Braskem sits outside the investable universe by market capitalization at $0.84 billion — below the $1 billion minimum threshold — and carries cash-burning operations with free cash flow negative at 10% of revenue, a 20% revenue decline, and a Piotroski financial health score of only 3 out of 9; despite a sharp 44% upward revision to analyst estimates over the last month, the fundamental setup does not support investment.
Thesis pillars
- Sub Investable Market Cap Barrier→Stable
- Cash Burning Deteriorating Quality→Stable
- Revenue Contraction Unreliable Earnings→Stable
- +1 more pillar — see the Why tab for full reasoning
Braskem SA (BAK) Stock Analysis
Inst Constrain edge
Basic Materials · Chemicals
Sell if holding. Engine safety override at $2.45: Quality below floor (1.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.6/10 and A.R:R 2.7:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum; Below long-term trend.
Braskem S.A., together with its subsidiaries, engages in the manufacture, sale, import, and export of chemicals, petrochemicals, and fuels in Brazil. The company supplies electricity and other inputs to second-generation producers; sells utilities, such as steam, water,... Read more
Sell if holding. Engine safety override at $2.45: Quality below floor (1.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.6/10 and A.R:R 2.7:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum; Below long-term trend. Chart setup: No clear chart pattern; technical signals are mixed. Score 4.6/10, moderate confidence.
Passes 7/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 39d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: speculative.
Recent developments
updated 2026-07-06Recent Developments — Braskem SA
Latest news
- NEWS JP Morgan Downgrades Braskem to Neutral — benzinga Jun 30, 2026 negative
- NEWS Mission Produce Posts Downbeat Q2 Earnings, Joins Ideaya Biosciences, Perrigo And Other Big Stocks Moving Lower In Tuesd — benzinga Jun 9, 2026
- NEWS Braskem Q1 2026 Earnings Call: Complete Transcript — benzinga May 15, 2026 positive
- NEWS 'Braskem Idesa, Creditors Near Deal for Bankruptcy Loan' - Bloomberg — benzinga May 13, 2026 negative
- NEWS Earnings Scheduled For May 13, 2026 — benzinga May 13, 2026 neutral
Generated 2026-07-06T05:40:26Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Cyclical trough — margins compressed or negative. Profitability typically recovers with the cycle, but floor fires on current data.static
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $2.45: Quality below floor (1.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.6/10 and A.R:R 2.7:1 is above the 1.5:1 BUY gate. Specifically: Below-average business quality; Negative price momentum; Below long-term trend. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $2.28. Score 4.6/10, moderate confidence.
Take-profit target: $3.44 (+40.4% upside). Prior stop was $2.28. Stop-loss: $2.28.
Quality below floor (1.2 < 4.0).
Braskem SA trades at a P/E of N/A (forward -1.3). TrendMatrix value score: 7.8/10. Verdict: Sell.
17 analysts cover BAK with a consensus score of 3.6/5. Average price target: $4.
What does Braskem SA do?Braskem S.A., together with its subsidiaries, engages in the manufacture, sale, import, and export of chemicals,...
Braskem S.A., together with its subsidiaries, engages in the manufacture, sale, import, and export of chemicals, petrochemicals, and fuels in Brazil. The company supplies electricity and other inputs to second-generation producers; sells utilities, such as steam, water, compressed air and industrial gases; industrial services; and engages in the production, supply, and sale of electric energy and gas. It also produces and sells polyethylene, including the production of green PE made from renewable resources, and polypropylene; and polyvinyl chloride and caustic soda. In addition, the company provides thermoplastic resins; and other basic petrochemicals. It has operations in the United States, Europe, Asia, and internationally. The company was formerly known as Copene Petroquímica do Nordeste S.A. and changed its name to Braskem S.A. in 2002. Braskem S.A. was founded in 1972 and is headquartered in São Paulo, Brazil.