Minerals Technologies (MTX) AI Stock Analysis

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Minerals Technologies

(NYSE:MTX)

61Neutral

Minerals Technologies has a solid financial foundation with strong cash flow and profitability, although revenue growth is moderate. Technical indicators suggest bearish sentiment, while valuation appears attractive with a low P/E ratio. The recent earnings call reveals challenges but also positive future prospects with potential sales growth and cost savings. The overall score reflects these mixed factors, highlighting strengths in financial stability and potential recovery despite current market uncertainties.

Minerals Technologies (MTX) vs. S&P 500 (SPY)

Market Cap

$1.87B

Dividend Yield0.73%

Average Volume (3M)224.27K

Price to Earnings (P/E)11.4

Beta (1Y)1.13

Revenue Growth-3.82%

EPS Growth-126.04%

CountryUS

Employees3,891

SectorBasic Materials

Sector Strength59

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)5.17

Shares Outstanding31,820,087

10 Day Avg. Volume212,098

30 Day Avg. Volume224,270

Financial Highlights & Ratios

PEG Ratio0.11

Price to Book (P/B)N/A

Price to Sales (P/S)0.98

Price to Cash Flow (P/CF)7.40

P/FCF Ratio12.30

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$473.36

Price Target Upside793.47% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Minerals Technologies Business Overview & Revenue Model

Company DescriptionMinerals Technologies Inc. (MTX) is a global resource- and technology-based company that develops, produces, and markets a broad range of mineral, mineral-based, and synthetic mineral products, as well as related systems and services. The company operates in several sectors, including Performance Materials, Specialty Minerals, Refractories, and Energy Services. Its core products include precipitated calcium carbonate, bentonite, and talc, which are used in a variety of applications such as paper, steel, construction, and consumer products.

How the Company Makes MoneyMinerals Technologies Inc. generates revenue through its diverse product offerings and services across its major business segments. The Performance Materials segment provides mineral and synthetic mineral products for consumer and industrial markets, making revenue through sales to sectors like construction, environmental, and automotive. The Specialty Minerals segment manufactures and sells calcium carbonate and talc, primarily to the paper, packaging, and consumer products industries, deriving income from long-term contracts and partnerships. The Refractories segment supplies refractory materials and services to the steel industry, earning through sales and service contracts that enhance productivity and reduce costs for steel manufacturers. Lastly, the Energy Services segment offers services and products to the oil and gas industry, contributing to revenue through service agreements and contracts with major companies in the energy sector. Minerals Technologies benefits from strategic partnerships and long-term contracts with its clients, which provide steady revenue streams and growth opportunities.

Minerals Technologies Financial Statement Overview

Summary

Minerals Technologies demonstrates strong profitability and efficient cash flow management. The company maintains a solid balance sheet with low leverage and commendable equity returns. Revenue growth has been moderate, but improvements in profitability highlight operational efficiency.

Income Statement

Positive

Minerals Technologies shows a solid financial performance with a consistent gross profit margin due to efficient cost management. The net profit margin has improved significantly over the years, reflecting increased profitability. Revenue growth has been moderate, with some fluctuations, indicating potential for stability but also challenges in achieving higher revenue expansion. The EBIT and EBITDA margins are healthy, showcasing efficient earnings generation before interest, taxes, depreciation, and amortization.

Balance Sheet

Positive

The balance sheet is stable with a low debt-to-equity ratio, indicating a conservative use of leverage, which reduces financial risk. Return on Equity (ROE) has shown improvement, suggesting better returns on shareholders' equity. The equity ratio is reasonable, indicating a balanced approach to financing assets. Overall, the balance sheet reflects stability, though there is room for improvement in asset utilization.

Cash Flow

Positive

The company demonstrates strong cash flow management with consistent operating cash flow exceeding net income, indicating high-quality earnings. Free cash flow has grown over the years, providing flexibility for reinvestment and debt reduction. The free cash flow to net income ratio is solid, ensuring sufficient liquidity for operations and strategic initiatives. However, the capital expenditures have been significant, which may impact future cash availability.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.12B	2.17B	2.13B	1.86B	1.59B
	Gross Profit
547.70M	507.10M	465.00M	446.50M	405.40M
	EBIT
286.50M	279.90M	152.30M	141.50M	103.20M
	EBITDA
374.90M	278.10M	307.30M	345.10M	279.90M
	Net Income Common Stockholders
167.10M	84.10M	122.20M	164.40M	112.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
337.10M	321.50M	252.80M	304.40M	371.80M
	Total Assets
3.39B	3.35B	3.40B	3.37B	3.21B
	Total Debt
5.10M	1.07B	1.06B	1.02B	934.20M
	Net Debt
-328.00M	748.70M	815.10M	717.50M	566.50M
	Total Liabilities
1.61B	1.66B	1.79B	1.79B	1.71B
	Stockholders Equity
1.75B	1.65B	1.58B	1.54B	1.46B
Cash Flow		Free Cash Flow
146.90M	140.10M	23.40M	146.40M	173.80M
	Operating Cash Flow
236.40M	233.60M	105.70M	232.40M	240.60M
	Investing Cash Flow
-94.50M	-91.70M	-101.60M	-278.60M	-78.70M
	Financing Cash Flow
-110.40M	-71.70M	-34.10M	5.60M	-43.00M

Minerals Technologies Technical Analysis

Technical Analysis Sentiment

Negative

Last Price52.98

Price Trends

50DMA

64.06

Negative

100DMA

70.35

Negative

200DMA

73.80

Negative

Market Momentum

MACD

-2.46

Negative

RSI

32.47

Neutral

STOCH

53.79

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MTX, the sentiment is Negative. The current price of 52.98 is below the 20-day moving average (MA) of 57.77, below the 50-day MA of 64.06, and below the 200-day MA of 73.80, indicating a bearish trend. The MACD of -2.46 indicates Negative momentum. The RSI at 32.47 is Neutral, neither overbought nor oversold. The STOCH value of 53.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MTX.

Minerals Technologies Risk Analysis

Minerals Technologies disclosed 17 risk factors in its most recent earnings report. Minerals Technologies reported the most risks in the “Ability to Sell” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Minerals Technologies Peers Comparison

Overall Rating

UnderperformOutperform

Sector (49)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IOSP	67 Neutral	$2.26B	63.74	3.02%	1.72%	-5.31%	-74.42%
KWR	65 Neutral	$1.87B	16.24	8.49%	1.82%	-5.82%	3.75%
MTX	61 Neutral	$1.87B	11.37	-1.45%	0.73%	-3.82%	-126.04%
CC	56 Neutral	$1.86B	21.72	12.98%	8.04%	-4.05%	―
PRM	55 Neutral	$1.52B	―	-0.51%	―	74.16%	-112.26%
Sector *	49 Neutral	$1.95B	-1.50	-22.00%	3.79%	0.66%	-27.40%
SSL	47 Neutral	$2.21B	―	-28.05%	2.00%	-4.31%	-1421.83%

* Basic Materials Sector Average

Performance Comparison

MTX

Minerals Technologies

52.98

-20.32

-27.72%

IOSP

Innospec

89.79

-29.82

-24.93%

KWR

Quaker Chemical

105.08

-82.56

-44.00%

SSL

Sasol

3.56

-3.37

-48.63%

Chemours Company

12.37

-13.56

-52.29%

PRM

Perimeter Solutions

10.20

3.14

44.48%

Minerals Technologies Earnings Call Summary

Earnings Call Date: Apr 24, 2025 | % Change Since: -9.90% | Next Earnings Date: Jul 24, 2025

Earnings Call Sentiment Neutral

The earnings call reflects a strong financial performance with record profitability and successful growth in consumer-oriented markets. However, the company faced challenges with flat sales, difficulties in certain segments, and tariff uncertainties. The outlook for 2025 is cautiously optimistic, with potential growth tempered by external uncertainties.

Highlights

Record Operating Income and EBITDA

Achieved record operating income for the fourth consecutive quarter and second consecutive year, with EBITDA surpassing $400 million.

Strong Margins and Profitability

Delivered an operating margin of 15% in 2024, a target originally set for the end of 2025, with full-year earnings per share increasing by 18%.

Successful Shareholder Returns

Completed a $75 million share buyback program, increased dividends by 10%, and authorized a new $200 million share repurchase program.

Growth in Consumer-Oriented Markets

Consumer and Specialties segment saw a 25% growth in operating income, driven by innovations and expansion in pet care and specialty additives.

Innovative Product Developments

Launched new products, including pet litter with health indicators and sustainable additives, contributing to 18% of revenue from new products.

Lowlights

Flat Sales Performance

Overall sales remained flat for 2024, impacted by weak commercial construction markets and softened steel and foundry markets.

Challenges in Engineered Solutions Segment

Faced difficulties in high-temperature technologies with reduced demand for steel and foundry products.

Potential Tariff Impacts

Uncertainty around tariff impacts, with potential cost increases of $2 million from China tariffs and $10 million from North American tariffs.

Slow Start to 2025

First-quarter guidance reflects a slow start with a forecasted sales decrease in Engineered Solutions and a cautious outlook due to market uncertainties.

Company Guidance

During the call, Minerals Technologies Inc. provided several key metrics reflecting their strong financial performance in 2024 and guidance for 2025. The company achieved record operating income for the fourth consecutive quarter, with an operating margin of 15% for the year, surpassing their original 2025 target. They reported record EBITDA of over $400 million, with earnings per share increasing by 18%. Their cash flow remained robust, with $236 million in cash from operations and $147 million in free cash flow. The company completed a $75 million share buyback program, increased dividends by 10%, and authorized a new $200 million share repurchase program. Looking forward, they anticipate a sales growth of 3% to 5% in 2025, with continued strength in their consumer and specialty markets, and expect to maintain their operating margin at 15% or potentially higher, depending on market conditions and volume leverage.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.