BASF is one of the leaders of the global chemical industry. The company operates industry-leading innovation platform and spends over EUR2bn per year on R&D. BASF operates 6 intergated sites and 232 additional production sites worldwide, including 2 integrated and 70 production sites in Asia. The strong growth of volumes and earnings in Greater China will likely further contribute to the company's growth. BASF aims to increase the dividend paer share every year.
BASF is a Germany-based chemical company. The Company operates through six segments, which include Chemicals (from basic chamicals andintermediaries to to customer products), Materials (plastics, high-performance materials, digital solutions), Industrial Solutions (ingredients and additives, fuel and lubricant solutions, ingradients for paints and coatings, electronic materials and plastic additives), Surface Technologies (products for catalysis, coatings and battery materials sectors), Nutrition & Care (bio-based products, enzymes, nutrition and care ingradients) and Agricultural Solutions (crop protection products and seeds). The company is one of the leaders of the global chamical industry and presented in xx countries.
The real global chemical production is estimated at $4.2 trln in 2021, including $2.1trln in Greater China, $0.7trln in Europe, $0.5trln in North America, $0.6trln in Rest of Asia Pacific, $0.2trln in South America. The chemical production is expected to grow with a 3.0% CAGR until 2030. The volatility of energy prices negatively affected chemical production in the EU, making BASF Germany operations loss-making. Global chemical production stagnated in 1Q23: N.American chemical production was down 2.2% YoY in 1Q23, Europen -14.3% YoY, Chinese up 7.6%, and other Asian production was down 8.7% YoY. The weak construction and electronics industries performance is among the factors negatively affected chemical production.
- BASF has a wide production range from base chemicals to consumer products
- Strong R&D platform drives innovation and new product development
- Presence in Greater China drives the growth
- Large scale of operations and diversification by region contributes to financial stability and efficiency
- The automotive industry move toward electromobility will support the demand for battery materials
- The company is focused on shareholder return, including dividends and buyback program
- The company implements a cost cutting program to improve profitability of operations in Europe affected by feedstock prices growth.
- Exposure to fuel price volatility globally
- Automotive industry slow recovery
- Potential production cuts due to insufficient supply of feedstock in Europe
- Strong euro
- Oversupply on specific product markets, such as acrylics and polyuretans
- New product development failures, capex inefficincy
- Oil price volatility and the volatility of energy feedstock supply to the EU.
- Weak demand for oil and gas products, chemicals due to global growth deceleration
- Cost inflation
- Geopolitical risks
- Risks of transition to low-carbon energy, including technology and demand risks
| Company | RIC | Market Capitalization, $mn | Last reporting year | P/E Fwd 1Y | P/E Fwd 2Y | EV/EBITDA 1Y fwd | EV/EBITDA 2Y fwd | EV/Revenues 1y fwd | EV/Revenues 2y fwd |
|---|---|---|---|---|---|---|---|---|---|
| BASF SE | BASFn.DE | 43,580 | 2022-12-31 | 10.4 | 8.6 | 6.9 | 5.9 | 0.8 | 0.7 |
| L'Air Liquide Societe Anonyme pour l'Etude et l'Exploitation des Procedes Georges Claude SA | AIRP.PA | 93,305 | 2022-12-31 | 25.2 | 23.2 | 12.6 | 11.8 | 3.3 | 3.1 |
| Lanxess AG | LXSG.DE | 2,652 | 2022-12-31 | 22.0 | 9.1 | 10.0 | 7.4 | 0.8 | 0.8 |
| Covestro AG | 1COV.DE | 9,912 | 2022-12-31 | 66.8 | 15.1 | 8.5 | 6.4 | 0.8 | 0.7 |
| Evonik Industries AG | EVKn.DE | 8,916 | 2022-12-31 | 14.5 | 10.9 | 6.1 | 5.3 | 0.7 | 0.7 |
| Akzo Nobel NV | AKZO.AS | 13,801 | 2022-12-31 | 19.2 | 15.4 | 12.0 | 10.4 | 1.6 | 1.5 |
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 73,443 | 69,066 | 66,493 | 72,239 | 89,350 | 94,313 | 87,146 | 89,562 | 92,178 |
| Growth | -6% | -4% | 9% | 24% | 6% | -8% | 3% | 3% | |
| EBITDA | 14,019 | 11,423 | 9,247 | 9,905 | 12,703 | 11,715 | 9,494 | 10,978 | 12,144 |
| EBITDA margin | 19.1% | 16.5% | 13.9% | 13.7% | 14.2% | 12.4% | 10.9% | 12.3% | 13.2% |
| Net income | 7,291 | 5,398 | 9,440 | -1,295 | 6,279 | 6,780 | 4,015 | 4,772 | 5,582 |
| Net margin | 9.9% | 7.8% | 14.2% | -1.8% | 7.0% | 7.2% | 4.6% | 5.3% | 6.1% |
| Net debt | 13,896 | 20,974 | 18,974 | 19,586 | 17,921 | 17,921 | 17,921 | 17,921 | 17,921 |
| MktCap | 101,080 | 63,443 | 69,264 | 73,086 | 64,251 | 44,326 | 44,326 | 44,326 | 44,326 |
Historical Multiples
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|
| EV/Revenue | 1.6 | 1.2 | 1.3 | 1.3 | 0.9 | 0.7 | 0.7 | 0.7 | 0.7 |
| EV/EBITDA | 8.2 | 7.4 | 9.5 | 9.4 | 6.5 | 5.3 | 6.6 | 5.7 | 5.1 |
| P/E | 13.9 | 11.8 | 7.3 | -56.5 | 10.2 | 6.5 | 11.0 | 9.3 | 7.9 |
