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BAK

BEARISH
$4.24 Live
Braskem S.A. · NYSE
Target $3.92 (-7.5%)
$2.32 52W Range $5.29

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AI Analysis

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Confidence
85%
BAK exhibits severe financial distress, as evidenced by a Piotroski F-Score of 1/9, indicating extreme weakness in operational and financial health. The absence of an Altman Z-Score and the company's negative profitability metrics—such as a -7.11% profit margin, -9.65% operating margin, and -2.76% ROA—underscore deteriorating fundamentals. Despite a recent 14.9% 1-year return, the stock has declined 61.9% over five years, reflecting persistent underperformance. The negative forward P/E of -2.25 and Price/Book of -5.01 signal deep value traps, while the lack of dividend and weak insider sentiment further erode confidence. Analysts maintain a 'hold' recommendation, reflecting cautious optimism amid structural challenges.

Key Strengths

Recent 1M price increase of 13.1% suggests short-term momentum
Positive earnings surprise in Q1 2026 (Est: -$1.57 vs Actual: N/A, but prior quarters show strong beat rates)
Improvement in quarterly earnings surprise trend (last 4 quarters: 2/4 beats, avg +45.96%)
Price near 52-week low ($2.32), offering potential downside protection
Low Price/Sales of 0.02 indicates deep undervaluation on revenue basis

Key Risks

Piotroski F-Score of 1/9 signals severe financial distress and operational failure
Negative ROA (-2.76%) and ROIC (N/A) indicate inefficient capital use
Revenue declined 18.6% YoY, with no signs of recovery
No dividend, payout ratio of 0%, and no Graham Number suggest no defensive value
Insider sentiment at 40/100 and technical trend at 0/100 reflect bearish market perception

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