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Evonik Industries AG (DE:EVK)
:EVK
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Evonik (EVK) AI Stock Analysis

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DE:EVK

Evonik

(LSE:EVK)

Rating:64Neutral
Price Target:
€19.00
▲(8.76%Upside)
Evonik's overall stock score is primarily supported by its strong financial performance, particularly in cash flow generation and operational efficiency. However, the technical indicators suggest caution, with a neutral to slightly bearish outlook. Valuation presents a mixed picture with a relatively high P/E ratio but a strong dividend yield.
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.
Market Position
Evonik is resilient to US tariffs, as the company benefits from high tariffs on Chinese methionine imports to the US.
Negative Factors
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.
Quarterly Performance
Q4 EBITDA was lower than expected due to one-time effects, with all segments below expectations except for Others.

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 through the production and sale of specialty chemicals and related products across its various business segments. Revenue streams include sales from its nutrition & care segment, which provides ingredients for pharmaceuticals and food, and its resource efficiency segment, which supplies high-performance materials for industries like automotive and construction. The performance materials segment adds to revenue through the supply of polymers and intermediates. The company also benefits from strategic partnerships and collaborations, which enhance its research capabilities and market reach. Additionally, Evonik invests in innovation and sustainability, which are pivotal in maintaining competitive advantage and driving revenue growth.

Evonik Financial Statement Overview

Summary
Evonik presents a stable financial profile with strong cash flow generation and a balanced capital structure. The income statement reflects operational efficiency, although revenue and net income growth are challenged. The balance sheet shows a moderate debt-to-equity ratio, and cash flow management is robust, ensuring sustainability.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue15.16B15.27B18.49B14.96B12.20B
Gross Profit3.74B3.39B4.23B4.03B3.37B
EBITDA1.76B1.73B2.07B2.18B1.76B
Net Income222.00M-465.00M540.00M746.00M465.00M
Balance Sheet
Total Assets21.07B21.26B21.81B22.28B20.90B
Cash, Cash Equivalents and Short-Term Investments618.00M1.03B1.12B919.00M1.06B
Total Debt3.78B4.25B4.22B3.64B3.84B
Total Liabilities11.97B12.28B10.75B12.91B12.80B
Stockholders Equity9.02B8.91B10.97B9.29B8.01B
Cash Flow
Free Cash Flow873.00M801.00M785.00M929.00M771.00M
Operating Cash Flow1.71B1.59B1.65B1.81B1.73B
Investing Cash Flow-663.00M-653.00M-777.00M-1.07B-570.00M
Financing Cash Flow-1.22B-823.00M-672.00M-856.00M-1.73B

Evonik Technical Analysis

Technical Analysis Sentiment
Negative
Last Price17.47
Price Trends
50DMA
18.22
Negative
100DMA
18.48
Negative
200DMA
17.89
Negative
Market Momentum
MACD
-0.10
Negative
RSI
41.54
Neutral
STOCH
26.45
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 17.47 is below the 20-day moving average (MA) of 17.70, below the 50-day MA of 18.22, and below the 200-day MA of 17.89, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 41.54 is Neutral, neither overbought nor oversold. The STOCH value of 26.45 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 (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
€8.14B27.233.25%6.70%0.53%
58
Neutral
HK$14.20B4.67-2.78%5.88%3.78%-54.63%
€8.16B15.4811.49%3.73%
€11.13B-6.00%
72
Outperform
€4.80B13.7415.87%3.67%2.58%8.02%
$2.48B-3.92%0.38%
$3.80B14.915.37%3.64%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:EVK
Evonik
17.47
-0.42
-2.34%
GB:0MPT
Brenntag AG
54.80
-8.70
-13.70%
GB:0RBE
Covestro
60.60
6.00
10.99%
DE:FPE
Fuchs Petrolub
30.95
0.72
2.38%
LNXSF
LANXESS
27.75
2.85
11.45%
WKCMF
Wacker Chemie AG
76.25
-15.39
-16.79%
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: Jul 29, 2025