BASF SE
🇩🇪 BAS.XETRA · Frankfurt · DE000BASF111
Materials
EUR 50.94 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
28.1
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 50.94 ÷ 1.81 = 28.1
TTM period through: 2025-12-31
Forward P/E (estimated): 24.3
Based on analyst estimates
Reference: Provider P/E (Trailing): 31.8
Yield (Fwd)
4.42%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 4.42%
Net Debt/EBITDA (TTM)
3.5x
Latest quarter: 23.3x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 23.3x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
124.2%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 128.8%
Cash Flow Payout (TTM): 37.2%
FCF Coverage (TTM): 0.64x
ROE
4.3%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
8.6x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
BASF is the world's largest chemical producer, featuring deep operational integration but significant exposure to cyclical demand and structural energy headwinds in Europe. The proposed 38.7% dividend cut, driven by weak free cash flow coverage and sustained earnings pressure, makes the stock unsuitable for conservative income strategies. Not recommended for new positions, as the structural risks and deteriorating fundamentals currently outweigh the potential for a cyclical recovery.
Sector Context
BASF is the world's largest chemical producer, manufacturing products ranging from basic chemicals and plastics to agricultural solutions and battery materials. The chemical sector is inherently cyclical and highly energy-intensive, meaning European producers currently face structural disadvantages and squeezed margins due to elevated regional energy and feedstock costs compared to global peers.
Temporary Opportunity Identified
Cyclical downturn in the global chemical industry compounded by severe European energy cost headwinds, weak demand, and significant restructuring/impairment charges.
📊 Strategy Analysis
- • Despite severe near-term headwinds, the company maintains its position as the world's largest chemical producer with deep operational integration (Verbund) providing long-term scale advantages.
- • Valuation metrics such as a Price-to-Sales ratio of 0.77 and EV/EBITDA of 8.62 indicate the market has already priced in significant cyclical pessimism.
⚠ What to Watch
- • The board has proposed a severe 38.7% dividend cut for 2026, driven by weak free cash flow dividend coverage (0.64x) and sustained earnings pressure.
- • Fundamentals exhibit a deteriorating long-term trend, evidenced by a 5-year revenue CAGR of -5.4% and an EPS CAGR of -21.3%.
- • High exposure to surging global energy costs (with oil >$100) structurally threatens European chemical production margins and competitive positioning.
- • Net Debt/EBITDA has expanded to 3.48x, approaching the 4.0x maximum safety threshold for cyclical businesses and reducing financial flexibility.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.