Evonik (EVK) AI Stock Analysis

• Market Cap: €7.88B
• Dividend Yield: 6.84%
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): 18.6
• Beta (1Y): 1.00
• Revenue Growth: -2.62%
• EPS Growth: N/A
• Country: DE
• Employees: 31,585
• Sector: Basic Materials
• Sector Strength: 56
• Industry: Chemicals - Specialty
• EPS (TTM): 0.34
• Shares Outstanding: 466,000,000
• 10 Day Avg. Volume: 1,116,973
• 30 Day Avg. Volume: 1,020,654
• 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: €20.72
• Price Target Upside: 22.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 64 Neutral
• Price Target: €19.00 ▲(11.96% 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

Earnings 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.

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 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 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: Neutral
• Last Price: 16.97
• 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 16.97 is below the 20-day moving average (MA) of 17.03, below the 50-day MA of 17.55, and below the 200-day MA of 17.70, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 49.31 is Neutral, neither overbought nor oversold. The STOCH value of 54.99 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
Sector *	70 Outperform	¥182.19B	11.36	5.69%	3.07%	2.62%	-12.22%
EVK	64 Neutral	€7.88B	18.57	4.87%	6.84%	-2.62%	―
0MPT	―	€7.98B	18.79	9.86%	―	―	―
0RBE	―	€11.14B	―	-5.90%	―	―	―
FPE	67 Neutral	€4.83B	14.36	16.29%	3.60%	2.35%	-0.09%
LNXSF	―	$2.53B	―	-3.72%	0.37%	―	―
WKCMF	―	$4.01B	15.00	5.37%	3.47%	―	―