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Minerals Technologies Inc. (MTX)
NYSE:MTX
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Minerals Technologies
(NYSE:MTX)
64Neutral
Minerals Technologies (MTX) vs. S&P 500 (SPY)
Market Cap
$1.64B
Dividend Yield0.81%
Average Volume (3M)251.12K
Price to Earnings (P/E)11.4
Beta (1Y)1.02
Revenue Growth-3.82%
EPS Growth-126.04%
CountryUS
Employees3,891
SectorBasic Materials
Sector Strength64
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)-0.78
Shares Outstanding31,732,168
10 Day Avg. Volume277,299
30 Day Avg. Volume251,119
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.67
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit5.00
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$274.39Price Target Upside420.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Minerals Technologies Business Overview & Revenue Model
Company DescriptionMinerals Technologies Inc. develops, produces, and markets various specialty mineral, mineral-based, and synthetic mineral products, and supporting systems and services. The company operates through three segments: Performance Materials, Specialty Minerals and Refractories. The Performance Materials segment supplies bentonite and bentonite-related products, as well as leonardite. This segment also offers metal casting products; household, personal care, and specialty products; and basic minerals, environmental products, and building materials. In addition, it provides products for non-residential construction, environmental, and infrastructure projects, as well as for construction and remediation project customers. The Specialty Minerals segment produces and sells precipitated calcium carbonate and quicklime; and provides natural mineral products comprising limestone and talc. This segment's products are used in paper and packaging, building materials, paint and coatings, glass, ceramic, polymer, food, automotive, and pharmaceutical industries. The Refractories segment offers monolithic and shaped refractory materials; specialty products, services, and application and measurement equipment; and calcium metal and metallurgical wire products that are used in the applications of steel, non-ferrous metal, and glass industries. The company markets its products primarily through its direct sales force, as well as regional distributors. It serves in the United States, Canada, Latin America, Europe, Africa, and Asia. Minerals Technologies Inc. was incorporated in 1968 and is headquartered in New York, New York.
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 faces challenges with declining revenues and profitability pressures, as reflected in a negative net income. The balance sheet is relatively strong despite increased debt levels, and cash flow remains positive, although free cash flow has decreased.Income Statement
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.65
Positive
Balance Sheet
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.72
Positive
Cash Flow
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.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
52.69
Price Trends
62.78
Negative
69.42
Negative
73.32
Negative
Market Momentum
-3.02
Positive
31.75
Neutral
10.57
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 52.69 is below the 20-day moving average (MA) of 55.98, below the 50-day MA of 62.78, and below the 200-day MA of 73.32, indicating a bearish trend. The MACD of -3.02 indicates Positive momentum. The RSI at 31.75 is Neutral, neither overbought nor oversold. The STOCH value of 10.57 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 (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $2.26B | 63.52 | 3.02% | 1.73% | -5.31% | -74.42% | |
65 Neutral | $1.87B | 16.29 | 8.49% | 1.77% | -5.82% | 3.75% | |
64 Neutral | $1.64B | 11.37 | -1.45% | 0.81% | -3.82% | -126.04% | |
56 Neutral | $1.85B | 21.62 | 12.98% | 8.08% | -4.05% | ― | |
55 Neutral | $1.51B | ― | -0.51% | ― | 74.16% | -112.26% | |
49 Neutral | $1.93B | -1.47 | -21.02% | 3.74% | 0.80% | -29.57% | |
47 Neutral | $2.20B | ― | -28.05% | 2.00% | -4.31% | -1421.83% |
* Basic Materials Sector Average
Performance Comparison
MTX
Minerals Technologies
52.69
-22.13
-29.58%
IOSP
Innospec
90.02
-30.17
-25.10%
KWR
Quaker Chemical
106.01
-84.06
-44.23%
SSL
Sasol
3.45
-3.29
-48.81%
CC
Chemours Company
12.20
-12.62
-50.85%
PRM
Perimeter Solutions
10.22
3.13
44.15%
Minerals Technologies Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: -10.39%|
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.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.