I've been keeping an eye on Evonik Industries AG (ETR:EVK) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe EVK has a lot to offer. Basically, it is a highly-regarded dividend payer with a strong track record of performance, trading at a discount. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Evonik Industries here.

Undervalued with proven track record and pays a dividend

Over the past year, EVK has grown its earnings by 8.9%, with its most recent figure exceeding its annual average over the past five years. Not only did EVK outperformed its past performance, its growth also exceeded the Chemicals industry expansion, which generated a -2.1% earnings growth. This paints a buoyant picture for the company. EVK's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts' consensus forecast growth be correct. Also, relative to the rest of its peers with similar levels of earnings, EVK's share price is trading below the group's average. This supports the theory that EVK is potentially underpriced.

EVK is considered one of the top dividend payers in the market, and its profitability ensures that dividends are well-covered by its net income.

Next Steps:

For Evonik Industries, I've compiled three relevant aspects you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for EVK’s future growth? Take a look at our free research report of analyst consensus for EVK’s outlook.

2. Financial Health: Are EVK’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of EVK? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.