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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:53Neutral
Price Target:
€66.00
▲(2.25% Upside)
Wacker Chemie AG's overall stock score reflects a challenging financial performance with declining revenues and profitability, as well as cash flow issues. The technical analysis provides mixed signals, while the valuation appears reasonable with an attractive dividend yield. The earnings call highlighted significant challenges, including a lowered outlook and increased net debt, overshadowing positive sustainability initiatives.
Positive Factors
Negative Factors
Wacker Chemie AG (WCH) vs. iShares MSCI Germany ETF (EWG)
Market Cap
$3.21B
Dividend Yield3.87%
Average Volume (3M)103.95K
Price to Earnings (P/E)13.3
Beta (1Y)1.27
Revenue Growth-10.63%
EPS Growth-23.15%
CountryDE
Employees16,655
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.49
Shares Outstanding52,152,600
10 Day Avg. Volume117,087
30 Day Avg. Volume103,946
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 Cap1.37
Enterprise Value/Revenue0.78
Enterprise Value/Gross Profit4.82
Enterprise Value/Ebitda7.36
Forecast
1Y Price Target
$69.63Price Target Upside7.88% Upside
Rating ConsensusHold
Number of Analyst Covering12
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 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 Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Negative
The earnings call highlighted several achievements, including a sequential increase in EBITDA and positive feedback on sustainability initiatives. However, these were overshadowed by significant challenges, including a lowered full-year outlook, declines in sales and EBITDA, a net income loss, and increased net debt. Additionally, the demand for polysilicon solar remains weak, and order intake volatility adds to the challenging environment.Q2-2025 Updates
Positive Updates
Sequential Increase in Group EBITDA
Despite an 11% year-over-year decline, group EBITDA showed a 7% sequential increase over the previous quarter, primarily driven by an insurance compensation in silicones and seasonality in polymers.
Sustainability Initiative Launch
Launch of a new tool for calculating the carbon footprint of products, aligned with the Together for Sustainability guideline, receiving positive feedback from customers.
Polysilicon Semi Segment Growth
Strong growth in the semiconductor polysilicon segment, with ongoing investments like the new etching line proceeding as expected.
Negative Updates
Full Year Outlook Lowered
The company lowered its full-year outlook due to ongoing trade-related volatility and currency headwinds from a strengthening euro, with expected sales between EUR 5.5 billion and EUR 5.9 billion and EBITDA between EUR 500 million and EUR 700 million.
Sales and EBITDA Decline
Sales in Q2 were EUR 1.41 billion, down 4% year-over-year, with a decline in EBITDA to EUR 114 million from EUR 155 million in the second quarter of 2024.
Net Income Loss
Net income was negative at EUR 19 million, equating to a loss of EUR 0.49 per share.
Increased Net Debt
Net debt increased to EUR 1.1 billion, with cash flow generation remaining a concern.
Weak Polysilicon Solar Demand
Significant headwinds in solar-grade polysilicon sales with reduced capacity utilization due to weak demand.
Volatile Order Intake
Order intake was volatile and poor since May, with no improvement observed throughout July.
Company Guidance
During the Wacker Chemie Q2 2025 Conference Call, the company lowered its full-year outlook due to weak demand, intense competition, and unfavorable euro-U.S. dollar exchange rates. For the second quarter, sales reached EUR 1.41 billion, with group EBITDA at EUR 114 million, reflecting an 11% decline year-over-year but a 7% sequential increase. The company updated its full-year guidance, forecasting sales between EUR 5.5 billion and EUR 5.9 billion and an EBITDA range of EUR 500 million to EUR 700 million. Wacker Chemie plans to counter market challenges through growth, cash, and cost initiatives, including reducing investments, optimizing working capital, and enhancing productivity. The company highlighted its sustainability efforts and strategic priorities, such as focusing on specialty products, boosting efficiency, and strengthening team skills. The call also addressed the impact of trade policy uncertainties and the strategic focus on expanding semiconductor polysilicon volumes.Wacker Chemie AG Financial Statement Overview
Summary
Wacker Chemie AG is facing a challenging financial environment, characterized by declining revenues, profitability, and cash flow. The income statement highlights significant revenue contraction and reduced margins, while the balance sheet shows increasing leverage and declining returns on equity. Cash flow challenges further exacerbate the situation, with negative free cash flow growth and limited cash generation. Strategic initiatives are needed to address these issues and improve financial stability and performance.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.45
Neutral
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.60
Neutral
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.40
Negative
| 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 | 884.00M | 1.85B | 1.46B | 608.50M |
| 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
Neutral
64.55
Price Trends
65.63
Negative
64.87
Negative
66.04
Negative
Market Momentum
-0.27
Negative
50.15
Neutral
80.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:WCH, the sentiment is Neutral. The current price of 64.55 is above the 20-day moving average (MA) of 63.75, below the 50-day MA of 65.63, and below the 200-day MA of 66.04, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 50.15 is Neutral, neither overbought nor oversold. The STOCH value of 80.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | €4.58B | 14.07 | 16.05% | 3.72% | 2.35% | -0.09% | |
66 Neutral | €7.33B | 17.34 | 10.04% | 4.13% | -1.30% | -28.95% | |
64 Neutral | €6.85B | 16.14 | 2.46% | 7.96% | -2.62% | ― | |
53 Neutral | $3.21B | 13.28 | 5.37% | 3.87% | -10.63% | -23.15% | |
48 Neutral | €10.73B | -29.06 | -6.14% | ― | -1.98% | ― | |
46 Neutral | €1.88B | -11.42 | -4.13% | 0.46% | -2.75% | 83.47% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
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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.