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[BLOG] Idea Brunch

Added to YB: 2025-12-26

Pitch date: 2025-12-22

BAK [neutral]

Braskem S.A.

Author Info

Idea Brunch is an interview series where great off-the-beaten-path investors share their best ideas and insights about their research process. Yellowbrick users get a 20% discount for life

Company Info

Braskem S.A., together with its subsidiaries, engages in the manufacture, sale, import, and export of chemicals, petrochemicals, and fuels in Brazil.

Market Cap

BRL 6.3B

Pitch Price

N/A

Price Target

N/A

Dividend

N/A

EV/EBITDA

110.39

P/E

-1.19

EV/Sales

0.85

Sector

Chemicals

Category

turnaround

Show full summary:
Idea Brunch with Diego B. Milano of Quercus Fund - Braskem S.A.

BAK (bonds): Braskem Idesa bonds at 60% par (~28% YTM) after missing coupon. Liquidity issue, not solvency. TQPM ethane import terminal now operational, enabling 100% capacity vs prior trucking from US. Should generate $400M EBITDA. Net debt $2B vs $4B+ replacement cost. Carlos Slim financed $500M - unlikely to let bankruptcy occur.

Read full article (2 min)