XTRA:BAS

Stock Analysis Report

Executive Summary

BASF SE operates as a chemical company worldwide.

Rewards

Pays a high and reliable dividend of 5.24%

Risk Analysis

Earnings are forecast to decline by an average of -26.7% per year for the next 3 years

Has a high level of debt

Dividend of 5.24% is not well covered by earnings

Profit margins (3.9%) are lower than last year (8%)



Snowflake Analysis

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has BASF's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BAS has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.3%

BAS

-2.4%

DE Chemicals

0.2%

DE Market


1 Year Return

-7.9%

BAS

-4.4%

DE Chemicals

14.4%

DE Market

Return vs Industry: BAS underperformed the German Chemicals industry which returned -4.3% over the past year.

Return vs Market: BAS underperformed the German Market which returned 14.1% over the past year.


Shareholder returns

BASIndustryMarket
7 Day-4.3%-2.4%0.2%
30 Day-5.9%-2.2%0.9%
90 Day-12.0%-5.4%4.6%
1 Year-3.6%-7.9%-0.7%-4.4%17.9%14.4%
3 Year-23.8%-32.1%-16.8%-24.7%15.7%5.6%
5 Year-13.4%-28.2%-3.0%-17.8%23.4%6.5%

Price Volatility Vs. Market

How volatile is BASF's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is BASF undervalued compared to its fair value and its price relative to the market?

22.98x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BAS (€61.1) is trading above our estimate of fair value (€57.76)

Significantly Below Fair Value: BAS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BAS is poor value based on its PE Ratio (23x) compared to the Chemicals industry average (21.5x).

PE vs Market: BAS is poor value based on its PE Ratio (23x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: BAS's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BAS is good value based on its PB Ratio (1.4x) compared to the DE Chemicals industry average (1.7x).


Next Steps

Future Growth

How is BASF forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

-26.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAS's earnings are forecast to decline over the next 3 years (-26.7% per year).

Earnings vs Market: BAS's earnings are forecast to decline over the next 3 years (-26.7% per year).

High Growth Earnings: BAS's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BAS's revenue (3.2% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: BAS's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BAS's Return on Equity is forecast to be low in 3 years time (10.4%).


Next Steps

Past Performance

How has BASF performed over the past 5 years?

-5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BAS has high quality earnings.

Growing Profit Margin: BAS's current net profit margins (3.9%) are lower than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: BAS's earnings have declined by -5.9% per year over the past 5 years.

Accelerating Growth: BAS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BAS had negative earnings growth (-51%) over the past year, making it difficult to compare to the Chemicals industry average (-10.8%).


Return on Equity

High ROE: BAS's Return on Equity (6.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BASF's financial position?


Financial Position Analysis

Short Term Liabilities: BAS's short term assets (€30.0B) exceed its short term liabilities (€16.8B).

Long Term Liabilities: BAS's short term assets (€30.0B) do not cover its long term liabilities (€31.4B).


Debt to Equity History and Analysis

Debt Level: BAS's debt to equity ratio (48.1%) is considered high.

Reducing Debt: BAS's debt to equity ratio has reduced from 56.8% to 48.1% over the past 5 years.

Debt Coverage: BAS's debt is well covered by operating cash flow (29.5%).

Interest Coverage: BAS's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet

Inventory Level: BAS has a high level of physical assets or inventory.

Debt Coverage by Assets: BAS's debt is covered by short term assets (assets are 1.5x debt).


Next Steps

Dividend

What is BASF's current dividend yield, its reliability and sustainability?

5.24%

Current Dividend Yield


Dividend Yield vs Market

company5.2%marketbottom25%1.3%markettop25%3.6%industryaverage4.2%forecastin3Years5.6%

Current dividend yield vs market & industry

Notable Dividend: BAS's dividend (5.24%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: BAS's dividend (5.24%) is in the top 25% of dividend payers in the German market (3.57%)


Stability and Growth of Payments

Stable Dividend: BAS's dividends per share have been stable in the past 10 years.

Growing Dividend: BAS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (120.3%), BAS's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BAS's dividends in 3 years are forecast to be covered by earnings (71.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Martin Brudermüller (58yo)

1.8yrs

Tenure

€6,382,000

Compensation

Dr. Martin Brudermüller has been the Chairman of the Board of Executive Directors at BASF SE since May 6, 2011 and has been its Member of The Board of Executive Directors since January 1, 2006 and has been ...


CEO Compensation Analysis

Compensation vs Market: Martin's total compensation ($USD6.89M) is above average for companies of similar size in the German market ($USD4.36M).

Compensation vs Earnings: Martin's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Martin Brudermüller
Chairman of Management Board1.8yrs€6.38mno data
Hans-Ulrich Engel
CFO & Vice Chairman of Board of Executive Directors1.8yrs€4.32mno data
Michael Heinz
Member of the Board of Executive Directors8.8yrs€3.76mno data
Wayne Smith
Member of Board of Executive Directors7.8yrs€4.16mno data
Saori Dubourg
Member of the Board of Executive Directors2.8yrs€3.82mno data
Markus Kamieth
Member of the Board of Executive Directors2.8yrs€3.96mno data
Stefan Beckmann
Senior VP of Global Process/Enterprise Architecture & Region Europe and Chief Information Officer2.2yrsno datano data
Stefanie Wettberg
Senior Vice President of Investor Relations3.8yrsno datano data
Juliana Ernst
Head of Media Relations2.9yrsno datano data
Andre Becker
President of Human Resources3.9yrsno datano data

2.8yrs

Average Tenure

50yo

Average Age

Experienced Management: BAS's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kenneth Lane
President of Global Catalysts Division6.7yrsno datano data
Jürgen Strube
Honorary Chairman of the Supervisory Board10.8yrsno datano data
Jürgen Hambrecht
Chairman of the Supervisory Board0yrs€550.00kno data
Alison Carnwath
Member of the Supervisory Board5.8yrs€312.50kno data
Franz Fehrenbach
Member of the Supervisory Board12.1yrs€250.00kno data
Michael Vassiliadis
Member of the Supervisory Board15.5yrs€275.00kno data
Anke Schäferkordt
Member of the Supervisory Board9.2yrs€200.00kno data
Denise Schellemans
Member of the Supervisory Board12.1yrs€200.00kno data
Waldemar Helber
Member of the Supervisory Board3.8yrs€208.30kno data
Sinischa Horvat
Vice Chairman of the Supervisory Board2.8yrs€325.00kno data

9.2yrs

Average Tenure

62yo

Average Age

Experienced Board: BAS's board of directors are considered experienced (9.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

BASF SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BASF SE
  • Ticker: BAS
  • Exchange: XTRA
  • Founded: 1865
  • Industry: Diversified Chemicals
  • Sector: Materials
  • Market Cap: €56.119b
  • Shares outstanding: 918.48m
  • Website: https://www.basf.com

Number of Employees


Location

  • BASF SE
  • Carl-Bosch-Strasse 38
  • Ludwigshafen am Rhein
  • Rhineland-Palatinate
  • 67056
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BFFA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1975
0BFALSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1975
BASDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1975
BASSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1975
BASXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 1975
BASFBIT (Borsa Italiana)YesOrdinary SharesITEURJan 1975
BASFBUSE (Budapest Stock Exchange)YesOrdinary SharesHUHUFJan 1975
BASDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1975
BAS NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJan 1975
BASWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJan 1975
BASF.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJun 1988
BASADB (Deutsche Boerse AG)SPONSORED ADRDEEURJun 1988
BASAXTRA (XETRA Trading Platform)SPONSORED ADRDEEURJun 1988

Biography

BASF SE operates as a chemical company worldwide. It operates through six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions. The Chemicals segment provides petrochemicals and intermediates. The Materials segment offers advanced materials and their precursors for applications and systems, such as isocyanates and polyamides, as well as inorganic basic products and specialties for plastic and plastic processing industries. The Industrial Solutions segment develops and markets ingredients and additives for industrial applications, such as polymer dispersions, pigments, resins, electronic materials, antioxidants, and admixtures. The Surface Technologies segment offers chemical solutions, which include coatings, rust protection products, catalysts, and battery materials for the automotive and chemical industries. The Nutrition & Care segment provides nutrition and care ingredients for food and feed producers, as well as pharmaceutical, cosmetics, detergent, and cleaner industries. The Agricultural Solutions segment offers crop protection products and seeds, such as fungicides, herbicides, insecticides, and biological crop production products, as well as seed treatment products. The company has a strategic collaboration agreement with Midea Group Co Ltd; strategic partnership with Aspen Aerogels, Inc.; and collaboration agreement with ExxonMobil. BASF SE was founded in 1865 and is headquartered in Ludwigshafen am Rhein, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 21:22
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.