Brenntag AG (BNR) AI Stock Analysis

• Market Cap: €7.87B
• Dividend Yield: 3.79%
• Average Volume (3M): 294.09K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.95
• Revenue Growth: 0.10%
• EPS Growth: -15.09%
• Country: DE
• Employees: 18,122
• Sector: Industrials
• Sector Strength: 86
• Industry: Chemicals - Specialty
• EPS (TTM): 0.93
• Shares Outstanding: 144,385,380
• 10 Day Avg. Volume: 205,008
• 30 Day Avg. Volume: 294,090
• PEG Ratio: -11.16
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.94
• 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: €63.05
• Price Target Upside: 15.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 67 Neutral
• Price Target: €61.00 ▲(11.84%Upside)

Brenntag AG's overall stock score reflects a stable financial standing with strong cash flow and low leverage, which are significant strengths. The neutral technical indicators and reasonable valuation further support the stock's position, although the lack of significant momentum or growth highlights limits its appeal.

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 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 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 demonstrates a balanced financial profile with stable profitability and strong cash flow generation, underpinning its solid market position. The company maintains effective cost management and low leverage, providing resilience against market fluctuations. However, revenue growth has slowed, highlighting the need for strategic initiatives to enhance growth.

Income Statement

Brenntag AG's income statement reflects moderate performance with stable gross and net profit margins. The gross profit margin stands at 22.08% for TTM, showing solid profitability in the specialty chemicals industry. However, a slight decline in revenue from the previous period indicates modest growth concerns. The EBIT and EBITDA margins are healthy at 5.59% and 8.24% respectively, suggesting effective cost control but highlighting the need for revenue growth acceleration.

Balance Sheet

The balance sheet demonstrates a strong equity base with an equity ratio of 40.58% for TTM, indicating solid financial stability. The debt-to-equity ratio has improved to a low 0.13, reflecting reduced financial leverage and risk. Return on equity is modest at 11.2%, suggesting room for efficiency improvements in generating shareholder returns.

Cash Flow

Cash flow analysis shows a robust operating cash flow to net income ratio of 1.70, indicating strong cash generation from operations. Free cash flow growth is positive but modest, supported by a consistent free cash flow to net income ratio of 1.08. Overall, cash flow management appears strong, positioning the company well for future investments or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.31B	16.24B	16.82B	19.43B	14.38B	11.78B
Gross Profit	3.60B	4.03B	4.02B	4.32B	3.38B	2.77B
EBITDA	1.34B	1.33B	1.51B	1.70B	1.03B	995.90M
Net Income	529.20M	536.20M	714.90M	886.80M	448.30M	466.50M
Balance Sheet
Total Assets	11.64B	11.67B	10.34B	11.37B	10.20B	8.14B
Cash, Cash Equivalents and Short-Term Investments	756.60M	763.30M	576.90M	1.05B	705.00M	726.30M
Total Debt	599.00M	3.38B	2.40B	2.93B	2.66B	2.02B
Total Liabilities	6.88B	6.91B	5.98B	6.57B	6.20B	4.53B
Stockholders Equity	4.72B	4.73B	4.30B	4.75B	3.91B	3.55B
Cash Flow
Free Cash Flow	570.40M	564.40M	1.34B	689.50M	189.30M	1.02B
Operating Cash Flow	901.20M	906.60M	1.66B	956.70M	388.60M	1.22B
Investing Cash Flow	-731.40M	-749.00M	-558.30M	-401.40M	-608.50M	-224.10M
Financing Cash Flow	60.30M	23.00M	-1.55B	-225.80M	174.10M	-735.60M

Brenntag AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 54.54
• 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 54.54 is below the 20-day moving average (MA) of 56.12, below the 50-day MA of 57.69, and below the 200-day MA of 58.02, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 39.51 is Neutral, neither overbought nor oversold. The STOCH value of 20.38 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
BNR	67 Neutral	€7.87B	14.88	11.49%	3.79%	0.10%	-15.09%
Sector *	65 Neutral	$10.84B	16.29	5.52%	2.09%	3.14%	-29.96%
0RBE	―	€11.13B	―	-6.00%	―	―	―
0QDS	―	€8.14B	27.37	3.25%	6.55%	―	―
FPE	72 Outperform	€4.66B	13.46	15.87%	3.67%	2.58%	8.02%
LNXSF	―	$2.38B	―	-3.00%	0.38%	―	―
WKCMF	―	$3.72B	14.53	5.37%	3.64%	―	―