Evonik (EVK) AI Stock Analysis

• Market Cap: €6.10B
• Dividend Yield: 8.92%
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 63.3
• Beta (1Y): 0.92
• Revenue Growth: -5.92%
• EPS Growth: -58.33%
• Country: DE
• Employees: 31,585
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.27
• Shares Outstanding: 466,000,000
• 10 Day Avg. Volume: 1,023,876
• 30 Day Avg. Volume: 1,242,903
• PEG Ratio: -0.24
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 8.93
• 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: €13.94
• Price Target Upside: 6.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: €13.00 ▼(-0.76% Downside)

Evonik's overall stock score reflects a challenging financial performance with pressure on revenue growth and profitability. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and technical indicators suggesting oversold conditions. The high P/E ratio raises valuation concerns, though the strong dividend yield offers some appeal. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Stable Balance Sheet

A moderate debt-to-equity ratio indicates a balanced approach to leverage, providing financial stability and flexibility for future investments.

Strong Cash Conversion

A strong cash conversion ratio suggests efficient operations, enhancing the company's ability to reinvest in growth and manage financial obligations.

Strategic Partnerships

Strategic partnerships enhance product offerings and market reach, supporting long-term revenue growth and competitive positioning.

Negative Factors

Declining Revenue Growth

A declining revenue growth rate reflects market challenges, potentially impacting the company's ability to expand and maintain market share.

Low Profitability

Low profitability margins indicate pressure on earnings, which can hinder the company's ability to generate shareholder value and reinvest in growth.

Negative Free Cash Flow Growth

Negative free cash flow growth suggests declining cash generation capabilities, potentially limiting the company's financial flexibility and investment capacity.

Evonik Business Overview & Revenue Model

Company Description

Evonik 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 Money

Evonik generates revenue primarily through the sale of specialty chemicals and materials across diverse industries. Its main revenue streams include the production and supply of additives, surfactants, and polymers that cater to sectors such as automotive, construction, consumer goods, and agriculture. The Nutrition & Care segment, which focuses on animal nutrition and health, is a significant contributor to earnings, driven by global demand for sustainable feed solutions. Additionally, Evonik has established strategic partnerships with key players in various industries to enhance its product offerings and expand market reach, thereby bolstering its financial performance. The company's commitment to research and development also plays a crucial role in creating innovative solutions that meet evolving customer needs, further driving revenue growth.

Evonik Financial Statement Overview

Summary

Evonik's financial statements present a mixed picture. The company faces challenges in revenue growth and profitability, as reflected in the income statement. The balance sheet is stable with moderate leverage, but low returns on equity indicate profitability issues. Cash flow generation is under pressure, with negative free cash flow growth. While the company maintains a solid financial structure, it needs to address profitability and cash flow challenges to improve its financial health.

Income Statement

Evonik's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate at -3.0%, reflecting a challenging market environment. The gross profit margin is stable at 22.6%, but the net profit margin is low at 0.67%, indicating pressure on profitability. EBIT and EBITDA margins are modest at 3.36% and 12.45%, respectively, suggesting operational efficiency challenges. Overall, the company faces headwinds in revenue growth and profitability.

Balance Sheet

The balance sheet of Evonik is relatively stable. The debt-to-equity ratio is moderate at 0.54, indicating a balanced approach to leverage. Return on equity is low at 1.08%, reflecting challenges in generating returns for shareholders. The equity ratio stands at 45.0%, showing a solid equity base. While the company maintains a stable financial structure, the low ROE suggests room for improvement in profitability.

Cash Flow

Evonik's cash flow statement reveals some concerns. The free cash flow growth rate is negative at -13.35%, indicating declining cash generation capabilities. The operating cash flow to net income ratio is healthy at 3.55, suggesting strong cash conversion. However, the free cash flow to net income ratio is 0.33, highlighting potential challenges in sustaining free cash flow. Overall, the cash flow position is stable but shows signs of strain.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.27B	15.16B	15.27B	18.49B	14.96B	12.20B
Gross Profit	3.22B	3.74B	3.39B	4.23B	4.03B	3.37B
EBITDA	1.78B	1.76B	991.00M	2.07B	2.18B	1.76B
Net Income	95.00M	222.00M	-465.00M	540.00M	746.00M	465.00M
Balance Sheet
Total Assets	18.55B	19.75B	21.26B	21.81B	22.28B	20.90B
Cash, Cash Equivalents and Short-Term Investments	454.00M	618.00M	1.03B	1.12B	919.00M	1.06B
Total Debt	4.49B	3.78B	4.25B	4.22B	3.64B	3.84B
Total Liabilities	10.13B	10.65B	12.28B	10.75B	12.91B	12.80B
Stockholders Equity	8.35B	9.02B	8.91B	10.97B	9.29B	8.01B
Cash Flow
Free Cash Flow	409.00M	873.00M	801.00M	785.00M	929.00M	771.00M
Operating Cash Flow	1.22B	1.71B	1.59B	1.65B	1.81B	1.73B
Investing Cash Flow	-696.00M	-663.00M	-653.00M	-777.00M	-1.07B	-570.00M
Financing Cash Flow	-483.00M	-1.33B	-823.00M	-672.00M	-856.00M	-1.73B

Evonik Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:EVK, the sentiment is Neutral. The current price of 13.1 is below the 20-day moving average (MA) of 13.13, below the 50-day MA of 13.15, and below the 200-day MA of 15.91, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 49.15 is Neutral, neither overbought nor oversold. The STOCH value of 57.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:EVK.

Evonik Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FPE	70 Outperform	€4.35B	13.40	16.00%	3.91%	1.42%	-0.40%
BNR	64 Neutral	€7.42B	17.30	9.62%	4.30%	-3.35%	-23.06%
WCH	62 Neutral	€3.41B	-4.37	―	3.75%	-10.63%	-23.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
EVK	54 Neutral	€6.10B	63.32	1.08%	8.92%	-5.92%	-58.33%
LXS	46 Neutral	$1.51B	-6.20	-5.69%	0.59%	-6.82%	71.94%