| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 77.29 | 13 |
| Intrinsic value (DCF) | 29.63 | -57 |
| Graham-Dodd Method | 69.81 | 2 |
| Graham Formula | n/a |
Wacker Chemie AG is a leading global chemical company headquartered in Munich, Germany, specializing in high-quality chemical products across four key divisions: Wacker Silicones, Wacker Polymers, Wacker Biosolutions, and Wacker Polysilicon. The company serves diverse industries, including construction, electronics, automotive, pharmaceuticals, and renewable energy, with innovative solutions such as silicone-based materials, polymer binders, biotech products, and hyperpure polysilicon for semiconductors and solar applications. Founded in 1914, Wacker Chemie has established itself as a key player in the specialty chemicals sector, leveraging advanced R&D and sustainable production methods. With a strong presence in Europe, Asia, and the Americas, the company is well-positioned to capitalize on growing demand for high-performance materials in green energy, digitalization, and healthcare. Wacker Chemie AG is listed on the Deutsche Börse (XETRA) and is a subsidiary of Dr. Alexander Wacker Familiengesellschaft mbH.
Wacker Chemie AG presents a mixed investment case with strengths in niche chemical markets but exposure to cyclical demand and raw material volatility. The company benefits from its leadership in silicones and polysilicon, critical for renewable energy and semiconductor industries, which are poised for long-term growth. However, recent financials show pressure on profitability (net income of €241M on €5.72B revenue) due to energy costs and semiconductor sector slowdowns. Strong cash reserves (€1.05B) and moderate debt (€1.95B) provide stability, but high capex (€651.6M) reflects the capital-intensive nature of the business. The 1.037 beta indicates market-correlated volatility. Investors may find value in its 2.5 EUR/share dividend (yield ~2.5%) and exposure to green energy trends, but should monitor polysilicon pricing pressures and EU regulatory risks.
Wacker Chemie competes in specialty chemicals through technological differentiation, particularly in silicone chemistry and ultra-pure polysilicon. Its vertically integrated polysilicon production gives it cost advantages in solar/semiconductor markets, though this segment faces intense Chinese competition. In silicones, Wacker's product breadth and application expertise allow premium pricing in construction and healthcare markets. The biosolutions division leverages biotech capabilities for high-margin pharmaceutical ingredients, but scale lags behind dedicated life science players. Key weaknesses include reliance on European energy markets (where costs remain elevated) and exposure to China's solar policy shifts. The company's R&D focus on sustainable chemistries (e.g., silicone alternatives to plastics) aligns with EU green transition goals, providing regulatory tailwinds. However, competitors like Dow and Momentive have larger global distribution networks in silicones, while Hemlock Semiconductor benefits from U.S. CHIPS Act subsidies in polysilicon. Wacker's mid-size scale requires selective focus on high-value niches rather than competing on volume.