Braskem S.A. (BAK) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Braskem S.A. (BAK) Materials & Commodity Exposure

Braskem S.A. is a leading thermoplastic resins producer operating across the Americas and Europe, manufacturing a broad range of chemicals, polymers, and fuels. It distinguishes itself through its integrated production chain and focus on both traditional and renewable polyethylene, serving diverse industrial sectors.

What Is the Investment Thesis for BAK?

Braskem S.A. presents a complex investment case. The company's diverse product portfolio and geographical reach offer stability, while its focus on renewable PE aligns with growing sustainability trends. However, negative profit margins and exposure to commodity price fluctuations pose challenges. Key catalysts include potential infrastructure spending in Brazil and increased demand for sustainable plastics. Investors should closely monitor global economic conditions and Braskem's ability to improve profitability and manage debt. The company's beta of 0.85 suggests lower volatility compared to the broader market.

Based on FMP financials and quantitative analysis

BAK Key Highlights

Braskem operates across three key segments: Brazil, United States and Europe, and Mexico, providing geographical diversification.

• The company produces both traditional and green polyethylene (PE), catering to a growing demand for sustainable materials.
• Braskem's product portfolio includes a wide range of chemicals, polymers, and fuels, reducing reliance on any single product.
• The company's market capitalization is $839M as of March 15, 2026.
• Braskem reported a negative profit margin of -7.1%, indicating challenges in profitability.

Who Are BAK's Competitors?

BAK is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are BAK's Key Strengths?

Diverse product portfolio

• Geographical diversification
• Integrated production chain
• Focus on sustainable products

What Are BAK's Weaknesses?

Negative profit margin

• Exposure to commodity price fluctuations
• High debt levels
• Dependence on raw material availability

What Could Drive BAK Stock Higher?

Increased demand for sustainable plastics driving growth in green PE production.

• Potential infrastructure spending in Brazil boosting demand for thermoplastic resins.
• Strategic partnerships and acquisitions expanding product portfolio and geographical reach.

What Are the Key Risks for BAK?

Financial-distress signal — its Altman Z-Score of 0.65 sits in the distress zone (elevated bankruptcy risk).

• Exposure to commodity price fluctuations impacting profitability.
• Economic downturns reducing demand for chemical products.
• Increased competition from other thermoplastic resin producers.
• Environmental regulations increasing compliance costs.

What Are the Growth Opportunities for BAK?

• Expansion of Green Polyethylene Production: Braskem has the opportunity to capitalize on the increasing demand for sustainable plastics by expanding its production of green PE made from renewable resources. The global market for bioplastics is projected to reach $36.7 billion by 2030, offering a substantial growth avenue. Timeline: Ongoing.
• Increased Infrastructure Spending in Brazil: Potential government investments in infrastructure projects in Brazil could drive demand for Braskem's products, particularly polyethylene and polypropylene used in construction and infrastructure development. The Brazilian government has announced plans for infrastructure investments over the next decade. Timeline: Upcoming.
• Penetration of the North American Market: Braskem can further penetrate the North American market by expanding its polypropylene production capacity and distribution network in the United States. The North American polypropylene market is estimated at $20 billion annually. Timeline: Ongoing.
• Development of Specialty Chemical Products: Investing in research and development to create new specialty chemical products with higher margins can enhance Braskem's profitability and reduce its reliance on commodity products. The specialty chemicals market is characterized by higher margins and less cyclicality. Timeline: Ongoing.
• Strategic Partnerships and Acquisitions: Braskem can pursue strategic partnerships and acquisitions to expand its product portfolio, geographical reach, and technological capabilities. This could involve acquiring companies with complementary technologies or market access in key regions. Timeline: Ongoing.

What Are BAK's Competitive Advantages?

• Integrated Production Chain: Braskem's integrated production chain, from raw materials to finished products, provides cost advantages and supply chain control.
• Geographical Diversification: Operations in Brazil, the United States and Europe, and Mexico reduce reliance on any single market.
• Focus on Sustainable Products: Production of green PE from renewable resources caters to growing demand for sustainable materials.
• Established Market Position: Braskem is one of the largest thermoplastic resin producers in the Americas, with a strong market presence.

What Does BAK Do?

Founded in 1972 and headquartered in Camaçari, Brazil, Braskem S.A. has evolved into one of the largest thermoplastic resin producers in the Americas. Originally known as Copene Petroquímica do Nordeste S.A., the company rebranded to Braskem S.A. in 2002. The company operates through three primary segments: Brazil, United States and Europe, and Mexico. Braskem's Brazilian operations produce a wide array of chemicals, including ethylene, propylene, butadiene, benzene, toluene, and xylenes, alongside fuels and various specialty chemicals. In the United States and Europe, the company focuses on the production and sale of polypropylene (PP). The Mexico segment is dedicated to producing ethylene and polyethylene (PE). Braskem also produces green PE from renewable resources, demonstrating a commitment to sustainable practices. The company serves a diverse range of industries, including automotive, packaging, construction, and consumer goods.

What Products and Services Does BAK Offer?

• Produces and sells thermoplastic resins, including polyethylene (PE) and polypropylene (PP).
• Manufactures a variety of chemicals, such as ethylene, propylene, butadiene, benzene, toluene, and xylenes.
• Produces fuels, including automotive gasoline and liquefied petroleum gas.
• Offers intermediates, such as cumene, and solvents.
• Produces specialty chemicals, including isoprene and dicyclopentadiene.
• Supplies utilities like steam, water, and industrial gases.
• Provides industrial services.

How Does BAK Make Money?

• Manufactures and sells a wide range of chemicals, polymers, and fuels.
• Operates through three segments: Brazil, United States and Europe, and Mexico.
• Generates revenue from the sale of thermoplastic resins, chemicals, and fuels to various industries.

What Industry Does BAK Operate In?

Braskem operates within the global chemicals industry, a sector characterized by cyclical demand and sensitivity to economic conditions. The industry is undergoing a shift towards sustainable materials and circular economy principles. Competitors include companies like ASPI, CNL, ECVT, MUX, and NAK. The thermoplastic resins market, in which Braskem specializes, is expected to grow, driven by demand from packaging, automotive, and construction sectors. However, the industry faces challenges related to environmental regulations and fluctuating raw material costs.

Who Are BAK's Key Customers?

• Automotive industry
• Packaging industry
• Construction industry
• Consumer goods industry

Company Profile

Braskem S.A. operates in the Chemicals industry within the Basic Materials sector. It is headquartered in São Paulo, BR. The company is led by CEO Helcio Tokeshi. BAK has traded publicly since 1999.

Return on equity for Braskem S.A. stands at 93.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -12.0%, showing how much profit it generates from its asset base. A current ratio of 0.71 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is -123.4%, the inverse of the P/E and a quick read on earnings relative to price.

BAK Valuation & Market Position

With a $839M market cap, Braskem S.A. sits in the small-cap segment of the market. Analyst price targets span from $1.50 to $1.50, with a consensus of $1.50. At the current price of $2.10, that implies roughly 29% downside from the consensus target. Relative to its peer group, BAK's quantitative score of 41/100 is below the peer average of 59/100.

Quarterly Financial Performance: Braskem S.A.

Revenue for Braskem S.A. came in at $4.26B during Q2 FY2026, a 40.2% improvement versus the preceding quarter. The company recorded net income of $652.1M, with diluted EPS of $1.64. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Basic Materials. Across the four most recent quarters, BAK averaged $-0.68 in diluted EPS.

Braskem S.A.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.65 places it in the distress zone, a signal of elevated financial risk.

Braskem S.A. has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 1.9% above estimates on average.

BAK Financials

BAK Latest News

BAK Analyst Consensus

BAK MoonshotScore

BAK Basic Materials Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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