(WCH) Wacker Chemie - Ratings and Ratios

Wacker Chemie AG, a leading global chemical company headquartered in Munich, Germany, specializes in the production and distribution of high-performance chemicals across multiple industries. Established in 1914, the company operates through four distinct divisions: Silicones, Polymers, Biosolutions, and Polysilicon, each catering to specific market demands with innovative solutions. Wacker Chemie AG is a subsidiary of Dr. Alexander Wacker Familiengesellschaft mbH, ensuring a strong foundation for its global operations.

The Silicones division manufactures a wide range of silicone-based products, including silanes, siloxanes, silicone fluids, emulsions, elastomers, and resins. These materials are critical for applications in construction, automotive, electronics, and consumer goods. The division also produces pyrogenic silica, a high-purity material used in specialized industrial processes.

The Polymers division focuses on binders and polymeric additives, offering products such as dispersible polymer powders and dispersions. These materials are essential for the construction, paper, paint, coating, and adhesive industries, enhancing durability and performance in various applications.

The Biosolutions division provides customized biotech and catalog products, serving the pharmaceutical, food, and agrochemical sectors. Its portfolio includes pharmaceutical proteins, vaccines, cyclodextrins, cysteine, and other specialized chemicals that play a vital role in drug development and food production.

The Polysilicon division produces hyperpure polysilicon, a key material for the semiconductor and solar industries. This division is pivotal in supporting the global shift toward renewable energy and advanced electronics.

With a market capitalization of 3,587.15M EUR, Wacker Chemie AG demonstrates strong financial standing. Its current P/E ratio of 14.29 and forward P/E of 21.93 indicate moderate valuation levels, while the P/B ratio of 0.74 suggests undervaluation relative to its book value. The companys price-to-sales ratio of 0.63 reflects efficient revenue generation. However, the return on equity (RoE) of 5.16% highlights room for improvement in profitability.

From a technical perspective, Wacker Chemie AGs stock (XETRA:WCH) shows a bearish trend, with the 20-day SMA (66.98) falling below the 50-day SMA (72.39) and 200-day SMA (77.80). The average trading volume over the past 20 days is 160,481 shares, with a last price of 69.30. The Average True Range (ATR) of 3.59 indicates moderate volatility.

3-Month Forecast: Based on the current technical and fundamental data, Wacker Chemie AGs stock is expected to face downward pressure in the near term, with potential resistance at the 72.39 level (50-day SMA) and support near the 66.98 level (20-day SMA). The bearish crossover of the short-term and medium-term moving averages suggests limited upside momentum. However, the companys strong market position in specialty chemicals and its role in the polysilicon market for renewable energy could provide long-term stability. Investors should monitor earnings reports and industry trends for potential catalysts.