EVONIK INDUSTRIES AG (EVK.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:EVK - DE000EVNK013 - Common Stock
13.24 EUR
+0.01 (+0.08%)
We assign a fundamental rating of 4 out of 10 to EVK. EVK was compared to 71 industry peers in the Chemicals industry. EVK may be in some trouble as it scores bad on both profitability and health. EVK is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- EVK had positive earnings in the past year.
- In the past year EVK had a positive cash flow from operations.
- Of the past 5 years EVK 4 years were profitable.
- In the past 5 years EVK always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 0.51%, EVK is in line with its industry, outperforming 46.48% of the companies in the same industry.
- With a Return On Equity value of 1.14%, EVK perfoms like the industry average, outperforming 43.66% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 1.48%, EVK is doing worse than 63.38% of the companies in the same industry.
- EVK had an Average Return On Invested Capital over the past 3 years of 3.35%. This is below the industry average of 7.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.51% | ||
| ROE | 1.14% | ||
| ROIC | 1.48% |
ROA(3y)0.42%
ROA(5y)1.37%
ROE(3y)0.72%
ROE(5y)3.2%
ROIC(3y)3.35%
ROIC(5y)3.32%
1.3 Margins
- EVK has a Profit Margin (0.67%) which is comparable to the rest of the industry.
- EVK's Profit Margin has declined in the last couple of years.
- The Operating Margin of EVK (2.84%) is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of EVK has declined.
- The Gross Margin of EVK (22.56%) is worse than 69.01% of its industry peers.
- In the last couple of years the Gross Margin of EVK has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.84% | ||
| PM (TTM) | 0.67% | ||
| GM | 22.56% |
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
- EVK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- EVK has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for EVK remains at a similar level compared to 5 years ago.
- Compared to 1 year ago, EVK has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 1.88 indicates that EVK is not a great score, but indicates only limited risk for bankruptcy at the moment.
- EVK's Altman-Z score of 1.88 is on the low side compared to the rest of the industry. EVK is outperformed by 69.01% of its industry peers.
- EVK has a debt to FCF ratio of 9.85. This is a negative value and a sign of low solvency as EVK would need 9.85 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 9.85, EVK perfoms like the industry average, outperforming 56.34% of the companies in the same industry.
- A Debt/Equity ratio of 0.44 indicates that EVK is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.44, EVK perfoms like the industry average, outperforming 52.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 9.85 | ||
| Altman-Z | 1.88 |
ROIC/WACC0.27
WACC5.44%
2.3 Liquidity
- EVK has a Current Ratio of 1.54. This is a normal value and indicates that EVK is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.54, EVK perfoms like the industry average, outperforming 42.25% of the companies in the same industry.
- A Quick Ratio of 0.80 indicates that EVK may have some problems paying its short term obligations.
- The Quick ratio of EVK (0.80) is worse than 70.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- The earnings per share for EVK have decreased strongly by -58.67% in the last year.
- Measured over the past years, EVK shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -36.21% on average per year.
- The Revenue has decreased by -5.92% in the past year.
- The Revenue has been growing slightly by 2.95% on average over the past years.
EPS 1Y (TTM)-58.67%
EPS 3Y-33.3%
EPS 5Y-36.21%
EPS Q2Q%-53.45%
Revenue 1Y (TTM)-5.92%
Revenue growth 3Y0.45%
Revenue growth 5Y2.95%
Sales Q2Q%-11.51%
3.2 Future
- EVK is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.50% yearly.
- Based on estimates for the next years, EVK will show a small growth in Revenue. The Revenue will grow by 0.21% on average per year.
EPS Next Y-25.67%
EPS Next 2Y-15.61%
EPS Next 3Y-5.53%
EPS Next 5Y-0.5%
Revenue Next Year-7.58%
Revenue Next 2Y-3.73%
Revenue Next 3Y-1.55%
Revenue Next 5Y0.21%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 9.74, the valuation of EVK can be described as reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of EVK indicates a rather cheap valuation: EVK is cheaper than 92.96% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. EVK is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 11.21, which indicates a very decent valuation of EVK.
- Based on the Price/Forward Earnings ratio, EVK is valued cheaper than 88.73% of the companies in the same industry.
- EVK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.74 | ||
| Fwd PE | 11.21 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, EVK is valued cheaply inside the industry as 88.73% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, EVK is valued cheaply inside the industry as 90.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.53 | ||
| EV/EBITDA | 5.69 |
4.3 Compensation for Growth
- EVK's earnings are expected to decrease with -5.53% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.61%
EPS Next 3Y-5.53%
5. Dividend
5.1 Amount
- EVK has a Yearly Dividend Yield of 8.83%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.45, EVK pays a better dividend. On top of this EVK pays more dividend than 97.18% of the companies listed in the same industry.
- EVK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.83% |
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 573.68% of its income as dividend. This is not a sustainable payout ratio.
- EVK's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP573.68%
EPS Next 2Y-15.61%
EPS Next 3Y-5.53%
EVONIK INDUSTRIES AG / EVK.DE FAQ
Can you provide the ChartMill fundamental rating for EVONIK INDUSTRIES AG?
ChartMill assigns a fundamental rating of 4 / 10 to EVK.DE.
Can you provide the valuation status for EVONIK INDUSTRIES AG?
ChartMill assigns a valuation rating of 7 / 10 to EVONIK INDUSTRIES AG (EVK.DE). This can be considered as Undervalued.
Can you provide the profitability details for EVONIK INDUSTRIES AG?
EVONIK INDUSTRIES AG (EVK.DE) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for EVK stock?
The Price/Earnings (PE) ratio for EVONIK INDUSTRIES AG (EVK.DE) is 9.74 and the Price/Book (PB) ratio is 0.74.
Can you provide the dividend sustainability for EVK stock?
The dividend rating of EVONIK INDUSTRIES AG (EVK.DE) is 6 / 10 and the dividend payout ratio is 573.68%.