Basf Se

BASF SE maintains a balanced capital structure with a debt-to-equity ratio of 0.68 and a current ratio of 1.93, indicating adequate short-term liquidity despite a medium liquidity risk assessment. The company holds €2.67 billion in cash and equivalents against €22.64 billion in long-term debt, resulting in a net cash position that is negative after subtracting total debt. The market capitalization stands at €42.05 billion, with a price-to-book ratio of 1.27 and an EV/EBITDA of 33.82, reflecting the market's valuation of its asset base and earnings power.

Profitability metrics show a return on equity of 5.23% and a return on assets of 2.28%, which are modest returns for a chemical manufacturer. The company generated €59.66 billion in revenue with a gross profit of €14.13 billion, leading to an operating income of €1.65 billion and net income of €1.62 billion. These figures suggest that while the company maintains significant scale, its net margin is compressed, likely due to high operating costs and capital expenditures typical of the commodity chemicals sector.

The company's revenue is derived from its core chemical activities, with no specific segment or geographic breakdown provided in the current data. As a global player, BASF likely has diversified exposure across multiple regions, but the absence of detailed segment data prevents a precise analysis of revenue concentration risks. The company's integrated model allows it to leverage economies of scale, but it also exposes it to cyclical fluctuations in raw material prices and demand.

Growth trajectory analysis is limited by the absence of historical period data in the current input. However, the current revenue of €59.66 billion provides a baseline for assessing future performance. The company's ability to grow will depend on its capacity to navigate cyclical downturns, invest in innovation, and expand its specialty chemicals portfolio, which typically offers higher margins than commodity products.

Risk factors include medium liquidity risk and low dilution risk, with a key flag noting that net cash is negative after subtracting total debt. This suggests that the company relies on debt financing to support its operations and capital expenditures. The negative free cash flow of €1.07 billion, driven by capital expenditures of €4.27 billion against operating cash flow of €5.61 billion, indicates significant investment in maintaining and expanding its production capabilities.

Recent events include analyst estimates with a mean price target of €52.98 and a median price target of €54.50, suggesting a potential upside from the current market price of €47.55. The mean recommendation of 2.58 indicates a neutral to slightly positive sentiment among analysts, with 5 strong buys, 7 buys, and 8 holds. These estimates reflect the market's expectation of moderate growth and stability in the company's performance.

Free cash flow improved by 75.2% year-over-year to -€1.07 billion, signaling a significant reduction in cash burn.

Net income rose 24.7% year-over-year to €1.62 billion, demonstrating improved profitability despite revenue declines.

Return on equity of 5.23% significantly exceeds the cohort median of 0.19%, indicating superior capital efficiency.

Analysts project 9.5% upside to a mean price target of €52.98, suggesting undervaluation relative to current prices.

High credit risk flags and a debt-to-equity ratio of 0.68, double the cohort median, signal financial vulnerability.

Net income fell at a 26.4% compound annual growth rate over four years, showing long-term earnings deterioration.

Long-term debt increased to €22.64 billion in FY2026, rising from €18.26 billion in FY2022, increasing leverage.

Revenue €16.02B; Operating income €1.26B.

• ▍Revenue €16.02B
• ▍Operating income €1.26B
• ▍Net margin 5.8%

Revenue €14.03B, −5,6% YoY; Operating income +63,8% YoY.

• ▍Revenue €14.03B, −5,6% YoY
• ▍Operating income +63,8% YoY
• ▍Net income +171,1% YoY
• ▍Free cash flow +109,4% YoY
• ▍Net margin 4.0%

Revenue €14.33B, −3,3% YoY; Operating income +21,5% YoY.

• ▍Revenue €14.33B, −3,3% YoY
• ▍Operating income +21,5% YoY
• ▍Net income −40,4% YoY
• ▍Free cash flow +118,9% YoY
• ▍Net margin 1.2%

Revenue €15.77B, −2,1% YoY; Operating income −4,3% YoY.

• ▍Revenue €15.77B, −2,1% YoY
• ▍Operating income −4,3% YoY
• ▍Net income −81,9% YoY
• ▍Free cash flow +32,1% YoY
• ▍Net margin 0.5%

Revenue €14.86B; Operating income -€423.0M.

• ▍Revenue €14.86B
• ▍Operating income -€423.0M
• ▍Net margin -5.3%

Revenue €14.82B; Operating income €191.0M.

• ▍Revenue €14.82B
• ▍Operating income €191.0M
• ▍Net margin 1.9%

Revenue €16.11B; Operating income €516.0M.

• ▍Revenue €16.11B
• ▍Operating income €516.0M
• ▍Net margin 2.7%

Revenue €59.66B, −2,9% YoY; Operating income −9,4% YoY.

• ▍Revenue €59.66B, −2,9% YoY
• ▍Operating income −9,4% YoY
• ▍Net income +24,6% YoY
• ▍Free cash flow +75,2% YoY
• ▍Net margin 2.7%

Revenue €61.44B, −10,8% YoY; Operating income −19,7% YoY.

• ▍Revenue €61.44B, −10,8% YoY
• ▍Operating income −19,7% YoY
• ▍Net income +476,9% YoY
• ▍Free cash flow −0,2% YoY
• ▍Net margin 2.1%

Revenue €68.90B, −21,1% YoY; Operating income −65,2% YoY.

• ▍Revenue €68.90B, −21,1% YoY
• ▍Operating income −65,2% YoY
• ▍Net income +135,9% YoY
• ▍Free cash flow −7,5% YoY
• ▍Net margin 0.3%

Revenue €87.33B, +11,1% YoY; Operating income −15,1% YoY.

• ▍Revenue €87.33B, +11,1% YoY
• ▍Operating income −15,1% YoY
• ▍Net income −111,3% YoY
• ▍Free cash flow −234,2% YoY
• ▍Net margin -0.7%

Revenue €78.60B; Operating income €7.69B.

• ▍Revenue €78.60B
• ▍Operating income €7.69B
• ▍Net margin 7.0%