WBAG:EVK

Stock Analysis Report

Evonik Industries

Executive Summary

Evonik Industries AG engages in the specialty chemicals business worldwide.


Snowflake Analysis

Good value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Evonik Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EVK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.5%

EVK

-0.6%

AT Chemicals

-1.3%

AT Market


1 Year Return

4.1%

EVK

9.5%

AT Chemicals

3.5%

AT Market

Return vs Industry: EVK underperformed the Austrian Chemicals industry which returned 9.5% over the past year.

Return vs Market: EVK matched the Austrian Market which returned 3.5% over the past year.


Shareholder returns

EVKIndustryMarket
7 Day-4.5%-0.6%-1.3%
30 Day1.4%2.9%0.4%
90 Day-2.0%2.9%-1.2%
1 Year9.2%4.1%12.9%9.5%7.2%3.5%
3 Yearn/a18.6%7.9%27.3%15.8%
5 Yearn/a30.4%10.9%51.3%30.3%

Price Volatility Vs. Market

How volatile is Evonik Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Evonik Industries undervalued compared to its fair value and its price relative to the market?

41.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EVK (€25.97) is trading below our estimate of fair value (€44.58)

Significantly Below Fair Value: EVK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EVK is good value based on its PE Ratio (16.2x) compared to the Chemicals industry average (16.3x).

PE vs Market: EVK is poor value based on its PE Ratio (16.2x) compared to the Austrian market (14.1x).


Price to Earnings Growth Ratio

PEG Ratio: EVK's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: EVK is good value based on its PB Ratio (1.4x) compared to the XE Chemicals industry average (1.6x).


Next Steps

Future Growth

How is Evonik Industries forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

-25.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EVK's earnings are forecast to decline over the next 3 years (-25.4% per year).

Earnings vs Market: EVK's earnings are forecast to decline over the next 3 years (-25.4% per year).

High Growth Earnings: EVK's earnings are forecast to decline over the next 3 years.

Revenue vs Market: EVK's revenue (3.5% per year) is forecast to grow faster than the Austrian market (2.7% per year).

High Growth Revenue: EVK's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EVK's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has Evonik Industries performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EVK has a large one-off loss of €274.0M impacting its September 30 2019 financial results.

Growing Profit Margin: EVK's current net profit margins (5.1%) are lower than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: EVK's earnings have grown by 2.3% per year over the past 5 years.

Accelerating Growth: EVK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EVK had negative earnings growth (-10.8%) over the past year, making it difficult to compare to the Chemicals industry average (2.5%).


Return on Equity

High ROE: EVK's Return on Equity (9.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Evonik Industries's financial position?


Financial Position Analysis

Short Term Liabilities: EVK's short term assets (€7.2B) exceed its short term liabilities (€3.7B).

Long Term Liabilities: EVK's short term assets (€7.2B) do not cover its long term liabilities (€10.1B).


Debt to Equity History and Analysis

Debt Level: EVK's debt to equity ratio (45.3%) is considered high.

Reducing Debt: EVK's debt to equity ratio has increased from 26.7% to 45.3% over the past 5 years.

Debt Coverage: EVK's debt is well covered by operating cash flow (38.2%).

Interest Coverage: EVK's interest payments on its debt are well covered by EBIT (11.2x coverage).


Balance Sheet

Inventory Level: EVK has a high level of physical assets or inventory.

Debt Coverage by Assets: EVK's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

What is Evonik Industries's current dividend yield, its reliability and sustainability?

4.42%

Current Dividend Yield


Dividend Yield vs Market

company4.4%marketbottom25%1.6%markettop25%4.6%industryaverage3.0%forecastin3Years4.7%

Current dividend yield vs market & industry

Notable Dividend: EVK's dividend (4.42%) is higher than the bottom 25% of dividend payers in the Austrian market (1.58%).

High Dividend: EVK's dividend (4.42%) is low compared to the top 25% of dividend payers in the Austrian market (4.58%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, EVK has been paying a dividend for less than 10 years.

Growing Dividend: EVK's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.5%), EVK's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EVK's dividends in 3 years are forecast to be covered by earnings (64.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Christian Kullmann (50yo)

2.8yrs

Tenure

€4,270,000

Compensation

Mr. Christian Kullmann has been Chairman of Executive Board ance Chief Executive Officer of Evonik Industries AG since May 23, 2017. He serves as Deputy Chairman of the Supervisory Board at Borussia Dortmu ...


CEO Compensation Analysis

Compensation vs Market: Christian's total compensation ($USD4.64M) is about average for companies of similar size in the Austrian market ($USD3.59M).

Compensation vs Earnings: Christian's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christian Kullmann
CEO & Chairman of the Executive Board 2.8yrs€4.27mno data
Harald Schwager
Deputy Chairman of the Executive Board2.4yrs€3.62mno data
Ute Wolf
CFO & Member of Executive Board6.3yrs€2.47mno data
Thomas Wessel
Chief Human Resource Officer8.4yrs€2.62mno data
Wilfried Ostendorf
Head of Production and Technology0yrsno datano data
Tim Lange
Head of Investor Relations0yrsno datano data
Thomas Mahlstedt
Vice President M&A0yrsno datano data
Christian Schmid
Head of Corporate Communications3.8yrsno datano data
Matthias Creutz
Head of Supply Chain Management & Production and Head of Controlling Resource Efficiency10.8yrsno datano data
Gerard Berote
Managing Director of Operations In Taiwan0yrsno datano data

5.0yrs

Average Tenure

53.5yo

Average Age

Experienced Management: EVK's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Siegfried Luther
Member of Supervisory Board12.2yrs€200.00kno data
Ulrich Weber
Member of Supervisory Board3.8yrs€155.00kno data
Bernd Tönjes
Chairman of the Supervisory Board1.8yrs€265.00kno data
Volker Trautz
Member of Supervisory Board12.2yrs€170.00kno data
Edeltraud Glänzer
Deputy Chairwoman of Supervisory Board3.8yrs€275.00kno data
Michael Rüdiger
Member of Supervisory Board6.9yrs€169.00kno data
Karin Erhard
Member of Supervisory Board7.3yrs€169.00kno data
Barbara Grunewald
Member of Supervisory Board6.9yrs€160.00kno data
Frank Löllgen
Member of Supervisory Board5.8yrs€164.00kno data
Barbara Albert
Member of Supervisory Board5.6yrs€137.00kno data

6.3yrs

Average Tenure

64yo

Average Age

Experienced Board: EVK's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Evonik Industries AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Evonik Industries AG
  • Ticker: EVK
  • Exchange: WBAG
  • Founded:
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: €12.099b
  • Shares outstanding: 465.17m
  • Website: https://corporate.evonik.com/en/

Number of Employees


Location

  • Evonik Industries AG
  • Rellinghauser Strasse 1-11
  • Essen
  • North Rhine-Westphalia
  • 45128
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EVKDB (Deutsche Boerse AG)YesOrdinary Registered SharesDEEURApr 2013
EVKXTRA (XETRA Trading Platform)YesOrdinary Registered SharesDEEURApr 2013
EVKDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary Registered SharesGBEURApr 2013
0QDSLSE (London Stock Exchange)YesOrdinary Registered SharesGBEURApr 2013
EVKI.FOTCPK (Pink Sheets LLC)YesOrdinary Registered SharesUSUSDApr 2013
EVKWBAG (Wiener Boerse AG)YesOrdinary Registered SharesATEURApr 2013
EVKSWX (SIX Swiss Exchange)YesOrdinary Registered SharesCHCHFApr 2013
EVKBIT (Borsa Italiana)YesOrdinary Registered SharesITEURApr 2013

Biography

Evonik Industries AG engages in the specialty chemicals business worldwide. It operates through Nutrition & Care, Resource Efficiency, Performance Materials, and Services segments. The Nutrition & Care segment offers specialty chemicals, including amphoteric surfactants, ceramides, phytosphingosines, oleochemicals, quaternary derivatives, polyurethane additives, organically modified silicones, superabsorbents, amino acids and amino acid derivatives, synthesis products, pharmaceutical polymers, and DL-methionine for use in consumer goods, and animal nutrition and healthcare products. The Resource Efficiency segment provides high-performance materials and specialty additives, such as hydrogen peroxide, activated nickel catalysts, precious metal powder catalysts, oil and fat hydrogenation catalysts, amorphous polyalphaolefins, polybutadienes, polyester resins, thermoplastic and reactive methacrylate resins, organically modified silicones, isophorone chemistry, PEEK, polyamide 12, oil additives, organosilanes, chlorosilanes, fumed silicas, fumed metal oxides, precipitated silicas, and matting agents 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, TAA and TAA derivatives, and methacrylate monomers and polymers for rubber, plastics, and agriculture industries. The Services segment provides site management, utilities and waste management, technical, process technology, engineering, and logistics services. The company is headquartered in Essen, Germany. Evonik Industries AG is a subsidiary of RAG-Stiftung. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 22:54
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.