Download PDF

1. Company Snapshot

1.a. Company Description

BASF SE operates as a chemical company worldwide.The company 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, light stabilizers, oilfield chemicals, mineral processing, and hydrometallurgical chemicals.The Surface Technologies segment offers chemical solutions and automotive OEM, which include refinish coatings, surface treatment, catalysts, battery materials, and precious and base metal services 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 strategic partnerships with Contemporary Amperex TechnologyCo., Limited on battery materials solutions, including cathode active materials and battery recycling.


BASF SE was founded in 1865 and is headquartered in Ludwigshafen am Rhein, Germany.

Show Full description

1.b. Last Insights on BAS

BASF SE's recent performance was driven by several factors. The company's Q2 2025 earnings revealed a revenue decline of 2.1% to €15.8 billion, with net profit plummeting almost 82% due to weakness in its chemicals segment. However, BASF has made progress in sustainability, launching commercial operations at one of Europe's largest battery recycling plants in Germany. Additionally, the company secured a long-term butane supply deal with AltaGas, enhancing supply chain efficiency. Despite challenges, BASF's High-Performance Additives segment continues to innovate, with a focus on sustainability and global reach.

1.c. Company Highlights

2. BASF's 2025 Earnings: Navigating Geopolitical Headwinds

BASF's financial performance in 2025 was marked by a decline in sales due to strong currency headwinds and lower prices, with EBITDA before special items reaching EUR 6.6 billion. The company's EPS came in at EUR 0.1522, significantly lower than the estimated EUR 0.395. The decline in profitability was largely attributed to lower margins and negative currency effects. With a P/E Ratio of 159.22 and an EV/EBITDA of 8.89, the market appears to be pricing in a significant recovery in the company's profitability.

Publication Date: Mar -01

📋 Highlights
  • Cost-Saving Target:: BASF aims to achieve EUR 2.3 billion in annual cost savings by 2026, driven by accelerated programs and reduced capital expenditures.
  • Coatings Divestiture:: Agreement to sell the Coatings business for EUR 8.7 billion, part of portfolio optimization to unlock standalone business value.
  • Agricultural Solutions Performance:: Achieved 22% EBITDA margin before special items, reflecting strong operational progress and IPO readiness.
  • Dividend Yield:: Proposed EUR 2.25/share dividend (5.1% yield) despite 2025 EBITDA decline to EUR 6.6 billion (down from prior years).
  • Zhanjiang Verbund Site:: 32 production assets operational within four weeks; expected to reach profitability by 2027 amid China’s 54% global chemical market share.

Operational Highlights

BASF made significant progress with its Winning Ways strategy, successfully starting up major assets at its new Verbund site in Zhanjiang and accelerating cost savings programs. The company's Agricultural Solutions business achieved an EBITDA margin before special items of 22%, and the company made excellent progress on its separation and IPO readiness.

Portfolio Measures

BASF has been actively working on portfolio measures, including an agreement with Carlyle to divest its Coatings business, valued at an enterprise value of EUR 8.7 billion. The company aims to crystallize and unlock the value of its stand-alone businesses and has made significant progress in this area.

Cost Savings and Restructuring

BASF has accelerated its cost savings programs, with a target of EUR 2.3 billion in annual cost savings by the end of 2026. The company has also announced a headcount reduction of 4,800, with a significant part in Europe and a significant share in Ludwigshafen. As Martin Brudermüller, BASF's CEO, noted, "We are making Ludwigshafen leaner and stronger, investing in assets where we see opportunities to be successful."

Outlook and Valuation

Looking ahead to 2026, BASF expects EBITDA before special items to be between EUR 6.2 billion and EUR 7 billion, with a free cash flow between EUR 1.5 billion and EUR 2.3 billion. With a Dividend Yield of 4.62% and a P/B Ratio of 1.33, the company's valuation appears attractive. Analysts estimate next year's revenue growth at 3.6%, which may indicate a gradual recovery in the company's financial performance.

Industry Trends and Challenges

The European chemical industry is undergoing restructuring, with 9% of European chemical capacity closed over the last 3-4 years, affecting 90,000 jobs. BASF is not immune to these challenges, with the company facing pressure from Chinese imports and historically low capacity utilization. However, the company remains committed to its cost savings programs and is working to return to profitability as soon as possible.

3. NewsRoom

Card image cap

Assessing BASF (XTRA:BAS) Valuation After Mixed Recent Returns And Modest Undervaluation Estimate

13:10

Source:

Card image cap

BASFY Advances High-Performance Textile Innovation With Niber

Mar -13

Source:

Card image cap

BASFY Divests Hydrosulfite Assets as Portfolio Review Continues

Mar -10

Source:

Card image cap

Industry Leaders Join Zapata’s Growth Advisory Board, Validating Its Hardware-Agnostic, Application-Driven Approach

Mar -10

Source:

Card image cap

United States Specialty Chemicals Industry Research Report 2025-2033 Featuring Solvay, Evonik, Clariant, Akzo Nobel, Dupont De Nemours, BASF, Kemira, LANXESS, Croda, Lubrizol

Mar -09

Source:

Card image cap

BASFY Expands Durban Site to Strengthen Dispersions Supply in Africa

Mar -09

Source:

Card image cap

Is BASF (XTRA:BAS) Pricing Reflect Its Global Chemicals Exposure And Recent Share Weakness

Mar -07

Source:

Card image cap

Caliber Launches U.S. Expert Advisory Council to Advance Real-Time Stakeholder Intelligence

Mar -06

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.16%)

6. Segments

Chemicals

Expected Growth: 3.5%

BASF SE's chemicals segment growth of 3.5% is driven by increasing demand for specialty chemicals, favorable pricing, and cost-efficient production. Strong performance in Asia-Pacific and innovative product solutions also contribute to growth. The company's diversified portfolio and strategic investments in growth markets support this positive trend.

Materials

Expected Growth: 3.2%

BASF SE's materials segment growth of 3.2% is driven by increasing demand for sustainable solutions, particularly in the automotive and construction sectors. Key drivers include the company's innovative products, such as lightweight materials and battery solutions, as well as a recovery in global industrial production and favorable pricing effects.

Surface Technologies

Expected Growth: 4.2%

Surface Technologies' 4.2% growth is driven by increasing demand for innovative materials and solutions in the automotive and industrial sectors. BASF SE's focus on sustainable and efficient technologies, such as catalysts and coatings, has enabled the segment to expand its market share and improve profitability.

Agricultural Solutions

Expected Growth: 3.8%

BASF SE's Agricultural Solutions growth of 3.8% is driven by increasing global demand for sustainable agricultural practices, rising crop prices, and the company's innovative product portfolio, including precision farming and digital solutions, which enhance crop yields and efficiency, while reducing environmental impact.

Industrial Solutions

Expected Growth: 4.5%

BASF SE's Industrial Solutions segment growth of 4.5% is driven by strong demand in key markets, particularly in Asia. The segment's growth is also attributed to the company's innovative product portfolio, strategic pricing, and efficiency measures. Additionally, BASF's focus on digitalization and sustainability is expected to further drive growth in this segment.

Nutrition & Care

Expected Growth: 4.8%

BASF SE's Nutrition & Care segment growth of 4.8% is driven by increasing demand for sustainable and innovative products. Key drivers include rising consumer awareness of health and wellness, expanding applications in animal nutrition, and growing demand for eco-friendly personal care products. The segment's growth is also supported by BASF's strong R&D capabilities and strategic partnerships.

Other

Expected Growth: 2.5%

BASF SE's growth of 2.5% is driven by increased demand in Chemicals and Performance Products segments, strong sales in Asia, and strategic investments in digitalization and innovation. Additionally, favorable market conditions and efficient operations contribute to this growth, positioning the company for long-term success.

Intersegment Transfers

Expected Growth: 0.0%

The 0.0% growth in intersegment transfers from BASF SE suggests stable internal transactions, likely driven by consistent business operations and unchanged corporate structure. This stability implies that BASF's business segments are maintaining their current operational needs without significant expansion or contraction.

7. Detailed Products

Agricultural Solutions

BASF's Agricultural Solutions segment provides innovative crop protection products, seeds, and digital solutions to improve agricultural productivity and sustainability.

Monomers

BASF's Monomers segment produces a range of chemicals used as building blocks for various industries, including plastics, adhesives, and coatings.

Performance Materials

BASF's Performance Materials segment provides a range of materials, including engineering plastics, polyurethanes, and epoxy resins, used in various industries.

Functional Materials & Solutions

BASF's Functional Materials & Solutions segment provides a range of materials and solutions, including catalysts, battery materials, and fuel cell components.

Dispersions & Pigments

BASF's Dispersions & Pigments segment provides a range of pigments, resins, and additives used in coatings, paints, and plastics.

Care Chemicals

BASF's Care Chemicals segment provides a range of personal care ingredients, including surfactants, emulsifiers, and moisturizers.

Nutrition & Health

BASF's Nutrition & Health segment provides a range of human and animal nutrition products, including vitamins, carotenoids, and omega-3 fatty acids.

Oil & Gas

BASF's Oil & Gas segment provides a range of chemicals and services for the oil and gas industry, including drilling fluids and completion fluids.

8. BASF SE's Porter Forces

Forces Ranking

Threat Of Substitutes

BASF SE operates in a industry where substitutes are available, but they are not a significant threat to the company's business. The company's products are specialized and have a high barrier to entry, making it difficult for new entrants to replicate.

Bargaining Power Of Customers

BASF SE has a diverse customer base, which reduces the bargaining power of individual customers. The company's products are also specialized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

BASF SE has a diverse supplier base, which reduces the bargaining power of individual suppliers. However, the company is still dependent on a few critical suppliers, which can impact its business.

Threat Of New Entrants

BASF SE operates in a industry with high barriers to entry, making it difficult for new entrants to enter the market. The company's specialized products and high research and development costs also make it challenging for new entrants to replicate.

Intensity Of Rivalry

BASF SE operates in a highly competitive industry, with several established players competing for market share. The company's business is also subject to fluctuations in demand and prices, which can impact its revenue and profitability.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 36.24%
Debt Cost 10.29%
Equity Weight 63.76%
Equity Cost 10.29%
WACC 10.29%
Leverage 56.83%

11. Quality Control: BASF SE passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Rokita

A-Score: 6.3/10

Value: 7.8

Growth: 3.6

Quality: 4.4

Yield: 10.0

Momentum: 3.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
Kemira

A-Score: 6.3/10

Value: 6.4

Growth: 6.0

Quality: 5.8

Yield: 6.9

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
HeidelbergCement

A-Score: 5.7/10

Value: 3.9

Growth: 5.6

Quality: 6.2

Yield: 4.4

Momentum: 9.5

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Solvay

A-Score: 4.9/10

Value: 5.6

Growth: 2.1

Quality: 3.4

Yield: 10.0

Momentum: 2.5

Volatility: 6.0

1-Year Total Return ->

View Full Report
Stock-Card
CRH

A-Score: 4.9/10

Value: 2.2

Growth: 7.3

Quality: 5.4

Yield: 4.4

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
BASF

A-Score: 4.8/10

Value: 4.3

Growth: 2.3

Quality: 2.3

Yield: 9.4

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

48.35$

Current Price

48.35$

Potential

-0.00%

Expected Cash-Flows