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Wacker Chemie AG (DE:WCH)
XETRA:WCH

Wacker Chemie AG (WCH) AI Stock Analysis

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Wacker Chemie AG

(XETRA:WCH)

Rating:66Neutral
Price Target:
€72.00
▲(15.94%Upside)
Wacker Chemie AG's overall stock score reflects a combination of stable financial structure and valuation appeal, yet challenges in income growth and cash flow generation weigh on the outlook. Technical indicators suggest a bearish trend, aligning with the cautious sentiment from the recent earnings call. While the company’s focus on specialization and efficiency measures is promising, market uncertainties and segment-specific challenges remain significant factors influencing the stock's performance.
Positive Factors
Growth in Silicones
Silicones should increase EBITDA by a double-digit percentage, while Polymers and Biosolutions should be up slightly.
Strong Performance in Polysilicon
Wacker reported €35m EBITDA in the Polysilicon segment, comfortably in the guidance range and higher than market expectations.
Negative Factors
Delayed Earnings in Biosolutions
Biosolutions disappoints with delayed earnings momentum.
Uncertainty in US Polysilicon Market
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)

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: -8.56%|
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
Income Statement
Balance Sheet
Cash Flow
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
5.72B6.40B8.21B6.21B4.69B
Gross Profit
986.70M1.08B2.16B1.67B869.90M
EBIT
270.90M353.70M1.45B1.04B257.10M
EBITDA
676.90M884.00M1.85B1.46B608.50M
Net Income Common Stockholders
241.00M313.60M1.25B806.90M189.20M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.22B1.39B1.78B1.67B1.34B
Total Assets
9.41B8.85B9.40B8.13B6.95B
Total Debt
1.95B1.51B1.34B1.25B1.23B
Net Debt
900.00M491.80M446.00M319.20M601.30M
Total Liabilities
4.57B4.27B4.37B5.03B5.26B
Stockholders Equity
4.67B4.42B4.86B3.02B1.63B
Cash FlowFree Cash Flow
-341.20M296.70M564.30M743.10M647.20M
Operating Cash Flow
310.40M936.30M1.13B1.06B873.70M
Investing Cash Flow
-435.30M-107.60M-701.40M-639.70M-783.10M
Financing Cash Flow
145.90M-688.10M-458.50M-153.90M117.10M

Wacker Chemie AG Technical Analysis

Technical Analysis Sentiment
Negative
Last Price62.10
Price Trends
50DMA
64.51
Negative
100DMA
66.75
Negative
200DMA
71.06
Negative
Market Momentum
MACD
-0.71
Negative
RSI
43.59
Neutral
STOCH
56.81
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 62.1 is below the 20-day moving average (MA) of 63.67, below the 50-day MA of 64.51, and below the 200-day MA of 71.06, indicating a bearish trend. The MACD of -0.71 indicates Negative momentum. The RSI at 43.59 is Neutral, neither overbought nor oversold. The STOCH value of 56.81 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DEWCH
66
Neutral
$3.12B12.955.37%3.77%-10.63%-23.15%
51
Neutral
$2.02B-1.14-21.36%3.64%2.88%-30.57%
€8.74B16.5711.49%3.46%
€11.06B-6.00%
€8.93B29.863.25%6.11%
DEFPE
76
Outperform
€5.56B15.7415.87%3.20%2.58%8.02%
$2.53B-3.92%0.36%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:WCH
Wacker Chemie AG
62.10
-33.71
-35.19%
GB:0MPT
Brenntag AG
60.77
-1.67
-2.67%
GB:0RBE
Covestro
60.12
12.08
25.15%
GB:0QDS
Evonik
19.13
1.76
10.13%
DE:FPE
Fuchs Petrolub
36.25
2.64
7.85%
LNXSF
LANXESS
29.50
4.97
20.26%
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.