Brenntag AG (BNR) AI Stock Analysis

• Market Cap: €7.05B
• Dividend Yield: 4.3%
• Average Volume (3M): 359.07K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.98
• Revenue Growth: -3.35%
• EPS Growth: -23.06%
• Country: DE
• Employees: 18,122
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.78
• Shares Outstanding: 144,385,380
• 10 Day Avg. Volume: 336,769
• 30 Day Avg. Volume: 359,071
• PEG Ratio: -0.72
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 14.84
• 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: €49.00
• Price Target Upside: 0.31% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: €51.00 ▲(4.40% Upside)

Brenntag AG's overall stock score is driven by its stable financial performance, characterized by strong cash flow and a solid balance sheet, despite challenges in revenue and profit margins. The technical analysis indicates bearish momentum, which weighs on the score. Valuation metrics are balanced, with a reasonable P/E ratio and an attractive dividend yield. The absence of earnings call insights and corporate events means these factors do not influence the score.

Positive Factors

Strong Cash Flow

The company's free cash flow has grown by 14.54% in the TTM, indicating improved cash generation, which supports operational and strategic flexibility.

Solid Balance Sheet

A low debt-to-equity ratio suggests reduced leverage and financial risk, providing a strong foundation for future investments and stability.

Operational Efficiency

Consistent gross profit margins indicate effective cost management and operational efficiency, supporting long-term profitability.

Negative Factors

Declining Revenue

A decline in revenue over the trailing twelve months raises concerns about growth prospects and market competitiveness.

Profit Margin Pressure

The decline in net profit margin suggests reduced profitability, potentially impacting the company's ability to reinvest in growth opportunities.

Decreased ROE

A declining ROE indicates reduced efficiency in generating profits from shareholders' equity, which could affect investor confidence.

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 purchasing chemicals from manufacturers and selling them to a diverse customer base, including small and medium-sized businesses as well as large corporations. Key revenue streams include the sale of bulk chemicals and specialty products, along with value-added services such as logistics, blending, and technical support. Brenntag also benefits from long-term partnerships with major chemical manufacturers, which enhance its product offerings and market reach. The company's extensive global network and operational efficiency allow it to maintain competitive pricing and consistent supply, thus contributing significantly to its earnings.

Brenntag AG Financial Statement Overview

Summary

Brenntag AG demonstrates a stable financial performance with strengths in profitability and cash flow generation. The balance sheet is particularly strong, with low leverage and solid equity returns. However, the negative revenue growth trend in the TTM period is a concern that could impact future performance.

Income Statement

Brenntag AG's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a slight decline in revenue growth at -1.88%, which is a concern. However, the company maintains a stable gross profit margin of 22.08% and a net profit margin of 3.25%. The EBIT and EBITDA margins are moderate at 5.43% and 8.24%, respectively. Overall, while profitability metrics are stable, the negative revenue growth trend is a potential risk.

Balance Sheet

The balance sheet of Brenntag AG reflects a solid financial position with a low debt-to-equity ratio of 0.13 in the TTM period, indicating low leverage. The return on equity is healthy at 11.63%, suggesting efficient use of equity. The equity ratio stands at 39.02%, showing a strong equity base relative to total assets. The company's balance sheet is robust, with low leverage and good returns on equity.

Cash Flow

Brenntag AG's cash flow statement reveals a positive trajectory with a free cash flow growth rate of 2.75% in the TTM period. The operating cash flow to net income ratio is 2.15, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 0.63, showing a good conversion of net income into free cash flow. Overall, the cash flow position is strong, with positive growth and good cash conversion metrics.

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	2.72B	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: 48.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:BNR, the sentiment is Negative. The current price of 48.85 is below the 20-day moving average (MA) of 49.25, below the 50-day MA of 48.86, and below the 200-day MA of 53.98, indicating a bearish trend. The MACD of 0.13 indicates Positive momentum. The RSI at 47.80 is Neutral, neither overbought nor oversold. The STOCH value of 49.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:BNR.

Brenntag AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FPE	70 Outperform	€4.42B	13.18	16.00%	3.91%	1.42%	-0.40%
BNR	64 Neutral	€7.05B	16.88	9.62%	4.30%	-3.35%	-23.06%
WCH	62 Neutral	€3.31B	13.73	―	3.75%	-10.63%	-23.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
EVK	54 Neutral	€6.11B	64.30	1.08%	8.92%	-5.92%	-58.33%
LXS	46 Neutral	€1.47B	-6.07	-5.69%	0.59%	-6.82%	71.94%