Braskem (BAK) vs. Its Peers Financial Analysis

Braskem (NYSE: BAK) is one of 31 public companies in the “Commodity Chemicals” industry, but how does it weigh in compared to its rivals? We will compare Braskem to related companies based on the strength of its earnings, analyst recommendations, profitability, valuation, dividends, risk and institutional ownership.

Earnings & Valuation

This table compares Braskem and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Braskem $13.74 billion -$117.96 million N/A
Braskem Competitors $4.01 billion $340.26 million 154.16

Braskem has higher revenue, but lower earnings than its rivals.

Institutional and Insider Ownership

0.6% of Braskem shares are owned by institutional investors. Comparatively, 70.7% of shares of all “Commodity Chemicals” companies are owned by institutional investors. 0.0% of Braskem shares are owned by company insiders. Comparatively, 7.8% of shares of all “Commodity Chemicals” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Braskem and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Braskem 3.07% 28.41% 2.59%
Braskem Competitors -29.50% 24.34% 5.63%

Analyst Recommendations

This is a summary of recent ratings and price targets for Braskem and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Braskem 0 0 1 0 3.00
Braskem Competitors 107 827 1234 36 2.54

As a group, “Commodity Chemicals” companies have a potential downside of 4.43%. Given Braskem’s rivals higher possible upside, analysts plainly believe Braskem has less favorable growth aspects than its rivals.

Dividends

Braskem pays an annual dividend of $0.75 per share and has a dividend yield of 2.8%. As a group, “Commodity Chemicals” companies pay a dividend yield of 1.8% and pay out 47.9% of their earnings in the form of a dividend.

Volatility and Risk

Braskem has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Braskem’s rivals have a beta of 1.15, suggesting that their average share price is 15% more volatile than the S&P 500.

Summary

Braskem rivals beat Braskem on 8 of the 15 factors compared.

About Braskem

Braskem S.A. produces thermoplastic resins. The Company’s segments are Basic petrochemicals, Polyolefins, Vinyls, the United States and Europe, and Chemical distribution. It is also engaged in the import and export of chemicals, petrochemicals and fuels, the production, supply and sale of utilities such as steam, water, compressed air, industrial gases, the provision of industrial services, and the production, supply and sale of electric energy. It also invests in other companies, either as a partner or as shareholder. It operates over 40 industrial units, over 30 of which are located in the Brazilian states of Alagoas, Bahia, Rio de Janeiro, Rio Grande do Sul and Sao Paulo; over five are located in the United States, in the states of Pennsylvania, Texas and West Virginia, and over two are located in Germany, in the cities of Wesseling and Schkopau. These units produce thermoplastic resins–polyethylene, polypropylene and polyvinyl chloride, as well as basic petrochemicals.

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