0.4% indicates limited profit buffer against revenue shocks and pricing pressure. Persistent volatility and historically weak bottom-line performance constrain reinvestment capacity and make EPS sensitive to cyclical downturns and cost inflation over the medium term.

Soft top-line trend

Declining TTM revenue and an extended softening since 2022 point to structural demand or pricing headwinds in end markets. Without durable top-line improvement, margin recovery and scalable profitability will be harder to achieve, pressuring long-term growth trajectory and strategic investments.

Inconsistent cash conversion

While absolute cash flow is solid, weaker OCF versus prior years and low FCF relative to net income reflect uneven conversion. This limits reliable internal funding for capex, dividends, or M&A and increases dependence on execution and cyclical recovery to sustain cash-driven strategies.

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

Financials are resilient but cyclical: revenue is down TTM (-2.9%) and net margin is very thin (~0.4%) with recent volatility, while the balance sheet is manageable (debt-to-equity ~0.70) and cash generation is supportive (TTM FCF ~€1.3B) but with mixed conversion quality.

Income Statement

TTM (Trailing-Twelve-Months) revenue is down (-2.9%), extending a multi-year pattern of soft top-line performance after the 2022 peak. Profitability is mixed: gross margin is fairly stable (~25–26%), and operating profitability improved versus 2024 (higher EBIT margin), but net profitability remains very thin in TTM (~0.4%) and has been volatile (losses in 2020 and 2022, very low profit in 2023). Overall, the earnings profile looks cyclical and still not fully normalized at the bottom line.

Balance Sheet

Leverage looks manageable for the business, with debt-to-equity in the ~0.47–0.70 range (TTM ~0.70), though it has drifted higher versus 2021. Equity and assets are relatively stable over time, supporting balance-sheet resilience. The main weakness is returns: return on equity is very low in TTM (~0.8%) and has been inconsistent, reflecting the weak/volatile net income in recent years.

Cash Flow

Operating cash flow remains solid in absolute terms in TTM (~€5.6B), but it is lower than the prior few years, and cash conversion is mixed. Free cash flow is positive in TTM (~€1.3B) and shows a sharp rebound versus 2024, but free cash flow relative to net income is low in TTM (indicating profits are not strongly translating into free cash after investment needs). Overall, cash generation is a support, but consistency and conversion quality are not best-in-class.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	59.66B	61.44B	68.90B	87.33B	78.60B
Gross Profit	14.24B	15.12B	16.58B	21.01B	19.53B
EBITDA	6.26B	7.12B	7.34B	10.65B	10.75B
Net Income	1.62B	1.30B	225.00M	-627.00M	5.52B
Balance Sheet
Total Assets	78.02B	80.42B	79.93B	84.47B	87.38B
Cash, Cash Equivalents and Short-Term Investments	2.76B	2.98B	2.68B	2.75B	2.83B
Total Debt	24.42B	24.00B	21.35B	20.95B	19.14B
Total Liabilities	43.68B	43.53B	43.28B	43.55B	45.30B
Stockholders Equity	33.19B	35.60B	35.28B	36.60B	40.79B
Cash Flow
Free Cash Flow	1.34B	748.00M	2.72B	3.33B	3.71B
Operating Cash Flow	5.61B	6.95B	8.11B	7.71B	7.25B
Investing Cash Flow	-3.21B	-5.08B	-4.99B	-3.78B	-2.62B
Financing Cash Flow	-2.42B	-1.55B	-2.90B	-4.01B	-6.46B

BASF SE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 48.35
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 48.35 is above the 20-day moving average (MA) of 47.91, above the 50-day MA of 47.14, and above the 200-day MA of 44.49, indicating a bullish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 54.47 is Neutral, neither overbought nor oversold. The STOCH value of 73.67 is Neutral, 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
NDA	72 Outperform	€6.78B	4.21	11.26%	1.26%	6.03%	29.57%
WCH	62 Neutral	€3.94B	-4.31	―	3.75%	-10.63%	-23.15%
SDF	58 Neutral	€3.27B	0.97	-32.47%	1.23%	-1.67%	-6688.89%
BAS	57 Neutral	€43.15B	24.47	4.82%	5.16%	-2.94%	-45.21%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
LXS	46 Neutral	€1.14B	-5.92	-5.77%	0.59%	-6.82%	71.94%
1COV	45 Neutral	€12.42B	-17.78	―	―	―	―