Ecovyst (ECVT) AI Stock Analysis

Compare

173 Followers

ECVT Dividends

Top Page

Ecovyst

(NYSE:ECVT)

57Neutral

Ecovyst's overall stock score reflects a mix of steady operational and cash flow performance with challenges in profitability and market sentiment. The company's strategic efforts to expand and stabilize financially are commendable, but the negative P/E ratio and technical indicators suggest caution. The guidance provided in the earnings call is a positive sign, indicating potential recovery and growth, but current macroeconomic uncertainties and segment-specific challenges weigh on the stock's outlook.

Positive Factors

Cash Flow

The core business continues to generate free cash flow as demonstrated by ECVT’s cash balance rising by approximately $22.5 million from the third quarter.

Sales Growth

Ecovyst expects sales in Zeolyst to increase, supported by stronger hydrocracking catalyst sales.

Negative Factors

Earnings Challenges

ECVT's Q3 earnings fell short of expectations due to AM&C orders slipping into Q4, indicating near-term challenges.

Market Conditions

Near-term performance drag in advanced silicas is expected due to lighter ordering and overcapacity in certain markets.

Operational Challenges

Customers’ planned maintenance is expected to drag Ecoservices performance due to multiple maintenance turnarounds.

Ecovyst (ECVT) vs. S&P 500 (SPY)

Market Cap

$683.18M

Dividend YieldN/A

Average Volume (3M)1.00M

Price to Earnings (P/E)17.7

Beta (1Y)1.20

Revenue Growth1.94%

EPS Growth-109.53%

CountryUS

Employees920

SectorBasic Materials

Sector Strength58

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)-0.06

Shares Outstanding117,385,510

10 Day Avg. Volume869,395

30 Day Avg. Volume1,001,414

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)1.07

Price to Cash Flow (P/CF)4.30

P/FCF Ratio7.20

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$9.70

Price Target Upside68.70% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering5

Ecovyst Business Overview & Revenue Model

Company DescriptionEcovyst Inc., formerly known as PQ Group Holdings Inc., is a leading integrated and innovative provider of specialty catalysts and services. The company primarily operates in two sectors: Ecoservices and Catalyst Technologies. Ecoservices offer sulfuric acid recycling and regeneration solutions, while Catalyst Technologies supply customized catalysts for the refining, petrochemical, and industrial markets. Ecovyst focuses on delivering sustainable technologies that improve product performance and reduce environmental impact.

How the Company Makes MoneyEcovyst makes money through its two main business segments: Ecoservices and Catalyst Technologies. In the Ecoservices segment, the company generates revenue by providing sulfuric acid regeneration and recycling services, which are essential for various industrial processes. This service helps customers reduce waste and improve environmental compliance. The Catalyst Technologies segment generates revenue by supplying specialty catalysts that enable more efficient and environmentally friendly chemical reactions. These catalysts are used in industries such as refining, petrochemical, and other industrial applications. Key revenue streams include long-term service contracts, product sales, and partnerships with major industrial players that rely on Ecovyst's technologies to enhance their operational efficiencies and sustainability efforts.

Ecovyst Financial Statement Overview

Summary

Ecovyst demonstrates steady revenue growth and operational efficiency but faces challenges with profitability as indicated by the net loss in 2024. The balance sheet shows improved debt management and equity strength, which supports financial stability. Cash flow generation remains robust, providing a cushion against the current profitability issues. The company should focus on returning to profitability to enhance shareholder value.

Income Statement

Neutral

The company has shown a slight increase in revenue from 2023 to 2024, with the revenue growth rate at 1.94%. However, the net profit margin declined significantly, turning negative in 2024 due to a net loss, compared to a positive margin in 2023. The gross profit margin improved slightly from 28.64% in 2023 to 28.60% in 2024. The EBIT and EBITDA margins remained stable, indicating consistent operational efficiency.

Balance Sheet

Positive

Ecovyst has reduced its total debt significantly from 2023 to 2024, improving its debt-to-equity ratio. The equity ratio increased slightly, indicating a stronger equity position relative to total assets. However, the return on equity turned negative due to the net loss in 2024, which is a concern for investors.

Cash Flow

Positive

The company experienced a healthy growth in free cash flow of 11.96% from 2023 to 2024, driven by increased operating cash flow. The operating cash flow to net income ratio indicates strong cash generation relative to earnings, although the free cash flow to net income ratio was impacted by the net loss, suggesting challenges in converting profits into cash flow.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
704.49M	691.12M	820.20M	611.20M	495.92M
	Gross Profit
201.52M	197.97M	224.70M	176.70M	150.95M
	EBIT
98.09M	96.65M	104.40M	77.80M	85.40M
	EBITDA
133.77M	211.27M	199.53M	130.67M	136.26M
	Net Income Common Stockholders
-6.65M	71.15M	73.70M	1.80M	54.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
146.01M	88.36M	110.90M	140.90M	113.38M
	Total Assets
1.80B	1.84B	1.88B	1.93B	3.20B
	Total Debt
42.19M	900.19M	903.10M	911.80M	1.43B
	Net Debt
-103.83M	811.83M	792.20M	770.90M	1.32B
	Total Liabilities
1.10B	1.13B	1.18B	1.19B	1.92B
	Stockholders Equity
700.46M	705.46M	707.30M	740.70M	1.28B
Cash Flow		Free Cash Flow
80.94M	72.26M	127.70M	69.90M	172.00M
	Operating Cash Flow
149.89M	137.60M	186.60M	129.90M	223.60M
	Investing Cash Flow
-73.45M	-65.33M	-63.00M	835.70M	551.47M
	Financing Cash Flow
-17.90M	-93.50M	-148.10M	-964.20M	-722.82M

Ecovyst Technical Analysis

Technical Analysis Sentiment

Negative

Last Price5.75

Price Trends

50DMA

6.72

Negative

100DMA

7.24

Negative

200DMA

7.31

Negative

Market Momentum

MACD

-0.24

Negative

RSI

40.22

Neutral

STOCH

60.56

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ECVT, the sentiment is Negative. The current price of 5.75 is below the 20-day moving average (MA) of 5.94, below the 50-day MA of 6.72, and below the 200-day MA of 7.31, indicating a bearish trend. The MACD of -0.24 indicates Negative momentum. The RSI at 40.22 is Neutral, neither overbought nor oversold. The STOCH value of 60.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ECVT.

Ecovyst Risk Analysis

Ecovyst disclosed 46 risk factors in its most recent earnings report. Ecovyst reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Ecovyst Peers Comparison

Overall Rating

UnderperformOutperform

Sector (49)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ODC	75 Outperform	$566.87M	13.63	20.07%	1.46%	8.24%	4.69%
KRO	67 Neutral	$844.36M	9.79	10.61%	4.63%	13.24%	―
SCL	63 Neutral	$1.11B	22.32	4.22%	3.10%	-6.26%	24.94%
ECVT	57 Neutral	$683.18M	17.67	-0.96%	―	1.94%	-109.53%
OEC	54 Neutral	$690.61M	16.10	9.27%	0.68%	-0.87%	-56.55%
Sector *	49 Neutral	$1.92B	-1.52	-22.04%	3.84%	0.67%	-27.41%
NGVT	48 Neutral	$1.15B	―	-104.11%	―	-16.92%	-6107.70%

* Basic Materials Sector Average

Performance Comparison

ECVT

Ecovyst

5.75

-4.29

-42.73%

KRO

Kronos Worldwide

7.37

-3.89

-34.55%

ODC

Oil-Dri Of America

41.89

7.74

22.66%

SCL

Stepan Company

48.62

-34.54

-41.53%

OEC

Orion Engineered

12.23

-11.19

-47.78%

NGVT

Ingevity

31.86

-16.37

-33.94%

Ecovyst Earnings Call Summary

Earnings Call Date: Feb 27, 2025 | % Change Since: -29.01% | Next Earnings Date: May 1, 2025

Earnings Call Sentiment Neutral

The call reflects a balanced view with strong operational achievements in safety performance and segment growth, alongside challenges in specific joint ventures and market segments, particularly the Zeolus joint venture and sustainable fuels. Positive cash flow and strategic expansions are offset by market uncertainties and specific segment declines.

Highlights

Record Safety Performance

Ecovyst produced more than three million tons of product without a single OSHA recordable injury in 2024, marking the best safety performance in the company's history.

Eco Services Segment Growth

Adjusted EBITDA for Eco Services was up nearly 12% compared to the year-ago quarter, driven by increased sales volume and favorable contract pricing.

Capacity Expansion and Strategic Initiatives

Capacity expansions for core and industrial businesses are underway, including the polyethylene catalyst capacity expansion at the Kansas City site and advancements in biocatalysis and carbon capture technologies.

Positive Cash Generation and Debt Reduction

The company generated over $85 million in adjusted free cash flow for 2024, reducing the net debt leverage ratio to three times at year-end.

Steady Demand in Key Segments

Strong demand trends in most segments are anticipated to continue, with positive momentum projected for regeneration services and virgin sulfuric acid sales in the second half of 2025.

Lowlights

Zeolus Joint Venture Sales Decline

Sales in the Zeolus joint venture were down due to the timing of hydrocracking catalyst orders and decreased demand for catalyst materials used in emission control applications.

Non-Cash Impairment Charge

A non-cash $65 million impairment charge was recognized on the investment in the Zeolus joint venture, primarily due to the demand outlook for catalyst materials used in emission control applications.

Subdued Polyethylene Demand

Global outlook for polyethylene demand remains subdued, compounded by excess production capacity, particularly in Asia.

Challenges in Sustainable Fuels Sales

The outlook for catalyst sales into emission control applications remains subdued due to regulatory deferrals and challenging macroeconomic conditions.

Company Guidance

During the call, Ecovyst provided comprehensive guidance for 2025, indicating a projected GAAP sales range of $755 to $815 million, with an adjusted EBITDA range of $238 to $258 million, marking a 4% increase at the midpoint compared to 2024. The Eco Services segment is expected to experience mid-single-digit growth in adjusted EBITDA, projected between $204 million and $220 million, while the Advanced Materials and Catalyst segment anticipates a similar growth range, with adjusted EBITDA between $65 million and $71 million. Ecovyst highlighted a net debt leverage ratio of three times at the end of 2024, with plans to reduce it to between 2 and 2.5 times by year-end 2025. Capital expenditures are projected at $80 to $90 million, aimed at expanding polyethylene catalyst capacity in Kansas City and catalyst activation capacity at Chem 32. The company also expects an adjusted free cash flow of $60 to $80 million and an interest expense between $47 and $53 million for the year. This guidance underscores Ecovyst's strategic focus on expanding core and emerging businesses while maintaining a cautious outlook due to ongoing macroeconomic uncertainties.

Ecovyst Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Ecovyst Launches Retention Bonus Amid Strategic Review

Neutral

Dec 16, 2024

Ecovyst Inc. has introduced a retention bonus program for certain employees, including key executive Paul Whittleston, as part of its strategic review process for the Advanced Materials & Catalysts business. This initiative aims to ensure key personnel remain with the company during critical decision-making phases, potentially impacting its operational continuity and stakeholder interests.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.