BASF SE (BAS) AI Stock Analysis

• Market Cap: €38.22B
• Dividend Yield: 5.25%
• Average Volume (3M): 1.85M
• Price to Earnings (P/E): 98.8
• Beta (1Y): 1.23
• Revenue Growth: -0.77%
• EPS Growth: N/A
• Country: DE
• Employees: 111,408
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.48
• Shares Outstanding: 893,854,900
• 10 Day Avg. Volume: 1,643,894
• 30 Day Avg. Volume: 1,847,996
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €48.83
• Price Target Upside: 14.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 49 Neutral
• Price Target: €44.00 ▲(2.76% Upside)

BASF SE's overall stock score reflects significant challenges in financial performance, particularly with declining revenues and low profitability. The technical analysis suggests potential bearish momentum, while the valuation indicates overvaluation concerns despite a high dividend yield. These factors collectively contribute to a cautious outlook for the stock.

Positive Factors

Negative Factors

BASF SE Business Overview & Revenue Model

Company Description

BASF SE (BAS) is a leading global chemical company headquartered in Ludwigshafen, Germany. As one of the largest producers of chemicals, BASF operates in various sectors including chemicals, plastics, performance products, agricultural solutions, and oil and gas. The company’s core products encompass a wide range of chemical solutions, including specialty chemicals, crop protection products, and high-performance materials, catering to diverse industries such as automotive, construction, and agriculture.

How the Company Makes Money

BASF generates revenue through multiple streams, primarily by selling a wide array of chemical products to various industries. Its revenue model is diversified across several segments, including Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions. Each segment contributes significantly to overall earnings, with Chemicals and Materials being the largest revenue sources due to their vast application in manufacturing and production processes. Additionally, BASF benefits from strategic partnerships and collaborations with other companies in research and development, enhancing its product offerings and market reach. Factors such as global economic conditions, demand for chemical products, and commodity prices also play a critical role in influencing its earnings. The company is focused on sustainability and innovation, which further positions it to capitalize on emerging market trends and customer needs, thereby driving revenue growth.

BASF SE Financial Statement Overview

Summary

BASF SE's financial performance is mixed. The income statement shows declining revenues and low profit margins, with a significant revenue decline of 5.25% and a net profit margin of 0.60%. The balance sheet is moderately stable with a debt-to-equity ratio of 0.74, but low ROE at 1.12%. Cash flow is improving with a 15.27% growth in free cash flow, but challenges remain in translating earnings into free cash flow.

Income Statement

BASF SE's income statement reveals a challenging period with declining revenue and profit margins. The TTM data shows a significant revenue decline of 5.25% compared to the previous year, and the net profit margin is low at 0.60%. The gross profit margin remains stable at around 26%, but the EBIT and EBITDA margins are modest at 4.08% and 11.18%, respectively. The company faces pressure on profitability, indicating potential challenges in cost management or market conditions.

Balance Sheet

The balance sheet shows a moderate financial position with a debt-to-equity ratio of 0.74, indicating a balanced approach to leverage. The return on equity (ROE) is low at 1.12%, reflecting limited profitability relative to shareholder equity. The equity ratio stands at 41.67%, suggesting a stable capital structure. However, the increasing debt levels over the years may pose a risk if not managed carefully.

Cash Flow

Cash flow analysis indicates a positive trend in free cash flow growth at 15.27% in the TTM period, showing improved cash generation capabilities. The operating cash flow to net income ratio is 3.36, suggesting strong cash flow relative to net income. However, the free cash flow to net income ratio is low at 0.08, indicating potential challenges in translating earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.77B	65.26B	68.90B	87.33B	78.60B	59.15B
Gross Profit	16.98B	17.09B	16.70B	21.07B	19.80B	15.11B
EBITDA	7.24B	6.68B	7.33B	10.22B	10.84B	3.57B
Net Income	388.00M	1.30B	225.00M	-391.00M	5.52B	-1.47B
Balance Sheet
Total Assets	77.67B	80.42B	79.93B	84.47B	87.38B	80.29B
Cash, Cash Equivalents and Short-Term Investments	2.57B	2.98B	2.68B	2.75B	2.83B	4.54B
Total Debt	23.85B	24.00B	21.35B	20.95B	19.14B	21.19B
Total Liabilities	44.16B	43.53B	43.28B	43.55B	45.30B	45.89B
Stockholders Equity	32.36B	35.60B	35.28B	36.60B	40.79B	33.73B
Cash Flow
Free Cash Flow	468.00M	748.00M	2.72B	3.33B	3.71B	2.28B
Operating Cash Flow	6.11B	6.95B	8.11B	7.71B	7.25B	5.41B
Investing Cash Flow	-3.86B	-5.08B	-4.99B	-3.78B	-2.62B	-1.90B
Financing Cash Flow	-1.86B	-1.55B	-2.90B	-4.01B	-6.46B	-1.56B

BASF SE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 42.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:BAS, the sentiment is Negative. The current price of 42.82 is below the 20-day moving average (MA) of 44.54, below the 50-day MA of 44.54, and below the 200-day MA of 43.69, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 35.31 is Neutral, neither overbought nor oversold. The STOCH value of 17.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:BAS.

BASF SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NDA	79 Outperform	4.18B	6.78	9.14%	1.57%	5.44%	127.48%
BAS	49 Neutral	€38.22B	98.83	1.15%	5.25%	-0.77%	―
WCH	48 Neutral	3.14B	13.04	3.13%	3.95%	-10.63%	-23.15%
1COV	48 Neutral	10.15B	-27.49	-6.14%	―	-1.98%	0.00%
LXS	47 Neutral	1.96B	-11.86	-4.13%	0.44%	-2.75%	83.47%
SDF	45 Neutral	2.03B	-1.18	-40.20%	1.32%	-2.41%	-26533.42%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%