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Ecovyst Inc (ECVT)
:ECVT
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Ecovyst
(NYSE:ECVT)
49Neutral
Positive Factors
Financial Performance
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
Market Risks
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.
Profitability Concerns
The mix effect creates a potential EBITDA drag, as hydrocracking is not as profitable as sustainable fuels.
Ecovyst (ECVT) vs. S&P 500 (SPY)
Market Cap
$739.41M
Dividend YieldN/A
Average Volume (3M)1.11M
Price to Earnings (P/E)17.7
Beta (1Y)1.26
Revenue Growth1.94%
EPS Growth-109.53%
CountryUS
Employees920
SectorBasic Materials
Sector Strength59
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.06
Shares Outstanding117,367,430
10 Day Avg. Volume976,700
30 Day Avg. Volume1,105,001
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
$9.70Price Target Upside53.97% 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
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.55
Neutral
Balance Sheet
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.65
Positive
Cash Flow
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.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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
Negative
6.30
Price Trends
7.39
Negative
7.61
Negative
7.58
Negative
Market Momentum
-0.30
Negative
35.54
Neutral
19.77
Positive
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 6.3 is below the 20-day moving average (MA) of 6.62, below the 50-day MA of 7.39, and below the 200-day MA of 7.58, indicating a bearish trend. The MACD of -0.30 indicates Negative momentum. The RSI at 35.54 is Neutral, neither overbought nor oversold. The STOCH value of 19.77 is Positive, 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 (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $10.05B | 11.34 | 16.11% | 3.74% | 1.91% | 2.94% | |
69 Neutral | $65.02B | 16.97 | 24.40% | 2.42% | -3.12% | 64.53% | |
61 Neutral | $603.61M | 13.93 | 5.83% | 2.83% | -1.05% | -16.57% | |
53 Neutral | $2.05B | 23.96 | 12.98% | 7.29% | -4.05% | ― | |
50 Neutral | $2.75B | ― | -5.22% | 6.32% | -1.23% | -277.52% | |
49 Neutral | $739.41M | 17.67 | -0.96% | ― | 1.94% | -109.53% | |
47 Neutral | $2.66B | -3.11 | -22.17% | 3.33% | 3.66% | -28.13% |
* Basic Materials Sector Average
Performance Comparison
ECVT
Ecovyst
6.30
-4.65
-42.47%
APD
Air Products and Chemicals
292.27
53.42
22.37%
EMN
Eastman Chemical
87.05
-9.92
-10.23%
HUN
Huntsman
15.82
-8.90
-36.00%
CC
Chemours Company
13.72
-13.56
-49.71%
ASIX
AdvanSix
22.57
-4.00
-15.05%
Ecovyst Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -22.22% | 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.