Wacker Chemie AG (WCH) AI Stock Analysis

• Market Cap: €3.41B
• Dividend Yield: 3.75%
• Average Volume (3M): 95.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: -10.63%
• EPS Growth: -23.15%
• Country: DE
• Employees: 16,655
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): N/A
• Shares Outstanding: 52,152,600
• 10 Day Avg. Volume: 102,598
• 30 Day Avg. Volume: 95,545
• PEG Ratio: -0.62
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.61
• P/FCF Ratio: -10.20
• 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: €69.20
• Price Target Upside: 0.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: €70.00 ▲(1.97% Upside)

Wacker Chemie AG's overall stock score reflects significant financial challenges, including declining profitability and negative free cash flow. While the valuation is reasonable and offers a good dividend yield, technical indicators are neutral, and the earnings call sentiment is negative due to revised guidance and market pressures. The company's efforts to improve cash flow and reduce costs are positive steps, but the current environment remains challenging.

Positive Factors

Strong Liquidity Position

A robust liquidity position and substantial shareholder equity provide Wacker Chemie AG with financial flexibility to navigate market challenges and invest in growth opportunities.

Cost Reduction Initiatives

The cost reduction initiatives are expected to enhance Wacker Chemie AG's competitiveness and profitability by lowering fixed production costs, which is crucial in a challenging market environment.

Strong Performance in Semiconductor Polysilicon

The strong performance in the semiconductor polysilicon segment indicates a solid position in a growing market, supporting revenue stability and potential growth.

Negative Factors

Declining Profitability

The decline in profitability margins suggests challenges in maintaining cost efficiency and pricing power, which could impact long-term financial health if not addressed.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues and limits the company's ability to reinvest in growth or return capital to shareholders, posing a risk to financial stability.

Challenging Market Environment

The challenging market environment, characterized by weak demand and competitive pressures, particularly in Europe, could hinder Wacker Chemie AG's growth prospects and market share.

Wacker Chemie AG Business Overview & Revenue Model

Company Description

Wacker Chemie AG, together with its subsidiaries, provides chemical products worldwide. It operates through four divisions: Wacker Silicones, Wacker Polymers, Wacker Biosolutions, and Wacker Polysilicon. The Wacker Silicones division offers silanes, siloxanes, silicone fluids, silicone emulsions, silicone elastomers, silicone resins, and pyrogenic silicas for use in construction, electronics, automotive, health, and renewable energy industries. The Wacker Polymers division provides binders and polymeric additives, such as dispersible polymer powder and vinyl acetate-ethylene dispersions, which are used in construction, paper, adhesive, paint, coating, and basic chemical industries. The Wacker Biosolutions division offers customized biotech and catalog products for fine chemicals, such as pharmaceutical proteins, vaccines, cyclodextrins, cysteine, polyvinyl acetate solid resins, and acetylacetone for pharmaceutical actives, food additives, and agrochemicals. The Wacker Polysilicon division produces hyperpure polysilicon for use in semiconductor and solar sectors. The company was founded in 1914 and is headquartered in Munich, Germany. Wacker Chemie AG is a subsidiary of Dr. Alexander Wacker Familiengesellschaft mbH.

How the Company Makes Money

Wacker Chemie AG generates revenue primarily through the sale of its chemical products across multiple sectors. Key revenue streams include the Silicones segment, which provides high-value products used in sealants, adhesives, and coatings; the Polymers segment, offering solutions for construction, automotive, and consumer goods; and the Biosolutions segment, which focuses on biotechnological products for pharmaceuticals and food applications. The company benefits from strategic partnerships and collaborations with various industries, which enable it to expand its market reach and develop innovative solutions. Additionally, Wacker's commitment to sustainability and the development of eco-friendly products has positioned it favorably in a growing market focused on environmental responsibility, contributing to its overall financial success.

Wacker Chemie AG Financial Statement Overview

Summary

Wacker Chemie AG faces a challenging financial environment with declining profitability and revenue growth. The balance sheet remains relatively stable with manageable leverage, but cash flow issues, particularly negative free cash flow, pose significant concerns. The company needs to focus on improving operational efficiency and cash generation to enhance its financial position.

Income Statement

Wacker Chemie AG's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is at 16.07%, which is lower than previous years, indicating a decline in profitability. The net profit margin has also decreased to 2.40%, reflecting reduced efficiency in converting revenue into profit. Revenue growth has been negative, with a decline of 1.58% in the TTM period, following a previous annual decline. However, the company maintains a positive EBITDA margin of 10.53%, showcasing some operational efficiency.

Balance Sheet

The balance sheet of Wacker Chemie AG indicates moderate financial stability. The debt-to-equity ratio is 0.45 in the TTM period, showing a manageable level of leverage. Return on equity has decreased to 3.01%, suggesting reduced profitability from shareholders' investments. The equity ratio stands at 49.88%, indicating a solid proportion of equity financing relative to total assets, which is a positive sign of financial health.

Cash Flow

The cash flow statement presents challenges, particularly with free cash flow. The TTM free cash flow is negative, and the free cash flow to net income ratio is -2.17, indicating cash flow issues relative to net income. However, the operating cash flow to net income ratio is 0.24, showing some ability to generate cash from operations, albeit at a reduced level compared to previous years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.57B	5.72B	6.40B	8.21B	6.21B	4.69B
Gross Profit	850.30M	986.70M	1.08B	2.16B	1.67B	869.90M
EBITDA	561.70M	807.40M	878.30M	1.85B	1.46B	670.30M
Net Income	21.70M	241.00M	313.60M	1.25B	806.90M	189.20M
Balance Sheet
Total Assets	8.56B	9.41B	8.85B	9.40B	8.13B	6.95B
Cash, Cash Equivalents and Short-Term Investments	837.90M	1.22B	1.39B	1.78B	1.67B	1.34B
Total Debt	1.94B	1.95B	1.51B	1.34B	1.25B	1.23B
Total Liabilities	4.14B	4.57B	4.27B	4.37B	5.03B	5.26B
Stockholders Equity	4.27B	4.67B	4.42B	4.86B	3.02B	1.63B
Cash Flow
Free Cash Flow	-682.70M	-341.20M	296.70M	564.30M	743.10M	647.20M
Operating Cash Flow	386.40M	310.40M	936.30M	1.13B	1.06B	873.70M
Investing Cash Flow	-428.00M	-435.30M	-107.60M	-701.40M	-639.70M	-783.10M
Financing Cash Flow	-12.10M	145.90M	-688.10M	-458.50M	-153.90M	117.10M

Wacker Chemie AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 68.65
• 50DMA: Negative
• 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:WCH, the sentiment is Negative. The current price of 68.65 is below the 20-day moving average (MA) of 70.83, below the 50-day MA of 68.71, and above the 200-day MA of 66.15, indicating a neutral trend. The MACD of 0.38 indicates Positive momentum. The RSI at 43.47 is Neutral, neither overbought nor oversold. The STOCH value of 41.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:WCH.

Wacker Chemie AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FPE	70 Outperform	€4.35B	13.40	16.00%	3.91%	1.42%	-0.40%
BNR	64 Neutral	€7.42B	17.30	9.62%	4.30%	-3.35%	-23.06%
WCH	62 Neutral	€3.41B	-4.37	―	3.75%	-10.63%	-23.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
EVK	54 Neutral	€6.10B	63.32	1.08%	8.92%	-5.92%	-58.33%
LXS	46 Neutral	$1.51B	-6.20	-5.69%	0.59%	-6.82%	71.94%

Wacker Chemie AG Corporate Events

Wacker Chemie AG Announces Upcoming Financial Reports for 2025 and 2026

Wacker Chemie AG has announced the upcoming disclosure of its financial reports, including the year report for 2025 and the half-year report for 2026. The year report will be published on March 11, 2026, and the half-year report on July 30, 2026, providing stakeholders with insights into the company’s financial performance over these periods.

The most recent analyst rating on (DE:WCH) stock is a Hold with a EUR61.00 price target. To see the full list of analyst forecasts on Wacker Chemie AG stock, see the DE:WCH Stock Forecast page.