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Ecovyst (ECVT)
NYSE:ECVT
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Ecovyst
(NYSE:ECVT)
Rating:67Neutral
Price Target:
$9.00
▲(7.14%Upside)
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)
Market Cap
$986.16M
Dividend YieldN/A
Average Volume (3M)1.54M
Price to Earnings (P/E)17.7
Beta (1Y)1.17
Revenue Growth2.23%
EPS Growth-115.70%
CountryUS
Employees920
SectorBasic Materials
Sector Strength70
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.01
Shares Outstanding117,400,510
10 Day Avg. Volume2,165,532
30 Day Avg. Volume1,536,745
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.67
Price to Sales (P/S)0.00
P/FCF Ratio9.27
Enterprise Value/Market Cap2.00
Enterprise Value/Revenue0.71
Enterprise Value/Gross Profit10.67
Enterprise Value/Ebitda3.22
Forecast
1Y Price Target
$10.33Price Target Upside22.98% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
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
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.72
Positive
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.65
Positive
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.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 706.16M | 704.49M | 691.12M | 820.20M | 611.20M | 495.92M |
| Gross Profit | 185.18M | 201.52M | 197.97M | 224.70M | 176.70M | 150.95M |
| EBITDA | 124.86M | 116.57M | 211.27M | 199.53M | 130.67M | 136.26M |
| Net Income | -11.47M | -6.65M | 71.15M | 73.70M | 1.80M | 54.28M |
Balance Sheet | ||||||
| Total Assets | 1.79B | 1.80B | 1.84B | 1.88B | 1.93B | 3.20B |
| Cash, Cash Equivalents and Short-Term Investments | 127.48M | 146.01M | 88.36M | 110.90M | 140.90M | 113.38M |
| Total Debt | 892.43M | 899.16M | 900.19M | 903.10M | 911.80M | 1.43B |
| Total Liabilities | 1.09B | 1.10B | 1.13B | 1.18B | 1.19B | 1.92B |
| Stockholders Equity | 698.70M | 700.46M | 705.46M | 707.30M | 740.70M | 1.28B |
Cash Flow | ||||||
| Free Cash Flow | 47.81M | 80.94M | 72.26M | 127.70M | 69.90M | 172.00M |
| Operating Cash Flow | 123.69M | 149.89M | 137.60M | 186.60M | 129.90M | 223.60M |
| Investing Cash Flow | -80.38M | -73.45M | -65.33M | -63.00M | 835.70M | 551.47M |
| Financing Cash Flow | -15.12B | -17.84M | -93.50M | -148.10M | -964.20M | -722.82M |
Ecovyst Technical Analysis
Positive
8.40
Price Trends
7.44
Positive
7.10
Positive
7.25
Positive
Market Momentum
0.22
Positive
59.10
Neutral
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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $818.72M | 17.51 | 20.93% | 1.03% | 9.92% | 17.12% | |
67 Neutral | $752.34M | 7.82 | 11.87% | 3.06% | 10.42% | ― | |
67 Neutral | $986.16M | 17.67 | -1.64% | ― | 2.23% | -115.70% | |
67 Neutral | $1.34B | 24.16 | 4.65% | 2.60% | -0.16% | 47.70% | |
65 Neutral | $633.03M | 24.68 | 5.55% | 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
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.