Skip to Content
Morningstar
Get 14 Days Free

Basf SE ADR BASFY

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

BASF Announces a Q2 Beat and Lifts 2021 Guidance; Raising FVE to EUR 73

Rob Hales, CFA Equity Analyst

Analyst Note

| Rob Hales, CFA |

Narrow-moat BASF released second-quarter EBIT of EUR 2.4 billion, well above the company-compiled consensus, and raised 2021 guidance for the second time this year. The company now expects 2021 EBIT to be EUR 7.0 billion to EUR 7.5 billion compared with EUR 5.0 billion to EUR 5.8 billion previously. While we expected the first guidance upgrade, this one is more of a surprise. Consequently, we are raising our 2021 estimates significantly, which causes our fair value estimate to increase to EUR 73 ($22) from EUR 68 ($20). At current levels, the shares look fairly valued.

Read Full Analysis

Company Profile

Business Description

Based in Germany, BASF is the world’s largest chemical company, with products spanning the full spectrum of commodities to specialities. In addition, the company is a strong player in agricultural crop protection. Given its sheer size, BASF has a top-three market position in 70% of its businesses.

Contact
Carl-Bosch-Strasse 38
Ludwigshafen am Rhein, 67056, Germany
T +49 621600
Sector Basic Materials
Industry Chemicals
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type —
Employees 110,302

Related

Market Update
New 5-Star Stocks
These names are all significantly undervalued by our standards after the market rout.
Susan Dziubinski
Stock Strategist Industry Reports
How a Worst-Case Brexit Could Impact Stocks
The unlikely outcome of a disorderly no-deal Brexit is a risk, but opportunities exist.
Alex Morozov
Premium Article
32 High-Quality Stocks Now in Buying Range
These names all slid into 4-star range after yesterday’s stock-market sell-off.
Susan Dziubinski
Quarter-End Insights
Basic Materials: Overpriced, With Significant Downside Ahead for Commodities
Few basic materials stocks currently offer risk-adjusted return potential amid our negative outlook for commodity prices.
Andrew Lane
Quarter-End Insights
Basic Materials: Still Overvalued Despite Protective Tariffs
Our bearish view on the mining and metals sector means the basic materials coverage universe trades at a market-cap-weighted 30% premium to our fair value estimates.
Charles Gross
Quarter-End Insights
Basic Materials: The Most Overvalued Sector We Cover
Propped up by Chinese stimulus, mined commodity and miner share prices remain overvalued.
Seth Goldstein
Stock Strategist
Lithium Boosts Albemarle's Outlook
We expect the narrow-moat firm to double cash flows by 2020.
David Wang, CFA
US Videos
Europe Needs Credible Political Leadership
There are good opportunities in Europe if you believe that the region's political leaders will be able to hold the euro together, says Seven Investment Management's Justin Urquhart Stewart.
Holly Cook
Quarter-End Insights
Our Outlook for Basic Materials Stocks
The near term will surely be bumpy, but valuations look prettier today than they have in years.
Elizabeth Collins
Quarter-End Insights
Look Forward to More Buying Opportunities in Basic Materials
As second-quarter earnings season starts, we'll be on the lookout for more profit warnings and disappointments on a host of issues.
Elizabeth Collins
Stock Strategist Industry Reports
Rising Commodity Prices Help Agriculture, Harm Chemicals
With commodity prices rising, agriculture companies benefit and chemical firms get squeezed.
Jeffrey Stafford
Stock Strategist Industry Reports
What Do Earnings Tell Us About Chemicals and Agriculture?
Strengthening demand and improved cost structures boost profitability for many players.
Elizabeth Collins
Stock Strategist Industry Reports
Chemical Industry's 2010 Outlook Mixed
Recovering demand will likely be overshadowed by new capacity coming on line.
Elizabeth Collins
Stock Strategist Industry Reports
The Chemical Industry Is under Pressure
Will the chemical industry survive both a glut in supply and a terrible economy?
Annie Sorich
Stock Analyst Update
New Morningstar Stock Analyst Reports: 09/10/01
Our Takes on Expedia, BASF, Gateway, Kimberly-Clark, Motorola, and Wal-Mart.
Sylvia Hauser
Stock Analyst Update
Where to Invest when the Euro's Weak: Part 3
In this third part of a series, we look at healthcare and chemicals.
Morningstar Analysts

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.