EVONIK INDUSTRIES AG (EVK.DE) Stock Fundamental Analysis
FRA:EVK - Deutsche Boerse Ag - DE000EVNK013 - Common Stock - Currency: EUR
EVK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 67 industry peers in the Chemicals industry. While EVK seems to be doing ok healthwise, there are quite some concerns on its profitability. EVK has a correct valuation and a medium growth rate. Finally EVK also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
EVK had positive earnings in the past year.
EVK had a positive operating cash flow in the past year.
Of the past 5 years EVK 4 years were profitable.
Each year in the past 5 years EVK had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.48%, EVK is in line with its industry, outperforming 53.73% of the companies in the same industry.
EVK has a Return On Equity (3.26%) which is in line with its industry peers.
EVK's Return On Invested Capital of 2.08% is in line compared to the rest of the industry. EVK outperforms 46.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EVK is below the industry average of 6.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.48% | ||
| ROE | 3.26% | ||
| ROIC | 2.08% |
ROA(3y)0.42%
ROA(5y)1.37%
ROE(3y)0.72%
ROE(5y)3.2%
ROIC(3y)3.31%
ROIC(5y)3.29%
1.3 Margins
With a Profit Margin value of 1.98%, EVK perfoms like the industry average, outperforming 50.75% of the companies in the same industry.
EVK's Profit Margin has declined in the last couple of years.
EVK has a Operating Margin (3.99%) which is in line with its industry peers.
EVK's Operating Margin has declined in the last couple of years.
EVK has a Gross Margin of 24.74%. This is in the lower half of the industry: EVK underperforms 62.69% of its industry peers.
In the last couple of years the Gross Margin of EVK has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.99% | ||
| PM (TTM) | 1.98% | ||
| GM | 24.74% |
OM growth 3Y-8.69%
OM growth 5Y-5.06%
PM growth 3Y-33.53%
PM growth 5Y-38.06%
GM growth 3Y-2.16%
GM growth 5Y-1.8%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EVK is destroying value.
Compared to 1 year ago, EVK has about the same amount of shares outstanding.
EVK has about the same amout of shares outstanding than it did 5 years ago.
EVK has a better debt/assets ratio than last year.
2.2 Solvency
EVK has an Altman-Z score of 1.98. This is not the best score and indicates that EVK is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.98, EVK is in line with its industry, outperforming 46.27% of the companies in the same industry.
EVK has a debt to FCF ratio of 4.86. This is a neutral value as EVK would need 4.86 years to pay back of all of its debts.
EVK has a Debt to FCF ratio of 4.86. This is in the better half of the industry: EVK outperforms 76.12% of its industry peers.
EVK has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of EVK (0.40) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 4.86 | ||
| Altman-Z | 1.98 |
ROIC/WACC0.39
WACC5.38%
2.3 Liquidity
A Current Ratio of 1.53 indicates that EVK should not have too much problems paying its short term obligations.
The Current ratio of EVK (1.53) is comparable to the rest of the industry.
EVK has a Quick Ratio of 1.53. This is a bad value and indicates that EVK is not financially healthy enough and could expect problems in meeting its short term obligations.
EVK has a Quick ratio of 0.87. This is in the lower half of the industry: EVK underperforms 68.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
EVK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 181.89%, which is quite impressive.
The earnings per share for EVK have been decreasing by -36.21% on average. This is quite bad
EVK shows a small growth in Revenue. In the last year, the Revenue has grown by 0.53%.
The Revenue has been growing slightly by 2.95% on average over the past years.
EPS 1Y (TTM)181.89%
EPS 3Y-33.3%
EPS 5Y-36.21%
EPS Q2Q%40.48%
Revenue 1Y (TTM)0.53%
Revenue growth 3Y0.45%
Revenue growth 5Y2.95%
Sales Q2Q%-0.5%
3.2 Future
EVK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.86% yearly.
EVK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.76% yearly.
EPS Next Y-5.5%
EPS Next 2Y4.62%
EPS Next 3Y6.48%
EPS Next 5Y4.86%
Revenue Next Year1.11%
Revenue Next 2Y2.12%
Revenue Next 3Y2.42%
Revenue Next 5Y1.76%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
EVK is valuated quite expensively with a Price/Earnings ratio of 27.34.
EVK's Price/Earnings is on the same level as the industry average.
EVK's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.15.
With a Price/Forward Earnings ratio of 9.64, the valuation of EVK can be described as very reasonable.
Based on the Price/Forward Earnings ratio, EVK is valued cheaper than 88.06% of the companies in the same industry.
EVK is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.34 | ||
| Fwd PE | 9.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EVK is valued a bit cheaper than 74.63% of the companies in the same industry.
EVK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EVK is cheaper than 91.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.67 | ||
| EV/EBITDA | 6.62 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.62%
EPS Next 3Y6.48%
5. Dividend
5.1 Amount
EVK has a Yearly Dividend Yield of 6.54%, which is a nice return.
EVK's Dividend Yield is rather good when compared to the industry average which is at 3.08. EVK pays more dividend than 95.52% of the companies in the same industry.
EVK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.54% |
5.2 History
The dividend of EVK has a limited annual growth rate of 0.33%.
Dividend Growth(5Y)0.33%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
EVK pays out 182.27% of its income as dividend. This is not a sustainable payout ratio.
The dividend of EVK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP182.27%
EPS Next 2Y4.62%
EPS Next 3Y6.48%
FRA:EVK (6/30/2025, 7:00:00 PM)
17.5
-0.83 (-4.53%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners35.08%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap8.15B
Analysts73.64
Price Target22.66 (29.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.54% |
Yearly Dividend1.17
Dividend Growth(5Y)0.33%
DP182.27%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)17.14%
Min EPS beat(2)-2.41%
Max EPS beat(2)36.7%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.38%
Min Revenue beat(2)-3.15%
Max Revenue beat(2)-1.61%
Revenue beat(4)0
Avg Revenue beat(4)-2.39%
Min Revenue beat(4)-3.15%
Max Revenue beat(4)-1.61%
Revenue beat(8)0
Avg Revenue beat(8)-4.12%
Revenue beat(12)2
Avg Revenue beat(12)-1.63%
Revenue beat(16)6
Avg Revenue beat(16)0.32%
PT rev (1m)0.1%
PT rev (3m)3.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.65%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.34 | ||
| Fwd PE | 9.64 | ||
| P/S | 0.54 | ||
| P/FCF | 8.67 | ||
| P/OCF | 4.74 | ||
| P/B | 0.89 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 6.62 |
EPS(TTM)0.64
EY3.66%
EPS(NY)1.82
Fwd EY10.37%
FCF(TTM)2.02
FCFY11.54%
OCF(TTM)3.69
OCFY21.09%
SpS32.48
BVpS19.71
TBVpS8.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.48% | ||
| ROE | 3.26% | ||
| ROCE | 3.76% | ||
| ROIC | 2.08% | ||
| ROICexc | 2.26% | ||
| ROICexgc | 3.58% | ||
| OM | 3.99% | ||
| PM (TTM) | 1.98% | ||
| GM | 24.74% | ||
| FCFM | 6.22% |
ROA(3y)0.42%
ROA(5y)1.37%
ROE(3y)0.72%
ROE(5y)3.2%
ROIC(3y)3.31%
ROIC(5y)3.29%
ROICexc(3y)3.51%
ROICexc(5y)3.51%
ROICexgc(3y)5.47%
ROICexgc(5y)5.43%
ROCE(3y)5.99%
ROCE(5y)5.96%
ROICexcg growth 3Y-3.02%
ROICexcg growth 5Y0.16%
ROICexc growth 3Y-4.01%
ROICexc growth 5Y-0.36%
OM growth 3Y-8.69%
OM growth 5Y-5.06%
PM growth 3Y-33.53%
PM growth 5Y-38.06%
GM growth 3Y-2.16%
GM growth 5Y-1.8%
F-Score7
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 4.86 | ||
| Debt/EBITDA | 2.14 | ||
| Cap/Depr | 71.34% | ||
| Cap/Sales | 5.15% | ||
| Interest Coverage | 5.7 | ||
| Cash Conversion | 101.42% | ||
| Profit Quality | 314.72% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.98 |
F-Score7
WACC5.38%
ROIC/WACC0.39
Cap/Depr(3y)57.81%
Cap/Depr(5y)69.82%
Cap/Sales(3y)5.14%
Cap/Sales(5y)5.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)181.89%
EPS 3Y-33.3%
EPS 5Y-36.21%
EPS Q2Q%40.48%
EPS Next Y-5.5%
EPS Next 2Y4.62%
EPS Next 3Y6.48%
EPS Next 5Y4.86%
Revenue 1Y (TTM)0.53%
Revenue growth 3Y0.45%
Revenue growth 5Y2.95%
Sales Q2Q%-0.5%
Revenue Next Year1.11%
Revenue Next 2Y2.12%
Revenue Next 3Y2.42%
Revenue Next 5Y1.76%
EBIT growth 1Y-20.94%
EBIT growth 3Y-8.28%
EBIT growth 5Y-2.26%
EBIT Next Year99.34%
EBIT Next 3Y31.75%
EBIT Next 5Y19.08%
FCF growth 1Y39.82%
FCF growth 3Y-2.37%
FCF growth 5Y14.63%
OCF growth 1Y9.69%
OCF growth 3Y-1.91%
OCF growth 5Y5.33%