Evonik (EVK) AI Stock Analysis

• Market Cap: €6.92B
• Dividend Yield: 7.83%
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.99
• Revenue Growth: -2.62%
• EPS Growth: N/A
• Country: DE
• Employees: 31,585
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.34
• Shares Outstanding: 466,000,000
• 10 Day Avg. Volume: 1,023,876
• 30 Day Avg. Volume: 1,242,903
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €18.06
• Price Target Upside: 20.80% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 70 Neutral
• Price Target: €16.50 ▲(10.37% Upside)

Evonik's overall stock score reflects a stable financial performance and attractive valuation, offset by weak technical indicators. The company's strong cash flow and dividend yield are significant positives, while the bearish technical trend suggests caution. Continued focus on revenue growth and debt management will be crucial for future performance.

Positive Factors

Diversified Revenue Streams

Evonik's diversified portfolio across multiple industries reduces dependency on any single market, enhancing resilience and growth potential.

Strong Cash Flow

Consistent free cash flow generation provides Evonik with the flexibility to invest in growth opportunities and manage debt efficiently.

Operational Efficiency

Strong operational efficiency supports profitability and competitive positioning, allowing Evonik to maintain margins despite market challenges.

Negative Factors

Revenue Decline

A decline in revenue and net income indicates challenges in maintaining growth momentum, potentially impacting long-term financial performance.

Income Growth Headwinds

Headwinds in income growth suggest potential difficulties in expanding profitability, which could affect future earnings and investment capacity.

High Debt Levels

High debt levels can strain financial flexibility and increase risk, necessitating careful management to avoid impacting long-term stability.

Evonik Business Overview & Revenue Model

Company Description

Evonik Industries AG is a global leader in specialty chemicals headquartered in Essen, Germany. The company operates across various sectors including health and care, nutrition and care, resource efficiency, and performance materials. Evonik's core products encompass a wide range of high-performance chemicals, additives, and materials that cater to diverse industries such as automotive, pharmaceuticals, agriculture, and consumer goods.

How the Company Makes Money

Evonik generates revenue primarily through the production and sale of specialty chemicals and materials. Its revenue model is built on several key streams, including the sale of specialty additives, performance materials, and intermediates. The company benefits from a diversified portfolio, which allows it to serve multiple industries, thereby reducing dependence on any single market. Significant partnerships with leading companies in various sectors enhance its market reach and innovation capabilities. Evonik also invests in research and development to create new products and improve existing ones, further contributing to its revenue growth. Additionally, the company's focus on sustainability and resource efficiency aligns with growing market trends, which helps to secure long-term contracts and customer loyalty.

Evonik Financial Statement Overview

Summary

Evonik demonstrates a stable financial profile with strong cash flow generation and a balanced capital structure. Despite the decline in revenue and net income, operational efficiency and prudent financial management provide resilience against market challenges.

Income Statement

Evonik demonstrates a stable performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is healthy, and the EBIT and EBITDA margins reflect operational efficiency. However, there is a notable decline in revenue and net income from the previous year, indicating challenges in maintaining growth momentum.

Balance Sheet

The balance sheet shows a solid equity base with a moderate debt-to-equity ratio, indicating a balanced capital structure. While the return on equity has improved, it remains essential to monitor potential risks due to the relatively high total debt levels.

Cash Flow

The cash flow statement is robust, with consistent free cash flow generation and a strong operating cash flow to net income ratio. The company manages its capital expenditure well, ensuring sustainable cash flow despite fluctuations in net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.71B	15.16B	15.27B	18.49B	14.96B	12.20B
Gross Profit	3.63B	3.74B	3.39B	4.23B	4.03B	3.37B
EBITDA	1.93B	1.76B	1.73B	2.07B	2.18B	1.76B
Net Income	424.00M	222.00M	-465.00M	540.00M	746.00M	465.00M
Balance Sheet
Total Assets	19.05B	19.75B	21.26B	21.81B	22.28B	20.90B
Cash, Cash Equivalents and Short-Term Investments	846.00M	618.00M	1.03B	1.12B	919.00M	1.06B
Total Debt	0.00	3.78B	4.25B	4.22B	3.64B	3.84B
Total Liabilities	10.49B	10.65B	12.28B	10.75B	12.91B	12.80B
Stockholders Equity	8.49B	9.02B	8.91B	10.97B	9.29B	8.01B
Cash Flow
Free Cash Flow	472.00M	873.00M	801.00M	785.00M	929.00M	771.00M
Operating Cash Flow	1.28B	1.71B	1.59B	1.65B	1.81B	1.73B
Investing Cash Flow	-765.00M	-663.00M	-653.00M	-777.00M	-1.07B	-570.00M
Financing Cash Flow	-652.00M	-1.33B	-823.00M	-672.00M	-856.00M	-1.73B

Evonik Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:EVK, the sentiment is Negative. The current price of 14.95 is above the 20-day moving average (MA) of 14.71, below the 50-day MA of 15.61, and below the 200-day MA of 17.52, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 47.95 is Neutral, neither overbought nor oversold. The STOCH value of 91.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:EVK.

Evonik Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FPE	71 Outperform	€4.59B	14.00	16.29%	3.74%	2.35%	-0.09%
EVK	70 Neutral	€6.92B	16.33	4.87%	7.83%	-2.62%	―
BNR	66 Neutral	€7.27B	16.99	9.86%	4.16%	-1.30%	-28.95%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
WCH	55 Neutral	€3.30B	14.10	―	3.76%	-10.63%	-23.15%
1COV	50 Neutral	€11.10B	―	-5.90%	―	-1.98%	-16.31%
LXS	46 Neutral	$1.83B	―	-3.72%	0.47%	-2.75%	83.47%