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.
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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.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
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.
21 Feb 17
Lighthouse Group* (LGT): Middle Britain growth (CORP) | Utilitywise* (UTW): Double-digit sales growth (CORP) | Trakm8* (TRAK): Earnings expectations cut again (CORP) | dotDigital* (DOTC): Myriad growth opportunities (CORP) | Artilium* (ARTA): Five-year Telenet deal secured and prepaid (CORP) | Netcall* (NET): Cloud investment pays off (CORP)
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
N+1 Singer - Morning Song 22-02-2017
22 Feb 17
CORETX (COR LN) Contract wins and new Lifestyle facility | Gooch & Housego (GHH LN) Solid Q1 trading plus earnings enhancing acquisition of StingRay Optics | NCC Group (NCC LN) Further issues in Assurance | PCI-PAL (PCIP LN) Strong H1 underpins positive outlook | UBM (UBM LN) Results | Verona Pharma (VRP LN) Phase IIa RPL554 add-on trial to tiotropium commenced
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management