Evonik Industries AG (EVK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Evonik Industries AG

BASF SE

Alzchem Group AG

Wacker Chemie AG

LANXESS AG

Why is Evonik Industries AG ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 7.24

Poor long term growth as Net Sales has grown by an annual rate of 3.16% and Operating profit at -0.74% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

PAT(HY) At EUR 23.19 MM has Grown at -86.82 %
OPERATING CF(Y) Lowest at EUR 1,527.00 MM
NET SALES(HY) At EUR 7,401.00 MM has Grown at -11.31 %

With ROE of 7.73%, it has a Very Attractive valuation with a 0.82 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -27.88%, its profits have risen by 45.2% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 7.9

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -27.88% returns in the last 1 year, the stock has also underperformed Germany DAX (TR) in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Evonik Industries AG should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Chemicals & Petrochemicals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Evonik Industries AG for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Evonik Industries AG

-26.66%

-1.53

27.78%

Germany DAX (TR)

18.37%

1.26

19.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.06%

EBIT Growth (5y)

-7.20%

EBIT to Interest (avg)

7.24

Debt to EBITDA (avg)

0.99

Net Debt to Equity (avg)

0.42

Sales to Capital Employed (avg)

1.12

Tax Ratio

36.56%

Dividend Payout Ratio

245.59%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

9.74%

ROE (avg)

6.96%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.82

EV to EBIT

10.68

EV to EBITDA

5.47

EV to Capital Employed

0.88

EV to Sales

0.77

PEG Ratio

0.23

Dividend Yield

7.87%

ROCE (Latest)

8.22%

ROE (Latest)

7.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

Not enough Data to analyse Financial Trend

Here's what is working for Evonik Industries AG

Profit After Tax (PAT) - Quarterly

At EUR 170 MM has Grown at 154.0 %

over average PAT of the previous four periods of EUR 67 MM

MOJO Watch

Near term PAT trend is very positive

PAT (EUR MM)

Profit Before Tax less Other Income (PBT) - Quarterly

At EUR 252 MM has Grown at 138.3 %

over average PBT of the previous four periods of EUR 106 MM

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (EUR MM)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at EUR 252 MM.

in the last five periods

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (EUR MM)

Earnings per Share (EPS) - Quarterly

Highest at EUR 0.34

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (EUR)

Cash and Cash Equivalents - Half Yearly

Highest at EUR 794.00 MM

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents (EUR MM)

Here's what is not working for Evonik Industries AG

Operating Cash Flow - Annually

Lowest at EUR 1,527.00 MM and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (EUR MM)

Net Sales - Half Yearly

At EUR 7,401.00 MM has Grown at -11.31 %

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (EUR MM)

Debtors Turnover Ratio- Half Yearly

Lowest at 8.45 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio (DPR) - Annually

Lowest at 0.00 %

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)