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Brenntag AG (UK) (DE:BNR)
:BNR

Brenntag AG (BNR) AI Stock Analysis

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DE

Brenntag AG

(LSE:BNR)

Rating:61Neutral
Price Target:
€60.00
▲(6.31%Upside)
Brenntag AG's stock score reflects its solid financial performance characterized by strong cash flow and effective cost management. However, technical analysis indicates bearish momentum, posing short-term risks. Valuation is reasonable with an attractive dividend yield, but the lack of growth guidance or significant corporate events leaves uncertainty regarding future growth prospects.
Positive Factors
Free Cash Flow
Free cash flow remains solid, providing financial stability and potential for future investments.
Gross Profit
Gross profit was higher year over year, driven by both volume and price, which is good news.
Price Target
There is an upside to the price target by 14.9%, indicating potential for stock appreciation.
Negative Factors
BSP Conversion Ratio
Brenntag's BSP conversion ratio declined sequentially and underperformed peers again.
EBITA
Q3-24 EBITA of €281m was -6% below consensus at €299m, indicating lower than expected earnings.
Market Environment
The company expects a challenging and competitive market environment with only a moderate volume increase.

Brenntag AG (BNR) vs. iShares MSCI Germany ETF (EWG)

Brenntag AG Business Overview & Revenue Model

Company DescriptionBrenntag 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 MoneyBrenntag AG generates revenue by acting as an intermediary in the chemical supply chain, purchasing large quantities of chemicals from manufacturers and distributing them to a wide array of industries. The company's key revenue streams include the sale of chemicals and ingredients, supply chain management services, and technical support offerings. Brenntag leverages its global network of distribution centers, warehouses, and logistics capabilities to optimize supply chains, reduce costs, and provide value-added services to its clients. Additionally, Brenntag forms strategic partnerships with chemical producers and other stakeholders to expand its product offerings and enhance its market reach, thereby contributing to its earnings.

Brenntag AG Financial Statement Overview

Summary
Brenntag AG presents a generally stable financial performance, with strengths in operational efficiency and capital structure. Key challenges include declining net profit margins and fluctuating revenue growth. The balance sheet is strong, but cash flow generation needs improvement.
Income Statement
70
Positive
Brenntag AG's income statement shows moderate stability and profitability. The company maintains a healthy gross profit margin, but net profit margins have declined due to a decrease in net income relative to revenue. Revenue has seen a fluctuation over the years, with a notable drop in the most recent year. Overall, the company demonstrates solid operational efficiency with an EBIT margin of 5.6% and an EBITDA margin of 8.2% in the latest year.
Balance Sheet
75
Positive
The balance sheet indicates a stable financial position. The debt-to-equity ratio is moderate at 0.71, showing reasonable leverage. Return on equity has decreased, reflecting lower profitability. The equity ratio stands at 40.5%, suggesting a strong equity base relative to total assets. Overall, the balance sheet suggests a well-managed capital structure with manageable debt levels.
Cash Flow
65
Positive
Cash flow statements reflect fluctuations in operational efficiency. The operating cash flow to net income ratio is robust, yet there is a significant drop in free cash flow growth, indicating potential challenges in cash generation. The free cash flow to net income ratio is also healthy, suggesting efficient cash conversion from earnings.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue16.31B16.24B16.82B19.43B14.38B11.78B
Gross Profit3.60B4.03B4.02B4.32B3.38B2.77B
EBITDA1.34B1.33B1.51B1.70B1.03B995.90M
Net Income529.20M536.20M714.90M886.80M448.30M466.50M
Balance Sheet
Total Assets11.64B11.67B10.34B11.37B10.20B8.14B
Cash, Cash Equivalents and Short-Term Investments756.60M763.30M576.90M1.05B705.00M726.30M
Total Debt599.00M3.38B2.40B2.93B2.66B2.02B
Total Liabilities6.88B6.91B5.98B6.57B6.20B4.53B
Stockholders Equity4.72B4.73B4.30B4.75B3.91B3.55B
Cash Flow
Free Cash Flow570.40M564.40M1.34B689.50M189.30M1.02B
Operating Cash Flow901.20M906.60M1.66B956.70M388.60M1.22B
Investing Cash Flow-731.40M-749.00M-558.30M-401.40M-608.50M-224.10M
Financing Cash Flow60.30M23.00M-1.55B-225.80M174.10M-735.60M

Brenntag AG Technical Analysis

Technical Analysis Sentiment
Negative
Last Price56.44
Price Trends
50DMA
58.25
Negative
100DMA
58.67
Negative
200DMA
58.59
Negative
Market Momentum
MACD
-0.74
Positive
RSI
44.19
Neutral
STOCH
15.93
Positive
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 56.44 is below the 20-day moving average (MA) of 57.69, below the 50-day MA of 58.25, and below the 200-day MA of 58.59, indicating a bearish trend. The MACD of -0.74 indicates Positive momentum. The RSI at 44.19 is Neutral, neither overbought nor oversold. The STOCH value of 15.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:BNR.

Brenntag AG Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
€3.58B22.3011.11%3.83%1.25%-23.50%
DEBNR
61
Neutral
€7.96B15.0511.49%3.81%0.10%-15.09%
€11.16B-6.00%
€8.02B26.753.25%6.80%
DEFPE
74
Outperform
€5.53B15.8315.87%2.78%2.58%8.02%
$2.54B-3.92%0.38%
$3.68B14.085.37%3.81%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:BNR
Brenntag AG
56.44
-4.79
-7.82%
GB:0RBE
Covestro
60.62
5.58
10.14%
GB:0QDS
Evonik
17.57
-0.35
-1.95%
DE:FPE
Fuchs Petrolub
36.60
5.07
16.08%
LNXSF
LANXESS
30.15
5.59
22.76%
WKCMF
Wacker Chemie AG
79.78
-26.64
-25.03%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 09, 2025