BASF Se (BASFY) Stock Analysis

Why this analysis is different

• A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
• 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.

BASF Se (BASFY) Materials & Commodity Exposure

BASF SE is a diversified global chemical enterprise, supplying foundational building blocks, specialized materials, and innovative solutions across six segments including agriculture and advanced battery materials. Headquartered in Germany, it serves a broad spectrum of industries, leveraging its integrated production and extensive R&D capabilities to maintain a significant market position.

What Is the Investment Thesis for BASFY?

BASF SE presents an investment profile characterized by its extensive diversification across six chemical segments, which mitigates reliance on any single market and provides stability. With a market capitalization of $53.5B and a P/E ratio of 7.78, the company demonstrates a mature valuation within the basic materials sector. A notable dividend yield of 4.55% offers income potential for investors. Furthermore, its Agricultural Solutions segment benefits from ongoing global demand for food security and sustainable farming practices. While a gross margin of 24.3% and a profit margin of 2.9% indicate operational efficiency, the company's global exposure means profitability is sensitive to fluctuations in raw material prices and energy costs. A beta of 0.73 suggests lower volatility compared to the broader market, appealing to risk-averse investors. Monitoring global economic trends and commodity price movements will be crucial for assessing future performance.

Based on FMP financials and quantitative analysis

BASFY Key Highlights

Market Capitalization of $53.5B, reflecting its substantial presence in the global chemical industry.

• P/E ratio of 7.78, indicating market valuation relative to earnings.
• Gross Margin of 24.3%, demonstrating operational efficiency in its production processes.
• Profit Margin of 2.9%, highlighting the net profitability after all expenses.
• Dividend Yield of 4.55%, providing significant income potential for shareholders.

Who Are BASFY's Competitors?

BASFY 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 This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are BASFY's Key Strengths?

Highly diversified product portfolio across six key segments, reducing market reliance.

• Global operational presence and extensive geographic reach.
• Strong R&D capabilities, fostering innovation in specialized materials and solutions.
• Long-standing history and established brand reputation in the chemical industry.

What Are BASFY's Weaknesses?

Exposure to fluctuations in raw material prices and energy costs.

• Profit margin of 2.9% indicates sensitivity to cost pressures.
• Complex global supply chains susceptible to geopolitical and logistical disruptions.
• "Unknown" disclosure status for OTC trading may deter some investors.

What Could Drive BASFY Stock Higher?

BASFY catalyst: Continued progress and commercialization of advanced battery materials in collaboration with CATL, driving revenue growth in the Surface Technologies segment.

• Introduction of new, high-efficacy crop protection products and biological solutions within the Agricultural Solutions segment, addressing evolving farming needs.
• Strategic investments in R&D leading to the development of innovative, high-margin specialized chemicals for industrial and consumer applications.
• Optimization of production processes through the Verbund system, enhancing cost efficiency and improving gross margins.

What Are the Key Risks for BASFY?

Sustained volatility in global raw material prices (e.g., crude oil, natural gas) and energy costs, impacting profitability across all segments.

• A significant downturn in global economic growth, reducing demand for industrial chemicals and materials.
• Intensified regulatory scrutiny on chemical production and environmental impact, potentially leading to increased compliance costs.
• Adverse currency movements, particularly a strong U.S. Dollar against the Euro, negatively affecting reported earnings for ADR holders.

What Are the Growth Opportunities for BASFY?

• Advanced Battery Materials Development: BASF's strategic collaboration with Contemporary Amperex TechnologyCo., Limited (CATL) in advanced battery materials, specifically cathode active materials and battery recycling, represents a significant growth avenue. The global electric vehicle (EV) market is projected to grow substantially, with battery materials demand escalating in tandem. This initiative leverages BASF's chemical expertise to develop high-performance, sustainable battery solutions, providing a competitive edge in a rapidly expanding sector.
• Expansion in Agricultural Solutions: The Agricultural Solutions segment, offering crop protection products, seeds, and seed treatments, is poised for growth driven by global population increases and the imperative for enhanced food security. As agricultural practices evolve towards more sustainable and efficient methods, demand for advanced fungicides, herbicides, insecticides, and biological alternatives is expected to rise. BASF's continuous innovation in this area, including digital farming solutions, allows it to capture market share in a sector vital for global sustenance, with a consistent demand timeline.
• Specialized Materials for High-Performance Applications: The Materials segment, focusing on specialized polymers like isocyanates and polyamides, and inorganic products for the plastics industry, is critical for various high-performance applications. Growth in sectors such as automotive lightweighting, advanced electronics, and construction drives demand for these sophisticated materials. BASF's ability to develop customized solutions and precursors with enhanced properties allows it to serve niche markets with higher margins, capitalizing on the ongoing trend towards material innovation and efficiency in manufacturing processes globally.
• Innovation in Industrial Solutions: The Industrial Solutions segment, providing ingredients and additives for diverse industrial applications, benefits from continuous innovation and evolving industry standards. Products ranging from polymer dispersions and pigments to electronic materials and oilfield chemicals are essential across manufacturing, energy, and infrastructure sectors. As industries seek more efficient, sustainable, and high-performance inputs, BASF's R&D capabilities enable it to introduce new formulations and solutions. This ensures relevance and market penetration in a broad array of industrial value chains, maintaining a steady demand profile.
• Growth in Nutrition & Care Segment: The Nutrition & Care unit, supplying ingredients for food, animal feed, pharmaceuticals, cosmetics, and cleaning products, is positioned to benefit from global trends in health, wellness, and personal care. Increasing consumer awareness regarding healthy lifestyles, sustainable ingredients, and high-quality personal care products drives demand for BASF's specialized offerings. The pharmaceutical and cleaning industries also present stable demand for essential ingredients. This segment's focus on consumer-driven markets provides a resilient growth path, capitalizing on demographic shifts and rising living standards worldwide.

What Threats Does BASFY Face?

• Volatile global economic conditions impacting industrial demand.
• Intense competition from other global chemical manufacturers.
• Stringent environmental regulations and increasing pressure for decarbonization.
• Currency exchange rate fluctuations affecting international earnings.

What Are BASFY's Competitive Advantages?

• Extensive diversification across six chemical segments, reducing reliance on any single market.
• Integrated production 'Verbund' system, optimizing resource use and creating cost efficiencies.
• Global scale and operational presence, allowing for broad market reach and economies of scale.
• Significant investment in research and development, leading to proprietary technologies and specialized products.
• Long-standing customer relationships and established brand reputation in the chemical industry.

What Does BASFY Do?

BASF SE, established in 1865 and headquartered in Ludwigshafen am Rhein, Germany, has evolved into a globally operating chemical enterprise with a vast and diversified portfolio. The company's extensive activities are strategically organized across six key segments, underpinning its position as a foundational supplier to numerous industries worldwide. The Chemicals division serves as the bedrock, providing essential building blocks such as petrochemicals and intermediate products that are critical for a wide array of manufacturing processes. Complementing this, the Materials segment focuses on the development and delivery of sophisticated materials and their precursors, including specialized polymers like isocyanates and polyamides, alongside essential inorganic products and niche specialties vital for the plastics manufacturing industry. Further expanding its reach, the Industrial Solutions segment innovates and distributes a broad spectrum of ingredients and additives. These are crucial for diverse industrial applications, encompassing polymer dispersions, pigments, and resins, as well as highly specialized electronic materials, antioxidants, light stabilizers, oilfield chemicals, and advanced solutions for mineral processing and hydrometallurgy. Surface Technologies, another pivotal segment, is dedicated to advanced chemical solutions primarily for the automotive and broader chemical sectors. Its comprehensive offerings include vehicle refinish coatings, specialized surface treatments, catalytic converters, and cutting-edge battery materials, alongside services involving precious and base metals. This segment's focus on high-performance applications highlights BASF's commitment to innovation in critical growth areas. The Nutrition & Care unit addresses fundamental human and animal needs by providing vital ingredients for food and animal feed producers. It also caters to the demanding pharmaceutical, cosmetic, and cleaning product industries, emphasizing health, wellness, and hygiene. Lastly, the Agricultural Solutions segment plays a crucial role in global food security, equipping farmers with an extensive array of crop protection products, including fungicides, herbicides, insecticides, and biological alternatives, in addition to seeds and seed treatment solutions. BASF SE also engages in strategic collaborations, notably with Contemporary Amperex TechnologyCo., Limited (CATL), focusing on advanced battery materials, specifically cathode active materials and battery recycling initiatives, underscoring its forward-looking approach to sustainable technologies. This diversified portfolio reduces reliance on any single market, providing a robust operational framework.

What Products and Services Does BASFY Offer?

• Produce foundational petrochemicals and intermediate products for various industries.
• Develop and supply specialized polymers and inorganic products for plastics manufacturing.
• Innovate and distribute ingredients and additives for industrial applications like polymer dispersions and electronic materials.
• Offer advanced chemical solutions for the automotive sector, including vehicle coatings and battery materials.
• Provide vital ingredients for food, animal feed, pharmaceutical, cosmetic, and cleaning product industries.
• Equip farmers with crop protection products, including fungicides, herbicides, insecticides, and seeds.
• Engage in strategic collaborations for advanced battery materials and recycling initiatives.
• Operate globally across six distinct chemical segments.

How Does BASFY Make Money?

• Manufacturing and selling a broad portfolio of chemical products and solutions to industrial customers.
• Providing specialized ingredients and additives tailored to specific industry needs, such as automotive, electronics, and agriculture.
• Leveraging an integrated production 'Verbund' system to optimize resource efficiency and cost structures.
• Engaging in strategic partnerships to develop and commercialize cutting-edge materials, like advanced battery components.
• Generating revenue through sales of crop protection products, seeds, and related agricultural solutions to farmers.

What Industry Does BASFY Operate In?

BASF SE operates within the highly competitive and cyclical global chemicals industry, a foundational component of the broader basic materials sector. The industry is characterized by significant capital expenditure, intense R&D, and susceptibility to raw material price volatility and energy costs. BASF's diversified portfolio, spanning petrochemicals, specialized materials, industrial solutions, surface technologies, nutrition & care, and agricultural solutions, positions it as a comprehensive supplier across numerous value chains. This broad reach allows it to navigate various market trends, from the increasing demand for sustainable solutions and advanced materials in automotive and electronics to the consistent need for crop protection and nutritional ingredients. The company competes with global players like Shin-Etsu Chemical Co., Ltd. and Holcim Ltd., differentiating itself through its integrated production Verbund system and extensive R&D capabilities, which enable the development of high-value-added products and solutions.

Who Are BASFY's Key Customers?

• Automotive manufacturers and suppliers (for coatings, battery materials, specialized plastics).
• Agricultural businesses and farmers (for crop protection, seeds).
• Food and animal feed producers (for ingredients).
• Pharmaceutical, cosmetic, and cleaning product industries (for ingredients).
• Manufacturers across various industrial sectors (for polymers, pigments, electronic materials, oilfield chemicals).

BASF Se (BASFY) Valuation Context

Valued at $53.5B, BASFY is classified as a large-cap stock. Relative to its peer group, BASFY's quantitative score of 42/100 is roughly in line with the peer average of 45/100.

BASFY Revenue & Earnings Trend

In Q2 FY2026, BASFY generated $19.96B in top-line revenue, marking a sequential increase of 5.7%. The company recorded net income of $4.81B, with diluted EPS of $1.34. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this large-cap Basic Materials company. Across the four most recent quarters, BASFY averaged $0.47 in diluted EPS.

Company Profile

BASF Se operates in the Chemicals industry within the Basic Materials sector. It is headquartered in Ludwigshafen am Rhein, DE. The company is led by CEO Markus Kamieth. BASFY has traded publicly since 1996.

Return on equity for BASF Se stands at 5.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.1%, showing how much profit it generates from its asset base. BASFY trades at a trailing price-to-earnings ratio of 7.78, below the Basic Materials sector average of ~21.40x. Its free cash flow yield is 4.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.91 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 4.1%, the inverse of the P/E and a quick read on earnings relative to price.

BASF Se's Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 2.25 places it in the grey zone, a middle ground that warrants monitoring.

BASF Se has beaten Wall Street's EPS estimate in 4 of its last 8 reported quarters — more hits than misses. Reported results have landed about 37.3% below estimates on average.

BASFY Financials

BASFY Latest News

BASFY Analyst Consensus

BASFY MoonshotScore

BASF Se Basic Materials Stock: Key Questions Answered

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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