Brenntag AG (BNR) AI Stock Analysis

• Market Cap: €8.40B
• Dividend Yield: 3.61%
• Average Volume (3M): 293.70K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.93
• Revenue Growth: 0.10%
• EPS Growth: -15.09%
• Country: DE
• Employees: 18,122
• Sector: Industrials
• Sector Strength: 83
• Industry: Chemicals - Specialty
• EPS (TTM): 0.93
• Shares Outstanding: 144,385,380
• 10 Day Avg. Volume: 255,074
• 30 Day Avg. Volume: 293,702
• PEG Ratio: 0.11
• Price to Book (P/B): 1.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.38
• 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: €68.82
• Price Target Upside: 19.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 66 Neutral
• Price Target: €63.00 ▲(9.34%Upside)

Brenntag AG's overall stock score of 65.5 reflects a stable financial performance supported by a strong balance sheet and fair valuation. However, challenges in profitability and cash flow consistency, coupled with neutral technical indicators, warrant cautious optimism. The absence of recent earnings call data limits insight into future guidance or sentiment.

Positive Factors

Free Cash Flow

Free cash flow remains solid, providing financial stability and potential for future investments.

Gross Profit

Gross profit was higher year over year, driven by both volume and price, which is good news.

Price Target

There is an upside to the price target by 14.9%, indicating potential for stock appreciation.

Negative Factors

BSP Conversion Ratio

Brenntag's BSP conversion ratio declined sequentially and underperformed peers again.

EBITA

Q3-24 EBITA of €281m was -6% below consensus at €299m, indicating lower than expected earnings.

Market Environment

The company expects a challenging and competitive market environment with only a moderate volume increase.

Brenntag AG Business Overview & Revenue Model

Company Description

Brenntag 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 Money

Brenntag AG generates revenue primarily through the distribution and supply of industrial and specialty chemicals. The company acts as an intermediary between chemical manufacturers and end users, purchasing chemicals in bulk and selling them in smaller quantities or customized formulations to meet specific customer needs. Brenntag's revenue streams include sales of chemicals and ingredients, logistic services, and value-added services like blending, repackaging, and technical support. Strategic partnerships with global chemical producers and a diverse customer base across various industries contribute significantly to its earnings, along with the company's ability to optimize its supply chain and maintain robust relationships with both suppliers and customers.

Brenntag AG Financial Statement Overview

Summary

Brenntag AG presents a generally stable financial performance, with key strengths in operational efficiency and capital structure. However, declining net profit margins and fluctuating revenue growth pose challenges. The balance sheet is strong, with manageable leverage, but cash flow generation shows room for improvement.

Income Statement

Brenntag AG's income statement shows moderate stability and profitability. The company maintains a healthy gross profit margin, but net profit margins have declined due to a decrease in net income relative to revenue. Revenue has seen a fluctuation over the years, with a notable drop in the most recent year. Overall, the company demonstrates solid operational efficiency with an EBIT margin of 5.6% and an EBITDA margin of 8.2% in the latest year.

Balance Sheet

The balance sheet indicates a stable financial position. The debt-to-equity ratio is moderate at 0.71, showing reasonable leverage. Return on equity has decreased, reflecting lower profitability. The equity ratio stands at 40.5%, suggesting a strong equity base relative to total assets. Overall, the balance sheet suggests a well-managed capital structure with manageable debt levels.

Cash Flow

Cash flow statements reflect fluctuations in operational efficiency. The operating cash flow to net income ratio is robust, yet there is a significant drop in free cash flow growth, indicating potential challenges in cash generation. The free cash flow to net income ratio is also healthy, suggesting efficient cash conversion from earnings.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
16.24B	16.82B	19.43B	14.38B	11.78B
	Gross Profit
4.03B	4.02B	4.32B	3.38B	2.77B
	EBIT
915.40M	1.12B	1.38B	742.40M	713.00M
	EBITDA
1.33B	1.51B	1.70B	1.03B	995.90M
	Net Income Common Stockholders
536.20M	714.90M	886.80M	448.30M	466.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
763.30M	576.90M	1.05B	705.00M	726.30M
	Total Assets
11.67B	10.34B	11.37B	10.20B	8.14B
	Total Debt
3.38B	2.40B	2.93B	2.66B	2.02B
	Net Debt
2.61B	1.82B	1.88B	1.96B	1.30B
	Total Liabilities
6.91B	5.98B	6.57B	6.20B	4.53B
	Stockholders Equity
4.73B	4.30B	4.75B	3.91B	3.55B
Cash Flow		Free Cash Flow
564.40M	1.34B	689.50M	189.30M	1.02B
	Operating Cash Flow
906.60M	1.66B	956.70M	388.60M	1.22B
	Investing Cash Flow
-749.00M	-558.30M	-401.40M	-608.50M	-224.10M
	Financing Cash Flow
23.00M	-1.55B	-225.80M	174.10M	-735.60M

Brenntag AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 57.62
• 50DMA: Positive
• 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:BNR, the sentiment is Negative. The current price of 57.62 is below the 20-day moving average (MA) of 59.62, above the 50-day MA of 57.39, and below the 200-day MA of 58.95, indicating a neutral trend. The MACD of 0.46 indicates Positive momentum. The RSI at 44.01 is Neutral, neither overbought nor oversold. The STOCH value of 13.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:BNR.

Brenntag AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$4.46B	12.11	5.38%	5.02%	4.17%	-11.82%
BNR	66 Neutral	€8.40B	15.88	11.49%	3.61%	0.10%	-15.09%
0RBE		€11.00B	―	-6.00%	―	―	―
0QDS		€8.59B	28.73	3.25%	6.35%	―	―
FPE	74 Outperform	€5.33B	15.13	15.87%	3.33%	2.58%	8.02%
LNXSF		$2.52B	―	-3.92%	0.38%	―	―
WKCMF		$3.55B	13.72	5.37%	3.87%	―	―