Wacker Chemie AG (WCH) AI Stock Analysis

• Market Cap: $3.06B
• Dividend Yield: 3.89%
• Average Volume (3M): 110.29K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 1.28
• Revenue Growth: -10.63%
• EPS Growth: -23.15%
• Country: DE
• Employees: 16,655
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): -0.49
• Shares Outstanding: 52,152,600
• 10 Day Avg. Volume: 90,651
• 30 Day Avg. Volume: 110,293
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 0.77
• Enterprise Value/Gross Profit: 4.44
• Enterprise Value/Ebitda: 6.43
• 1Y Price Target: $75.40
• Price Target Upside: 17.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 65 Neutral
• Price Target: €71.00 ▲(10.51% Upside)

Wacker Chemie AG's stock score reflects mixed financial performance and valuation, with significant challenges highlighted in the recent earnings call. The company's stable balance sheet and reasonable valuation are positive factors, but the negative outlook and cash flow concerns weigh heavily on the score.

Positive Factors

Growth in Specialties

The targeted +10% volume growth in specialties is more driven by new wins on the back of investments in downstream assets than by macro tailwind.

Silicones Growth

Silicones should increase EBITDA by a double-digit percentage, while Polymers and Biosolutions should be up slightly.

Negative Factors

Earnings Momentum

Biosolutions disappoints with delayed earnings momentum.

Export Compliance

There is uncertainty about leakages of non-compliant exports to the US, which could remain difficult for Wacker if loopholes are not closed.

Raw Material Costs

Polymers might see some margin impact due to the risk that raw material costs could increase faster than prices, resulting in a lower margin.

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 its three main segments: Silicones, Polymers, and Biosolutions. The Silicones segment is a significant revenue driver, producing a variety of silicone-based materials used in numerous applications, from personal care products to automotive manufacturing. The Polymers division offers a broad array of polymer products, including dispersions and resins, which are essential in the coatings, adhesives, and construction industries. The Biosolutions segment focuses on bio-based products and specialty chemicals, catering to the growing demand for sustainable solutions. Additionally, Wacker Chemie benefits from strategic partnerships and collaborations with various industries, enhancing its market reach and fostering innovation. The company's commitment to research and development also plays a crucial role in driving its revenue, as it continuously seeks to improve existing products and develop new ones to meet evolving customer needs.

Wacker Chemie AG Financial Statement Overview

Summary

Wacker Chemie AG shows a stable balance sheet with manageable leverage and strong equity, but faces challenges in income growth and cash flow generation. Revenue and net profit margins have decreased, and free cash flow is negative, indicating liquidity concerns.

Income Statement

Wacker Chemie AG has shown volatility in its income statement over the years. The gross profit margin for 2024 was approximately 17.24%, down from 16.91% in 2023, indicating slight improvement. The net profit margin has decreased to 4.21% in 2024 from 4.90% in 2023, showing a decline in net profitability. Revenue in 2024 decreased by 10.62% compared to 2023, reflecting challenges in maintaining growth. The EBIT margin was 4.73% in 2024, down from 5.52% in 2023. Despite these fluctuations, the company has maintained positive EBIT and EBITDA margins.

Balance Sheet

The balance sheet of Wacker Chemie AG shows a stable financial structure with a debt-to-equity ratio of 0.42 in 2024, indicating a manageable level of leverage. The equity ratio was 49.64% in 2024, suggesting strong capitalization and financial stability. Return on Equity (ROE) stands at 5.16% for 2024, which is a decrease from the previous year but remains positive. Overall, the company has maintained a solid equity base with moderate leverage.

Cash Flow

The cash flow statement shows some concerns, with a negative free cash flow in 2024 of -341.2 million EUR, indicating potential issues with liquidity management. The operating cash flow to net income ratio was 1.29, showing that operating cash flows are covering net income, but there's a significant decline from the previous year. Free cash flow to net income ratio is negative due to high capital expenditures, which could impact future cash flow flexibility.

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
EBITDA	807.40M	884.00M	1.85B	1.46B	608.50M
Net Income	241.00M	313.60M	1.25B	806.90M	189.20M
Balance Sheet
Total Assets	9.41B	8.85B	9.40B	8.13B	6.95B
Cash, Cash Equivalents and Short-Term Investments	1.22B	1.39B	1.78B	1.67B	1.34B
Total Debt	1.95B	1.51B	1.34B	1.25B	1.23B
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

• Technical Analysis Sentiment: Negative
• Last Price: 64.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 64.25 is below the 20-day moving average (MA) of 65.82, below the 50-day MA of 66.38, and below the 200-day MA of 66.45, indicating a bearish trend. The MACD of -0.85 indicates Positive momentum. The RSI at 45.69 is Neutral, neither overbought nor oversold. The STOCH value of 17.34 is Positive, 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
WCH	65 Neutral	$3.06B	12.86	5.37%	3.89%	-10.63%	-23.15%
Sector *	62 Neutral	$10.28B	6.21	0.76%	2.84%	3.10%	-36.03%
0MPT	―	€7.46B	17.63	9.86%	―	―	―
0RBE	―	€10.38B	―	-5.90%	―	―	―
0QDS	―	€7.48B	17.78	4.87%	―	―	―
FPE	67 Neutral	€4.68B	14.16	16.29%	3.74%	2.35%	-0.09%
LNXSF	―	$2.36B	―	-3.72%	0.76%	―	―

Wacker Chemie AG Corporate Events

Wacker Chemie AG Revises 2025 Financial Outlook Amid Global Uncertainties

Wacker Chemie AG has revised its financial outlook for 2025, anticipating lower-than-expected performance due to macroeconomic and geopolitical uncertainties, coupled with unfavorable EUR/USD exchange rates. The company now projects group sales between €5.5 billion and €5.9 billion and EBITDA between €500 million and €700 million, down from previous estimates. The unresolved trade policy issues in the US market for solar polysilicon have also contributed to the subdued demand, impacting the company’s financial projections.

The most recent analyst rating on (DE:WCH) stock is a Hold with a EUR100.00 price target. To see the full list of analyst forecasts on Wacker Chemie AG stock, see the DE:WCH Stock Forecast page.