Icl (ICL) AI Stock Analysis

• Market Cap: $8.31B
• Dividend Yield: 2.91%
• Average Volume (3M): 705.97K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.88
• Revenue Growth: -1.22%
• EPS Growth: -14.31%
• Country: US
• Employees: 12,349
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Agricultural Inputs
• EPS (TTM): 0.09
• Shares Outstanding: 1,290,672,700
• 10 Day Avg. Volume: 613,620
• 30 Day Avg. Volume: 705,969
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 1.63
• Enterprise Value/Gross Profit: 5.06
• Enterprise Value/Ebitda: 7.87
• 1Y Price Target: $6.61
• Price Target Upside: 7.83% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 64 Neutral
• Price Target: $6.50 ▲(6.04% Upside)

ICL's overall stock score is driven by a mixed financial performance and technical indicators that suggest potential bearish momentum. The earnings call provided some positive insights, particularly in specialties-driven sales growth, but was tempered by geopolitical challenges and declining EBITDA. Valuation metrics indicate the stock is moderately valued, with a reasonable dividend yield.

Positive Factors

IP/Bromine Performance

IP/bromine segment exceeded expectations with strong flame retardants volumes, positively influencing the stock.

Market Dynamics

The potash market is showing consistent improvement, which could be a positive sign for ICL's stock.

Negative Factors

Earnings Performance

ICL's Q1 adjusted EBITDA and EPS missed consensus estimates, indicating potential challenges in financial performance.

Order Book Performance

ICL's potash order book is lagging behind competitors, which may affect the company's stock negatively.

Sales Volume and Costs

Potash EBITDA fell short due to lower sales volume and higher costs, impacting the company's profitability.

Icl Business Overview & Revenue Model

Company Description

ICL Group Ltd, together with its subsidiaries, operates as a specialty minerals and chemicals company worldwide. It operates in four segments: Industrial Products, Potash, Phosphate Solutions, and Innovative Ag Solutions (IAS). The Industrial Products segment produces bromine out of a solution that is a by-product of the potash production process, as well as bromine-based compounds; produces various grades of potash, salt, magnesium chloride, and magnesia products; and produces and markets phosphorous-based flame retardants and other phosphorus-based products. The Potash segment extracts potash from the Dead Sea; mines and produces potash and salt; produces Polysulphate; produces, markets, and sells magnesium and magnesium alloys, as well as related by-products, including chlorine and sylvinite; and sells salt. The Phosphate Solutions segment uses phosphate commodity products to produce specialty products; produces and markets phosphate-based fertilizers, as well as sulphuric acid, green phosphoric acid, and phosphate fertilizers; and manufactures thermal phosphoric acid for various industrial end markets, such as oral care, cleaning products, paints and coatings, water treatment, asphalt modification, construction, and metal treatment. It also develops and produces functional food ingredients and phosphate additives for use in the processed meat, poultry, seafood, dairy, beverage, and baked goods markets; and produces milk and whey proteins for the food ingredients industry. The IAS segment develops, manufactures, markets, and sells fertilizers based primarily on nitrogen, potash, and phosphate, including water soluble specialty, liquid, soluble, and controlled-release fertilizers. It sells its products through marketing companies, agents, and distributors. The company was formerly known as Israel Chemicals Ltd. and changed its name to ICL Group Ltd in May 2020. The company was founded in 1968 and is headquartered in Tel Aviv, Israel.

How the Company Makes Money

ICL generates revenue through several key streams. The primary source of income comes from the sale of fertilizers, particularly potash and phosphate, which are crucial for global agriculture. The company also produces bromine and its derivatives, which are utilized in various industries, including flame retardants and water treatment. Additionally, ICL offers specialty products for health and nutrition, such as food additives and nutraceuticals. Strategic partnerships with agricultural and industrial companies enhance its distribution and market reach. The company's focus on innovation and sustainable practices also helps it to capture emerging market opportunities, further contributing to its earnings.

Icl Financial Statement Overview

Summary

ICL demonstrates a mixed financial performance. Revenue growth has resumed, but profitability margins are under pressure. The balance sheet remains stable with moderate leverage, but declining return on equity is a concern. Cash flow challenges, particularly in free cash flow, highlight potential liquidity risks.

Income Statement

ICL's income statement shows moderate performance with a gross profit margin of 32.87% and a net profit margin of 5.66% in the TTM. Revenue growth is positive at 1.16% TTM, indicating a slight recovery from previous declines. However, margins have decreased compared to earlier years, suggesting pressure on profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.42, indicating moderate leverage. Return on equity is 6.71% TTM, showing a decline from previous years. The equity ratio stands at 48.60%, suggesting a solid equity base.

Cash Flow

Cash flow analysis reveals challenges with a negative free cash flow growth rate of -19.07% TTM. The operating cash flow to net income ratio is 0.52, indicating adequate cash generation relative to net income. However, the decline in free cash flow is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.95B	6.84B	7.54B	10.02B	6.96B	5.04B
Gross Profit	2.25B	2.26B	2.67B	5.03B	2.61B	1.49B
EBITDA	1.44B	1.37B	1.67B	4.04B	1.66B	821.00M
Net Income	367.00M	407.00M	647.00M	2.16B	783.00M	24.00M
Balance Sheet
Total Assets	12.38B	11.32B	11.63B	11.75B	11.08B	9.66B
Cash, Cash Equivalents and Short-Term Investments	701.00M	442.00M	592.00M	508.00M	564.00M	314.00M
Total Debt	2.92B	2.29B	2.69B	2.82B	3.01B	2.78B
Total Liabilities	6.11B	5.33B	5.59B	6.04B	6.34B	5.58B
Stockholders Equity	6.01B	5.72B	5.77B	5.46B	4.53B	3.93B
Cash Flow
Free Cash Flow	437.96M	755.00M	815.00M	1.28B	454.00M	178.00M
Operating Cash Flow	1.26B	1.47B	1.59B	2.02B	1.06B	804.00M
Investing Cash Flow	-883.98M	-694.00M	-863.00M	-754.00M	-579.00M	-583.00M
Financing Cash Flow	-87.74M	-846.00M	-712.00M	-1.30B	-244.00M	-105.00M

Icl Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICL, the sentiment is Negative. The current price of 6.13 is below the 20-day moving average (MA) of 6.19, below the 50-day MA of 6.52, and above the 200-day MA of 5.97, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 41.59 is Neutral, neither overbought nor oversold. The STOCH value of 28.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ICL.

Icl Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CF	72 Outperform	$14.16B	11.43	24.98%	2.36%	9.53%	36.15%
MOS	66 Neutral	$10.60B	11.28	7.80%	2.63%	-7.71%	297.49%
ICL	64 Neutral	$8.31B	22.01	6.24%	2.91%	-1.22%	-14.31%
Sector *	61 Neutral	$10.26B	6.17	0.86%	2.93%	3.10%	-36.03%
FMC	58 Neutral	$4.88B	48.83	2.88%	6.26%	1.16%	-92.85%
IPI	52 Neutral	$404.94M	―	-34.48%	―	11.93%	-311.34%
SMG	51 Neutral	$3.53B	78.47	4.98%	4.38%	-2.05%	―