Ecovyst (ECVT) AI Stock Analysis

• Market Cap: $1.06B
• Dividend Yield: N/A
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): 17.7
• Beta (1Y): 1.19
• Revenue Growth: 2.23%
• EPS Growth: -115.70%
• Country: US
• Employees: 920
• Sector: Basic Materials
• Sector Strength: 72
• Industry: Chemicals - Specialty
• EPS (TTM): 0.01
• Shares Outstanding: 117,400,510
• 10 Day Avg. Volume: 1,445,005
• 30 Day Avg. Volume: 1,648,135
• PEG Ratio: 1.29
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.40
• Enterprise Value/Market Cap: 1.69
• Enterprise Value/Revenue: 0.64
• Enterprise Value/Gross Profit: 9.61
• Enterprise Value/Ebitda: 2.90
• 1Y Price Target: $10.33
• Price Target Upside: 14.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 67 Neutral
• Price Target: $9.00 ▲(0.11%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 puts ECVT on the path to surpassing adjusted EBITDA estimates.

Contract Renewals

Contracts renewals led to higher selling prices, boosting financial performance.

Free Cash Flow

The core business continues to generate free cash flow, as shown by a $22.5 million increase in ECVT's cash balance.

Negative Factors

Advanced Silicas Performance

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

Sales Performance

ECVT reported sales of $162.2 million, falling short of the estimated $172.9 million.

Zeolyst Joint Venture

Investors are concerned about the lumpiness in the Zeolyst joint venture, diverting focus from the core business.

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 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 Financial Statement Overview

Summary

Ecovyst shows steady revenue growth and strong cash flow management. However, volatility in profit margins and leverage risks due to fluctuating debt-to-equity ratios signal potential profitability challenges.

Income Statement

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

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

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.

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
EBITDA	116.57M	211.27M	199.53M	130.67M	136.26M
Net Income	-6.65M	71.15M	73.70M	1.80M	54.28M
Balance Sheet
Total Assets	1.80B	1.84B	1.88B	1.93B	3.20B
Cash, Cash Equivalents and Short-Term Investments	146.01M	88.36M	110.90M	140.90M	113.38M
Total Debt	899.16M	900.19M	903.10M	911.80M	1.43B
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	-17.84M	-93.50M	-148.10M	-964.20M	-722.82M

Ecovyst Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 8.99 is above the 20-day moving average (MA) of 8.61, above the 50-day MA of 8.11, and above the 200-day MA of 7.41, indicating a bullish trend. The MACD of 0.23 indicates Positive momentum. The RSI at 63.49 is Neutral, neither overbought nor oversold. The STOCH value of 68.00 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
ODC	82 Outperform	$803.66M	17.19	20.93%	1.05%	9.92%	17.12%
OEC	68 Neutral	$638.10M	24.87	5.55%	0.73%	-2.31%	-69.16%
ECVT	67 Neutral	$1.06B	17.67	-1.64%	―	2.23%	-115.70%
SCL	66 Neutral	$1.29B	23.26	4.65%	2.68%	-0.16%	47.70%
KRO	57 Neutral	$706.32M	7.34	11.87%	3.26%	10.42%	―
NGVT	55 Neutral	$1.69B	―	-88.14%	―	-17.68%	-214.32%
Sector *	44 Neutral	C$980.66M	-6.79	-13.68%	1.76%	17.37%	-32.98%

Ecovyst Corporate Events

Ecovyst Holds Annual Stockholders Meeting on May 8

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.