Since the high in 2015, BASF's share price has fallen by around 50%. Despite this enormous correction within the last 2 years (to be fair, it must be mentioned that the majority of this 50% mainly occurred in the last 2-3 years), the P/E ratio of the stock is over 75. According to this indicator, the company is still enormously overvalued despite its catastrophic share price performance.
The dividend yield is still high, but this has also been drastically reduced in the meantime.
The margin is now 0.33%!
The crumbling German economy is clearly affecting the company, and BASF has been relocating many resources abroad for several years now, especially to China.
What is positive, however, is the enormous free cash flow of over one billion with a market cap of around 37 billion.
What is your opinion on the stock?
Sources: Scalable Capital, Handelsblatt, GetQuin (L&S)
No investment advice!
