BRASKEM SA-CLASS A- ADR (BAK) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BAK - US1055321053 - ADR
3.34 USD
+0.04 (+1.21%)
3.48 USD
+0.14 (+4.19%)
Taking everything into account, BAK scores 2 out of 10 in our fundamental rating. BAK was compared to 82 industry peers in the Chemicals industry. Both the profitability and financial health of BAK have multiple concerns. BAK is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- BAK had negative earnings in the past year.
- BAK had a negative operating cash flow in the past year.
- In the past 5 years BAK reported 4 times negative net income.
- Of the past 5 years BAK 4 years had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of -6.36%, BAK is not doing good in the industry: 76.83% of the companies in the same industry are doing better.
- BAK has a Return On Invested Capital of 0.56%. This is in the lower half of the industry: BAK underperforms 79.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.36% | ||
| ROE | N/A | ||
| ROIC | 0.56% |
ROA(3y)-5.51%
ROA(5y)-1.84%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- Looking at the Operating Margin, with a value of 0.60%, BAK is doing worse than 79.27% of the companies in the same industry.
- BAK's Operating Margin has declined in the last couple of years.
- BAK has a worse Gross Margin (6.52%) than 89.02% of its industry peers.
- BAK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.6% | ||
| PM (TTM) | N/A | ||
| GM | 6.52% |
OM growth 3Y-60.34%
OM growth 5Y-26.07%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-36.57%
GM growth 5Y-9.41%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BAK is destroying value.
- BAK has about the same amout of shares outstanding than it did 1 year ago.
- BAK has about the same amout of shares outstanding than it did 5 years ago.
- The debt/assets ratio for BAK is higher compared to a year ago.
2.2 Solvency
- BAK has an Altman-Z score of 0.77. This is a bad value and indicates that BAK is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.77, BAK is not doing good in the industry: 78.05% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.77 |
ROIC/WACC0.1
WACC5.6%
2.3 Liquidity
- BAK has a Current Ratio of 1.21. This is a normal value and indicates that BAK is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of BAK (1.21) is worse than 86.59% of its industry peers.
- BAK has a Quick Ratio of 1.21. This is a bad value and indicates that BAK is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of BAK (0.68) is worse than 89.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 26.92% over the past year.
- The Revenue has grown by 9.70% in the past year. This is quite good.
- Measured over the past years, BAK shows a quite strong growth in Revenue. The Revenue has been growing by 8.15% on average per year.
EPS 1Y (TTM)26.92%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%92%
Revenue 1Y (TTM)9.7%
Revenue growth 3Y-9.84%
Revenue growth 5Y8.15%
Sales Q2Q%-18.65%
3.2 Future
- BAK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.35% yearly.
- The Revenue is expected to grow by 2.94% on average over the next years.
EPS Next Y81.16%
EPS Next 2Y31.83%
EPS Next 3Y24.35%
EPS Next 5YN/A
Revenue Next Year-6.81%
Revenue Next 2Y0.23%
Revenue Next 3Y2.94%
Revenue Next 5YN/A
3.3 Evolution
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- BAK reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for BAK. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
- BAK's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.41 |
4.3 Compensation for Growth
- A more expensive valuation may be justified as BAK's earnings are expected to grow with 24.35% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y31.83%
EPS Next 3Y24.35%
5. Dividend
5.1 Amount
- No dividends for BAK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BRASKEM SA-CLASS A- ADR / BAK FAQ
What is the ChartMill fundamental rating of BRASKEM SA-CLASS A- ADR (BAK) stock?
ChartMill assigns a fundamental rating of 2 / 10 to BAK.
Can you provide the valuation status for BRASKEM SA-CLASS A- ADR?
ChartMill assigns a valuation rating of 1 / 10 to BRASKEM SA-CLASS A- ADR (BAK). This can be considered as Overvalued.
What is the profitability of BAK stock?
BRASKEM SA-CLASS A- ADR (BAK) has a profitability rating of 1 / 10.
Can you provide the expected EPS growth for BAK stock?
The Earnings per Share (EPS) of BRASKEM SA-CLASS A- ADR (BAK) is expected to grow by 81.16% in the next year.