Indorama Ventures (INDOY) AI Stock Analysis

• Market Cap: $2.84B
• Dividend Yield: 2.7%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: -8.79%
• EPS Growth: 91.33%
• Country: US
• Employees: 22,027
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -0.06
• Shares Outstanding: 561,455,200
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.10
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 7.63
• Enterprise Value/Market Cap: 129.18
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 6.30
• Enterprise Value/Ebitda: 9.09
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $4.50 ▼(-11.42% Downside)

Indorama Ventures is facing significant financial challenges with declining revenue and profitability, high leverage, and bearish technical indicators. The negative P/E ratio further reflects the company's current struggles. Despite some improvement in cash flow, the overall outlook remains cautious, with the stock showing signs of being oversold.

Positive Factors

Cash Flow Improvement

The significant growth in free cash flow indicates improved cash generation ability, enhancing financial flexibility and supporting long-term investments.

Sustainability Initiatives

Commitment to sustainability through recycling and circular economy initiatives can open new revenue streams and improve brand reputation, aligning with global environmental trends.

Economies of Scale

Large-scale operations allow cost efficiencies and competitive pricing, strengthening market position and supporting long-term profitability.

Negative Factors

High Leverage

Significant leverage poses financial risks, potentially limiting strategic flexibility and increasing vulnerability to economic downturns.

Declining Revenue

Declining revenue indicates challenges in market demand or competitive pressures, which could impact long-term growth and profitability.

Profitability Challenges

Negative net profit margins highlight operational inefficiencies and profitability challenges, impacting overall financial health and shareholder returns.

Indorama Ventures Business Overview & Revenue Model

Company Description

Indorama Ventures Public Company Limited produces and distributes polyethylene terephthalate (PET), purified terephthalic acid (PTA), paraxylene, purified isophthalic acid, naphthalene dicarboxylate (NDC), integrated purified ethylene oxide and ethylene glycol, polyester, rayon, nylon, polypropylene, composites, and worsted wool fibers products. It operates in five segments: Integrated PET, Specialty Chemicals, Packaging, Integrated Oxides and Derivatives, and Fibers. The company offers various PET resins, including hot-fill, high and low intrinsic viscosity, quick heat, and general grade to serve beverage containers and food, pharmaceutical and household products, and industrial packaging applications, as well as produces clear and colored preforms, bottles, and closures. It also provides ethylene glycol used as a raw material in the production of polyester fibers, antifreeze, liquid coolant, and solvent; monoethylene glycol for use as a feedstock in the production of PET and polyester fibers; diethylene glycol used to manufacture polyester polyols, unsaturated polyester resins, buffet heaters, paints and coatings, plasticizers, liquid laundry detergents, and cement grinding; and triethylene glycol used for natural gas dehydration. In addition, the company offers surfactants, LAB, and ethanolamines used in manufacture of detergents, homecare products, soaps, toothpastes, shampoos, hair conditioners, and other foaming products. In addition, it provides polyester fibers and yarns used for apparels, home textile, automotive, and non-woven; bicomponent fibers; and worsted wool yarns used in making suits and sweaters, as well as tire cord yarns used in air bags and tire cords. The company operates in Thailand, North America, Europe, and internationally. The company was incorporated in 2003 and is headquartered in Bangkok, Thailand. Indorama Ventures Public Company Limited is a subsidiary of Indorama Resources Limited.

How the Company Makes Money

Indorama Ventures generates revenue primarily through the production and sale of its polyester and PET products. The company benefits from economies of scale due to its extensive manufacturing capabilities and global footprint, allowing it to serve diverse markets effectively. Key revenue streams include the sale of PET resins used in packaging and textiles, as well as polyester fibers. Additionally, Indorama Ventures engages in strategic partnerships and joint ventures that enhance its market position and expand its product offerings. Factors contributing to its earnings include fluctuating raw material prices, demand in end-user markets, and the company's initiatives in sustainable practices which can lead to new revenue opportunities.

Indorama Ventures Financial Statement Overview

Summary

Indorama Ventures faces challenges with declining revenue and profitability, as evidenced by negative net profit margins and low EBIT margins. The balance sheet reveals high leverage, which could increase financial risk. However, cash flow generation shows signs of improvement, with significant growth in free cash flow.

Income Statement

Indorama Ventures has experienced declining revenue over recent periods, with a negative revenue growth rate of -5.7% in the TTM. The gross profit margin has decreased slightly to 13.3%, and the net profit margin is negative, indicating profitability challenges. The EBIT and EBITDA margins are low, reflecting operational inefficiencies.

Balance Sheet

The company has a high debt-to-equity ratio of 2.03, indicating significant leverage, which could pose financial risks. Return on equity is low at 0.59%, reflecting limited profitability from shareholders' investments. The equity ratio stands at 23.2%, suggesting moderate reliance on equity financing.

Cash Flow

Free cash flow has grown by 31% in the TTM, showing improvement in cash generation. The operating cash flow to net income ratio is 0.16, indicating that cash flow generation is not strongly aligned with net income. The free cash flow to net income ratio is 0.40, suggesting some cash flow stability despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	467.26B	541.58B	544.30B	656.27B	470.55B	331.51B
Gross Profit	58.15B	75.26B	68.26B	114.04B	84.98B	43.71B
EBITDA	40.27B	22.18B	29.47B	76.32B	63.81B	29.72B
Net Income	-1.56B	-19.26B	-10.80B	31.01B	26.29B	2.41B
Balance Sheet
Total Assets	552.21B	541.55B	590.13B	623.88B	541.83B	453.17B
Cash, Cash Equivalents and Short-Term Investments	32.89B	19.08B	20.79B	23.06B	16.46B	20.47B
Total Debt	275.16B	262.02B	254.33B	254.31B	224.23B	211.96B
Total Liabilities	412.30B	402.62B	412.06B	422.99B	370.82B	317.56B
Stockholders Equity	128.34B	125.95B	164.36B	185.99B	158.77B	126.65B
Cash Flow
Free Cash Flow	16.30B	17.52B	26.90B	49.42B	10.57B	25.31B
Operating Cash Flow	35.19B	35.11B	53.13B	77.98B	33.77B	43.44B
Investing Cash Flow	-24.69B	-21.88B	-25.65B	-74.16B	-25.77B	-78.60B
Financing Cash Flow	-651.39M	-14.54B	-28.91B	1.52B	-10.89B	43.74B

Indorama Ventures Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For INDOY, the sentiment is Negative. The current price of 5.08 is above the 20-day moving average (MA) of 4.85, below the 50-day MA of 5.35, and below the 200-day MA of 6.07, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 51.83 is Neutral, neither overbought nor oversold. The STOCH value of 85.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for INDOY.

Indorama Ventures Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CE	57 Neutral	$4.68B	-1.48	-54.74%	0.29%	-7.34%	-382.79%
TROX	57 Neutral	$692.87M	-2.07	-18.65%	8.27%	-7.81%	-334.15%
HUN	54 Neutral	$1.74B	-5.46	-10.65%	8.44%	-3.46%	-191.77%
DOW	49 Neutral	$16.65B	-14.17	-6.39%	9.17%	-5.25%	-208.14%
BAK	47 Neutral	$1.16B	-1.24	―	―	-10.68%	36.31%
INDOY	43 Neutral	$2.84B	-35.43	-0.46%	2.70%	-8.79%	91.33%