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 Q3 2025 Earnings: A Mixed Bag

BASF reported EBITDA before special items of EUR 1.5 billion, slightly above market expectations, but below the prior year's EUR 1.6 billion. Sales declined due to strong currency headwinds and lower prices, but volumes increased in Surface Technologies, Chemicals, and Materials segments. EPS came in at EUR 0.4751, beating estimates of EUR 0.334. The EBITDA margin before special items, excluding metals, remained almost stable at 13.6% for the first 9 months of 2025.

Publication Date: Oct -30

📋 Highlights
  • EBITDA Before Special Items:: EUR 1.5 billion in Q3 2025, slightly below prior year’s EUR 1.6 billion but exceeding market expectations.
  • Coatings Business Deal:: EUR 7.7 billion enterprise value agreement with Carlyle; EUR 5.8 billion pretax cash proceeds expected by Q2 2026, with BASF retaining 40% stake.
  • Surface Technologies Growth:: EUR 179 million year-on-year EBITDA improvement driven by volume growth, lower fixed costs, and strong precious metal trading.
  • Share Buyback Program:: EUR 1.5 billion buyback initiated in November 2025, alongside EUR 4 billion total buyback plan until 2028 for deleveraging and shareholder returns.
  • 2025 Outlook Adjusted:: EBITDA before special items forecasted at EUR 6.7–7.1 billion, reflecting Coatings reclassification; 2026 EBITDA expected near breakeven due to plant start-up efforts.

Segment Performance

The Surface Technologies segment recorded volume growth and price increases, with specific margins also increasing. Agricultural Solutions achieved considerably higher specific margins. However, core businesses faced lower earnings due to margin pressure, particularly in Nutrition & Care. The €179 million year-on-year improvement in EBITDA in Surface Technologies was due to lower fixed costs, a strong precious metal trading business, and volume growth.

Divestitures and Capital Allocation

BASF announced a binding transaction agreement with Carlyle for its Coatings business, with an enterprise value of EUR 7.7 billion and pretax cash proceeds of approximately EUR 5.8 billion. The company will use the proceeds to deleverage the balance sheet, secure financial strength, and distribute capital to shareholders. A share buyback program with a volume of up to EUR 1.5 billion will start in November 2025.

Outlook and Valuation

The outlook for 2025 remains unchanged, with an adjusted outlook range for EBITDA before special items of EUR 6.7 billion to EUR 7.1 billion. Given the current valuation metrics, with a P/E Ratio of 100.57 and EV/EBITDA of 8.34, the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 2.2%. With a Dividend Yield of 5.15%, the stock may still be attractive to income investors.

Operational Highlights

In the current business environment, order intake is slow, with no major changes expected in Q4. China is a bright spot, with 12% volume growth in Q3. The company expects a low double-digit million euro benefit per year from government grants in the US. Free cash flow is expected to improve due to lower CapEx and working capital management.

Industry Trends

The oversupply situation in chemicals is expected to rebalance over the next years through capacity rationalizations in Europe and demand growth in China. BASF expects modest growth in the North American market and has no major plans for capacity additions. The company is conscious of the competitiveness in the chemical industry, with a trend of compressed margins and a race for competitiveness, especially in downstream products.

3. NewsRoom

Card image cap

pH7 Technologies Raises $25.6 Million Series B to Scale Critical Metals Extraction Technology

Dec -04

Source:

Card image cap

Will ExxonMobil's (XOM) Hydrogen Project Pause Reshape Its Clean Energy Strategy?

Nov -29

Source:

Card image cap

BASFY Opens PolyTHF Technology Licensing to Clients & Partners

Nov -28

Source:

Card image cap

$1.61 Bn Mesoporous Carbons Markets - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2020-2030F

Nov -28

Source:

Card image cap

North America Vacuum Insulation Panel (VIP) Market Analysis Report 2025-2033: Energy Efficiency Regulations, High-Performance Refrigeration and Construction Demand, and Green Building Adoption

Nov -28

Source:

Card image cap

Is BASF a Bargain After Recent Sustainability Initiatives and Double Digit Price Gains?

Nov -27

Source:

Card image cap

BASFY Launches Advanced Dispersant Production Line in China

Nov -26

Source:

Card image cap

BASF's New Localized Ultradur Supply to Answer High Demands

Nov -25

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: 6.1/10

Value: 7.8

Growth: 3.6

Quality: 4.2

Yield: 10.0

Momentum: 2.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Kemira

A-Score: 5.9/10

Value: 6.5

Growth: 6.0

Quality: 6.0

Yield: 6.9

Momentum: 2.5

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
HeidelbergCement

A-Score: 5.8/10

Value: 4.7

Growth: 5.6

Quality: 5.9

Yield: 4.4

Momentum: 9.5

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
CRH

A-Score: 5.4/10

Value: 2.6

Growth: 7.2

Quality: 5.3

Yield: 4.4

Momentum: 7.5

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
BASF

A-Score: 4.7/10

Value: 4.3

Growth: 2.2

Quality: 2.2

Yield: 9.4

Momentum: 3.5

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Solvay

A-Score: 4.7/10

Value: 6.0

Growth: 2.1

Quality: 3.4

Yield: 10.0

Momentum: 1.0

Volatility: 5.7

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

43.45$

Current Price

43.45$

Potential

-0.00%

Expected Cash-Flows