IMCD N.V. (IMCD) AI Stock Analysis

• Market Cap: €5.58B
• Dividend Yield: 2.27%
• Average Volume (3M): 240.95K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.96
• Revenue Growth: 6.09%
• EPS Growth: -7.18%
• Country: NL
• Employees: 5,126
• Sector: Services
• Sector Strength: N/A
• Industry: Chemicals - Specialty
• EPS (TTM): 1.56
• Shares Outstanding: 59,107,998
• 10 Day Avg. Volume: 187,814
• 30 Day Avg. Volume: 240,952
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €140.00
• Price Target Upside: 46.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 63 Neutral
• Price Target: €104.00 ▲(9.13% Upside)

The stock's overall score is primarily influenced by financial performance, which highlights strong revenue growth but raises concerns over leverage and cash flow. Technical analysis suggests bearish market trends, while valuation indicates potential overvaluation despite a reasonable dividend yield.

IMCD N.V. Business Overview & Revenue Model

Company Description

IMCD N.V. distributes, markets, and sells specialty chemicals and ingredients in the Netherlands, rest of Europe, the Middle East, Africa, North America, South America, and the Asia-Pacific. The company offers enzymes, surfactants, biocides, chelates, rheology modifiers, solubilisers, silicones, solvents, and functional additives; active pharmaceutical, agrochemicals, biopharma, excipients and formulation, nutraceuticals, and regulated synthesis; actives, UV sunscreens, rheology modifiers, thickeners, emulsifiers, emollients, elastomers, humectants, waxes, film formers, functional powders, hair styling polymers, hair conditioners, solvents, solubilizers, pigments, pearls, colorants, opacifiers, pearlisers, preservatives, antioxidants, additives, fragrances, and essential oils; and resins and binders, additives, functional fillers, and specialty solvents. It also provides taste, texture, nutrition, and function; base oil, fuel addictive, lubricants addictive, lubricants finished fluids, solvents, degreasers and fuel, compounds, and upstream, midstream and downstream oil, gas and energy; bio-based chemicals, catalysts, intermediates, monomers, organic building blocks, processing aids, reactive diluents, solvents, and surfactants. IMCD N.V. was founded in 1995 and is headquartered in Rotterdam, the Netherlands.

How the Company Makes Money

IMCD generates revenue primarily through the distribution of specialty chemicals and food ingredients. The company operates on a model that involves purchasing products from manufacturers and selling them to customers, earning a margin on each transaction. Key revenue streams include sales of chemicals across various sectors, such as pharmaceuticals, where they supply active pharmaceutical ingredients (APIs) and excipients, and personal care, where they provide cosmetic ingredients. Additionally, IMCD offers technical support and formulation services, which further enhance customer relationships and drive sales. Significant partnerships with leading manufacturers allow IMCD to expand its product offerings and maintain a competitive edge in the market, contributing to its overall earnings.

IMCD N.V. Financial Statement Overview

Summary

IMCD N.V. demonstrates strong revenue growth and profitability. However, there are concerns about increased leverage and declining free cash flow, indicating potential liquidity challenges.

Income Statement

The company has demonstrated steady revenue growth with a 6.4% increase from 2023 to 2024. Gross profit margin is strong at 25.4%, and the net profit margin is relatively healthy at 5.9%. However, there is a slight decline in EBIT margin from 9.6% in 2023 to 9.0% in 2024, indicating a potential area for operational improvement.

Balance Sheet

The debt-to-equity ratio has increased to 0.78, reflecting higher leverage, which could pose risks if not managed carefully. However, the company maintains a strong equity ratio of 45.4%, indicating a solid capital structure. Return on equity remains robust at 12.6%, reflecting effective use of shareholder funds.

Cash Flow

There is a significant decrease in free cash flow from 2023 to 2024, with a free cash flow growth rate of -33.9%. The operating cash flow to net income ratio is 1.0, indicating decent cash generation relative to net income. The decline in free cash flow suggests potential challenges in maintaining liquidity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.73B	4.44B	4.60B	3.44B	2.77B
Gross Profit	1.20B	1.12B	1.15B	836.32M	647.48M
EBITDA	589.14M	566.90M	574.63M	394.79M	258.23M
Net Income	278.24M	292.27M	313.08M	207.28M	120.13M
Balance Sheet
Total Assets	4.88B	4.15B	3.64B	3.27B	2.71B
Cash, Cash Equivalents and Short-Term Investments	522.78M	394.46M	222.00M	177.88M	169.01M
Total Debt	1.73B	1.28B	722.60M	409.63M	691.22M
Total Liabilities	2.66B	2.43B	1.97B	1.81B	1.45B
Stockholders Equity	2.21B	1.72B	1.67B	1.46B	1.26B
Cash Flow
Free Cash Flow	252.76M	382.54M	277.58M	177.55M	220.04M
Operating Cash Flow	279.21M	420.01M	298.84M	196.26M	242.37M
Investing Cash Flow	-387.95M	-394.59M	-255.36M	-196.13M	-394.30M
Financing Cash Flow	247.06M	216.97M	-20.00K	4.73M	240.37M

IMCD N.V. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 95.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:IMCD, the sentiment is Negative. The current price of 95.3 is above the 20-day moving average (MA) of 94.79, below the 50-day MA of 105.39, and below the 200-day MA of 125.01, indicating a neutral trend. The MACD of -3.22 indicates Negative momentum. The RSI at 40.07 is Neutral, neither overbought nor oversold. The STOCH value of 79.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NL:IMCD.

IMCD N.V. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMCD	63 Neutral	€5.58B	20.71	14.32%	2.27%	6.09%	-7.18%
Sector *	57 Neutral	$1.84B	9.34	8.02%	2.47%	5.38%	-37.86%
0A00	―	€10.27B	25.07	9.60%	―	―	―
0RNP	―	€117.39M	―	-37.84%	―	―	―
0QHL	―	€1.01B	15.05	8.84%	―	―	―
0QGH	―	€1.05B	59.30		―	―	―
0RHI	―	€2.93B	8.59	12.63%	―	―	―