(BAK) Braskem - Ratings and Ratios

Braskem S.A., a leading petrochemical company headquartered in São Paulo, Brazil, specializes in the production, sale, and export of a wide range of chemicals, petrochemicals, and fuels. The company manufactures polyethylene (PE), polypropylene, tertiary-butyl ethyl ether, gasoline, benzene, toluene, xylene, ethylene, propylene, polyvinyl chloride (PVC), caustic soda, butadiene, cumene, naphtha, solvents, and condensate. It also produces thermoplastic resins and basic petrochemicals, serving diverse industries such as packaging, automotive, construction, and consumer goods. Braskem operates across multiple countries, including the United States, Mexico, Switzerland, Argentina, Germany, Japan, the Netherlands, Singapore, Chile, Spain, Peru, Italy, Luxembourg, China, and others, solidifying its global presence.

Braskem S.A. was founded in 1972 and was formerly known as Copene Petroquímica do Nordeste S.A. before changing its name to Braskem S.A. in 2002. The company is a subsidiary of NSP Investimentos S.A. - Em Recuperação Judicial. Braskem also provides industrial services, natural gas, and utilities such as steam, water, and compressed air to its clients. Additionally, it generates and supplies electricity to second-generation producers, enhancing its role as a comprehensive energy and petrochemical solutions provider.

From a technical standpoint, Braskems stock (NYSE:BAK) has shown volatility, with an average 20-day volume of 691,650 shares. The stock is currently trading at $3.66, slightly above its 20-day SMA of $3.60 but below its 50-day SMA of $3.68. The 200-day SMA stands at $5.11, indicating a potential long-term downtrend. The Average True Range (ATR) of 0.22 suggests moderate price fluctuations.

Fundamentally, Braskem has a market capitalization of $1.522 billion USD. While the price-to-earnings (P/E) ratio is currently unavailable, the forward P/E ratio is 9.78, signaling potential undervaluation. The price-to-book (P/B) ratio is elevated at 181.02, which may indicate a disconnect between market value and book value. The price-to-sales (P/S) ratio of 0.02 reflects a low valuation relative to its revenue. However, the return on equity (RoE) is not available, limiting a full assessment of profitability.

Based on the technical and fundamental data, Braskems stock may face short-term headwinds due to the divergence between its 20-day and 50-day SMAs, alongside the significant gap below its 200-day SMA. However, the low P/S ratio and forward P/E suggest potential upside if the company can improve its profitability and reduce valuation disparities. Investors should monitor earnings reports and industry trends to assess whether Braskem can capitalize on its global footprint and diversification to drive growth.