Indorama Ventures (INDOY) AI Stock Analysis

• Market Cap: $4.01B
• Dividend Yield: 2.7%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: -8.79%
• EPS Growth: 91.33%
• Country: US
• Employees: 22,027
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): -0.27
• Shares Outstanding: 561,455,200
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: 0.21
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 5.79
• Enterprise Value/Market Cap: 95.60
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 7.71
• Enterprise Value/Ebitda: 12.61
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $7.00 ▲(33.33% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is held back primarily by deteriorating profitability, declining revenue/margins, and rising leverage, despite consistently positive operating and free cash flow. Technical indicators also reflect weak price momentum. Valuation is mixed, with a modest dividend yield but a negative P/E due to losses.

Positive Factors

Cash generation resilience

Consistent positive operating cash flow and multi-year free cash flow provide a durable liquidity buffer that supports working capital, maintenance capex and selective investments. Over 2–6 months this underpins operational continuity and gives management flexibility to stabilize earnings or deleverage if prioritized.

Vertical integration and global scale

Control across the PET value chain and geographic manufacturing scale create structural advantages: ability to capture upstream-to-downstream spreads, secure feedstock supply, and serve regional customers. These attributes support durable margin recovery potential and competitive positioning across cycles.

Positive core operating profitability (EBITDA)

Positive EBITDA indicates core operations still generate cash before non-cash and exceptional items. That operational profitability is a foundation for restructuring, working capital management, and gradual margin restoration; it makes a sustainable turnaround feasible if spreads and utilization improve.

Negative Factors

Sustained net losses

Repeated annual net losses erode equity and limit retained-earnings funding for reinvestment. Persisting losses reduce strategic flexibility, damage stakeholder confidence and raise the bar for operational fixes—creating a structural headwind to restoring long-term profitability unless underlying spreads or costs improve.

Elevated and rising leverage

Material increase in leverage reduces financial flexibility and raises refinancing and interest coverage risk. With cash-flow-to-debt coverage low (~0.19), higher debt constrains ability to invest, respond to feedstock price swings, or absorb cyclical downturns, making sustained recovery more difficult.

Declining revenue and margin compression

Multi-year revenue decline and compressed gross margins reduce operating leverage and limit the company's ability to cover fixed costs. Structural margin pressure weakens competitiveness and suggests product spreads or volumes are under strain, making durable profit recovery more challenging absent structural demand or pricing improvement.

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 primarily makes money by manufacturing and selling petrochemical intermediates and polymers, with revenue largely tied to volumes sold and market-linked pricing that reflects underlying feedstock costs and supply-demand conditions. Key revenue streams include: (1) PET and packaging materials: sales of PET resin used to make bottles and other packaging, often sold to packaging converters and brand supply chains; pricing and margins generally depend on PET spreads (the difference between PET selling prices and raw material costs) and utilization rates. The company also generates revenue from recycled plastics (e.g., rPET), selling recycled resin and flakes/pellets to customers seeking recycled-content packaging. (2) Intermediates/feedstocks: sales of PTA and MEG (key inputs for PET) and other intermediates/derivatives; earnings here are driven by integrated production economics, regional supply-demand, and margins/spreads for each product line. (3) Fibers and related products (where applicable within its operating segments): sales of polyester fibers/yarns and other downstream products used in textiles and industrial applications, with profitability influenced by polyester chain spreads and end-market demand. Additional factors influencing how it earns include vertical integration across parts of the PET chain (which can capture margin at multiple stages and help optimize costs), geographic diversification (ability to serve regional markets and arbitrage logistics where feasible), and long-term customer relationships with major packaging and consumer-product supply chains. Specific material partnerships, customer names, or contract structures are not available in the provided context; therefore, null.

Indorama Ventures Financial Statement Overview

Summary

Profitability and revenue have weakened materially, with three straight years of net losses (2023–2025), contracting revenue, and gross margin compression to ~11.1% in 2025. Balance-sheet risk is elevated as leverage rose to ~2.72x debt/equity in 2025. The main offset is resilient cash generation: operating cash flow and free cash flow remain positive, though free cash flow has been declining and coverage versus debt is limited (~0.19).

Income Statement

Profitability has deteriorated sharply versus prior years. After strong results in 2021–2022 (net profit margin ~5.6% and ~4.7%), the company swung to losses in 2023–2025, with 2025 net margin at about -1.6% and negative operating profit. Revenue has also been contracting for multiple years (down ~8.2% in 2025 and down ~17.1% in 2023), and gross margin has compressed from ~17–18% (2021–2022) to ~11.1% in 2025. A positive offset is that cash-like earnings remain positive at the EBITDA level (2025 EBITDA margin ~5.5%), suggesting operations are still generating some core profit before heavier charges.

Balance Sheet

Leverage is elevated and trending worse: debt to equity increased to ~2.72x in 2025 from ~1.37–1.55x in 2022–2023, driven by higher debt and a meaningful drop in equity since 2023. Returns to shareholders are negative in the last three annual periods (2023–2025), consistent with net losses and weakening equity. The balance sheet still shows substantial asset scale, but the higher leverage reduces flexibility and raises risk if earnings remain under pressure.

Cash Flow

Cash generation is a relative bright spot despite accounting losses. Operating cash flow remained positive in each year shown, and free cash flow stayed solid (about 15.5B in 2025 and 17.5B in 2024), supporting liquidity. However, free cash flow has been declining since the 2022 peak (free cash flow growth negative in 2023–2025), and cash flow has not been strong enough relative to the company’s debt load (cash flow-to-debt coverage remains low, ~0.19 in 2025). Overall: good cash resilience, but weakening trajectory and limited cushion versus leverage.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	428.76B	541.58B	544.30B	656.27B	470.55B
Gross Profit	47.78B	75.26B	68.26B	114.04B	84.98B
EBITDA	23.43B	22.18B	29.47B	76.32B	63.81B
Net Income	-7.04B	-19.26B	-10.80B	31.01B	26.29B
Balance Sheet
Total Assets	523.73B	541.55B	590.13B	623.88B	541.83B
Cash, Cash Equivalents and Short-Term Investments	28.00B	19.08B	20.79B	23.06B	16.46B
Total Debt	279.16B	262.02B	254.33B	254.31B	224.23B
Total Liabilities	409.62B	402.62B	412.06B	422.99B	370.82B
Stockholders Equity	102.68B	125.95B	164.36B	185.99B	158.77B
Cash Flow
Free Cash Flow	15.49B	17.52B	26.90B	49.42B	10.57B
Operating Cash Flow	32.64B	35.11B	53.13B	77.98B	33.77B
Investing Cash Flow	-25.55B	-21.88B	-25.65B	-74.16B	-25.77B
Financing Cash Flow	2.52B	-14.54B	-28.91B	1.52B	-10.89B

Indorama Ventures Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.25
• 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 INDOY, the sentiment is Positive. The current price of 5.25 is below the 20-day moving average (MA) of 6.67, below the 50-day MA of 6.55, and below the 200-day MA of 6.23, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 59.33 is Neutral, neither overbought nor oversold. The STOCH value of 98.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	58 Neutral	$6.24B	-3.97	-25.13%	0.29%	-7.34%	-382.79%
DOW	56 Neutral	$26.30B	-6.34	-15.53%	9.17%	-5.25%	-208.14%
HUN	51 Neutral	$1.81B	-6.29	-10.06%	8.44%	-3.46%	-191.77%
TROX	51 Neutral	$1.11B	-1.41	-29.85%	8.27%	-7.81%	-334.15%
BAK	47 Neutral	$1.44B	-49.30	128.17%	―	-10.68%	36.31%
INDOY	45 Neutral	$4.01B	-12.74	-6.01%	2.70%	-8.79%	91.33%