Ecovyst (ECVT) AI Stock Analysis

• Market Cap: $996.53M
• Dividend Yield: N/A
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: 7.75%
• EPS Growth: -302.73%
• Country: US
• Employees: 920
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.19
• Shares Outstanding: 114,019,420
• 10 Day Avg. Volume: 1,691,668
• 30 Day Avg. Volume: 1,268,163
• PEG Ratio: 1.22
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 1.27
• P/FCF Ratio: 11.02
• Enterprise Value/Market Cap: 1.82
• Enterprise Value/Revenue: 2.42
• Enterprise Value/Gross Profit: 9.99
• Enterprise Value/Ebitda: 16.48
• 1Y Price Target: $11.40
• Price Target Upside: 30.43% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.47
• Revenue Forecast (FY): $731.74M

• Rating: 47 Neutral
• Price Target: $7.50 ▼(-14.19% Downside)

Ecovyst's overall stock score is primarily impacted by its weak financial performance and valuation, with negative profitability and cash flow metrics. Technical analysis indicates bearish momentum. However, positive guidance from the earnings call, including strategic divestitures and debt reduction plans, provides some optimism.

Positive Factors

Strategic Asset Sale

The sale of the Advanced Materials & Catalysts segment will reduce long-term debt significantly, improving financial flexibility and focus on core operations.

Ecoservices Sales Growth

Strong sales growth in Ecoservices indicates robust demand and effective pricing strategies, supporting revenue stability and market position.

Positive Demand Outlook

Sustained demand in key markets like refineries and sulfuric acid indicates stable revenue streams and potential for future growth.

Negative Factors

Negative Profitability

Persistent profitability issues and cash flow challenges may hinder investment capacity and long-term financial health.

Higher Manufacturing Costs

Rising costs can compress margins and reduce competitiveness, impacting profitability unless offset by pricing power or cost efficiencies.

Increased Net Debt Leverage

Higher leverage increases financial risk, potentially limiting strategic flexibility and increasing vulnerability to economic downturns.

Ecovyst Business Overview & Revenue Model

Company Description

Ecovyst Inc. provides specialty catalysts and services in the United States, the Netherlands, the United Kingdom, and internationally. The company operates through two segments, Ecoservices and Catalyst Technologies. The Ecoservices segment offers sulfuric acid recycling services for production of alkylate for refineries; and virgin sulfuric acid for mining, water treatment, and industrial applications. The Catalyst Technologies segment provides customized catalyst products and process solutions to producers and licensors of polyethylene and methyl methacrylate. Its catalyst supports the production of plastics used in packaging films, bottles, containers, and other molded applications. This segment also provides zeolite-based emission control catalysts, which enable the removal of nitrogen oxides from diesel engine emissions, as well as sulfur dioxide from fuels during the refining process. The company was formerly known as PQ Group Holdings Inc. and changed its name to Ecovyst Inc. in August 2021. Ecovyst Inc. was founded in 1831 and is headquartered in Malvern, Pennsylvania.

How the Company Makes Money

Ecovyst generates revenue primarily through the sale of its specialty catalysts and related services. The Catalyst Technologies segment contributes significantly to the company’s earnings by providing customers with high-performance catalyst solutions that improve operational efficiency in refining and petrochemical processes. Additionally, the Environmental Services segment generates revenue through catalyst regeneration and recycling services, which are essential for clients looking to minimize waste and adhere to environmental regulations. Key revenue streams include long-term contracts with major clients in the refining sector, sales of new catalysts, and fees generated from recycling services. Strategic partnerships with industry leaders also enhance Ecovyst's market position and facilitate access to new customers and technologies, further contributing to its earnings.

Ecovyst Financial Statement Overview

Summary

Ecovyst's financial performance is challenged by negative profitability metrics, including a net profit margin of -14.32% and a negative free cash flow to net income ratio of -84.25%. Despite some revenue growth and a stable balance sheet with low leverage, the negative return on equity and cash flow issues indicate significant risks.

Income Statement

Ecovyst's income statement shows a mixed performance. The TTM data indicates a slight revenue growth of 3.56%, but the company is struggling with profitability, as evidenced by a negative net profit margin of -14.32%. The gross profit margin has decreased compared to previous years, and the EBIT margin is also negative. These factors suggest challenges in maintaining profitability despite revenue growth.

Balance Sheet

The balance sheet reflects a relatively stable financial position with a low debt-to-equity ratio of 0.08 in the TTM period, indicating reduced leverage. However, the return on equity is negative, suggesting inefficiencies in generating returns for shareholders. The equity ratio remains stable, showing a solid equity base relative to total assets.

Cash Flow

The cash flow statement highlights significant challenges, with a drastic decline in free cash flow growth and a negative free cash flow to net income ratio of -84.25% in the TTM period. Operating cash flow remains positive, but the overall cash flow situation raises concerns about liquidity and the company's ability to generate cash sustainably.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	749.19M	704.49M	691.12M	820.16M	611.20M	495.92M
Gross Profit	181.37M	201.52M	197.97M	224.63M	176.66M	150.95M
EBITDA	109.88M	133.77M	211.27M	211.12M	130.67M	129.55M
Net Income	-107.33M	-6.65M	71.15M	73.70M	-139.95M	-278.77M
Balance Sheet
Total Assets	1.73B	1.80B	1.84B	1.88B	1.93B	3.20B
Cash, Cash Equivalents and Short-Term Investments	81.98M	146.01M	88.36M	110.92M	140.89M	113.38M
Total Debt	895.52M	899.16M	900.19M	913.53M	926.71M	1.43B
Total Liabilities	1.13B	1.10B	1.13B	1.18B	1.19B	1.92B
Stockholders Equity	607.87M	700.46M	705.46M	707.23M	740.74M	1.28B
Cash Flow
Free Cash Flow	73.22M	80.94M	72.26M	127.74M	69.90M	172.00M
Operating Cash Flow	142.04M	149.89M	137.60M	186.61M	129.90M	223.60M
Investing Cash Flow	-125.69M	-73.45M	-65.33M	-63.02M	835.70M	551.47M
Financing Cash Flow	-40.19M	-17.84M	-93.50M	-148.19M	-964.20M	-722.82M

Ecovyst Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ECVT, the sentiment is Positive. The current price of 8.74 is above the 20-day moving average (MA) of 8.68, above the 50-day MA of 8.48, and above the 200-day MA of 7.91, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 51.82 is Neutral, neither overbought nor oversold. The STOCH value of 47.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ECVT.

Ecovyst Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCL	66 Neutral	$1.02B	22.85	3.67%	3.43%	5.35%	-1.43%
MTX	64 Neutral	$1.84B	-2,224.44	-0.09%	0.76%	-2.53%	-100.23%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IOSP	53 Neutral	$1.86B	-1,276.19	-0.09%	2.28%	-4.49%	-100.80%
SNES	49 Neutral	$15.40M	―	-77.79%	―	39.37%	69.81%
ECVT	47 Neutral	$996.53M	―	-4.15%	―	7.75%	-302.73%
LWLG	41 Neutral	$687.33M	-30.84	-56.26%	―	-11.12%	8.76%

Ecovyst Corporate Events

Ecovyst Divests Advanced Materials to Technip Energies

On September 10, 2025, Ecovyst Inc. announced a Stock Purchase Agreement to divest its Advanced Materials & Catalysts business to Technip Energies N.V. for $556 million in cash, with the transaction expected to close in the first quarter of 2026. This strategic move involves transition services for up to 13 months post-closing and requires antitrust approval, potentially impacting Ecovyst’s market positioning and stakeholder interests.