Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on BASF SE. We currently have 9 research reports from 1 professional analysts.
|10Nov16 01:00||PRN||International companies to host live webcasts at Deutsche Bank's Depositary Receipts Virtual Investor Conference on November 16th and 17th, 2016|
|14Oct16 03:47||PRN||BASF set to dazzle with cars, colors and business solutions at SEMA|
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Research reports on
Lower NWC, lower capex, FCF sustained
27 Oct 16
Q3 sales dropped 20% (v: +4%; p: -5%; FX: -1%; portfolio: -18%) to €14,013m but the gross profit margin strongly improved (31.0% after 26.2%) despite the decline of the numerator. EBITDA went down 15% to €2,437m and net profit attributable to shareholders came in 27% weaker at €888m. Operating CF clearly dropped 25% to €2,501m, facing a significant decline in the positive NWC (€652m after €1,623m), which was partly offset by lower miscellaneous items (€50m after €-465m). Investing CF more than halved (€-788m after €-1,624m) seeing roughly 40% lower capex (€-936m after €-1,542m), a weaker income from divestments (€161m after €242m) and deteriorated financial investments (€-13m after €-324m). The FCF remained fairly unchanged at €1,713m. Financing moved from €-2,471m to €-84m) as changes in net gross debt came down from €-2,372m to €-107m. Management confirmed the 2016 outlook, expecting sales to be considerably below 2015 (due to the divestment and lower oil & gas prices) and EBIT before one-offs to be slightly below the previous year, which is confirmation of what had been given earlier.
12 Oct 16
BASF published preliminary Q3 figures. Sales clearly dropped 20% to €14.0bn and EBIT before one-offs declined 5% to €1.5bn, whereas EBIT (unchanged at €1.5bn) strongly fell by 23%. Management confirmed its outlook for 2016, seeing a considerable sales decline (divesture of gas trading and storage business) and EBIT before one-offs at a level slightly below 2015’s.
Slightly higher volumes, but operating CF suffers
27 Jul 16
Q2 sales clearly droped 24% to €14,483m, but the gross profit margin rose strongly from 26.3% to 32.3%. EBITDA weakened by 7% to €2,790m and net profit attributable to shareholders declined 14% to €1,092m. Operating CF came down 17% to €2,293m, seeing lower NWC inflow (€203m after €568m) due to lower receivables. Investing CF dropped from €-1,829m to €-730m, facing lower capex and a swing in financial investments. Financing CF soared up from €-633m to €-3,811m, primarily from the scaling back of the US dollar commercial paper programme, which had been expanded in the previous year’s quarter. Management confirmed the 2016 outlook, expecting sales to be considerably below 2015 (due to the divestment and the lower oil & gas prices) and EBIT before one-offs to be slightly below the previous year’s.
Q1 figures: a notch weaker than expected, but still OK
29 Apr 16
The negative effects from the asset swap with Gazprom displayed their full impact, but volatile raw material prices made the toppings. Q1 sales clearly dropped by 29% (to €14,208m), of which -22% stemming from divestments and -6% from lower sales prices. By contrast, the gross profit margin developed very positively (32.9% after 26.6%) despite unchanged volumes. EBITDA slightly weakened (-3% to €2,812m) and net profit attributable to shareholders rose +18% to €1,387m. Operating CF was hit by a €1.5bn swing in NWC (€-1,248m after €309m), forced by a seasonal build-up in receivables, whereas funds has been released due to inventory reduction, especially in gas storage, and higher liabilities and provisions in Q1 15 bringing the CF down to €1,046m from €2,390m. Investing CF came in at €-1,258m (€-1,502m) benefiting from lower capex, which was above D/A. Financing CF swung from €-400m to €1,997m primarily due to the higher utilisation of the USD commercial paper programme and the issuance of a €200m euro bond. For FY 2016, management expects sales to be considerably below 2015 (due to the divestment and the lower oil & gas prices) and EBIT before one-offs to be slightly below the previous year, which is confirmation of the previous guidance.
Early steps of the value chain under pressure...
26 Feb 16
... and Oil&Gas put Q4 figures over the edge. Q4 sales clearly dropped 23% (prices: -11%; divestments: -19%) to €13,880m, but the gross profit margin strongly rose from 24.3% to 29.9%. EBITDA significantly declined by 34% to €1,893m and net income attributable to shareholders clearly deteriorated by 78% to €339m. Despite the much weaker operating performance, FY operating CF strongly rose +36% to €9,446m, fuelled by a €2.4bn swing in NWC (€1.0bn after €-1.4bn), stemming from lower inventories and receivables. Investing CF increased +16% to €-5,235m, seeing lower proceeds from the disposal of non-current assets and securities. Financing CF (€-3,673m after €-2,478m) faced a swing from net gross debt proceeds (€288m) to net gross debt repayments (€933m). Management proposes a €0.10 higher dividend (€2.90) per share at the next AGM on 29 April 2016. The expected dividend payment (~€2.9bn) reflects a pay-out ratio of >70%. For FY 2016, management expects sales to be considerably below 2015's (due to divestments and the lower oil & gas prices) and EBIT before one-offs to be slightly below the previous year's.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - Small-cap quantitative research - Momentum screen refresh + 10 focus stocks
12 Jan 17
We have refreshed our momentum style screen for the first time since inception on 26 July 2016. As before, the screen selects the 25 stocks exhibiting the most extreme momentum characteristics, according to our measurement method. From these we have selected 10 to focus on. Since inception the screen has underperformed both the main small-cap and micro-cap indices against a background of generally rising momentum. We have noted a subset of the basket, where decelerating momentum at the time of measurement appears correlated with significant share price falls since selection. We shall monitor this factor with the new screen, albeit there are only two such stocks showing this pattern, namely Lamprell (not rated) and Gear4music (not rated).
N+1 Singer - Best Ideas 2017 - Top picks
04 Jan 17
Today we publish our Best Ideas for 2017 - 12 stocks that we believe have excellent prospects in the current year together with a detailed discussion of what we see as the key sector and market themes for 2017. Our top picks are Cineworld, Elementis, Herald Investment Trust, Hill & Smith, IQE, MySale, Redde, ReNeuron, RhythmOne, SDL, Servelec and Severfield.
N+1 Singer - Morning Song 12-01-2017
12 Jan 17
As anticipated, the second half has again been stronger than H1 and results will be broadly in line with expectations. In line with this, the order book has continued to grow and is at record levels. This confirms that significant progress has been made in the Group’s shift towards its Technology Products division which, as targeted, contributed c.60% of group revenue in FY16. The small acquisition of Cable Power also gives a complementary boost to the product range. It is also worth noting the significant reduction in net debt, £1.0m ahead of our forecast. We remain supportive of the Group’s strategy and continue to see a bright future as this transition towards a design led technology solutions business continues. We look forward to more detail in March at the final results.
Upgrade on positive year-end trading update
10 Jan 17
The group has announced a positive year end update, with a stronger finish to the year delivering sales slightly better than expectations. Operational gearing results in a 7.5% increase in EPS. Cash generation is significantly better than expected. As a result, we increase our price target from 205p to 254p, based on a fair value P/E of 12.0x for 2017. With healthy growth set to carry on, the shares should continue to show robust momentum, with the potential for a special dividend an additional positive.