Evonik (EVK) AI Stock Analysis

• Market Cap: €6.55B
• Dividend Yield: 8.92%
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.93
• Revenue Growth: -5.92%
• EPS Growth: -58.33%
• Country: DE
• Employees: 31,585
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.15
• Shares Outstanding: 466,000,000
• 10 Day Avg. Volume: 1,023,876
• 30 Day Avg. Volume: 1,242,903
• PEG Ratio: 1.25
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 8.96
• 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: €15.00
• Price Target Upside: 6.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): 1.12
• Revenue Forecast (FY): €14.03B

• Rating: 62 Neutral
• Price Target: €15.50 ▲(10.32% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is primarily supported by strong and improving free cash flow and a generally manageable balance sheet. Offsetting this, the income statement remains weakened versus earlier-cycle levels with declining revenue and compressed profitability. Technical signals are mixed-to-soft (negative MACD and below key moving averages), while valuation is helped by a very high dividend yield but constrained by a negative P/E reflecting depressed earnings.

Positive Factors

Free Cash Flow Strength

Consistently positive and improving free cash flow provides durable financial flexibility: it supports ongoing capex, funds dividends and buybacks, and cushions the business during cyclical downturns. Strong FCF reduces reliance on external financing over the next 2–6 months.

Manageable Leverage

A moderate debt profile for a specialty chemical company preserves liquidity and financing optionality. Manageable leverage supports investment in growth or restructuring, and lowers near-term refinancing risk, making the balance sheet a durable strength through industry cycles.

Diversified Specialty Portfolio

A broad portfolio of higher-value specialty chemicals and application-oriented services creates customer stickiness and pricing differentiation. Diversification across additives, polymers, and nutrition reduces single-market dependence and supports steadier demand over medium term.

Negative Factors

Revenue Decline

Two consecutive years of declining revenue signal weakening end-market demand or lost share, which can erode long-term earnings power. Persistent top-line contraction limits margin recovery, investment capacity, and the durability of cash generation if not reversed.

Compressed Profitability & Weak ROE

Sustained margin compression and low or negative returns on equity indicate impaired capital efficiency and weaker pricing power. This reduces reinvestable profit, challenges dividend sustainability, and constrains capacity to restore pre-cycle profitability levels.

Cyclicality & Input Cost Risk

Exposure to industrial and construction cycles plus sensitivity to feedstock and energy costs is a persistent structural risk. Even with pass-through clauses, volatile input prices and demand swings can compress margins and dampen revenue visibility over multiple quarters.

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 by manufacturing and selling specialty chemical products to business customers under long-term supply relationships and recurring customer programs. Its revenue is largely generated from: (1) Additives and formulation ingredients sold to manufacturers in coatings, paints, inks, adhesives, sealants, construction materials, and lubricant/industrial fluid markets; Evonik earns revenue through product sales (often differentiated by performance and know-how) and benefits from demand tied to industrial production and construction activity. (2) Performance materials and chemical intermediates, including polymer-related products and polyamide value chains, where Evonik earns revenue by supplying engineered materials and intermediates to automotive, consumer goods, industrial, and other manufacturing sectors; earnings are influenced by volumes, product mix, and feedstock/energy cost pass-through dynamics in contracts. (3) Nutrition & care ingredients, where Evonik sells specialty ingredients and solutions used in personal care, household, industrial applications, and life-science-related markets; revenue is generated via ingredient sales and application-specific solutions that can command premium pricing when performance, regulatory compliance, and formulation support matter. In addition to product sales, Evonik can generate ancillary income from services and know-how tied to its offerings (e.g., technical services and customer-specific solution development), though the relative contribution is not available. Overall profitability is driven by the degree of product differentiation, exposure to cyclical end markets, the ability to manage raw material and energy costs, and global production and supply chain efficiency; specific partnerships or material customers contributing to earnings are null.

Evonik Financial Statement Overview

Summary

Cash flow is a clear strength with consistently positive free cash flow and notable improvement in 2024–2025, supporting financial resilience. The balance sheet looks generally sound with manageable leverage, but equity has trended down since 2022 and recent ROE has been weak. The main drag is earnings power: revenue declined in 2024–2025 and profitability remains below 2020–2022 levels despite recovery from the 2023 loss.

Income Statement

Profitability has weakened versus prior years: revenue declined in 2024 and 2025 (annual), and net income remains modest in 2024–2025 after a loss in 2023. Margins were meaningfully stronger in 2020–2022, then compressed sharply, indicating a less favorable pricing/cost environment. The positive shift from a 2023 loss back to profitability is a clear improvement, but the overall earnings power looks below the company’s earlier-cycle levels.

Balance Sheet

Leverage appears manageable for a specialty chemicals business, with debt-to-equity in the ~0.38–0.48 range (2020–2024) and a relatively stable debt balance. However, equity has trended down from its 2022 peak into 2024, and returns on equity have been low recently (and negative in 2023), reflecting weaker profitability rather than balance-sheet strain. Overall, the capital structure looks sound, but the earnings-driven support for equity has softened.

Cash Flow

Cash generation is a relative strength: operating cash flow has remained solid and free cash flow is consistently positive across the period. Free cash flow improved notably in 2024 and especially 2025 (annual), which helps offset the muted net income profile. A watch item is that operating cash flow coverage (as provided) is not especially high and has drifted lower versus 2020, but the business still converts operations into meaningful free cash flow.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.07B	15.16B	15.27B	18.49B	14.96B
Gross Profit	3.24B	3.74B	3.39B	4.23B	4.03B
EBITDA	1.84B	1.76B	991.00M	2.07B	2.18B
Net Income	265.00M	222.00M	-465.00M	540.00M	746.00M
Balance Sheet
Total Assets	19.21B	19.75B	21.26B	21.81B	22.28B
Cash, Cash Equivalents and Short-Term Investments	619.00M	618.00M	1.03B	1.12B	919.00M
Total Debt	3.87B	3.78B	4.25B	4.22B	3.64B
Total Liabilities	11.04B	10.65B	12.28B	10.75B	12.91B
Stockholders Equity	8.11B	9.02B	8.91B	10.97B	9.29B
Cash Flow
Free Cash Flow	695.00M	873.00M	801.00M	785.00M	929.00M
Operating Cash Flow	1.44B	1.71B	1.59B	1.65B	1.81B
Investing Cash Flow	-652.00M	-663.00M	-653.00M	-777.00M	-1.07B
Financing Cash Flow	-731.00M	-1.33B	-823.00M	-672.00M	-856.00M

Evonik Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 14.05 is below the 20-day moving average (MA) of 14.46, below the 50-day MA of 14.14, and below the 200-day MA of 15.23, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.18 is Neutral, neither overbought nor oversold. The STOCH value of 84.35 is Negative, 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
FPE	70 Outperform	€4.06B	14.85	15.61%	3.91%	1.42%	-0.40%
EVK	62 Neutral	€6.55B	23.49	1.08%	8.92%	-5.92%	-58.33%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BNR	54 Neutral	€6.92B	27.05	6.03%	4.30%	-3.35%	-23.06%
WCH	52 Neutral	€3.52B	-4.20	―	3.75%	-10.63%	-23.15%
LXS	46 Neutral	€1.02B	-5.92	-5.77%	0.59%	-6.82%	71.94%
1COV	45 Neutral	€12.48B	-17.78	-10.04%	―	―	―