Evonik (EVK) AI Stock Analysis

• Market Cap: €9.36B
• Dividend Yield: 5.84%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 42.1
• Beta (1Y): 0.90
• Revenue Growth: -0.72%
• EPS Growth: N/A
• Country: DE
• Employees: 30,669
• Sector: Industrials
• Sector Strength: 83
• Industry: Chemicals - Specialty
• EPS (TTM): 0.59
• Shares Outstanding: 466,000,000
• 10 Day Avg. Volume: 951,833
• 30 Day Avg. Volume: 1,011,336
• PEG Ratio: -11.10
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.30
• 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: €21.79
• Price Target Upside: 10.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

Evonik's stock score reflects significant challenges primarily from financial performance issues, including declining revenues and inconsistent profitability. While the balance sheet shows stability and cash flow is strong, technical analysis indicates a bearish trend, and the high P/E ratio suggests overvaluation. Despite a strong dividend yield, the overall picture calls for caution.

Positive Factors

Guidance

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

Innovation growth areas have achieved their targets, with significant sales and margin increases, and new targets set for 2032.

Tariffs

Evonik is resilient to US tariffs, as the company benefits from high tariffs on Chinese methionine imports to the US.

Negative Factors

Industry Changes

Structural changes in the European chemical industry indicate that 15-20% of value chains are lost and will not return, leading to plant closures.

Quarterly Performance

Q4 EBITDA was lower than expected due to one-time effects, with all segments below expectations except for Others.

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 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

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
15.16B	15.27B	18.49B	14.96B	12.20B
	Gross Profit
3.74B	3.39B	4.23B	4.03B	3.37B
	EBIT
0.00	630.00M	1.43B	1.24B	886.00M
	EBITDA
1.76B	1.73B	2.07B	2.18B	1.76B
	Net Income Common Stockholders
222.00M	-465.00M	540.00M	746.00M	465.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
618.00M	1.03B	1.12B	919.00M	1.06B
	Total Assets
19.75B	21.26B	21.81B	22.28B	20.90B
	Total Debt
3.78B	4.25B	4.23B	3.64B	3.84B
	Net Debt
3.32B	3.50B	3.58B	3.19B	3.27B
	Total Liabilities
10.65B	12.28B	10.75B	12.91B	12.80B
	Stockholders Equity
9.02B	8.91B	10.97B	9.29B	8.01B
Cash Flow		Free Cash Flow
873.00M	801.00M	785.00M	929.00M	771.00M
	Operating Cash Flow
1.71B	1.59B	1.65B	1.81B	1.73B
	Investing Cash Flow
-663.00M	-653.00M	-777.00M	-1.07B	-570.00M
	Financing Cash Flow
-1.33B	-823.00M	-672.00M	-856.00M	-1.73B

Evonik Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.69
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 19.69 is above the 20-day moving average (MA) of 19.30, below the 50-day MA of 19.95, and above the 200-day MA of 19.12, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 51.51 is Neutral, neither overbought nor oversold. The STOCH value of 48.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:EVK.

Evonik Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$4.36B	12.05	5.23%	249.94%	4.13%	-10.23%
EVK	55 Neutral	€9.36B	42.15	2.47%	5.84%	-0.72%	―