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Wacker Chemie AG (DE:WCH)
XETRA:WCH
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Wacker Chemie AG
(XETRA:WCH)
66Neutral
Positive Factors
Earnings Performance
Wacker reported €35m EBITDA in the Polysilicon segment, comfortably in the guidance range and higher than market expectations.
Growth Prospects
Wacker provides a constructive view on Silicones and expects sales to increase by +10% y/y in FY-25.
Segment Growth
All other segments are on track for solid growth in FY-25 and beyond, with Silicones, Polymers, and Biosolutions showing promising developments.
Negative Factors
Earnings Momentum
Biosolutions disappoints with delayed earnings momentum.
Financial Performance
Free cash flow was negative at €-325m due to high capital expenditures and a substantial increase in net working capital.
Market Uncertainty
High degree of uncertainty over future solar deliveries could result in considerable share price volatility.
Wacker Chemie AG (WCH) vs. S&P 500 (SPY)
Market Cap
$3.19B
Dividend Yield4.61%
Average Volume (3M)158.99K
Price to Earnings (P/E)13.7
Beta (1Y)1.15
Revenue Growth-10.63%
EPS Growth-23.15%
CountryDE
Employees16,655
SectorBasic Materials
Sector Strength60
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.16
Shares Outstanding52,152,600
10 Day Avg. Volume154,778
30 Day Avg. Volume158,989
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)0.83
Price to Sales (P/S)0.00
P/FCF Ratio-5.92
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$89.28Price Target Upside38.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
Wacker Chemie AG Business Overview & Revenue Model
Company DescriptionWacker Chemie AG is a globally operating chemical company based in Munich, Germany. The company specializes in the production of a wide range of chemical products, including silicone products, polymers, polysilicon, and specialty chemicals. Wacker Chemie serves diverse industries such as automotive, construction, electronics, healthcare, and consumer goods, with a strong emphasis on innovation and sustainability in its product offerings.
How the Company Makes MoneyWacker Chemie AG generates revenue through the sale of its chemical products across various business divisions. The Silicones division is a significant contributor, offering silicone-based solutions for industries like automotive and construction. The Polymers division provides polymeric binders and additives used in construction, paints, and adhesives. The Polysilicon division supplies high-purity polysilicon to the solar and semiconductor industries. Additionally, the Biosolutions division offers biotech and fermentation products for food and pharmaceutical sectors. Wacker Chemie benefits from strategic partnerships and a robust global distribution network, enabling it to reach a broad customer base and sustain its earnings.
Wacker Chemie AG Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.72B | 6.40B | 8.21B | 6.21B | 4.69B | Gross Profit |
| 986.70M | 1.08B | 2.16B | 1.67B | 869.90M | EBIT |
| 270.90M | 353.70M | 1.45B | 1.04B | 257.10M | EBITDA |
| 676.90M | 884.00M | 1.85B | 1.46B | 608.50M | Net Income Common Stockholders |
| 241.00M | 313.60M | 1.25B | 806.90M | 189.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.22B | 1.39B | 1.78B | 1.67B | 1.34B | Total Assets |
| 9.41B | 8.85B | 9.40B | 8.13B | 6.95B | Total Debt |
| 1.95B | 1.51B | 1.34B | 1.25B | 1.23B | Net Debt |
| 900.00M | 491.80M | 446.00M | 319.20M | 601.30M | Total Liabilities |
| 4.57B | 4.27B | 4.37B | 5.03B | 5.26B | Stockholders Equity |
| 4.67B | 4.42B | 4.86B | 3.02B | 1.63B |
| Cash Flow | Free Cash Flow | |||
| -341.20M | 296.70M | 564.30M | 743.10M | 647.20M | Operating Cash Flow |
| 310.40M | 936.30M | 1.13B | 1.06B | 873.70M | Investing Cash Flow |
| -435.30M | -107.60M | -701.40M | -639.70M | -783.10M | Financing Cash Flow |
| 145.90M | -688.10M | -458.50M | -153.90M | 117.10M |
Wacker Chemie AG Technical Analysis
Negative
64.30
Price Trends
68.90
Negative
67.17
Negative
72.47
Negative
Market Momentum
-0.28
Negative
46.41
Neutral
47.27
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 64.3 is below the 20-day moving average (MA) of 64.74, below the 50-day MA of 68.90, and below the 200-day MA of 72.47, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 46.41 is Neutral, neither overbought nor oversold. The STOCH value of 47.27 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
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | €172.26B | 17.74 | 15.14% | 2.36% | -0.04% | 33.26% | |
67 Neutral | €5.19B | 19.53 | 15.87% | 2.47% | 2.58% | 8.02% | |
66 Neutral | $3.19B | 13.69 | 5.37% | 4.61% | -10.63% | -23.15% | |
62 Neutral | €38.74B | 53.62 | 2.02% | 7.87% | -2.04% | 2258.97% | |
60 Neutral | $2.36B | ― | -3.92% | 0.33% | -5.18% | -139.96% | |
55 Neutral | €9.29B | 41.86 | 2.47% | 5.88% | -0.72% | ― | |
50 Neutral | $1.98B | -1.12 | -21.33% | 3.61% | 1.68% | -30.56% |
* Basic Materials Sector Average
Performance Comparison
DE:WCH
Wacker Chemie AG
64.30
-35.75
-35.73%
DE:BAS
BASF SE
43.40
-3.36
-7.18%
DE:EVK
Evonik
19.94
0.97
5.10%
DE:SIE
Siemens
219.95
50.79
30.02%
DE:FPE3
Fuchs Petrolub
45.04
0.88
1.98%
DE:LXS
LANXESS
27.30
1.41
5.46%
Wacker Chemie AG Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -5.33%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative developments. While the company showed strong performance in specialty silicones and maintained financial stability, it faced challenges in its polysilicon segment and overall EBITDA decline. Market uncertainties and a negative net income further contributed to a cautious outlook.Q1-2025 Updates
Positive Updates
Strong Performance in Specialty Silicones
Chemicals EBITDA increased by 6% year-over-year, driven by strong growth in specialty silicones. Sales in silicones were approximately €745 million, up 5% year-over-year.
Resilience and Efficiency Measures
The company focuses on improving resilience through specialization, efficiency measures, and cost cutting. Approximately 1,000 projects initiated last year yielded net savings of about €16 million.
Innovative Product Launches
Launch of new silicon-based resin hardener and Janus hybrid polymers, which provide high-performance sealants and adhesives. These innovations enhance sustainability and product performance.
Financial Stability
Strong financials with high liquidity of €923 million, €4.8 billion in shareholder equity, and a low net debt position of €880 million.
Negative Updates
Decline in Group EBITDA
Group EBITDA fell to €127 million from €172 million a year ago, primarily due to lower volumes of solar-grade polysilicon and construction-related polymers.
Polysilicon Segment Challenges
Sales in the polysilicon segment were €245 million, 18% lower year-over-year due to significantly lower solar-grade volumes sold.
Market Uncertainty and Volatility
Increased uncertainty in the market due to geopolitical developments and US trade policies, leading to higher volatility in order intake.
Negative Net Income
The total net income was a negative €3 million, equating to a loss of €0.16 per share.
Company Guidance
During the Wacker Chemie conference call for Q1 2025, the company provided guidance amidst a challenging market environment. Sales for the quarter were reported at €1.48 billion, slightly below the previous year but higher than the preceding quarter due to seasonality. The group EBITDA stood at €127 million, down from €172 million the previous year, primarily due to weak demand in solar grade polysilicon and construction-related polymers, and lower utilization rates. However, the Chemicals segment saw a 6% year-over-year increase in EBITDA to €145 million, driven by strong growth in specialty silicones. Despite uncertainties, the company maintained its full-year EBITDA guidance between €700 million and €900 million, without factoring in potential trade war impacts. Wacker Chemie emphasized its focus on improving resilience through specialization, efficiency, cost-cutting measures, and the ramp-up of a new hedging line in Burghausen. The balance sheet remained robust with €923 million in liquidity and a low net debt position of €880 million. The company also highlighted its commitment to sustainability and safety, linking safety performance to management remuneration.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.