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Minerals Technologies Inc. (MTX)
NYSE:MTX
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Minerals Technologies
(NYSE:MTX)
63Neutral
Minerals Technologies (MTX) vs. S&P 500 (SPY)
Market Cap
$1.99B
Dividend Yield0.67%
Average Volume (3M)217.04K
Price to Earnings (P/E)12.0
Beta (1Y)1.23
Revenue Growth-2.37%
EPS Growth100.91%
CountryUS
Employees3,891
SectorBasic Materials
Sector Strength60
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)5.17
Shares Outstanding31,897,554
10 Day Avg. Volume256,811
30 Day Avg. Volume217,038
Financial Highlights & Ratios
PEG Ratio0.12
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
$276.95Price Target Upside339.18% 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
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.75
Positive
Balance Sheet
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.65
Positive
Cash Flow
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.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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
Negative
63.06
Price Trends
70.14
Negative
74.41
Negative
75.87
Negative
Market Momentum
-1.86
Positive
26.84
Positive
13.26
Positive
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 63.06 is below the 20-day moving average (MA) of 66.07, below the 50-day MA of 70.14, and below the 200-day MA of 75.87, indicating a bearish trend. The MACD of -1.86 indicates Positive momentum. The RSI at 26.84 is Positive, neither overbought nor oversold. The STOCH value of 13.26 is Positive, 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 (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $9.13B | 34.48 | 16.82% | 0.44% | 5.65% | 84.17% | |
63 Neutral | $1.99B | 12.05 | 9.83% | 0.67% | -2.37% | 100.91% | |
61 Neutral | $3.10B | 28.80 | 6.35% | 1.56% | 0.99% | -27.62% | |
57 Neutral | $2.73B | 21.03 | 0.18% | 2.80% | -4.35% | -115.63% | |
50 Neutral | $6.22B | 6.84 | -24.69% | 3.82% | -6.03% | -177.29% | |
50 Neutral | $2.74B | ― | -5.22% | 7.20% | -1.23% | -277.52% | |
47 Neutral | $2.64B | -3.21 | -21.68% | 3.30% | 4.19% | -30.23% |
* Basic Materials Sector Average
Performance Comparison
MTX
Minerals Technologies
63.06
-10.45
-14.22%
ASH
Ashland
53.08
-39.82
-42.86%
CRS
Carpenter Technology
166.54
88.96
114.67%
CE
Celanese
47.20
-112.89
-70.52%
FUL
H.B. Fuller Company
54.34
-22.41
-29.20%
HUN
Huntsman
13.89
-10.61
-43.31%
Minerals Technologies Earnings Call Summary
Earnings Call Date: Feb 6, 2025 | % Change Since: -17.12% | Next Earnings Date: Apr 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.