EVONIK INDUSTRIES AG (EVK.DE) Stock Fundamental Analysis
FRA:EVK - Deutsche Boerse Ag - DE000EVNK013 - Common Stock - Currency: EUR
Overall EVK gets a fundamental rating of 4 out of 10. We evaluated EVK against 61 industry peers in the Chemicals industry. EVK scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. EVK has a valuation in line with the averages, but it does not seem to be growing. 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.
EVK had positive earnings in 4 of the past 5 years.
EVK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of EVK (1.12%) is comparable to the rest of the industry.
EVK has a Return On Equity (2.46%) which is in line with its industry peers.
EVK has a Return On Invested Capital (1.96%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for EVK is below the industry average of 6.81%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 2.46% | ||
| ROIC | 1.96% |
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
Looking at the Profit Margin, with a value of 1.46%, EVK is in line with its industry, outperforming 52.46% of the companies in the same industry.
In the last couple of years the Profit Margin of EVK has declined.
The Operating Margin of EVK (3.67%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of EVK has declined.
EVK has a Gross Margin (24.66%) which is in line with its industry peers.
EVK's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.67% | ||
| PM (TTM) | 1.46% | ||
| GM | 24.66% |
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.
The number of shares outstanding for EVK remains at a similar level compared to 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
EVK has an Altman-Z score of 1.97. 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.
The Altman-Z score of EVK (1.97) is comparable to the rest of the industry.
The Debt to FCF ratio of EVK is 4.81, which is a neutral value as it means it would take EVK, 4.81 years of fcf income to pay off all of its debts.
EVK has a better Debt to FCF ratio (4.81) than 75.41% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that EVK is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.35, EVK is in the better half of the industry, outperforming 65.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.81 | ||
| Altman-Z | 1.97 |
ROIC/WACC0.35
WACC5.58%
2.3 Liquidity
A Current Ratio of 1.36 indicates that EVK should not have too much problems paying its short term obligations.
The Current ratio of EVK (1.36) is worse than 70.49% of its industry peers.
EVK has a Quick Ratio of 1.36. This is a bad value and indicates that EVK is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.70, EVK is not doing good in the industry: 83.61% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
EVK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -64.89%.
EVK shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -22.19% yearly.
Looking at the last year, EVK shows a decrease in Revenue. The Revenue has decreased by -0.72% in the last year.
Measured over the past years, EVK shows a small growth in Revenue. The Revenue has been growing by 2.85% on average per year.
EPS 1Y (TTM)-64.89%
EPS 3Y-16.77%
EPS 5Y-22.19%
EPS Q2Q%223.08%
Revenue 1Y (TTM)-0.72%
Revenue growth 3Y7.76%
Revenue growth 5Y2.85%
Sales Q2Q%-0.17%
3.2 Future
The Earnings Per Share is expected to grow by 20.92% on average over the next years. This is a very strong growth
EVK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.47% yearly.
EPS Next Y109.96%
EPS Next 2Y40.86%
EPS Next 3Y31.96%
EPS Next 5Y20.92%
Revenue Next Year-2.24%
Revenue Next 2Y-0.72%
Revenue Next 3Y0.69%
Revenue Next 5Y1.47%
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
EVK is valuated rather expensively with a Price/Earnings ratio of 24.63.
Compared to the rest of the industry, the Price/Earnings ratio of EVK is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 28.79, EVK is valued at the same level.
Based on the Price/Forward Earnings ratio of 12.42, the valuation of EVK can be described as correct.
EVK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EVK is cheaper than 78.69% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, EVK is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.63 | ||
| Fwd PE | 12.42 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EVK indicates a somewhat cheap valuation: EVK is cheaper than 72.13% of the companies listed in the same industry.
85.25% of the companies in the same industry are more expensive than EVK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.39 | ||
| EV/EBITDA | 7.3 |
4.3 Compensation for Growth
EVK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as EVK's earnings are expected to grow with 31.96% in the coming years.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y40.86%
EPS Next 3Y31.96%
5. Dividend
5.1 Amount
EVK has a Yearly Dividend Yield of 6.25%, which is a nice return.
Compared to an average industry Dividend Yield of 3.19, EVK pays a better dividend. On top of this EVK pays more dividend than 95.08% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.47, EVK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
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 Years3
5.3 Sustainability
245.50% of the earnings are spent on dividend by EVK. This is not a sustainable payout ratio.
EVK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP245.5%
EPS Next 2Y40.86%
EPS Next 3Y31.96%
FRA:EVK (4/25/2025, 7:00:00 PM)
19.46
+0.32 (+1.67%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners32.67%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap9.07B
Analysts73.04
Price Target23.06 (18.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.25% |
Yearly Dividend1.17
Dividend Growth(5Y)0.33%
DP245.5%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.89%
Min EPS beat(2)-2.41%
Max EPS beat(2)22.18%
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)-2.26%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)-1.61%
Revenue beat(4)0
Avg Revenue beat(4)-2.92%
Min Revenue beat(4)-5.27%
Max Revenue beat(4)-1.61%
Revenue beat(8)0
Avg Revenue beat(8)-3.94%
Revenue beat(12)3
Avg Revenue beat(12)-0.88%
Revenue beat(16)7
Avg Revenue beat(16)0.57%
PT rev (1m)4.96%
PT rev (3m)3.94%
EPS NQ rev (1m)1.6%
EPS NQ rev (3m)11.53%
EPS NY rev (1m)-4.31%
EPS NY rev (3m)-10.83%
Revenue NQ rev (1m)1.35%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.63 | ||
| Fwd PE | 12.42 | ||
| P/S | 0.6 | ||
| P/FCF | 10.39 | ||
| P/OCF | 5.29 | ||
| P/B | 1.01 | ||
| P/tB | 2.63 | ||
| EV/EBITDA | 7.3 |
EPS(TTM)0.79
EY4.06%
EPS(NY)1.57
Fwd EY8.05%
FCF(TTM)1.87
FCFY9.63%
OCF(TTM)3.68
OCFY18.89%
SpS32.53
BVpS19.36
TBVpS7.4
PEG (NY)0.22
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.12% | ||
| ROE | 2.46% | ||
| ROCE | 3.55% | ||
| ROIC | 1.96% | ||
| ROICexc | 2.05% | ||
| ROICexgc | 3.26% | ||
| OM | 3.67% | ||
| PM (TTM) | 1.46% | ||
| GM | 24.66% | ||
| FCFM | 5.76% |
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-Score8
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 4.81 | ||
| Debt/EBITDA | 1.89 | ||
| Cap/Depr | 75.2% | ||
| Cap/Sales | 5.54% | ||
| Interest Coverage | 5.11 | ||
| Cash Conversion | 102.33% | ||
| Profit Quality | 393.24% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | 1.97 |
F-Score8
WACC5.58%
ROIC/WACC0.35
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)-64.89%
EPS 3Y-16.77%
EPS 5Y-22.19%
EPS Q2Q%223.08%
EPS Next Y109.96%
EPS Next 2Y40.86%
EPS Next 3Y31.96%
EPS Next 5Y20.92%
Revenue 1Y (TTM)-0.72%
Revenue growth 3Y7.76%
Revenue growth 5Y2.85%
Sales Q2Q%-0.17%
Revenue Next Year-2.24%
Revenue Next 2Y-0.72%
Revenue Next 3Y0.69%
Revenue Next 5Y1.47%
EBIT growth 1Y-6.39%
EBIT growth 3Y-8.28%
EBIT growth 5Y-2.26%
EBIT Next Year104.97%
EBIT Next 3Y31.84%
EBIT Next 5Y19.08%
FCF growth 1Y8.99%
FCF growth 3Y-2.37%
FCF growth 5Y14.63%
OCF growth 1Y7.47%
OCF growth 3Y-1.91%
OCF growth 5Y5.33%