Minerals Technologies (MTX) AI Stock Analysis

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Minerals Technologies

(NYSE:MTX)

Rating:60Neutral

Price Target:

$61.00

▲(13.38%Upside)

The overall stock score reflects the financial challenges faced by Minerals Technologies, particularly declining revenues and profitability concerns. The technical indicators suggest mixed momentum with potential downward pressure. Valuation remains a key issue due to a negative P/E ratio. However, the earnings call provides some optimism for near-term recovery and strategic growth initiatives.

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

Market Cap

$1.73B

Dividend Yield0.81%

Average Volume (3M)256.30K

Price to Earnings (P/E)11.4

Beta (1Y)1.00

Revenue Growth-3.82%

EPS Growth-126.04%

CountryUS

Employees3,891

SectorBasic Materials

Sector Strength67

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)1.14

Shares Outstanding31,732,168

10 Day Avg. Volume199,231

30 Day Avg. Volume256,302

Financial Highlights & Ratios

PEG Ratio-0.69

Price to Book (P/B)1.26

Price to Sales (P/S)0.00

P/FCF Ratio84.85

Enterprise Value/Market Cap1.62

Enterprise Value/Revenue0.33

Enterprise Value/Gross Profit5.27

Enterprise Value/Ebitda2.37

Forecast

1Y Price Target

$471.86

Price Target Upside777.06% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

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 wide range of specialty mineral, mineral-based, and synthetic mineral products. The company operates through several key segments, including Performance Materials, Specialty Minerals, Refractories, and Energy Services. MTX serves diverse industrial sectors, including paper, construction, steel, energy, and environmental applications, providing innovative solutions that enhance the performance and efficiency of its customers' processes.

How the Company Makes MoneyMinerals Technologies Inc. generates revenue through the sale of its wide array of specialty mineral products and services. The Performance Materials segment earns income by supplying bentonite-based and synthetic materials used in consumer and industrial applications, such as foundry, construction, and environmental markets. The Specialty Minerals segment generates revenue primarily from the production and sale of precipitated calcium carbonate (PCC) used in the paper, plastics, and paint industries. The Refractories segment provides refractory materials and services for steel manufacturers, helping to improve the productivity and performance of steelmaking processes. The Energy Services segment derives revenue from providing a range of services to the oil and gas industry, including filtration and well testing services. Additionally, MTX maintains strategic partnerships and long-term supply agreements with key industry players, which contribute to its consistent revenue streams and market presence.

Minerals Technologies Earnings Call Summary

Earnings Call Date:Apr 24, 2025

(Q1-2025)

% Change Since: -8.33%|

Next Earnings Date:Jul 24, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted a challenging first quarter with significant sales and operating margin declines, influenced by volatile customer order patterns and increased costs. However, there were positive signs of recovery in March and an optimistic outlook for the second quarter, supported by cost-saving initiatives and strong growth in environmental projects. The company's solid financial position and strategic initiatives in high-demand areas offer confidence in long-term growth despite current uncertainties.

Q1-2025 Updates

Positive Updates

Strong March Sales Recovery

After a slow start in January and February, March sales increased by 10% compared to January, leading to a quarter rate 5% above initial guidance.

Cost Savings Initiative

Implemented a $10 million cost savings program aimed at efficiency improvements and reducing overhead, expected to reach full annual savings by early 2026.

Growth in Environmental and Infrastructure

Environmental lining systems and FluoroSorb projects saw significant growth, with environmental lining applications up 19% year-over-year.

Positive Outlook for Q2

Sales expected to increase by 5% to 10% in Q2, with operating income projected to rise by around 20% sequentially.

Strong Financial Position

The company maintains a solid balance sheet with nearly $700 million in liquidity and a net leverage ratio of 1.7x EBITDA.

Negative Updates

Significant Q1 Sales Decline

First quarter sales were $492 million, down 8% year-over-year and 5% sequentially, primarily due to lower volumes and unfavorable mix.

Chapter 11 Case and $215 Million Provision

A provision of $215 million was recorded for talc-related claims and litigation costs, reflecting ongoing challenges with the BMI Old Co subsidiary.

Volatile Customer Order Patterns

Shifting order patterns and extended customer downtime negatively impacted sales, particularly in the consumer and specialty segment.

Continued Market Uncertainty

Significant uncertainty in the markets persists, particularly due to tariff-related disruptions and potential economic downturns.

Higher Operating Costs

Increased operating costs due to energy and logistics expenses, impacting margins and offsetting some efficiency gains.

Company Guidance

During the Minerals Technologies Inc. first quarter 2025 earnings call, the company addressed several key metrics and developments. The quarter was challenging, with sales dropping to $492 million, an 8% decrease year-over-year, primarily due to lower volumes, unfavorable mix, and foreign exchange impacts. Operating income was $63 million, yielding a margin of 12.9%, with earnings per share (EPS) at $1.14, excluding special items. The company initiated a cost savings program targeting $10 million in annual savings by early 2026. They also recorded a $215 million provision related to the Chapter 11 case of subsidiary BMI Old Co for talc-related claims. Looking forward, the second quarter is expected to show sales growth of 5% to 10% with improved margins, projecting an operating income of around $75 million and an EPS of approximately $1.40. The company maintains strong liquidity at nearly $700 million and a net leverage ratio of 1.7 times EBITDA.

Minerals Technologies Financial Statement Overview

Summary

Minerals Technologies is experiencing challenges with declining revenues and negative profitability, as evidenced by a negative net income and declining EBIT and EBITDA margins. Despite a manageable debt level, increased debt and negative profitability are concerns. Cash flow generation remains positive but declining free cash flow is noteworthy.

Income Statement

Positive

Minerals Technologies has shown a declining revenue trend in the TTM compared to the previous year. The gross profit margin for the TTM is approximately 43.53%, indicating strong cost management. However, the net profit margin is negative at -1.14%, primarily due to a net loss. The EBIT margin is 2.67% and the EBITDA margin is 5.78%, both showing a significant decline from previous periods, reflecting challenges in operational efficiency.

Balance Sheet

Positive

The company's balance sheet reveals a debt-to-equity ratio of 0.61 in TTM, which is manageable. However, there's an increase in debt levels compared to the previous year. The equity ratio is 46.97%, indicating a solid proportion of assets financed by equity. Return on equity has dropped significantly due to the net loss, highlighting potential profitability issues.

Cash Flow

Positive

Minerals Technologies exhibits a strong operating cash flow to net income ratio of -7.46 in TTM, reflecting robust cash generation relative to earnings. However, the free cash flow has decreased, with a free cash flow to net income ratio of -3.59, indicating less cash available after capital expenditures.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.08B	2.12B	2.17B	2.13B	1.86B	1.59B
	Gross Profit
531.40M	547.70M	507.10M	465.00M	446.50M	405.40M
	EBIT
55.40M	286.50M	279.90M	152.30M	141.50M	103.20M
	EBITDA
141.40M	374.90M	278.10M	307.30M	345.10M	279.90M
	Net Income Common Stockholders
-23.60M	167.10M	84.10M	122.20M	164.40M	112.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
312.20M	337.10M	321.50M	252.80M	304.40M	371.80M
	Total Assets
3.40B	3.39B	3.35B	3.40B	3.37B	3.21B
	Total Debt
986.40M	971.20M	1.07B	1.06B	1.02B	934.20M
	Net Debt
679.80M	638.10M	748.70M	815.10M	717.50M	566.50M
	Total Liabilities
1.77B	1.61B	1.66B	1.79B	1.79B	1.71B
	Stockholders Equity
1.60B	1.75B	1.65B	1.58B	1.54B	1.46B
Cash Flow		Free Cash Flow
84.80M	146.90M	140.10M	23.40M	146.40M	173.80M
	Operating Cash Flow
176.10M	236.40M	233.60M	105.70M	232.40M	240.60M
	Investing Cash Flow
-99.70M	-94.50M	-91.70M	-101.60M	-278.60M	-78.70M
	Financing Cash Flow
-82.30M	-110.40M	-71.70M	-34.10M	5.60M	-43.00M

Minerals Technologies Technical Analysis

Technical Analysis Sentiment

Negative

Last Price53.80

Price Trends

50DMA

56.28

Negative

100DMA

62.57

Negative

200DMA

69.67

Negative

Market Momentum

MACD

-0.73

Positive

RSI

38.47

Neutral

STOCH

4.83

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 53.8 is below the 20-day moving average (MA) of 57.20, below the 50-day MA of 56.28, and below the 200-day MA of 69.67, indicating a bearish trend. The MACD of -0.73 indicates Positive momentum. The RSI at 38.47 is Neutral, neither overbought nor oversold. The STOCH value of 4.83 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 (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRM	74 Outperform	$1.96B	16.76	11.76%	―	70.16%	―
KWR	71 Outperform	$2.01B	21.58	6.78%	1.70%	-5.72%	-19.82%
IOSP	63 Neutral	$2.08B	78.57	2.21%	2.02%	-7.91%	-81.73%
MTX	60 Neutral	$1.73B	11.37	-1.45%	0.81%	-3.82%	-126.04%
SSL	55 Neutral	$3.41B	―	-28.05%	2.00%	-4.31%	-1421.83%
Sector *	51 Neutral	$2.01B	-1.26	-21.11%	4.38%	2.92%	-30.46%
CC	49 Neutral	$1.64B	53.16	4.66%	3.26%	-0.68%	―

* Basic Materials Sector Average

Performance Comparison

MTX

Minerals Technologies

53.80

-29.53

-35.44%

IOSP

Innospec

82.82

-37.21

-31.00%

KWR

Quaker Chemical

113.88

-50.35

-30.66%

SSL

Sasol

5.40

-2.29

-29.78%

Chemours Company

11.00

-10.86

-49.68%

PRM

Perimeter Solutions

13.24

5.36

68.02%

Minerals Technologies Corporate Events

Dividends

Minerals Technologies Declares Quarterly Cash Dividend

Positive

May 15, 2025

On May 13, 2025, Minerals Technologies Inc. announced that its Board of Directors declared a regular quarterly cash dividend of $0.11 per share on the company’s common stock. This dividend is payable on June 12, 2025, to shareholders of record as of May 30, 2025, reflecting the company’s ongoing commitment to providing value to its investors.

The most recent analyst rating on (MTX) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Minerals Technologies stock, see the MTX Stock Forecast page.

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.