Braskem SA ADR (BAK)

FairStock Score: 14/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital, generate cash, and trade below intrinsic value. Braskem is a Brazilian petrochemical producer with polyethylene, green PE, utilities, and industrial gases. In the latest filed quarter, fiscal Q2 2026, revenue was $21.7B and net income was $3.3B, a 15.31% margin—a rare bright spot. But the larger picture is troubling: trailing free cash flow is -$8.9B, and against a $1.3B market cap that is a -676.9% FCF yield. That is not a cash-generating machine; it is a cash incinerator. FairStock's ROCE is only 3.46%, below the cost of capital I would want. FairStock's Piotroski F-Score of 8/9 suggests some accounting-strength signals, but its Altman Z-Score of -0.02 signals distress and possible bankruptcy risk. The P/E is negative at -0.72 at the 2026-10-13 close, so there is no earnings-based value. The provided EV/EBITDA of 5.67 looks low, but with negative FCF and no D/E figure, I cannot underwrite the balance sheet from this data. FairStock Score is 14/100. At $1.87, near the 52-week low of $1.40, the price may look statistically cheap, but cheapness without financial strength is a trap. The Lynch category is none because only 0 years of filed results are available—need 3—so I have no reliable long-term growth record. I would require durable positive free cash flow, lower leverage, and evidence that the Q2 profit is recurring before calling this a value opportunity. Until then, it is a speculative chemical cyclical, not a Buffett-style bargain.

In plain English: Braskem makes chemicals and plastics, including polyethylene, and supplies utilities and industrial gases, mainly in Brazil. The latest filed quarter, fiscal Q2 2026, showed revenue of $21.7B and net income of $3.3B, but the wider numbers show negative earnings and heavy cash burn, so the business looks financially weak. At $1.87 on 2026-10-13, the shares sit near the bottom of their 52-week range, but with no dividend and a low overall score of 14 out of 100, the price does not look like a clear bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer