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Ecovyst (ECVT)
NYSE:ECVT

Ecovyst (ECVT) AI Stock Analysis

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Ecovyst

(NYSE:ECVT)

Rating:67Neutral
Price Target:
$9.00
▲(7.14%Upside)
Ecovyst's overall stock score is influenced primarily by its solid financial performance and positive technical indicators. However, valuation concerns due to a negative P/E ratio and mixed earnings call sentiment weigh down the score. The company's strong cash flow and strategic initiatives provide support, but profitability challenges and leverage risks remain key areas of concern.
Positive Factors
Advanced Materials Segment
A revival in the advanced materials segment has put ECVT on the path to surpassing adjusted EBITDA estimates.
Cash Flow and Balance
The core business continues to generate free cash flow, demonstrated by an increase in ECVT’s cash balance by approximately $22.5 million.
Contract Renewals
Contracts renewals have led to higher selling prices, positively impacting the stock.
Negative Factors
Maintenance Turnarounds
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.
Sales Performance
ECVT reported sales of $162.2 million, falling short of the estimate of $172.9 million.

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

Ecovyst Business Overview & Revenue Model

Company DescriptionEcovyst Inc. (ECVT) is a provider of specialty catalysts and services, primarily serving the refining, chemicals, and petrochemical industries. The company operates in sectors focusing on the production and sale of customized catalyst products, sulfuric acid products, and related services that enhance the performance and sustainability of industrial processes.
How the Company Makes MoneyEcovyst generates revenue through the sale of its specialized catalyst products and sulfuric acid services, primarily to customers in the refining, chemicals, and petrochemical industries. The company offers tailored solutions that help improve the efficiency and environmental compliance of its clients' operations. Key revenue streams include direct sales of catalysts and the provision of regeneration services for sulfuric acid. Ecovyst also benefits from long-term contracts and strategic partnerships with major industrial players, which provide a stable source of income and opportunities for growth.

Ecovyst Earnings Call Summary

Earnings Call Date:May 01, 2025
(Q1-2025)
|
% Change Since: 40.47%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with strong performance in the Zeolyst joint venture and plans for significant share repurchases and acquisitions. However, challenges remain with declining Ecoservices EBITDA, potential tariff impacts, and lower first-quarter free cash flow. The sentiment is balanced between positive developments and ongoing challenges.
Q1-2025 Updates
Positive Updates
Strong First Quarter Performance
Adjusted EBITDA for the first quarter was $39 million, above the high end of guidance range of $24 million to $34 million, driven by strong results from the Zeolyst joint venture.
Zeolyst Joint Venture Exceeds Expectations
Sales for the Zeolyst joint venture were up 60%, with higher sales of hydrocracking and specialty catalysts exceeding expectations.
Share Repurchase Authorization
Current share repurchase authorization has $230 million remaining, with plans to allocate up to $30 million in the second quarter for opportunistic repurchases.
Cornerstone Sulfuric Acid Acquisition
The acquisition of Cornerstone Sulfuric Acid assets is expected to enhance Ecoservice's Gulf Coast network and add significant capacity.
Negative Updates
Ecoservices Adjusted EBITDA Decline
Adjusted EBITDA for Ecoservices was $29 million, down from $42 million in the year-ago quarter, reflecting higher manufacturing costs and lower sales volume associated with turnaround activity.
Potential Impact of Tariffs and Macroeconomic Uncertainty
Anticipated $2 million to $3 million EBITDA impact from tariffs, with potential softer demand in advanced silicas due to macroeconomic conditions.
Lower First Quarter Free Cash Flow
Adjusted free cash flow was a use of $13 million for the first quarter, due to timing of dividends from the Zeolyst joint venture and higher planned capital expenditures.
Company Guidance
During the Ecovyst First Quarter 2025 Earnings Call, the company provided several key metrics and guidance for the upcoming quarters. Ecovyst's Adjusted EBITDA for Q1 was reported at $39 million, exceeding their guidance range of $24 million to $34 million, largely due to the strong performance of the Zeolyst joint venture. The company anticipates higher volumes with favorable contractual pricing in the second quarter, driven by an increase in regeneration volume as the summer driving season approaches. Despite expected challenges from recent tariff escalations, Ecovyst maintains its full-year 2025 Adjusted EBITDA guidance between $238 million and $258 million. The company emphasized its robust cash generation capability, projecting adjusted free cash flow of $60 to $80 million for the full year. Additionally, Ecovyst plans to allocate up to $30 million for share repurchases in the second quarter, with potential for further buybacks in the latter half of the year. The strategic acquisition of the Cornerstone Sulfuric Acid assets is expected to close in Q2, with significant contributions anticipated starting in 2026.

Ecovyst Financial Statement Overview

Summary
Ecovyst's financial performance shows steady revenue growth and strong cash flow management. However, profitability challenges and leverage risks due to negative net income and fluctuating debt-to-equity ratios impact the score.
Income Statement
72
Positive
Ecovyst has demonstrated a steady revenue growth trajectory, with a slight increase in revenue from the previous year. However, the gross and net profit margins have shown some volatility, with the TTM net income being negative, indicating potential profitability challenges. The EBIT and EBITDA margins remain moderate, reflecting stable operational efficiency.
Balance Sheet
65
Positive
The company maintains a solid equity ratio, with stockholders' equity constituting a significant portion of total assets. However, the debt-to-equity ratio has fluctuated, suggesting a potential risk associated with leverage. The return on equity has been dampened by the recent negative net income, affecting the overall score.
Cash Flow
78
Positive
Ecovyst has shown resilience in its cash flow management, with a positive free cash flow and a strong operating cash flow relative to net income. Despite fluctuations in investment and financing cash flows, the company maintains a healthy free cash flow to net income ratio, indicating good cash generation capability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue706.16M704.49M691.12M820.20M611.20M495.92M
Gross Profit185.18M201.52M197.97M224.70M176.70M150.95M
EBITDA124.86M116.57M211.27M199.53M130.67M136.26M
Net Income-11.47M-6.65M71.15M73.70M1.80M54.28M
Balance Sheet
Total Assets1.79B1.80B1.84B1.88B1.93B3.20B
Cash, Cash Equivalents and Short-Term Investments127.48M146.01M88.36M110.90M140.90M113.38M
Total Debt892.43M899.16M900.19M903.10M911.80M1.43B
Total Liabilities1.09B1.10B1.13B1.18B1.19B1.92B
Stockholders Equity698.70M700.46M705.46M707.30M740.70M1.28B
Cash Flow
Free Cash Flow47.81M80.94M72.26M127.70M69.90M172.00M
Operating Cash Flow123.69M149.89M137.60M186.60M129.90M223.60M
Investing Cash Flow-80.38M-73.45M-65.33M-63.00M835.70M551.47M
Financing Cash Flow-15.12B-17.84M-93.50M-148.10M-964.20M-722.82M

Ecovyst Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.40
Price Trends
50DMA
7.44
Positive
100DMA
7.10
Positive
200DMA
7.25
Positive
Market Momentum
MACD
0.22
Positive
RSI
59.10
Neutral
STOCH
56.75
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 8.4 is above the 20-day moving average (MA) of 8.13, above the 50-day MA of 7.44, and above the 200-day MA of 7.25, indicating a bullish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 59.10 is Neutral, neither overbought nor oversold. The STOCH value of 56.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ODODC
82
Outperform
$818.72M17.5120.93%1.03%9.92%17.12%
KRKRO
67
Neutral
$752.34M7.8211.87%3.06%10.42%
67
Neutral
$986.16M17.67-1.64%2.23%-115.70%
SCSCL
67
Neutral
$1.34B24.164.65%2.60%-0.16%47.70%
OEOEC
65
Neutral
$633.03M24.685.55%0.74%-2.31%-69.16%
55
Neutral
$1.71B-88.14%-17.68%-214.32%
44
Neutral
C$979.74M-6.70-13.35%2.68%17.20%-32.62%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ECVT
Ecovyst
8.40
-0.69
-7.59%
KRO
Kronos Worldwide
6.54
-5.91
-47.47%
ODC
Oil-Dri Of America
60.33
30.31
100.97%
SCL
Stepan Company
59.25
-22.15
-27.21%
OEC
Orion Engineered
11.25
-9.96
-46.96%
NGVT
Ingevity
46.76
4.82
11.49%

Ecovyst Corporate Events

Executive/Board ChangesShareholder Meetings
Ecovyst Holds Annual Stockholders Meeting on May 8
Neutral
May 9, 2025

On May 8, 2025, Ecovyst Inc. held its Annual Meeting of Stockholders, where 111,824,964 shares were represented. During the meeting, two Class III directors were elected for a one-year term, the executive compensation was approved on an advisory basis, and PricewaterhouseCoopers LLP was ratified as the independent accounting firm for 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 03, 2025