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Wacker Chemie AG (DE:WCH)
XETRA:WCH
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Wacker Chemie AG
(XETRA:WCH)
64Neutral
Positive Factors
Earnings Performance
Wacker reported €35m EBITDA in the Polysilicon segment, comfortably in the guidance range and higher than market expectations.
Growth Prospects
Silicones with solid growth: Wacker provides a constructive view on Silicones and expects sales to increase by +10% y/y in FY-25.
Segment Growth
All other segments are on track for solid growth in FY-25 and beyond, with Silicones, Polymers, and Biosolutions showing promising developments.
Negative Factors
Debt Concerns
Net debt is at €772m and will probably increase again, given the high capital expenditures.
Financial Outlook
The EBITDA outlook for Polysilicon was reduced from €200-300m to €150-200m.
Market Uncertainty
High degree of uncertainty over future solar deliveries could result in considerable share price volatility.
Wacker Chemie AG (WCH) vs. S&P 500 (SPY)
Market Cap
$3.44B
Dividend Yield4.14%
Average Volume (3M)186.71K
Price to Earnings (P/E)13.9
Beta (1Y)1.21
Revenue Growth-10.63%
EPS Growth-23.15%
CountryDE
Employees12,825
SectorBasic Materials
Sector Strength60
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)4.85
Shares Outstanding52,152,600
10 Day Avg. Volume95,166
30 Day Avg. Volume186,711
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.84
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$93.69Price Target Upside35.20% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
Wacker Chemie AG Business Overview & Revenue Model
Company DescriptionWacker Chemie AG is a globally operating chemical company based in Munich, Germany. The company specializes in the production of a wide range of chemical products, including silicone products, polymers, polysilicon, and specialty chemicals. Wacker Chemie serves diverse industries such as automotive, construction, electronics, healthcare, and consumer goods, with a strong emphasis on innovation and sustainability in its product offerings.
How the Company Makes MoneyWacker Chemie AG generates revenue through the sale of its chemical products across various business divisions. The Silicones division is a significant contributor, offering silicone-based solutions for industries like automotive and construction. The Polymers division provides polymeric binders and additives used in construction, paints, and adhesives. The Polysilicon division supplies high-purity polysilicon to the solar and semiconductor industries. Additionally, the Biosolutions division offers biotech and fermentation products for food and pharmaceutical sectors. Wacker Chemie benefits from strategic partnerships and a robust global distribution network, enabling it to reach a broad customer base and sustain its earnings.
Wacker Chemie AG Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.72B | 6.40B | 8.21B | 6.21B | 4.69B | Gross Profit |
| 986.70M | 1.08B | 2.16B | 1.67B | 869.90M | EBIT |
| 270.90M | 353.70M | 1.45B | 1.04B | 257.10M | EBITDA |
| 676.90M | 884.00M | 1.85B | 1.46B | 608.50M | Net Income Common Stockholders |
| 241.00M | 313.60M | 1.25B | 806.90M | 189.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.22B | 1.39B | 1.78B | 1.67B | 1.34B | Total Assets |
| 9.41B | 8.85B | 9.40B | 8.13B | 6.95B | Total Debt |
| 1.95B | 1.51B | 1.34B | 1.25B | 1.23B | Net Debt |
| 900.00M | 491.80M | 446.00M | 319.20M | 601.30M | Total Liabilities |
| 4.57B | 4.27B | 4.37B | 5.03B | 5.26B | Stockholders Equity |
| 4.67B | 4.42B | 4.86B | 3.02B | 1.63B |
| Cash Flow | Free Cash Flow | |||
| -341.20M | 296.70M | 564.30M | 743.10M | 647.20M | Operating Cash Flow |
| 310.40M | 936.30M | 1.13B | 1.06B | 873.70M | Investing Cash Flow |
| -435.30M | -107.60M | -701.40M | -639.70M | -783.10M | Financing Cash Flow |
| 145.90M | -688.10M | -458.50M | -153.90M | 117.10M |
Wacker Chemie AG Technical Analysis
Negative
69.30
Price Trends
72.50
Negative
70.43
Negative
78.00
Negative
Market Momentum
-3.29
Positive
40.33
Neutral
62.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:WCH, the sentiment is Negative. The current price of 69.3 is above the 20-day moving average (MA) of 69.07, below the 50-day MA of 72.50, and below the 200-day MA of 78.00, indicating a bearish trend. The MACD of -3.29 indicates Positive momentum. The RSI at 40.33 is Neutral, neither overbought nor oversold. The STOCH value of 62.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:WCH.
Wacker Chemie AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | €141.51B | 14.80 | 14.18% | 2.53% | -1.13% | 8.98% | |
67 Neutral | €5.05B | 18.73 | 16.34% | 2.55% | -0.45% | 10.02% | |
64 Neutral | $3.44B | 13.87 | 5.37% | 4.14% | -10.63% | -23.15% | |
56 Neutral | €40.09B | 30.63 | 3.67% | 7.57% | -5.29% | 478.69% | |
55 Neutral | €9.07B | 40.18 | 2.47% | 6.10% | -0.72% | ― | |
55 Neutral | $1.95B | ― | -3.92% | 0.37% | -5.18% | -139.96% | |
49 Neutral | $1.95B | -1.59 | -21.99% | 3.77% | 0.61% | -27.45% |
* Basic Materials Sector Average
Performance Comparison
DE:WCH
Wacker Chemie AG
69.30
-29.38
-29.77%
DE:BAS
BASF SE
44.92
-4.13
-8.43%
DE:EVK
Evonik
19.46
1.24
6.83%
DE:SIE
Siemens
206.80
33.22
19.14%
DE:FPE3
Fuchs Petrolub
43.52
1.28
3.02%
DE:LXS
LANXESS
25.62
-0.79
-2.97%
Wacker Chemie AG Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: -8.28% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in the Chemicals and Biosolutions segments, along with strategic investments in sustainability and specialty products. However, challenges in the polysilicon market and a decline in overall sales and polymers impacted the overall sentiment. The company is focused on strategic growth and efficiency improvements to navigate the challenging market conditions.Highlights
Chemical Business Performance
The Chemicals segment showed strong performance with an EBITDA increase of 11% year-over-year, driven by growth in specialty silicones.
Biosolutions Growth
Biosolutions reported a significant EBITDA increase to EUR35 million, up from EUR7 million the previous year, primarily driven by growth in biopharma.
Sustainability Achievements
Wacker Chemie AG reduced CO2 emissions by around 30% compared to 2020, earning a top A score in the CDP climate change assessment.
Strategic Investments
Completed major projects in biotechnology and polysilicon sectors, focusing on specialty products and semiconductor business for future growth.
Dividend Payout
The company will propose a EUR2.50 per share dividend, equating to a payout ratio of 52% of reported EPS.
Lowlights
Polysilicon Segment Challenges
Polysilicon sales were 41% lower year-over-year due to significantly lower solar-grade volumes and prices, with an EBITDA decrease to EUR193 million.
Overall Sales Decline
Group sales for 2024 were EUR5.7 billion, down 11% year-over-year, primarily due to lower polysilicon sales.
Pressure on Polymers
Polymers sales were down 7% year-over-year with a 23% decline in EBITDA, affected by lower selling prices and continued weakness in construction-related binders.
U.S. Trade Uncertainty
Pending tariffs on solar product imports into the U.S. and massive overcapacities in China negatively impacted the polysilicon market.
Company Guidance
During the conference call, Wacker Chemie AG provided guidance for 2025, forecasting group sales between EUR6.1 billion to EUR6.4 billion and an EBITDA range of EUR700 million to EUR900 million. Capital expenditures (CapEx) are expected to be slightly above depreciation, anticipated to be over EUR500 million, which is significantly lower than the EUR666 million invested in the previous year. The company also expects a substantial increase in net cash flow compared to last year. In terms of market conditions, Wacker foresees a challenging environment in 2025 with higher risks of trade disputes but remains optimistic about benefiting from global megatrends like sustainability and digitalization. Long-term targets include achieving sales over EUR10 billion by 2030, with an EBITDA margin exceeding 20% and a return on capital employed (ROCE) twice the cost of capital.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.