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Wacker Chemie AG (DE:WCH)
XETRA:WCH
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Wacker Chemie AG
(XETRA:WCH)
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Rating:62Neutral
Price Target:
€70.00
▲(1.82% 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 (WCH) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€3.42B
Dividend Yield3.64%
Average Volume (3M)95.55K
Price to Earnings (P/E)14.2
Beta (1Y)1.22
Revenue Growth-10.63%
EPS Growth-23.15%
CountryDE
Employees16,655
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-1.73
Shares Outstanding52,152,600
10 Day Avg. Volume102,598
30 Day Avg. Volume95,545
Financial Highlights & Ratios
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€68.16Price Target Upside-0.86% Downside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Wacker Chemie AG Business Overview & Revenue Model
Company DescriptionWacker Chemie AG (WCH) is a global chemical company based in Germany, specializing in the production of silicones, polymers, and biotechnology products. The company operates through various segments, including Silicones, Polymers, and Biosolutions. Wacker is known for its innovative solutions across multiple industries, such as construction, automotive, electronics, and pharmaceuticals, offering a diverse range of products that enhance performance and sustainability.
How the Company Makes MoneyWacker 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 Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 11, 2026
Earnings Call Sentiment Negative
The earnings call highlighted ongoing challenges such as decreased sales and EBITDA, negative net income, and a challenging market environment, particularly in Europe. Despite these issues, there are strategic efforts to improve cash flow and reduce costs, with strong performance in the semiconductor polysilicon segment. However, the overall sentiment is affected by the revised downward guidance and persistent market pressures.Q3-2025 Updates
Positive Updates
Improved Net Cash Flow
Despite lower EBITDA, net cash flow improved to EUR 19 million, supported by targeted actions to reduce working capital.
Strong Performance in Semiconductor Polysilicon
Continued strong demand for semiconductor polysilicon, with volumes significantly higher year-over-year, supported by the new etching line which is on schedule.
Cost Reduction Initiatives
Launched a comprehensive project aimed at significant cost savings, targeting fixed production costs and asset optimization.
Strong Liquidity and Shareholder Equity
Shareholder equity stands at EUR 4.42 billion with a strong liquidity position of about EUR 781 million.
Negative Updates
Decreased Sales and EBITDA
Sales in Q3 were EUR 1.34 billion, down 6% year-over-year. EBITDA declined to EUR 112 million from EUR 145 million a year ago, primarily due to lower pricing, foreign exchange, and volume mix.
Polysilicon Segment Challenges
Polysilicon sales in Q3 were 6% lower year-over-year and 10% lower than the preceding quarter, with ongoing weak demand in solar-grade polysilicon.
Negative Net Income
Net income was negative EUR 82 million, equating to a loss of EUR 1.73 per share, driven by lower EBITDA and higher depreciation.
Challenging Market Environment
The chemical industry is under pressure, especially in Europe, with weak demand and high competitive pressure from China. The stronger euro creates additional headwinds.
Revised Downward Guidance
Full-year sales guidance revised to the lower end of EUR 5.5 billion to EUR 5.9 billion range, with EBITDA expected in the lower half of the EUR 500 million to EUR 700 million range.
Soft Demand in Key Segments
Low demand in key segments such as Silicones and Polymers, with decreases in sales and EBITDA year-over-year.
Company Guidance
During the Wacker Chemie AG Q3 2025 conference call, the company provided updated guidance amid challenging market conditions. The company reported Q3 sales of EUR 1.34 billion and an EBITDA of EUR 112 million, with a combined EBITDA from its four operating segments totaling EUR 159 million. This represented an 18% decline compared to the previous year and a 13% sequential decrease. Despite a lower EBITDA, net cash flow improved to EUR 19 million, supported by efforts to reduce working capital. The company revised its full-year sales forecast to the lower end of the EUR 5.5 billion to EUR 5.9 billion range and anticipates EBITDA in the lower half of the EUR 500 million to EUR 700 million range. Net cash flow is expected to be negative but significantly better than the prior year. Wacker Chemie plans to implement cost-saving measures targeting fixed production costs in early 2026 to enhance competitiveness and profitability amidst ongoing macroeconomic and competitive pressures.Wacker Chemie AG Financial Statement Overview
Summary
Wacker Chemie AG is experiencing significant financial challenges, with declining revenues, profitability, and cash flow. The income statement shows a severe contraction in revenue and reduced margins. The balance sheet indicates increasing leverage and declining returns on equity. Cash flow issues are evident with negative free cash flow growth, requiring strategic initiatives to improve financial stability.Income Statement
Wacker Chemie AG's income statement reveals a challenging period with declining revenue and profitability. The TTM data shows a significant revenue decline of 96.3% compared to the previous period, indicating a severe contraction. Gross profit and net profit margins have decreased, reflecting reduced operational efficiency and profitability. The EBIT and EBITDA margins have also contracted, suggesting pressure on core earnings. Overall, the income statement indicates a need for strategic adjustments to reverse the downward trend.65
Positive
Balance Sheet
The balance sheet of Wacker Chemie AG shows moderate leverage with a debt-to-equity ratio of 0.446 in the TTM period, which is manageable but has increased slightly over time. The return on equity has decreased, indicating reduced profitability for shareholders. The equity ratio remains stable, suggesting a balanced capital structure. While the company maintains a solid asset base, the declining ROE and increasing leverage warrant attention.70
Positive
Cash Flow
Cash flow analysis reveals significant challenges, with negative free cash flow growth and a negative free cash flow to net income ratio in the TTM period. Operating cash flow coverage is low, indicating limited cash generation relative to net income. The negative free cash flow suggests potential liquidity issues, requiring careful cash management and cost control to stabilize the financial position.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.66B | 5.72B | 6.40B | 8.21B | 6.21B | 4.69B |
| Gross Profit | 908.70M | 986.70M | 1.08B | 2.16B | 1.67B | 869.90M |
| EBITDA | 595.30M | 807.40M | 878.30M | 1.85B | 1.46B | 670.30M |
| Net Income | 135.70M | 241.00M | 313.60M | 1.25B | 806.90M | 189.20M |
Balance Sheet | ||||||
| Total Assets | 8.80B | 9.41B | 8.85B | 9.40B | 8.13B | 6.95B |
| Cash, Cash Equivalents and Short-Term Investments | 794.10M | 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 | 4.30B | 4.57B | 4.27B | 4.37B | 5.03B | 5.26B |
| Stockholders Equity | 4.34B | 4.67B | 4.42B | 4.86B | 3.02B | 1.63B |
Cash Flow | ||||||
| Free Cash Flow | -651.30M | -341.20M | 296.70M | 564.30M | 743.10M | 647.20M |
| Operating Cash Flow | 300.80M | 310.40M | 936.30M | 1.13B | 1.06B | 873.70M |
| Investing Cash Flow | -413.40M | -435.30M | -107.60M | -701.40M | -639.70M | -783.10M |
| Financing Cash Flow | 10.20M | 145.90M | -688.10M | -458.50M | -153.90M | 117.10M |
Wacker Chemie AG Technical Analysis
Positive
68.75
Price Trends
67.03
Positive
66.07
Positive
66.32
Positive
Market Momentum
0.40
Negative
55.46
Neutral
72.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:WCH, the sentiment is Positive. The current price of 68.75 is above the 20-day moving average (MA) of 67.01, above the 50-day MA of 67.03, and above the 200-day MA of 66.32, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 55.46 is Neutral, neither overbought nor oversold. The STOCH value of 72.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:WCH.
Wacker Chemie AG Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | €4.46B | 13.20 | 16.00% | 3.91% | 1.42% | -0.40% | |
64 Neutral | €7.16B | 17.12 | 9.62% | 4.24% | -3.35% | -23.06% | |
62 Neutral | €3.42B | 14.17 | ― | 3.64% | -10.63% | -23.15% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | €6.18B | 65.08 | 1.08% | 8.82% | -5.92% | -58.33% | |
52 Neutral | €12.44B | -24.68 | -7.19% | ― | -5.27% | -75.47% | |
46 Neutral | €1.51B | -6.20 | -5.69% | 0.57% | -6.82% | 71.94% |
* Basic Materials Sector Average
DE:WCH
Wacker Chemie AG
68.75
2.55
3.84%
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Wacker Chemie AG Corporate Events
Financial Disclosures
Wacker Chemie AG Announces Upcoming Financial Reports for 2025 and 2026
Neutral
Oct 30, 2025
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.
Business Operations and StrategyRegulatory Filings and Compliance
Wacker Chemie AG Announces Change in Voting Rights Structure
Neutral
Sep 30, 2025
Wacker Chemie AG has announced a change in its voting rights structure, with Silchester International Investors LLP now holding 3.03% of the voting rights. This acquisition of shares signifies a notable shift in shareholder composition, potentially impacting the company’s governance and strategic direction.
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.