BASF SE
BASF SE has a debt-to-equity ratio of 0.57, indicating a moderate level of leverage, and a current ratio of 2.09, suggesting the company has sufficient short-term assets to cover its short-term liabilities. However, the company's operating cash flow is negative at -513 million EUR, which may raise concerns about its ability to generate cash from operations. The free cash flow of 1.395 billion EUR indicates that the company is still able to generate positive cash flow after capital expenditures. In terms of profitability, BASF SE has a return on equity of 3.68% and a return on assets of 1.67%, which are below the industry average for Diversified Chemicals. The company's net income of 1.367 billion EUR and operating income of 1.689 billion EUR reflect its performance in the current fiscal year. The gross profit of 4.949 billion EUR indicates the company's ability to generate profit from its core operations. BASF SE's revenue is concentrated in the Diversified Chemicals industry, with no specific geographic concentration disclosed in the provided data. The company's exposure to different markets and regions is not detailed, but its global operations suggest a broad geographic footprint. The company's growth trajectory is mixed, with a revenue of 17.553 billion EUR in the latest fiscal year. While the company has a positive free cash flow, the negative operating cash flow may indicate challenges in maintaining consistent cash generation from operations. The capital expenditure of -943 million EUR suggests that the company is investing in its operations, which could support future growth. The risk assessment for BASF SE indicates a medium liquidity risk and a low dilution risk. The company's net cash is negative after subtracting total debt, which may affect its liquidity position. The dilution risk is low, suggesting that the company is not expected to issue a significant number of new shares in the near term. Recent events and filings for BASF SE include analyst estimates for the company's stock price, with a mean price target of 51.80 EUR and a median price target of 52.00 EUR. The mean recommendation from analysts is 2.67, indicating a generally positive outlook, with 5 strong-buy recommendations, 7 buy recommendations, and 7 hold recommendations.
Business. BASF SE is a global chemical company that produces and markets a wide range of chemicals, plastics, and agricultural products, generating revenue primarily through the sale of chemical products and services.
Classification. BASF SE is classified under the Basic Materials economic sector, Chemicals business sector, and Diversified Chemicals industry with a confidence level of 0.92.
- BASF SE has a moderate level of leverage with a debt-to-equity ratio of 0.57.
- The company's return on equity and return on assets are below the industry average for Diversified Chemicals.
- BASF SE has a negative operating cash flow, which may raise concerns about its ability to generate cash from operations.
- The company's free cash flow is positive at 1.395 billion EUR, indicating its ability to generate cash after capital expenditures.
- The risk assessment for BASF SE indicates a medium liquidity risk and a low dilution risk.
- Analysts have a generally positive outlook on BASF SE, with a mean recommendation of 2.67 and a median price target of 52.00 EUR.
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- # RATIONALES
- Net cash is negative after subtracting total debt.