EVONIK INDUSTRIES AG (EVK.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:EVK - DE000EVNK013 - Common Stock
12.91 EUR
-0.09 (-0.69%)
EVK gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 71 industry peers in the Chemicals industry. Both the profitability and financial health of EVK have multiple concerns. EVK has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
- In the past year EVK was profitable.
- EVK had a positive operating cash flow in the past year.
- EVK had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years EVK had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of EVK (0.51%) is comparable to the rest of the industry.
- The Return On Equity of EVK (1.14%) is comparable to the rest of the industry.
- With a Return On Invested Capital value of 1.48%, EVK is not doing good in the industry: 63.38% of the companies in the same industry are doing better.
- Measured over the past 3 years, the Average Return On Invested Capital for EVK 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
- Looking at the Profit Margin, with a value of 0.67%, EVK is in line with its industry, outperforming 46.48% of the companies in the same industry.
- EVK's Profit Margin has declined in the last couple of years.
- EVK has a Operating Margin of 2.84%. This is comparable to the rest of the industry: EVK outperforms 42.25% of its industry peers.
- In the last couple of years the Operating Margin of EVK has declined.
- Looking at the Gross Margin, with a value of 22.56%, EVK is doing worse than 69.01% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EVK is destroying value.
- Compared to 1 year ago, EVK has about the same amount of shares outstanding.
- The number of shares outstanding for EVK remains at a similar level compared to 5 years ago.
- The debt/assets ratio for EVK has been reduced compared to a year ago.
2.2 Solvency
- EVK has an Altman-Z score of 1.88. 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.
- EVK has a Altman-Z score of 1.88. This is in the lower half of the industry: EVK underperforms 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.
- EVK's Debt to FCF ratio of 9.85 is in line compared to the rest of the industry. EVK outperforms 56.34% of its industry peers.
- A Debt/Equity ratio of 0.44 indicates that EVK is not too dependend on debt financing.
- EVK's Debt to Equity ratio of 0.44 is in line compared to the rest of the industry. EVK outperforms 52.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 9.85 | ||
| Altman-Z | 1.88 |
ROIC/WACC0.27
WACC5.43%
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.
- EVK's Current ratio of 1.54 is in line compared to the rest of the industry. EVK outperforms 42.25% of its industry peers.
- EVK has a Quick Ratio of 1.54. 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's Quick ratio of 0.80 is on the low side compared to the rest of the industry. EVK is outperformed by 70.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
- EVK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.67%.
- The earnings per share for EVK have been decreasing by -36.21% on average. This is quite bad
- The Revenue has decreased by -5.92% in the past year.
- EVK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.95% yearly.
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
- The Earnings Per Share is expected to decrease by -0.50% on average over the next years.
- EVK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.21% yearly.
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
- The Price/Earnings ratio is 9.49, which indicates a very decent valuation of EVK.
- Based on the Price/Earnings ratio, EVK is valued cheaper than 92.96% of the companies in the same industry.
- EVK is valuated cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 10.93, the valuation of EVK can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, EVK is valued cheaply inside the industry as 91.55% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.72. EVK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.49 | ||
| Fwd PE | 10.93 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EVK indicates a rather cheap valuation: EVK is cheaper than 88.73% of the companies listed in the same industry.
- 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 | 13.19 | ||
| EV/EBITDA | 5.62 |
4.3 Compensation for Growth
- A cheap valuation may be justified as EVK's earnings are expected to decrease with -5.53% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-15.61%
EPS Next 3Y-5.53%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 8.83%, EVK is a good candidate for dividend investing.
- EVK's Dividend Yield is rather good when compared to the industry average which is at 2.45. EVK pays more dividend than 97.18% of the companies in the same industry.
- EVK's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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
- 573.68% of the earnings are spent on dividend by EVK. This is not a sustainable payout ratio.
- The Dividend Rate of EVK has been growing, while earnings will be declining. 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 9.49 and the Price/Book (PB) ratio is 0.72.
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%.