BAS:DEU - Embedded Expectations Analysis - 2018 04 11
BASF SE (BAS:DEU) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 19.3x Uniform P/E. At the levels, the market has fairly bullish expectations for the firm, but management has concerns about their sales, acquisitions, and guidanceSpecifically, management may lack confidence in the sustainability of sales improvements in their Precious Metal Trading business, and may also lack confidence in the sustainability of higher gas prices going forward. They also may not be confident in their EBIT guidance or their Chemical segment margins. Furthermore, they may lack confidence in economic momentum in China. Management also may be downplaying concerns about their agreement to acquire a significant portion of Bayer's Seed and Nonselective Herbicide businesses as a result of the anticipated integration costs
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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