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ICL Group (ICL)
NYSE:ICL
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Icl
(NYSE:ICL)
Rating:70Neutral
Price Target:
$7.50
▲(10.46%Upside)
Positive Factors
Product Performance
IP/bromine EBITDA exceeded estimates due to strong flame retardants volumes, showcasing robust performance in this segment.
Negative Factors
Earnings
Management is talking down Q2 as a lower earnings quarter company-wide, indicating potential financial challenges.
Financial Performance
Q1 adjusted EBITDA and EPS missed consensus estimates, highlighting difficulties in meeting financial expectations.
Icl (ICL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.69B
Dividend Yield2.56%
Average Volume (3M)771.19K
Price to Earnings (P/E)22.3
Beta (1Y)0.85
Revenue Growth-3.48%
EPS Growth-18.34%
CountryUS
Employees12,349
SectorBasic Materials
Sector Strength63
IndustryAgricultural Inputs
Share Statistics
EPS (TTM)0.09
Shares Outstanding1,290,644,800
10 Day Avg. Volume753,424
30 Day Avg. Volume771,190
Financial Highlights & Ratios
PEG Ratio-7.19
Price to Book (P/B)1.49
Price to Sales (P/S)0.00
P/FCF Ratio16.15
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue0.39
Enterprise Value/Gross Profit4.80
Enterprise Value/Ebitda1.98
Forecast
1Y Price Target
$6.14Price Target Upside-9.57% Downside
Rating ConsensusHold
Number of Analyst Covering4
Icl Business Overview & Revenue Model
Company DescriptionICL 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 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:May 19, 2025
(Q1-2025)
| % Change Since: 1.34%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a slight positive tilt, with significant growth in sales, specialties-driven revenue, and strategic acquisitions. However, challenges such as potash price declines, subdued flame retardant markets, and operational issues in potash operations balanced the narrative.Q1-2025 Updates
Positive Updates
Sales Growth
Sales were $1,767 million, up 2% year-over-year and 10% on a quarterly basis, demonstrating solid strategic execution.
Specialties-Driven Revenue Increase
Specialties-driven sales of $1,412 million were up 3% year-over-year and 15% on a quarterly basis.
EBITDA Improvement
Consolidated adjusted EBITDA was $359 million, while specialties-driven EBITDA of $262 million was up 7% year-over-year and 4% quarterly.
Industrial Products Performance
Sales of $344 million were up 3% year-over-year, with EBITDA up 6% and margin improving to 22%, driven by higher volumes.
Potash Division Volume Increase
Potash sales volumes of 1,103,000 metric tons increased by about 20,000 tons year-over-year, mainly to Brazil and China.
Growing Solutions Division Growth
Sales of $495 million were up 3% year-over-year, while EBITDA increased 9%, driven by strategic execution and regional acquisitions.
Acquisition Strategy
Recent acquisition of Lavie Bio to advance the goal of becoming a global powerhouse in ag biologicals.
Negative Updates
Potash Price Decline
Average potash price for the first quarter was $300 CIF per ton, down compared to the first quarter of last year.
Challenges in Flame Retardant Markets
Some key flame retardant end markets, such as electronics and building and construction, remain subdued.
Purified Phosphoric Acid Pricing Pressure
Pricing remained under pressure due to overcapacity of purified phosphoric acid, affecting Phosphate Specialties results.
Operational Issues in Potash Operations
Addressed operational issues related to the war, with a completed maintenance shutdown to stabilize operations.
Company Guidance
During the ICL First Quarter 2025 Earnings Call, the company provided an optimistic outlook for the year, maintaining its 2025 guidance. Sales reached $1,767 million, showing a 2% year-over-year increase, driven by a 3% rise in specialties-driven sales to $1,412 million. The consolidated adjusted EBITDA was $359 million, with specialties-driven EBITDA at $262 million, marking a 7% year-over-year and 4% quarterly increase. The Potash division reported sales of $405 million with an EBITDA of $118 million, while Phosphate Solutions division sales grew by 3% to $573 million with a 6% increase in EBITDA to $139 million. The Growing Solutions business division also showed a 3% rise in sales to $495 million, with a 9% increase in EBITDA to $47 million. The company highlighted its strategic focus on leveraging regional production, with a strong emphasis on innovation, efficiency, and potential acquisitions to sustain growth. Overall, the guidance reflects an expectation of strengthening market conditions and improving pricing trends in 2025.Icl Financial Statement Overview
Summary
ICL demonstrates a stable financial position with a strong operational base and prudent balance sheet management. However, minor declines in profitability and reduced cash flow highlight areas for 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
Positive
6.79
Price Trends
6.62
Positive
6.27
Positive
5.41
Positive
Market Momentum
0.05
Negative
56.55
Neutral
74.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICL, the sentiment is Positive. The current price of 6.79 is above the 20-day moving average (MA) of 6.67, above the 50-day MA of 6.62, and above the 200-day MA of 5.41, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 56.55 is Neutral, neither overbought nor oversold. The STOCH value of 74.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (43)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $14.69B | 12.06 | 26.14% | 2.19% | 0.66% | 25.75% | |
70 Neutral | $8.69B | 22.32 | 6.70% | 2.56% | -3.48% | -18.34% | |
69 Neutral | $5.26B | 16.36 | 8.81% | 5.51% | 1.45% | -70.85% | |
69 Neutral | $11.25B | 30.61 | 3.09% | 2.48% | -13.37% | -50.63% | |
60 Neutral | $466.09M | ― | -35.32% | ― | 0.63% | -369.50% | |
57 Neutral | $3.71B | 128.41 | 4.98% | 4.11% | 0.75% | ― | |
43 Neutral | AU$1.35B | -6.12 | -40.62% | 4.33% | -4.78% | -43.21% |
* Basic Materials Sector Average
Performance Comparison
ICL
Icl
6.79
2.66
64.41%
CF
Cf Industries Holdings
90.69
18.33
25.33%
FMC
FMC
43.13
-12.46
-22.41%
IPI
Intrepid Potash
35.25
11.82
50.45%
MOS
Mosaic Co
35.18
7.16
25.55%
SMG
Scotts Miracle-Gro Company
64.98
2.45
3.92%
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.