IMCD N.V. (IMCD) AI Stock Analysis

• Market Cap: €6.63B
• Dividend Yield: 1.66%
• Average Volume (3M): 110.37K
• Price to Earnings (P/E): 23.1
• Beta (1Y): 0.90
• Revenue Growth: 6.41%
• EPS Growth: -5.29%
• Country: NL
• Employees: 5,126
• Sector: Industrials
• Sector Strength: 84
• Industry: Chemicals - Specialty
• EPS (TTM): 1.67
• Shares Outstanding: 59,107,998
• 10 Day Avg. Volume: 116,819
• 30 Day Avg. Volume: 110,370
• PEG Ratio: 0.47
• Price to Book (P/B): 4.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.31
• 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: €162.00
• Price Target Upside: 44.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 68 Neutral
• Price Target: €128.00 ▲(14.13%Upside)

IMCD N.V. displays strong financial performance with revenue growth and profitability. However, increased leverage and reduced free cash flow raise concerns about liquidity. Technical indicators are bearish, with the stock trading below key moving averages, and valuation suggests it is fairly priced, providing moderate income through dividends.

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 N.V. primarily generates revenue through the distribution of specialty chemicals and food ingredients. The company acts as an intermediary between chemical manufacturers and various industry customers, earning margins on the products it distributes. IMCD leverages its extensive network of supplier relationships and technical expertise to offer value-added services such as formulation advice and market intelligence, which enhance its product offerings. By maintaining strong partnerships with leading chemical producers and focusing on niche markets, IMCD ensures a diverse revenue stream and competitive advantage in the specialty chemical distribution sector.

IMCD N.V. Financial Statement Overview

Summary

IMCD N.V. shows strong revenue growth and profitability, though there is room for improvement in operational efficiency. The balance sheet reflects increased leverage, which needs monitoring. Cash flow analysis indicates reduced free cash flow, highlighting potential liquidity challenges. Overall, the company is financially sound but should focus on improving efficiency and managing debt levels.

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: 112.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 112.15 is below the 20-day moving average (MA) of 116.31, below the 50-day MA of 118.50, and below the 200-day MA of 134.88, indicating a bearish trend. The MACD of -2.19 indicates Positive momentum. The RSI at 38.05 is Neutral, neither overbought nor oversold. The STOCH value of 21.03 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	68 Neutral	€6.63B	23.10	14.13%	1.66%	6.41%	-5.29%
Sector *	66 Neutral	€9.73B	15.75	3.59%	3.46%	3.93%	-21.09%
0A00		€10.12B	21.70	10.15%	4.51%	―	―
0QHL		€1.07B	19.77	6.52%	2.99%	―	―
0EPM		€97.22M	16.51	9.36%	2.66%	―	―
0QGH		€1.58B	59.30		107.95%	―	―
0RHI		€2.76B	7.81	11.61%	6.23%	―	―