IMERYS SA (NK) AI Stock Analysis

• Market Cap: €2.13B
• Dividend Yield: 6.28%
• Average Volume (3M): 69.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: -7.71%
• EPS Growth: -451.19%
• Country: FR
• Employees: 12,400
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): N/A
• Shares Outstanding: 84,940,956
• 10 Day Avg. Volume: 72,328
• 30 Day Avg. Volume: 69,149
• PEG Ratio: 0.09
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 21.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €34.00
• Price Target Upside: 36.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: €24.00 ▼(-3.38% Downside)

The overall stock score of 56 reflects significant financial performance challenges, with declining revenue and profitability impacting the company's financial health. Technical analysis shows short-term bullish momentum, but caution is advised due to overbought indicators and longer-term moving averages. Valuation is hindered by negative earnings, although the high dividend yield offers some compensation. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Strong Market Position

IMERYS's leadership in mineral-based solutions provides a competitive edge, supporting long-term growth and market dominance in various industries.

High Gross Profit Margins

Strong gross margins indicate efficient cost management and pricing power, contributing to long-term financial stability despite current challenges.

Positive Cash Flows

Positive operating cash flows suggest robust cash generation capabilities, providing a buffer against financial instability and supporting future investments.

Negative Factors

Declining Revenue

Continued revenue decline reflects market challenges and potential loss of competitive positioning, necessitating strategic adjustments to regain growth.

Negative Net Income

Negative net income indicates profitability issues, which can erode shareholder value and limit reinvestment opportunities, affecting long-term viability.

Decreased Free Cash Flow

Reduced free cash flow limits the company's ability to invest in growth opportunities and manage debt, posing risks to long-term financial health.

IMERYS SA Business Overview & Revenue Model

Company Description

Imerys S.A. provides mineral-based specialty solutions for various industries worldwide. The company operates in Performance Minerals and High Temperature Solutions segments. It provides additives for interior decorative paints, as well as marine protection, facade coating, can coating, etc.; rubber, tires, medical rubber, and cables; and adhesives and sealants. The company also offers minerals for technical ceramics and traditional ceramics comprising floor and wall tiles, large slabs, sanitaryware, and tableware; and components for the production of high purity silicon metal for used to manufacture aluminum alloys, electronics, and solar panels, as well as for construction industry, such as insulation ceiling tiles. In addition, it provides functional additives for plastics and thermoset for use in automotive, construction, packaging, and hygiene industries; fillers and coatings for graphic paper, as well as board and packaging applications; filtration agents for liquids and blood plasma; and graphite and carbon-based solutions for lithium-ion and alkaline batteries, polymers, fuel cells, carbon brushes, and others. Further, the company offers refractory minerals and solutions for high-temperature industrial processes; bentonite for foundry molds; alumina and zirconia for abrasives; and high-performance binders for dry mix mortars and floor screeds in the construction industry. It serves construction, paper and board, mobile energy, steelmaking, agriculture, food, automotive, and cosmetics industries. The company was incorporated in 1880 and is headquartered in Paris, France. Imerys S.A. is a subsidiary of Belgian Securities BV.

How the Company Makes Money

IMERYS SA generates revenue primarily through the production and sale of mineral-based products across multiple industries. Its key revenue streams come from the sale of industrial minerals, which are used in various applications such as paper, plastics, ceramics, and construction. The company also benefits from strategic partnerships with leading manufacturers in these sectors, allowing it to enhance its product offerings and expand its market reach. Additionally, IMERYS focuses on value-added services and customized solutions, which enable it to command premium pricing and improve customer loyalty, further contributing to its earnings.

IMERYS SA Financial Statement Overview

Summary

IMERYS SA is facing revenue and profitability challenges, with declining earnings and negative net income impacting its financial performance. While the balance sheet shows moderate leverage, the negative ROE indicates inefficiencies in generating shareholder returns. Cash flows remain positive but have weakened, constraining financial flexibility. The company needs to focus on improving operational efficiency and profitability to enhance overall financial health.

Income Statement

The company has experienced declining revenue over recent years, with a notable drop of 4.99% from 2023 to 2024. Gross profit margins are strong at approximately 66.86% for 2024, but the net profit margin is negative due to a net loss, indicating profitability challenges. The EBIT and EBITDA margins have declined, reflecting operational inefficiencies.

Balance Sheet

The debt-to-equity ratio is stable, but slightly high at 0.58, suggesting moderate leverage. The equity ratio stands at 49.09%, indicating a balanced capital structure. Return on equity has turned negative due to the net loss, reflecting a need to improve returns for shareholders.

Cash Flow

The operating cash flow to net income ratio is distorted due to negative net income, but operating cash flows remain positive, indicating good cash generation. Free cash flow has decreased significantly, impacting financial flexibility. The free cash flow to net income ratio is low, highlighting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.17B	3.60B	3.79B	4.28B	3.66B	3.80B
Gross Profit	3.04B	2.41B	2.33B	2.81B	2.38B	2.51B
EBITDA	393.02M	339.90M	413.50M	582.10M	577.00M	476.30M
Net Income	-143.50M	-95.00M	51.30M	237.20M	240.10M	30.10M
Balance Sheet
Total Assets	6.36B	6.68B	7.15B	7.87B	7.42B	6.99B
Cash, Cash Equivalents and Short-Term Investments	477.80M	640.40M	1.26B	622.20M	585.20M	658.40M
Total Debt	1.89B	1.91B	2.38B	2.29B	2.04B	2.17B
Total Liabilities	3.25B	3.38B	3.99B	4.49B	4.17B	4.04B
Stockholders Equity	3.09B	3.28B	3.12B	3.34B	3.19B	2.90B
Cash Flow
Free Cash Flow	112.80M	109.60M	204.20M	45.80M	181.60M	276.10M
Operating Cash Flow	390.90M	478.10M	602.80M	452.00M	542.90M	538.20M
Investing Cash Flow	-414.50M	-373.00M	155.50M	-322.60M	-309.60M	-294.70M
Financing Cash Flow	-122.00M	-78.80M	-930.80M	102.60M	-341.30M	-216.90M

IMERYS SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:NK, the sentiment is Positive. The current price of 24.84 is above the 20-day moving average (MA) of 23.87, above the 50-day MA of 23.16, and above the 200-day MA of 24.72, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 65.97 is Neutral, neither overbought nor oversold. The STOCH value of 86.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:NK.

IMERYS SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VCT	78 Outperform	€3.49B	12.97	9.78%	2.66%	-3.29%	0.92%
VK	66 Neutral	€3.96B	11.06	16.47%	9.68%	-15.12%	-10.10%
AKE	62 Neutral	€4.05B	28.26	2.27%	7.05%	-2.71%	-57.75%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
NK	56 Neutral	€2.13B	-12.60	-5.29%	6.28%	-7.71%	-451.19%
ERA	53 Neutral	€2.07B	-21.61	-7.36%	2.83%	-6.91%	-222.35%
ALHGR	47 Neutral	€75.30M	-8.18	-14.10%	―	76.56%	13.26%