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Ecovyst (ECVT)
NYSE:ECVT
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Ecovyst
(NYSE:ECVT)
65Neutral
Positive Factors
Cash Flow
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 Challenges
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.
Ecovyst (ECVT) vs. S&P 500 (SPY)
Market Cap
$726.62M
Dividend YieldN/A
Average Volume (3M)1.03M
Price to Earnings (P/E)17.7
Beta (1Y)1.16
Revenue Growth2.23%
EPS Growth-115.71%
CountryUS
Employees920
SectorBasic Materials
Sector Strength59
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.06
Shares Outstanding117,385,510
10 Day Avg. Volume879,126
30 Day Avg. Volume1,027,158
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.26
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit8.15
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.70Price Target Upside46.75% 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's financial performance reflects both strengths and areas for improvement. Revenue growth and cash flow management are commendable, but profitability pressures and leverage risks warrant attention. Overall, the company is navigating a complex financial landscape, with a need to enhance profitability and manage leverage effectively.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 | ||||
| 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 |
| 116.57M | 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 |
| 899.16M | 900.19M | 903.10M | 911.80M | 1.43B | Net Debt |
| 753.15M | 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 |
| -17.84M | -93.50M | -148.10M | -964.20M | -722.82M |
Ecovyst Technical Analysis
Positive
6.61
Price Trends
6.41
Positive
7.09
Negative
7.20
Negative
Market Momentum
-0.06
Negative
62.77
Neutral
80.18
Negative
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 6.61 is above the 20-day moving average (MA) of 5.85, above the 50-day MA of 6.41, and below the 200-day MA of 7.20, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 62.77 is Neutral, neither overbought nor oversold. The STOCH value of 80.18 is Negative, 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 (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $590.40M | 14.19 | 20.07% | 1.43% | 8.24% | 4.69% | |
67 Neutral | $1.21B | 21.79 | 4.65% | 2.84% | -0.16% | 47.70% | |
67 Neutral | $854.72M | 9.91 | 10.61% | 4.41% | 13.24% | ― | |
65 Neutral | $726.62M | 17.67 | -1.64% | ― | 2.23% | -115.71% | |
55 Neutral | $677.58M | 15.80 | 9.27% | 0.69% | -0.87% | -56.55% | |
49 Neutral | $1.95B | -1.37 | -21.43% | 3.74% | 0.84% | -29.84% | |
48 Neutral | $1.21B | ― | -104.11% | ― | -16.92% | -6107.70% |
* Basic Materials Sector Average
Performance Comparison
ECVT
Ecovyst
6.61
-2.89
-30.42%
KRO
Kronos Worldwide
7.56
-4.24
-35.93%
ODC
Oil-Dri Of America
43.66
5.38
14.05%
SCL
Stepan Company
54.82
-30.14
-35.48%
OEC
Orion Engineered
12.20
-11.48
-48.48%
NGVT
Ingevity
35.04
-18.81
-34.93%
Ecovyst Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 10.54%|
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 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.