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Brenntag AG (BNTGY)
OTHER OTC:BNTGY
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Brenntag AG
(OTC:BNTGY)
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Rating:59Neutral
Price Target:
$13.50
▲(16.18% Upside)
Brenntag AG's overall stock score reflects a stable financial foundation with strong profitability and balance sheet management. However, technical analysis and earnings call insights point to challenges, including bearish momentum and reduced financial performance. The valuation is moderate, with an attractive dividend yield providing some support.
Brenntag AG (BNTGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.38B
Dividend Yield4.68%
Average Volume (3M)4.85K
Price to Earnings (P/E)18.4
Beta (1Y)0.74
Revenue Growth-0.73%
EPS Growth-29.18%
CountryUS
Employees18,122
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.07
Shares Outstanding721,926,800
10 Day Avg. Volume4,484
30 Day Avg. Volume4,851
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.55
Enterprise Value/Revenue0.81
Enterprise Value/Gross Profit3.24
Enterprise Value/Ebitda9.98
Forecast
1Y Price Target
$13.50Price Target Upside16.18% Upside
Rating ConsensusHold
Number of Analyst Covering1
Brenntag AG Business Overview & Revenue Model
Company DescriptionBrenntag SE purchases and supplies various industrial and specialty chemicals, and ingredients in Europe, the Middle East, Africa, North America, Latin America, the Asia Pacific, and internationally. The company operates through the divisions Brenntag Essentials and Brenntag Specialties. It provides value-added services, such as just-in-time delivery, product mixing, blending, repackaging, inventory management, and drum return handling, as well as technical and laboratory services for specialty chemicals. The company serves customers in various end-market industries, including nutrition, pharma, personal care, water treatment, and lubricants; and home, industrial, and institutional markets, as well as coatings and constructions, polymers, and rubber industries. Brenntag SE was founded in 1874 and is based in Essen, Germany.
How the Company Makes MoneyBrenntag AG generates revenue primarily through the distribution of chemicals and related products. The company's revenue model is based on the sale of a broad portfolio of industrial and specialty chemicals, which are sourced from a diverse range of suppliers and sold to various end markets. Key revenue streams include direct sales to customers across multiple sectors, as well as value-added services that enhance customer offerings. Significant partnerships with major chemical manufacturers allow Brenntag to secure favorable terms and expand its product range, while its extensive logistics network ensures efficient delivery and inventory management, contributing to overall profitability. Additionally, the company's focus on innovation and customer-specific solutions helps to foster long-term relationships and repeat business, further bolstering its revenue generation capabilities.
Brenntag AG Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Negative
The earnings call highlighted strategic expansions and sustainability achievements; however, these were overshadowed by a significant decline in financial performance, impairments, challenging market conditions, and reduced full-year guidance.Q2-2025 Updates
Positive Updates
M&A Activities and Strategic Expansion
Brenntag acquired MCE Pharma in the Czech Republic and GSZ Kaiserslautern in Germany, expanding capabilities in the biopharma market and hazardous substance storage.
Sustainability Achievements
Brenntag was awarded the Gold rating in the 2025 EcoVadis Sustainability Assessment and achieved an A- rating in the CDP climate change rating.
Cost Containment Success
EUR 30 million in savings from cost containment measures in Q2, with a goal to double the annual savings to EUR 100 million.
Negative Updates
Decreased Financial Performance
Sales decreased by 4% to EUR 3.9 billion, operating EBITA fell by 14% to EUR 246 million, and earnings per share dropped from EUR 1.03 to EUR 0.30 compared to the previous year.
Impairments and Special Items Impact
EUR 83 million in impairments on goodwill and intangible assets in Brenntag Essentials Latin America, with additional special item costs totaling EUR 38 million.
Challenging Market Conditions
Ongoing geopolitical tensions, unresolved global tariff discussions, and economic uncertainty led to a slowdown in demand and increased pricing pressure, particularly affecting Brenntag Essentials.
Adjusted Full-Year Guidance
Operating EBITA guidance was lowered to EUR 950 million - EUR 1.050 billion, down from previous expectations due to unfavorable euro-U.S. dollar exchange rates and continued market challenges.
Company Guidance
During Brenntag SE's second quarter of 2025 earnings call, the company provided updated guidance for the full year, adjusting its operating EBITA expectations to be between EUR 950 million and EUR 1.050 billion, primarily due to unfavorable euro-U.S. dollar exchange rate changes and ongoing geopolitical tensions. The second quarter saw a 4% year-over-year decline in sales to EUR 3.9 billion, with operating gross profit decreasing by 2% to EUR 974 million. Operating EBITA was EUR 246 million, a 14% drop from the previous year. Earnings per share fell to EUR 0.30, partly due to impairments in the Latin American segment. Brenntag's free cash flow was EUR 153 million, and the company achieved EUR 30 million in cost savings during the quarter. The outlook for the remainder of the year remains cautious, anticipating continued economic uncertainty and pricing pressures.Brenntag AG Financial Statement Overview
Summary
Brenntag AG demonstrates stable financial performance with strong profitability and balance sheet management. Despite challenges in revenue growth, the company maintains solid margins and effective cash flow management. The low leverage and strong return on equity position Brenntag AG well within the industry.Income Statement
Brenntag AG's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a slight decline in revenue growth rate, which is concerning. However, the company maintains stable gross and net profit margins, suggesting operational efficiency. The EBIT and EBITDA margins are consistent, reflecting steady profitability despite revenue challenges.65
Positive
Balance Sheet
The balance sheet of Brenntag AG is relatively strong, with a low debt-to-equity ratio in the TTM period, indicating prudent financial management. The return on equity remains healthy, showcasing effective use of shareholder funds. The equity ratio is stable, reflecting a solid financial position with manageable leverage.72
Positive
Cash Flow
Cash flow analysis reveals positive trends, with a slight growth in free cash flow and a healthy operating cash flow to net income ratio. The free cash flow to net income ratio is robust, indicating efficient cash generation relative to profits. However, the growth rate of free cash flow has slowed, which could be a potential area of concern.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 16.00B | 16.24B | 16.82B | 19.43B | 14.38B | 11.78B |
| Gross Profit | 4.01B | 4.03B | 4.02B | 4.32B | 3.38B | 2.77B |
| EBITDA | 1.30B | 1.33B | 1.51B | 1.70B | 1.03B | 995.90M |
| Net Income | 423.00M | 536.20M | 714.90M | 886.80M | 448.30M | 466.50M |
Balance Sheet | ||||||
| Total Assets | 10.79B | 11.67B | 10.34B | 11.37B | 10.20B | 8.14B |
| Cash, Cash Equivalents and Short-Term Investments | 531.70M | 763.30M | 576.90M | 1.05B | 705.00M | 726.30M |
| Total Debt | 551.90M | 3.38B | 2.40B | 2.93B | 2.66B | 2.02B |
| Total Liabilities | 6.55B | 6.91B | 5.98B | 6.57B | 6.20B | 4.53B |
| Stockholders Equity | 4.21B | 4.73B | 4.30B | 4.75B | 3.91B | 3.55B |
Cash Flow | ||||||
| Free Cash Flow | 586.10M | 564.40M | 1.34B | 689.50M | 189.30M | 1.02B |
| Operating Cash Flow | 907.80M | 906.60M | 1.66B | 956.70M | 388.60M | 1.22B |
| Investing Cash Flow | -523.00M | -749.00M | -558.30M | -401.40M | -608.50M | -224.10M |
| Financing Cash Flow | -495.00M | 23.00M | -1.55B | -225.80M | 174.10M | -735.60M |
Brenntag AG Technical Analysis
Negative
11.62
Price Trends
12.15
Negative
12.72
Negative
12.73
Negative
Market Momentum
-0.22
Positive
45.59
Neutral
31.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BNTGY, the sentiment is Negative. The current price of 11.62 is below the 20-day moving average (MA) of 11.83, below the 50-day MA of 12.15, and below the 200-day MA of 12.73, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 45.59 is Neutral, neither overbought nor oversold. The STOCH value of 31.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BNTGY.
Brenntag AG Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Neutral | $6.91B | 8.45 | 14.52% | 5.42% | 1.60% | -3.97% | |
63 Neutral | $22.92B | 18.01 | 16.88% | 2.71% | -10.59% | -7.79% | |
63 Neutral | $10.08B | 14.68 | 11.73% | ― | -2.34% | 89.86% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | $8.38B | 18.39 | 9.47% | 4.68% | -0.73% | -29.18% | |
55 Neutral | $11.21B | ― | -8.66% | 1.75% | -33.05% | -97.63% | |
52 Neutral | $9.65B | 25.36 | -0.64% | 2.80% | -3.00% | -124.79% |
* Basic Materials Sector Average
BNTGY
Brenntag AG
11.62
-1.82
-13.54%
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EMN
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61.28
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PPG
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101.57
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-19.23%
WLK
Westlake Corporation
75.25
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AVTR
Avantor
14.78
-9.71
-39.65%
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.