Wacker Chemie AG (WCH) AI Stock Analysis

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Wacker Chemie AG

(XETRA:WCH)

Rating:66Neutral

Price Target:

€66.00

▲(2.96%Upside)

Wacker Chemie AG's overall score is driven by its mixed financial performance and stable valuation. The technical analysis indicates neutral market sentiment, while the earnings call provides a balanced view of strengths in silicones and challenges in polysilicon. Financial stability and strategic focus on resilience contribute positively, but market uncertainties and negative cash flow weigh on the score.

Positive Factors

Earnings Performance

Wacker reported €35m EBITDA in the Polysilicon segment, comfortably in the guidance range and higher than market expectations.

Growth Prospects

The targeted volume growth in specialties is driven by new wins on the back of investments in downstream assets.

Market Growth

All other segments are on track for solid growth, with Silicones, Polymers, and Biosolutions showing promising developments.

Negative Factors

Earnings Momentum

Biosolutions disappoints with delayed earnings momentum.

Market Uncertainty

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

Solar-Grade Polysilicon

The US PV market is the only one left showing profitable margins for Wacker's solar-grade polysilicon business, indicating potential structural risks.

Wacker Chemie AG (WCH) vs. iShares MSCI Germany ETF (EWG)

Market Cap

$3.18B

Dividend Yield3.36%

Average Volume (3M)118.54K

Price to Earnings (P/E)13.2

Beta (1Y)1.18

Revenue Growth-10.63%

EPS Growth-23.15%

CountryDE

Employees16,655

SectorBasic Materials

Sector Strength63

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)-0.16

Shares Outstanding52,152,600

10 Day Avg. Volume131,808

30 Day Avg. Volume118,539

Financial Highlights & Ratios

PEG Ratio0.01

Price to Book (P/B)1.71

Price to Sales (P/S)0.00

P/FCF Ratio17.69

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$82.45

Price Target Upside28.62% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering10

Wacker Chemie AG Business Overview & Revenue Model

Company DescriptionWacker 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 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 Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q1-2025)

% Change Since: -5.62%|

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.

Wacker Chemie AG Financial Statement Overview

Summary

Wacker Chemie AG has demonstrated mixed financial performance with stable balance sheet metrics but challenges in sustaining income growth and cash flow generation. The decrease in revenue and net profit margins over the past year reflects industry pressures. The company's leverage remains manageable, and its equity position is strong, but the negative free cash flow is a concern. Strategic management of operational costs and capital expenditures could improve future financial performance.

Income Statement

Positive

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

Positive

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

Neutral

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.89B	5.72B	6.40B	8.21B	6.21B	4.69B
Gross Profit	1.74B	986.70M	1.08B	2.16B	1.67B	869.90M
EBITDA	753.40M	807.40M	884.00M	1.85B	1.46B	608.50M
Net Income	-565.70M	241.00M	313.60M	1.25B	806.90M	189.20M
Balance Sheet
Total Assets	0.00	9.41B	8.85B	9.40B	8.13B	6.95B
Cash, Cash Equivalents and Short-Term Investments	1.34B	1.22B	1.39B	1.78B	1.67B	1.34B
Total Debt	0.00	1.95B	1.51B	1.34B	1.25B	1.23B
Total Liabilities	0.00	4.57B	4.27B	4.37B	5.03B	5.26B
Stockholders Equity	1.69B	4.67B	4.42B	4.86B	3.02B	1.63B
Cash Flow
Free Cash Flow	565.00M	-341.20M	296.70M	564.30M	743.10M	647.20M
Operating Cash Flow	604.80M	310.40M	936.30M	1.13B	1.06B	873.70M
Investing Cash Flow	-368.20M	-435.30M	-107.60M	-701.40M	-639.70M	-783.10M
Financing Cash Flow	-203.00M	145.90M	-688.10M	-458.50M	-153.90M	117.10M

Wacker Chemie AG Technical Analysis

Technical Analysis Sentiment

Positive

Last Price64.10

Price Trends

50DMA

63.48

Positive

100DMA

66.71

Negative

200DMA

69.71

Negative

Market Momentum

MACD

-0.37

Negative

RSI

54.66

Neutral

STOCH

72.97

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 64.1 is above the 20-day moving average (MA) of 62.49, above the 50-day MA of 63.48, and below the 200-day MA of 69.71, indicating a neutral trend. The MACD of -0.37 indicates Negative momentum. The RSI at 54.66 is Neutral, neither overbought nor oversold. The STOCH value of 72.97 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

Overall Rating

UnderperformOutperform

Sector (43)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WCH	66 Neutral	$3.18B	13.21	5.37%	3.36%	-10.63%	-23.15%
Sector *	43 Neutral	AU$1.38B	-6.10	-40.62%	4.17%	-4.78%	-42.91%
0MPT		€8.37B	15.86	11.49%	3.14%	―	―
0RBE		€11.11B	―	-6.00%	―	―	―
0QDS		€8.54B	28.58	3.25%	5.54%	―	―
FPE	74 Outperform	€5.46B	15.52	15.87%	2.83%	2.58%	8.02%
LNXSF		$2.63B	―	-3.92%	0.37%	―	―

* Basic Materials Sector Average

Performance Comparison

DE:WCH

Wacker Chemie AG

64.10

-33.69

-34.45%

GB:0MPT

Brenntag AG

58.12

-3.16

-5.16%

GB:0RBE

Covestro

60.46

5.70

10.41%

GB:0QDS

Evonik

18.34

0.40

2.23%

DE:FPE

Fuchs Petrolub

35.70

3.54

11.01%

LNXSF

LANXESS

30.34

5.26

20.97%

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.Date of analysis: Jun 27, 2025