BAS-DEU - Embedded Expectations Analysis - 2018 10 05
BASF SE (BAS:DEU) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 18.8x Uniform P/E. At the levels, the market has fairly muted expectations for the firm, and management is concerned about their integration with Bayer, increased input costs, and currency headwindsSpecifically, management appears concerned about their asset purchase from Bayer, specifically their ability to enter the seed business through the newly acquired assets. Moreover, they may be concerned about fixed cost increases, and the material increase of resin prices. Also, they may be concerned about the impact of foreign exchange headwinds on sales in North America, and may lack confidence in their ability to offset unfavorable currency effects in their Agricultural Solutions segment in Europe with higher volumes. Furthermore, they may lack confidence in their ability to build up their car painting capacities to meet rising demand in China, and to maintain strong performance in their Refinery Catalysts business
BASF is a chemical company based in Germany. Co. conducts its operations through five reportable segments: Chemicals, which comprises the Petrochemicals, Monomers and Intermediates divisions; Performance Products, which consists of the Dispersions & Pigments, Care Chemicals, Nutrition & Health and Performance Chemicals divisions; Functional Materials & Solutions, which comprises the Catalysts, Construction Chemicals, Coatings and Performance Materials divisions; Agricultural Solutions, which comprises the Crop Protection division; and Oil & Gas, which is composed of the Oil & Gas division.
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