Risk factor
Strong trading liquidity
Profitability factor
Very low or no dividends
About
Braskem S.A. is a prominent global producer and seller of thermoplastic resins, operating through distinct geographical segments: Brazil, the United States and Europe, and Mexico. Within its Brazil segment, the company manufactures and distributes an extensive array of chemicals, including key petrochemicals such as ethylene, various grades of propylene, butadiene, benzene, and toluene, alongside fuels like automotive gasoline and liquefied petroleum gas. This segment also produces intermediates like cumene, a diverse range of aliphatic and aromatic solvents, and specialized chemicals including isoprene and hydrocarbon resins. Furthermore, Braskem's Brazilian operations are significant producers of polyethylene (PE) and polypropylene (PP), notably including sustainable "green PE" derived from renewable resources, as well as polyvinyl chloride (PVC) and caustic soda. It also provides essential utilities such as electricity and other raw materials to downstream manufacturers. In the United States and Europe, specifically Germany, Braskem primarily focuses on the production and sale of polypropylene (PP). Meanwhile, its Mexican operations concentrate on manufacturing and distributing ethylene, high-density polyethylene (HDPE), and low-density polyethylene (LDPE). Beyond its core production, Braskem engages in the global trade (manufacturing, selling, importing, and exporting) of a wide spectrum of chemicals, petrochemicals, and fuels. The company also supplies crucial utilities such as steam, water, compressed air, and industrial gases, in addition to offering various industrial services. Established in 1972, the company was originally known as Copene Petroquímica do Nordeste S.A. before officially rebranding as Braskem S.A. in 2002. Its corporate headquarters are located in Camaçari, Brazil.
Company Valuation
Considering past and projected metrics, the stock is neither 'expensive' nor 'cheap' compared to its peers. In particular, the stock is underpriced on P/E, 'expensive' on
Target Price
The average target price of BRKM5.SA is 11 and suggests 23% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to incr