Wacker Chemie AG (WCH) AI Stock Analysis

• Market Cap: $3.47B
• Dividend Yield: 3.75%
• Average Volume (3M): 95.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: -10.63%
• EPS Growth: -23.15%
• Country: DE
• Employees: 16,655
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.74
• Shares Outstanding: 52,152,600
• 10 Day Avg. Volume: 102,598
• 30 Day Avg. Volume: 95,545
• PEG Ratio: <0.01
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.63
• P/FCF Ratio: -1.23K
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 7.21
• Enterprise Value/Ebitda: 11.95
• 1Y Price Target: $73.81
• Price Target Upside: 5.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): >-0.01
• Revenue Forecast (FY): $5.52B

• Rating: 52 Neutral
• Price Target: €71.00 ▲(1.50% Upside)
• Action: Reiterated Date: 03/15/26
• Date: Action: Reiterated 03/15/26

The score is primarily held back by weak financial performance (loss-making year, margin pressure, and higher leverage), partially offset by a constructive price trend above key moving averages. Valuation is mixed due to a supportive dividend but loss-driven negative P/E, while the latest earnings call added modest caution from lowered guidance alongside improving cash flow actions and planned cost reductions.

Positive Factors

Semiconductor polysilicon demand & capacity

Sustained semiconductor polysilicon demand and an on‑schedule etching line strengthen Wacker's exposure to higher‑spec, less cyclical electronic polysilicon. Expanded capacity and improved process capability support higher margins per unit, longer customer qualification cycles, and durable revenue from semiconductor supply chains.

Resilient operating cash generation

Operating cash flow resilience despite a net loss shows underlying cash conversion strength from working capital and operations. This provides a stable base to fund capex, execute restructuring, and manage cyclicality, reducing reliance on external financing during a multi‑quarter recovery.

Solid liquidity & equity buffer

Meaningful equity and near‑term liquidity give Wacker a financial buffer through the down‑cycle, enabling investment in strategic projects and execution of cost programs without immediate balance‑sheet stress. This preserves flexibility to support customers and maintain capacity utilization.

Negative Factors

Sharp profitability deterioration

A swing to a large net loss reflects material margin compression and weak pricing power across segments. Sustained negative profitability erodes retained earnings, constrains reinvestment, and raises the bar for multi‑period recovery, making future earnings dependent on structural demand improvement or sustained cost reductions.

Rising leverage and weaker equity base

Higher debt and a shrinking equity base reduce financial flexibility and increase interest and refinancing risk if the downcycle continues. Elevated leverage limits capacity for opportunistic investment and heightens sensitivity to further earnings volatility or cash‑flow shocks.

Soft demand in core segments & tougher guidance

Structural softness in Silicones and Polymers, coupled with downward guidance and intense low‑cost competition, suggests prolonged volume and pricing pressure. Currency headwinds amplify margin erosion, meaning utilization and product‑mix improvements will be required to restore historic profitability levels.

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 primarily makes money by manufacturing chemical and materials products and selling them to industrial customers under business-to-business supply contracts, with revenue recognized mainly from product sales (and, in some areas, services). Key revenue streams include: (1) Silicones: sale of silicone fluids, elastomers, resins, emulsions, and specialty silicone formulations used in applications such as sealants, adhesives, coatings, lubricants, personal care, medical, automotive, and electronics. Earnings in this segment are driven by volumes, product mix (higher-margin specialties vs. standard grades), and pricing that reflects raw-material and energy cost conditions. (2) Polymers: sale of polymeric binders (notably dispersions and redispersible polymer powders) used in construction materials (e.g., tile adhesives, mortars, insulation systems), paints/coatings, paper, and adhesives. Demand in construction and renovation cycles, capacity utilization, and selling prices relative to feedstock and energy costs are major drivers. (3) Polysilicon: sale of high-purity polysilicon to the semiconductor industry and to solar/photovoltaic supply chains. This business is typically more cyclical and sensitive to industry supply-demand balance, customer qualification requirements, long-term or multi-period supply arrangements, and product specifications (e.g., electronic-grade vs. solar-grade). (4) Biosolutions/Biotechnology: revenue from biotechnological products and services, including contract manufacturing for biopharmaceutical customers and sales of specialty biochemicals/biotech-derived ingredients. This stream can include manufacturing services (e.g., contract development/manufacturing) in addition to product sales, with earnings influenced by capacity utilization, project/customer mix, and regulatory/quality requirements. Across segments, Wacker’s profitability is materially affected by input costs (especially energy and key raw materials), plant utilization, and pricing power; it also benefits from application development and technical service that supports customer adoption and long-term relationships. Specific partnership details not publicly available here are null.

Wacker Chemie AG Financial Statement Overview

Summary

Financials reflect a clear down-cycle: revenue declined in 2025 and profitability swung from a 241M profit to an ~800M loss, pressuring margins. Leverage moved higher (debt up, equity down), reducing flexibility. Operating cash flow improved, but free cash flow was roughly breakeven after a deeply negative prior year, highlighting uneven cash generation.

Income Statement

Profitability deteriorated sharply in the latest annual period (2025): revenue slipped to 5.49B from 5.72B in 2024 and the company swung from a 241M profit to an 800M loss, with negative operating profit and a deeply negative net margin. Margins also compressed materially versus 2021–2022, when the company delivered strong profitability and growth. The main strength is the historical ability to generate solid margins in up-cycles (notably 2021–2022), but the current trajectory shows weak pricing/power, lower gross profitability, and elevated earnings volatility.

Balance Sheet

Leverage remains moderate overall, but it has moved in the wrong direction recently: debt rose to 2.37B in 2025 from 1.95B in 2024 while equity fell to 3.60B from 4.67B, pushing debt-to-equity up to ~0.66. Returns on equity turned sharply negative in 2025, reflecting the large net loss and weakening capital base. The balance sheet still shows meaningful equity funding and sizeable assets, but the recent earnings drawdown and rising leverage reduce flexibility if the down-cycle persists.

Cash Flow

Operating cash flow held up better than earnings in 2025 at 550M (up from 310M in 2024), indicating some underlying cash generation despite the reported loss. However, free cash flow was approximately breakeven/slightly negative in 2025 (-2.8M) after being materially negative in 2024 (-341M), pointing to ongoing reinvestment and/or working-capital pressures. The key strength is resilient operating cash flow through the downturn, while the main weakness is inconsistent free cash flow generation and limited cash left after investment needs.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.49B	5.72B	6.40B	8.21B	6.21B
Gross Profit	657.30M	986.70M	1.08B	2.16B	1.67B
EBITDA	396.70M	807.40M	878.30M	1.85B	1.46B
Net Income	-821.10M	241.00M	313.60M	1.25B	806.90M
Balance Sheet
Total Assets	8.79B	9.41B	8.85B	9.40B	8.13B
Cash, Cash Equivalents and Short-Term Investments	1.48B	1.22B	1.39B	1.78B	1.67B
Total Debt	2.37B	1.95B	1.51B	1.34B	1.25B
Total Liabilities	5.04B	4.57B	4.27B	4.37B	5.03B
Stockholders Equity	3.60B	4.67B	4.42B	4.86B	3.02B
Cash Flow
Free Cash Flow	-2.80M	-341.20M	296.70M	564.30M	743.10M
Operating Cash Flow	550.40M	310.40M	936.30M	1.13B	1.06B
Investing Cash Flow	-725.20M	-435.30M	-107.60M	-701.40M	-639.70M
Financing Cash Flow	271.90M	145.90M	-688.10M	-458.50M	-153.90M

Wacker Chemie AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 69.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 69.95 is below the 20-day moving average (MA) of 75.32, below the 50-day MA of 74.69, and above the 200-day MA of 68.32, indicating a neutral trend. The MACD of -0.50 indicates Positive momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of 42.26 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACT	74 Outperform	€1.64B	24.68	27.29%	1.24%	1.03%	25.48%
EVK	62 Neutral	€6.50B	23.49	1.08%	8.92%	-5.92%	-58.33%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BNR	54 Neutral	€7.00B	27.05	6.03%	4.30%	-3.35%	-23.06%
WCH	52 Neutral	$3.47B	-4.20	―	3.75%	-10.63%	-23.15%
1COV	45 Neutral	€12.37B	-17.78	-10.04%	―	―	―
LXS	43 Neutral	€1.01B	-5.92	-5.77%	0.59%	-6.82%	71.94%