Wacker Chemie AG (WCH) AI Stock Analysis

• Market Cap: $3.44B
• Dividend Yield: 3.61%
• Average Volume (3M): 105.64K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 1.21
• Revenue Growth: -10.63%
• EPS Growth: -23.15%
• Country: DE
• Employees: 16,655
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -0.49
• Shares Outstanding: 52,152,600
• 10 Day Avg. Volume: 94,629
• 30 Day Avg. Volume: 105,644
• PEG Ratio: -0.62
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.61
• P/FCF Ratio: -10.20
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 4.82
• Enterprise Value/Ebitda: 7.36
• 1Y Price Target: $69.70
• Price Target Upside: 0.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 55 Neutral
• Price Target: €67.00 ▼(-3.25% Downside)

The overall stock score of 55 reflects a challenging financial environment for Wacker Chemie AG, with declining revenues, profitability, and cash flow being the most significant factors. Technical analysis provides a neutral outlook, and while the valuation is reasonable, the negative sentiment from the earnings call further weighs on the score. Strategic initiatives are needed to address these issues and improve financial stability and performance.

Positive Factors

Sustainability Initiatives

Wacker Chemie's commitment to sustainability, through initiatives like the carbon footprint tool, aligns with global trends towards eco-friendly practices, potentially enhancing its market position and customer loyalty.

Semiconductor Polysilicon Growth

The growth in semiconductor polysilicon indicates a strategic focus on high-demand sectors, which could drive future revenue and profitability, leveraging the increasing demand for semiconductor materials.

Strategic Cost Initiatives

Wacker Chemie's strategic focus on cost optimization and productivity enhancements is crucial for maintaining competitiveness and financial stability in a challenging market environment.

Negative Factors

Declining Revenue

The severe contraction in revenue highlights operational challenges and market pressures, necessitating strategic adjustments to reverse the downward trend and ensure long-term viability.

Increased Net Debt

Rising net debt levels can strain financial resources and limit investment capacity, posing risks to future growth and necessitating effective debt management strategies.

Weak Polysilicon Solar Demand

Weak demand for solar-grade polysilicon reflects sector-specific challenges, impacting revenue from this segment and requiring strategic pivots to mitigate demand fluctuations.

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 generates revenue primarily through the sale of its chemical products across its three main segments: Silicones, Polymers, and Biosolutions. The Silicones segment is a significant revenue driver, producing a variety of silicone-based materials used in numerous applications, from personal care products to automotive manufacturing. The Polymers division offers a broad array of polymer products, including dispersions and resins, which are essential in the coatings, adhesives, and construction industries. The Biosolutions segment focuses on bio-based products and specialty chemicals, catering to the growing demand for sustainable solutions. Additionally, Wacker Chemie benefits from strategic partnerships and collaborations with various industries, enhancing its market reach and fostering innovation. The company's commitment to research and development also plays a crucial role in driving its revenue, as it continuously seeks to improve existing products and develop new ones to meet evolving customer needs.

Wacker Chemie AG Financial Statement Overview

Summary

Wacker Chemie AG is facing a challenging financial environment, characterized by declining revenues, profitability, and cash flow. The income statement highlights significant revenue contraction and reduced margins, while the balance sheet shows increasing leverage and declining returns on equity. Cash flow challenges further exacerbate the situation, with negative free cash flow growth and limited cash generation. Strategic initiatives are needed to address these issues and improve financial stability and performance.

Income Statement

Wacker Chemie AG's income statement reveals a challenging period with declining revenue and profitability. The TTM data shows a significant revenue decline of 96.3% compared to the previous period, indicating a severe contraction. Gross profit and net profit margins have decreased, reflecting reduced operational efficiency and profitability. The EBIT and EBITDA margins have also contracted, suggesting pressure on core earnings. Overall, the income statement indicates a need for strategic adjustments to reverse the downward trend.

Balance Sheet

The balance sheet of Wacker Chemie AG shows moderate leverage with a debt-to-equity ratio of 0.446 in the TTM period, which is manageable but has increased slightly over time. The return on equity has decreased, indicating reduced profitability for shareholders. The equity ratio remains stable, suggesting a balanced capital structure. While the company maintains a solid asset base, the declining ROE and increasing leverage warrant attention.

Cash Flow

Cash flow analysis reveals significant challenges, with negative free cash flow growth and a negative free cash flow to net income ratio in the TTM period. Operating cash flow coverage is low, indicating limited cash generation relative to net income. The negative free cash flow suggests potential liquidity issues, requiring careful cash management and cost control to stabilize the financial position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.66B	5.72B	6.40B	8.21B	6.21B	4.69B
Gross Profit	908.70M	986.70M	1.08B	2.16B	1.67B	869.90M
EBITDA	595.30M	807.40M	884.00M	1.85B	1.46B	608.50M
Net Income	135.70M	241.00M	313.60M	1.25B	806.90M	189.20M
Balance Sheet
Total Assets	8.80B	9.41B	8.85B	9.40B	8.13B	6.95B
Cash, Cash Equivalents and Short-Term Investments	794.10M	1.22B	1.39B	1.78B	1.67B	1.34B
Total Debt	1.94B	1.95B	1.51B	1.34B	1.25B	1.23B
Total Liabilities	4.30B	4.57B	4.27B	4.37B	5.03B	5.26B
Stockholders Equity	4.34B	4.67B	4.42B	4.86B	3.02B	1.63B
Cash Flow
Free Cash Flow	-651.30M	-341.20M	296.70M	564.30M	743.10M	647.20M
Operating Cash Flow	300.80M	310.40M	936.30M	1.13B	1.06B	873.70M
Investing Cash Flow	-413.40M	-435.30M	-107.60M	-701.40M	-639.70M	-783.10M
Financing Cash Flow	10.20M	145.90M	-688.10M	-458.50M	-153.90M	117.10M

Wacker Chemie AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:WCH, the sentiment is Positive. The current price of 69.25 is above the 20-day moving average (MA) of 66.16, above the 50-day MA of 65.41, and above the 200-day MA of 66.06, indicating a bullish trend. The MACD of 0.83 indicates Negative momentum. The RSI at 61.13 is Neutral, neither overbought nor oversold. The STOCH value of 81.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:WCH.

Wacker Chemie AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FPE	71 Outperform	€4.66B	14.05	16.29%	3.72%	2.35%	-0.09%
EVK	70 Neutral	€7.02B	16.55	4.87%	7.77%	-2.62%	―
BNR	66 Neutral	€7.27B	17.20	9.86%	4.17%	-1.30%	-28.95%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
WCH	55 Neutral	$3.44B	14.27	―	3.61%	-10.63%	-23.15%
1COV	50 Neutral	€10.97B	-29.73	-5.90%	―	-1.98%	-16.31%
LXS	46 Neutral	$1.87B	―	-3.72%	0.46%	-2.75%	83.47%

Wacker Chemie AG Corporate Events

Wacker Chemie AG Announces Change in Voting Rights Structure

Wacker Chemie AG has announced a change in its voting rights structure, with Silchester International Investors LLP now holding 3.03% of the voting rights. This acquisition of shares signifies a notable shift in shareholder composition, potentially impacting the company’s governance and strategic direction.

The most recent analyst rating on (DE:WCH) stock is a Hold with a EUR65.00 price target. To see the full list of analyst forecasts on Wacker Chemie AG stock, see the DE:WCH Stock Forecast page.

Wacker Chemie AG Faces Mixed Earnings Amid Volatility

The recent earnings call for Wacker Chemie AG painted a mixed picture of the company’s current financial standing and future prospects. While there were some positive developments, such as sequential growth in EBITDA and robust semiconductor growth, these were overshadowed by significant challenges. The overall sentiment from the call suggests an environment of uncertainty and volatility, with notable headwinds impacting financial performance.

Wacker Chemie AG Reports Q2 Earnings Decline

Wacker Chemie AG is a global specialty chemical company with a diverse product portfolio, serving industries such as automotive, construction, and life sciences, with operations spanning 27 production sites worldwide.