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ICL Group (ICL)
NYSE:ICL
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Icl
(NYSE:ICL)
Rating:62Neutral
Price Target:
$6.50
▲(5.01% Upside)
Positive Factors
IP/Bromine Performance
IP/bromine exceeded expectations, with $76M EBITDA on strong flame retardants volumes.
Market Dynamics
The potash dynamic is consistently improving, phosphate is resilient, and the specialties outlook remains the same.
Negative Factors
Competitive Position
ICL continued to sell tonnes at lower 2024 China/India contract prices despite gains in non-contract markets, leading to underperformance compared to competitors.
Earnings Performance
Q1 adjusted EBITDA of $359M and $0.09 adjusted EPS missed consensus estimates of $368M and $0.10.
Potash Performance
Potash EBITDA of $118M missed the $128M estimate due to lower sales volume and higher costs.
Icl (ICL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.73B
Dividend Yield2.98%
Average Volume (3M)678.69K
Price to Earnings (P/E)21.1
Beta (1Y)0.90
Revenue Growth-1.22%
EPS Growth-14.31%
CountryUS
Employees12,349
SectorBasic Materials
Sector Strength57
IndustryAgricultural Inputs
Share Statistics
EPS (TTM)0.09
Shares Outstanding1,290,644,800
10 Day Avg. Volume736,990
30 Day Avg. Volume678,691
Financial Highlights & Ratios
PEG Ratio-0.43
Price to Book (P/B)1.11
Price to Sales (P/S)0.93
P/FCF Ratio8.44
Enterprise Value/Market Cap1.47
Enterprise Value/Revenue1.65
Enterprise Value/Gross Profit5.03
Enterprise Value/Ebitda8.17
Forecast
1Y Price Target
$6.65Price Target Upside7.43% Upside
Rating ConsensusHold
Number of Analyst Covering3
Icl Business Overview & Revenue Model
Company DescriptionICL Group Ltd is a global specialty minerals and chemicals company that operates in several key sectors including agriculture, food, and engineered materials. The company is headquartered in Israel and is known for producing essential minerals and innovative solutions that address critical challenges in global food, agriculture, and industrial sectors. Its core products include potash, phosphates, and other specialty fertilizers, as well as advanced materials for various industrial applications.
How the Company Makes MoneyICL makes money primarily through the production and sale of specialty minerals and chemical products. The company's revenue streams are significantly diversified across three main segments: Fertilizers, Industrial Products, and Performance Products. In the Fertilizers segment, ICL generates income by selling potash and phosphate-based fertilizers to farmers and agricultural businesses worldwide, benefiting from the global demand for food security and sustainable agriculture. The Industrial Products segment contributes to revenue through the sale of bromine-based products and other specialty chemicals used in various industries such as flame retardants, oil and gas drilling, and water treatment. The Performance Products segment focuses on supplying specialty phosphates and other advanced materials for use in food, personal care, and other industrial applications. ICL also benefits from strategic partnerships and collaborations that enhance its market reach and technological capabilities. Key factors contributing to its earnings include global demand for agricultural inputs, innovation in specialty chemicals, and its expansive distribution network.
Icl Earnings Call Summary
Earnings Call Date:Jun 30, 2025
(Q2-2025)
| % Change Since: -8.30%|
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call presents a balanced view with notable strengths in specialties-driven sales and strategic market prioritization, but it also highlights significant challenges in the Potash and Industrial Products divisions due to geopolitical tensions and market conditions. The company's strategy and integration efforts provide a positive outlook, but the immediate operational challenges create a mixed sentiment.Q2-2025 Updates
Positive Updates
Specialties-Driven Sales Growth
Specialties-driven sales reached $1.496 billion, up 8% year-over-year and 6% sequentially.
Potash Price and Volume Strategy
Average potash price in Q2 was $333 CIF per ton, up 11% year-over-year and sequentially. The strategy focused on prioritizing supply to the best global markets like Europe.
Growing Solutions Division Performance
Second quarter sales were $540 million, up 9% year-over-year, with EBITDA improving by 24%.
Strong Operating Cash Flow
Operating cash flow increased to $269 million, up more than $100 million over the first quarter.
Global Market Strategy and Integration
Continued advancements in innovative new products and successful integration of acquisitions like Lavie Bio into the business.
Negative Updates
Potash Division Challenges
Potash sales volume was 971,000 metric tons in the second quarter, down more than 180,000 metric tons year-over-year due to ongoing war-related issues and a maintenance shutdown.
Industrial Products Division Sales
Sales for flame retardants and bromine-based products were down slightly due to lower volumes, despite higher prices.
Phosphate Solutions Division Mixed Performance
Strong second quarter sales of $637 million, up 11%, but EBITDA was down versus prior year due to mixed commodity and specialty phosphate prices and increased raw material costs.
Economic and Geopolitical Challenges
Challenges included ongoing war-related issues in Israel and the impact of the 12-day war with Iran, which affected operations and maintenance.
Company Guidance
In the ICL Second Quarter 2025 Earnings Conference Call, the company provided updated guidance for the year, indicating that they expect their Specialties-driven businesses, which include Industrial Products, Growing Solutions, and Phosphate Solutions, to generate an EBITDA between $0.95 billion and $1.15 billion for 2025. For Potash sales volumes, ICL projects a range of 4.3 million to 4.5 million metric tons, reflecting challenges from the brief June war with Iran and ongoing issues in the Dead Sea operations. The company anticipates an effective annual tax rate of approximately 30% for 2025. For the third quarter, they expect improved trends compared to the first half of the year, driven by higher potash prices due to the transition to 2025 contracts with China and India and an increase in spot transaction prices.Icl Financial Statement Overview
Summary
ICL demonstrates stable financial performance with strong operational efficiency and a solid balance sheet. However, there are minor declines in profitability and cash flow management requires improvement.Income Statement
ICL's income statement shows a positive trend with a stable gross profit margin of around 32.8% TTM and 32.9% last year. However, the net profit margin has decreased to 5.7% TTM from 5.9% in the previous year, reflecting a slight decline in profitability. Revenue growth is modest at 0.47% TTM, indicating steady performance in a competitive industry. EBIT and EBITDA margins remain robust at 11.3% and 20.2% TTM, respectively, showing operational efficiency.72
Positive
Balance Sheet
ICL maintains a strong balance sheet with a debt-to-equity ratio of 0.41 TTM, indicating a balanced leverage position. The return on equity is moderate at 6.7% TTM, reflecting decent profitability for equity holders. The equity ratio stands strong at 50% TTM, suggesting a solid capital structure. However, consistent monitoring of liabilities is advised due to industry volatility.68
Positive
Cash Flow
ICL's cash flow statement reflects stable cash generation capabilities, with a free cash flow to net income ratio of 1.39 TTM, indicating strong cash conversion. However, free cash flow has decreased by 28.3%, signaling a need for better cash management. The operating cash flow to net income ratio is robust at 3.33 TTM, ensuring operational liquidity.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.87B | 6.84B | 7.54B | 10.02B | 6.96B | 5.04B |
| Gross Profit | 2.26B | 2.26B | 2.67B | 5.03B | 2.61B | 1.49B |
| EBITDA | 1.39B | 1.37B | 1.67B | 4.04B | 1.66B | 821.00M |
| Net Income | 389.00M | 407.00M | 647.00M | 2.16B | 783.00M | 24.00M |
Balance Sheet | ||||||
| Total Assets | 11.69B | 11.32B | 11.63B | 11.75B | 11.08B | 9.66B |
| Cash, Cash Equivalents and Short-Term Investments | 433.00M | 442.00M | 592.00M | 508.00M | 564.00M | 314.00M |
| Total Debt | 2.43B | 2.29B | 2.69B | 2.82B | 3.01B | 2.78B |
| Total Liabilities | 5.57B | 5.33B | 5.59B | 6.04B | 6.34B | 5.58B |
| Stockholders Equity | 5.84B | 5.72B | 5.77B | 5.46B | 4.53B | 3.93B |
Cash Flow | ||||||
| Free Cash Flow | 541.16M | 755.00M | 815.00M | 1.28B | 454.00M | 178.00M |
| Operating Cash Flow | 1.30B | 1.47B | 1.59B | 2.02B | 1.06B | 804.00M |
| Investing Cash Flow | -792.12M | -694.00M | -863.00M | -754.00M | -579.00M | -583.00M |
| Financing Cash Flow | -592.00M | -846.00M | -712.00M | -1.30B | -244.00M | -105.00M |
Icl Technical Analysis
Neutral
6.19
Price Trends
6.72
Negative
6.50
Negative
5.81
Positive
Market Momentum
-0.20
Positive
36.82
Neutral
12.42
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICL, the sentiment is Neutral. The current price of 6.19 is below the 20-day moving average (MA) of 6.61, below the 50-day MA of 6.72, and above the 200-day MA of 5.81, indicating a neutral trend. The MACD of -0.20 indicates Positive momentum. The RSI at 36.82 is Neutral, neither overbought nor oversold. The STOCH value of 12.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ICL.
Icl Risk Analysis
Icl disclosed 60 risk factors in its most recent earnings report. Icl 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
Icl Peers Comparison
Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $14.56B | 11.75 | 24.98% | 2.41% | 0.66% | 25.75% | |
63 Neutral | $9.81B | 10.49 | 7.80% | 2.69% | -7.71% | 297.49% | |
62 Neutral | $7.73B | 21.06 | 6.24% | 2.98% | -1.22% | -14.31% | |
56 Neutral | $4.59B | 46.60 | 2.88% | 6.48% | 1.16% | -92.85% | |
51 Neutral | $3.37B | 76.15 | 4.98% | 4.52% | -2.05% | ― | |
51 Neutral | $381.24M | ― | -34.48% | ― | 0.63% | -369.50% | |
44 Neutral | AU$1.47B | -5.90 | -41.17% | 4.21% | -3.35% | -41.14% |
* Basic Materials Sector Average
Performance Comparison
ICL
Icl
6.19
2.52
68.66%
CF
Cf Industries Holdings
80.91
1.98
2.51%
FMC
FMC
35.79
-21.05
-37.03%
IPI
Intrepid Potash
28.63
7.12
33.10%
MOS
Mosaic Co
31.98
5.45
20.54%
SMG
Scotts Miracle-Gro Company
58.45
-7.81
-11.79%
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.