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BASF Se

BASFY
40
Chemicals · Basic Materials
Price
$13.82
+0.03 (+0.22%)
Market Cap
$48.96B
Exchange
Other OTC
Winston Score
40
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

2.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 3.68B (2021) → 3.58B (2025)

BASF is one of the largest chemical companies in the world, headquartered in Ludwigshafen, Germany. It makes a huge range of chemicals, plastics, agricultural products, and specialty materials that other industries use to build things, grow food, and manufacture goods. Its customers include automakers, farmers, construction companies, and consumer goods producers across nearly every major industry.

BASF earns money by selling chemicals and materials in bulk to industrial customers, with revenue spread across segments like agriculture, surface technologies, industrial solutions, and nutrition. It operates globally, with major business in Europe, Asia, and North America, generating roughly €69 billion in annual sales. The company's scale and integrated production model — where chemical outputs from one process feed directly into another — help keep costs down, but BASF faces real pressure from high European energy prices, which significantly raise its production costs and have pushed the company to restructure and shift more investment toward lower-cost regions like China.

Winston Score History

Score breakdown

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Quality

Gross Margin
25.9%
Modest — 25.9% gross margin
Operating Margin
9.9%
Modest — 9.9% operating margin
ROCE
2.8%
Weak — 2.8% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-7.5%
Shrinking sales (-7.5% YoY)
EPS YoY
+133.1%
Earnings growing fast (133.1% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
322%
Turns 322% of profit into real cash
FCF Margin
2.7%
Thin free cash flow (2.7%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.69
Moderate — manageable debt (0.69)
Interest Cover
2.84x
Tight — interest eats into profit (2.8x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)
28.2x
Growth-priced — P/E 28.2

P/E above the market average. People are paying up for expected growth.

P/E vs Forward
+12.2
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (28.2 → 16.0)

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Dividends

Dividend Yield
4.73%
Healthy income — 4.73% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend Growth
-15.6%
Dividend cut (-15.6% YoY) — warning sign

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