(BAK) Braskem - Overview
Sector: Basic Materials | Industry: Chemicals | Exchange: NYSE (USA) | Market Cap: 1.925m USD | Total Return: 2.7% in 12m
Avg Turnover: 6.35M
Qual. Beats: 0
Rev. Trend: 55.3%
Qual. Beats: 0
Warnings
Negative Equity with losses - insolvent profile
High Debt/EBITDA (9.3) with thin interest coverage (0.4)
High Debt while negative Cash Flow
Interest Coverage Ratio 0.4 is critical
Beneish M-Score -0.29 > -1.5 - likely earnings manipulation
Altman Z'' -1.95 < 1.0 - financial distress zone
Choppy Below Avwap Earnings
Tailwinds
Confidence
Braskem S.A. is a Brazil-based petrochemical producer specializing in the manufacture and international distribution of thermoplastic resins and basic chemicals. The company operates an integrated business model that spans the production of ethylene and propylene to downstream products like polyethylene (PE), polypropylene (PP), and polyvinyl chloride (PVC). As a commodity chemical producer, Braskem’s margins are heavily influenced by the global price spread between raw material feedstocks, such as naphtha and ethane, and the market price of finished polymers.
The company maintains a significant global footprint with industrial units and commercial offices across the Americas, Europe, and Asia. Beyond chemical manufacturing, Braskem generates revenue through the sale of industrial utilities, including steam and water, and provides energy solutions to second-generation chemical producers. The petrochemical sector is characterized by high capital intensity and cyclical demand driven by global industrial activity and consumer packaging needs.
Investors can evaluate the underlying valuation metrics for this stock on ValueRay.
- Global polyethylene and polypropylene spreads drive core petrochemical profit margins
- Fluctuations in international naphtha and natural gas prices dictate production costs
- Geological sinking in Maceió creates significant environmental and legal liability risks
- Brazilian domestic demand and industrial activity levels impact regional sales volume
- Potential ownership changes and M&A activity influence equity valuation premiums
| Net Income: -9.13b TTM > 0 and > 6% of Revenue |
| FCF/TA: -0.12 > 0.02 and ΔFCF/TA -7.66 > 1.0 |
| NWC/Revenue: -15.86% < 20% (prev 10.39%; Δ -26.25% < -1%) |
| CFO/TA -0.08 > 3% & CFO -6.04b > Net Income -9.13b |
| Net Debt (64.6b) to EBITDA (6.93b): 9.33 < 3 |
| Current Ratio: 0.71 > 1.5 & < 3 |
| Outstanding Shares: last quarter (398.6m) vs 12m ago 0.03% < -2% |
| Gross Margin: 2.02% > 18% (prev 0.08%; Δ 193.9% > 0.5%) |
| Asset Turnover: 78.36% > 50% (prev 82.74%; Δ -4.38% > 0%) |
| Interest Coverage Ratio: 0.38 > 6 (EBITDA TTM 6.93b / Interest Expense TTM 4.76b) |
| A: -0.14 (Total Current Assets 25.9b - Total Current Liabilities 36.5b) / Total Assets 74.9b |
| B: -0.30 (Retained Earnings -22.7b / Total Assets 74.9b) |
| C: 0.02 (EBIT TTM 1.79b / Avg Total Assets 85.2b) |
| D: -0.17 (Book Value of Equity -15.5b / Total Liabilities 91.0b) |
| Altman-Z'' = -1.95 = D |
| DSRI: 1.63 (Receivables 8.76b/6.36b, Revenue 66.7b/79.0b) |
| GMI: 3.83 (GM 2.02% / 7.72%) |
| AQI: 0.67 (AQ_t 0.13 / AQ_t-1 0.20) |
| SGI: 0.85 (Revenue 66.7b / 79.0b) |
| TATA: -0.04 (NI -9.13b - CFO -6.04b) / TA 74.9b) |
| Beneish M = -0.29 (Cap -4..+1) = D |
As of May 30, 2026, the stock is trading at USD 4.16 with a total of 1,202,987 shares traded.
Over the past week, the price has changed by -13.15%,
over one month by +15.24%,
over three months by +8.62% and
over the past year by +2.72%.
Braskem has received a consensus analysts rating of 3.50. Therefore, it is recommended to hold BAK.
- StrongBuy: 2
- Buy: 0
- Hold: 6
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 3.9 | -6% |
Market Cap BRL = 9.70b (1.92b USD * 5.039 USD.BRL)
P/E Forward = 9.7847
P/S = 0.0288
P/B = 181.0163
P/EG = 1.4567
Revenue TTM = 66.7b BRL
EBIT TTM = 1.79b BRL
EBITDA TTM = 6.93b BRL
Long Term Debt = 44.1b BRL (from longTermDebt, last quarter)
Short Term Debt = 20.4b BRL (from shortTermDebt, last quarter)
Debt = 70.6b BRL (from shortLongTermDebtTotal, last quarter) + Leases 3.76b
Net Debt = 64.6b BRL (calculated: Debt 70.6b - CCE 5.97b)
Enterprise Value = 74.3b BRL (9.70b + Debt 70.6b - CCE 5.97b)
Interest Coverage Ratio = 0.38 (Ebit TTM 1.79b / Interest Expense TTM 4.76b)
EV/FCF = -8.08x (Enterprise Value 74.3b / FCF TTM -9.20b)
FCF Yield = -12.38% (FCF TTM -9.20b / Enterprise Value 74.3b)
FCF Margin = -13.78% (FCF TTM -9.20b / Revenue TTM 66.7b)
Net Margin = -13.68% (Net Income TTM -9.13b / Revenue TTM 66.7b)
Gross Margin = 2.02% ((Revenue TTM 66.7b - Cost of Revenue TTM 65.4b) / Revenue TTM)
Gross Margin QoQ = 7.10% (prev -3.43%)
Tobins Q-Ratio = 0.99 (Enterprise Value 74.3b / Total Assets 74.9b)
Interest Expense / Debt = 6.74% (Interest Expense 4.76b / Debt 70.6b)
Taxrate = 21.0% (US default 21%)
NOPAT = 1.41b (EBIT 1.79b * (1 - 21.00%))
Current Ratio = 0.71 (Total Current Assets 25.9b / Total Current Liabilities 36.5b)
Debt / Equity = -4.54 (negative equity) (Debt 70.6b / totalStockholderEquity, last quarter -15.5b)
Debt / EBITDA = 9.33 (Net Debt 64.6b / EBITDA 6.93b)
Debt / FCF = -7.02 (negative FCF - burning cash) (Net Debt 64.6b / FCF TTM -9.20b)
Total Stockholder Equity = -9.75b (last 4 quarters mean from totalStockholderEquity)
RoA = -10.72% (Net Income -9.13b / Total Assets 74.9b)
RoE = -70.75% (Net Income TTM -9.13b / Total Stockholder Equity 12.9b)
RoCE = 3.13% (EBIT 1.79b / Capital Employed (Equity 12.9b + L.T.Debt 44.1b))
RoIC = 2.40% (NOPAT 1.41b / Invested Capital 58.9b)
WACC = 5.98% (E(9.70b)/V(80.3b) * Re(10.79%) + D(70.6b)/V(80.3b) * Rd(6.74%) * (1-Tc(0.21)))
Discount Rate = 10.79% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -8.30 | Cagr: 0.0%
[DCF] Fair Price = unknown (Cash Flow -9.20b)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.60 | # QB: 0
Revenue Correlation: 55.31 | Revenue CAGR: 7.39% | SUE: -0.16 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.67 | Chg30d=N/A | Revisions=N/A | Analysts=1
EPS next Quarter (2026-09-30): EPS=1.02 | Chg30d=N/A | Revisions=N/A | Analysts=1
EPS current Year (2026-12-31): EPS=2.55 | Chg30d=+235.09% | Revisions=+20% | GrowthEPS=+155.5% | GrowthRev=+7.9%
EPS next Year (2027-12-31): EPS=-0.54 | Chg30d=+32.82% | Revisions=-20% | GrowthEPS=-121.0% | GrowthRev=+8.6%
[Analyst] Revisions Ratio: +20%