BASF's capital markets day featured the company's plan to divest multiple businesses. These include surface technologies and agricultural solutions, which combined to generate nearly 40% of total revenue in 2023. We think the move makes strategic sense, allowing for a more focused capital allocation strategy.
BASF’s Verbund concept drives strong returns through operational optimization that minimizes production costs despite the firm’s reliance on costlier feedstocks than peers.
The Verbund concept can be replicated, potentially eroding the firm’s cost advantage if enough competitors implement similar processes.
|
Metric
|
BAS
|
CTVA
|
|---|---|---|
Price/Earnings (Normalized) | 16.04 | 22.24 |
Price/Book Value | 1.22 | 1.61 |
Price/Sales | 0.66 | 2.44 |
Price/Cash Flow | 7.53 | 15.08 |
|
Metric
|
BAS
|
CTVA
|
|---|---|---|
Quick Ratio | 0.96 | 1.07 |
Current Ratio | 1.69 | 1.72 |
Interest Coverage | 1.27 | 4.54 |
|
Metric
|
BAS
|
CTVA
|
|---|---|---|
Return on Assets (Normalized) | 2.65% | 4.29% |
Return on Equity (Normalized) | 5.85% | 7.30% |
Return on Invested Capital (Normalized) | 4.26% | 6.07% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
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SHECY
| — | Fyprkls | $86.7 Bil | |||
| Shin-Etsu Chemical Co Ltd
SHECF
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| Basf SE
BFFAF
| — | Zkxqlgk | $48.2 Bil | |||
| Basf SE ADR
BASFY
| Snnrxqzjs | Fvfzskh | $48.2 Bil | |||
| Dow Inc
DOW
| Ggwdfzrz | Myfmr | $38.6 Bil | |||
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TYNPF
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CE
| Nntpmtrjd | Kbbcxg | $15.2 Bil | |||
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AHKSY
| — | Ldhx | $10.6 Bil | |||
| Asahi Kasei Corp
AHKSF
| — | Fyhb | $10.6 Bil | |||
| Ganfeng Lithium Group Co Ltd ADR
GNENY
| — | Hpxjjs | $8.3 Bil |
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United States