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Evonik Industries AG (DE:EVK)
:EVK

Evonik (EVK) AI Stock Analysis

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Evonik

(LSE:EVK)

Rating:63Neutral
Price Target:
€20.00
▲(12.80%Upside)
Evonik's overall stock score is driven by strong cash flow and a balanced capital structure, which are significant strengths. However, technical indicators and valuation suggest caution due to potential volatility and high valuation metrics. The lack of recent earnings call data and corporate events means these factors do not influence the score.
Positive Factors
Financial Performance
The CEO expressed confidence in the FY-25 guidance, with a solid start in Q1 and expectations for EBITDA to increase year-over-year.
Innovation and Growth
Innovation growth areas have achieved their targets, with significant sales and margin increases, and new targets set for 2032.
Pricing and Volume
Strong methionine pricing in Nutrition & Care and a good volume trend in Specialty Additives are driving EBITDA growth.
Negative Factors
Earnings Performance
Q4 EBITDA was lower than expected due to one-time effects, with all segments below expectations except for Others.
Industry Challenges
Structural changes in the European chemical industry indicate that 15-20% of value chains are lost and will not return, leading to plant closures.

Evonik (EVK) vs. iShares MSCI Germany ETF (EWG)

Evonik Business Overview & Revenue Model

Company DescriptionEvonik Industries AG engages in the specialty chemicals business. It operates through Specialty Additives, Nutrition & Care, Smart Materials, Performance Materials, and Technology & Infrastructure segments. The Specialty Additives segment provides polyurethane additives, organically modified silicones, isophorones, epoxy curing agents, oil additives, fumed silicas, matting agents, TAA and TAA derivatives, and acetylenic diol-based surfactants for consumer goods and specialized industrial applications. The Nutrition & Care segment offers amphoteric surfactants, ceramides, phytosphingosines, oleochemicals, quaternary derivatives, amino acids and amino acid derivatives, synthesis products, pharmaceutical polymers, and DL-methionine for use in consumer goods, animal nutrition, and healthcare products. The Smart Materials segment provides hydrogen peroxide, peracetic acid, activated nickel catalysts, precious metal powder catalysts, oil and fat hydrogenation catalysts, amorphous polyalphaolefins, polybutadienes, polyester resins, thermoplastic and reactive methacrylate resins, PEEK, polyamide 12, organosilanes, chlorosilanes, fumed silicas, fumed metal oxides, and precipitated silicas for the automotive, paints, coatings, adhesives, construction, and various other sectors. The Performance Materials segment produces polymer materials and intermediates, including butene-1, DINP, isononanol, cyanuric chloride, alkoxides, and superabsorbent for rubber, plastics, and automotive industries. The Technology & Infrastructure segment provides site management, utilities and waste management, technical, process technology, engineering, and logistics services. It operates in the Asia-Pacific, Europe, the Middle East, Africa, Central and South America, and North America. The company was founded in 1873 and is headquartered in Essen, Germany. Evonik Industries AG is a subsidiary of RAG-Stiftung.
How the Company Makes MoneyEvonik makes money primarily through the sale of specialty chemicals and related products across its key business segments: Nutrition & Care, Resource Efficiency, and Performance Materials. The company generates revenue by providing high-value, innovative chemical products that meet specific customer needs, often under long-term contracts. Its earnings are bolstered by strategic partnerships and collaborations with industry leaders, allowing Evonik to leverage its expertise and expand its market reach. Additionally, the company's focus on research and development enables it to continuously innovate and maintain a competitive edge in the specialty chemicals market.

Evonik Financial Statement Overview

Summary
Evonik presents a stable financial profile with strong cash flow generation and a balanced capital structure. While income growth faces headwinds, the company's operational efficiency and prudent financial management provide resilience against market challenges.
Income Statement
75
Positive
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
70
Positive
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
80
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue15.14B15.16B15.27B18.49B14.96B12.20B
Gross Profit3.75B3.74B3.39B4.23B4.03B3.37B
EBITDA1.76B1.76B1.73B2.07B2.18B1.76B
Net Income299.00M222.00M-465.00M540.00M746.00M465.00M
Balance Sheet
Total Assets20.24B21.07B21.26B21.81B22.28B20.90B
Cash, Cash Equivalents and Short-Term Investments733.00M618.00M1.03B1.12B919.00M1.06B
Total Debt4.27B3.78B4.25B4.22B3.64B3.84B
Total Liabilities10.97B11.97B12.28B10.75B12.91B12.80B
Stockholders Equity9.19B9.02B8.91B10.97B9.29B8.01B
Cash Flow
Free Cash Flow893.00M873.00M801.00M785.00M929.00M771.00M
Operating Cash Flow1.67B1.71B1.59B1.65B1.81B1.73B
Investing Cash Flow-928.00M-663.00M-653.00M-777.00M-1.07B-570.00M
Financing Cash Flow-753.00M-1.22B-823.00M-672.00M-856.00M-1.73B

Evonik Technical Analysis

Technical Analysis Sentiment
Negative
Last Price17.73
Price Trends
50DMA
18.57
Negative
100DMA
18.62
Negative
200DMA
18.05
Negative
Market Momentum
MACD
-0.38
Positive
RSI
44.57
Neutral
STOCH
23.19
Neutral
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 17.73 is below the 20-day moving average (MA) of 18.03, below the 50-day MA of 18.57, and below the 200-day MA of 18.05, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 44.57 is Neutral, neither overbought nor oversold. The STOCH value of 23.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:EVK.

Evonik Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$10.75B15.655.18%1.92%3.09%-27.41%
DEEVK
63
Neutral
€8.02B26.823.25%6.80%0.53%
€7.96B15.1011.49%3.81%
€11.16B-6.00%
DEFPE
74
Outperform
€5.53B15.8315.87%2.78%2.58%8.02%
$2.54B-3.92%0.38%
$3.68B14.085.37%3.81%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:EVK
Evonik
17.73
-0.11
-0.63%
GB:0MPT
Brenntag AG
56.49
-4.70
-7.68%
GB:0RBE
Covestro
60.62
5.58
10.14%
DE:FPE
Fuchs Petrolub
36.60
5.07
16.08%
LNXSF
LANXESS
30.15
5.59
22.76%
WKCMF
Wacker Chemie AG
79.78
-26.64
-25.03%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 19, 2025