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Umicore SA (UMICY)
OTHER OTC:UMICY
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Umicore SA
(OTC:UMICY)
53Neutral
Umicore SA (UMICY) vs. S&P 500 (SPY)
Market Cap
$2.16B
Dividend Yield5.56%
Average Volume (3M)2.80K
Price to Earnings (P/E)―
Beta (1Y)0.82
Revenue Growth-18.63%
EPS Growth-484.18%
CountryUS
Employees11,251
SectorIndustrials
Sector Strength63
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)-1.66
Shares Outstanding985,600,000
10 Day Avg. Volume0
30 Day Avg. Volume2,799
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.28
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.36Price Target Upside4.89% Upside
Rating ConsensusHold
Number of Analyst Covering1
Umicore SA Business Overview & Revenue Model
Company DescriptionUmicore SA operates as a materials technology and recycling company worldwide. The company operates through Catalysis, Energy & Surface Technologies, and Recycling segments. The Catalysis segment produces automotive catalysts for gasoline, and diesel light and heavy-duty diesel applications; stationary catalysis for industrial emissions control; and precious metals-based compounds and catalysts for use in the pharmaceutical and fine chemicals industries, as well as fuel cell applications. The Energy & Surface Technologies segment offers cobalt and specialty materials, rechargeable battery materials, and electro-optic materials, as well as metal deposition solutions, including electroplating and PVD coating. The Recycling segment treats waste streams containing precious and other specialty metals from a range of industrial residues and end-of-life materials. This segment also produces precious metals-based materials for glass production, electric, and electronic applications. The company was formerly known as Union Minière du Haut Katanga and changed its name to Umicore SA in 2001. Umicore SA was founded in 1805 and is headquartered in Brussels, Belgium.
How the Company Makes MoneyUmicore generates revenue through its diversified operations across its three core business segments. In the Catalysis segment, the company earns income from the production and sale of automotive catalysts, which help reduce harmful emissions from vehicles, a growing market due to stricter environmental regulations worldwide. The Energy & Surface Technologies segment contributes to revenue through the supply of high-performance materials used in rechargeable battery production, particularly for electric vehicles, consumer electronics, and energy storage systems. Lastly, the Recycling segment is a significant revenue driver, where Umicore specializes in recovering precious and non-ferrous metals from industrial residues and end-of-life products. This segment benefits from the increasing demand for sustainable and circular economy solutions. Strategic partnerships and investments in research and development also play a role in enhancing Umicore's revenue potential by fostering innovation and expanding its technological capabilities.
Umicore SA Financial Statement Overview
Summary
Umicore SA shows significant profitability challenges marked by negative net income and EBIT margins, indicative of operational inefficiencies. However, a robust balance sheet with strong cash reserves and no debt offers some financial stability. Effective cash flow management is evident, though the conversion of profits to cash remains a challenge. The company needs strategic initiatives to boost revenue and profitability for long-term sustainability.Income Statement
The income statement reveals a concerning decline in profitability with a negative net income of $1.48 billion in 2024, down from a positive $385 million in 2023. The gross profit margin decreased from 8.32% in 2023 to 14.88% in 2024, and the EBIT margin turned negative, indicating operational challenges. Revenue growth has been volatile, with a significant decrease of 18.7% from 2023 to 2024. The company needs to address its declining revenue and profitability to improve its financial health.45
Neutral
Balance Sheet
The balance sheet shows a solid equity ratio of 20.6% as of 2024, indicating a reasonable level of equity financing. Additionally, the debt-to-equity ratio has improved to zero in 2024 from 75.3% in 2023, reflecting a stronger balance sheet position. The company's cash position is strong, with cash and equivalents of $2.01 billion exceeding total debt, leading to a net debt position of -$2.01 billion. Despite these strengths, the decrease in stockholders' equity from 2023 to 2024 suggests challenges in maintaining equity levels.70
Positive
Cash Flow
The cash flow statement highlights a moderate free cash flow growth rate of 81.5% from 2023 to 2024, driven by reduced capital expenditures. The operating cash flow to net income ratio improved significantly due to lower net income, indicating efficient cash generation relative to reported earnings. However, the free cash flow to net income ratio suggests that the company's cash conversion from profits remains a challenge. The company appears to be managing its cash flows well despite profitability issues.65
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 15.70B | 14.85B | 18.27B | 25.44B | 24.05B | 20.71B | Gross Profit |
| 1.15B | 2.21B | 1.51B | 2.01B | 1.99B | 1.52B | EBIT |
| -1.09B | -1.26B | 590.68M | 818.67M | 878.94M | 304.59M | EBITDA |
| -798.99M | 432.60M | 900.43M | 1.08B | 1.15B | 542.99M | Net Income Common Stockholders |
| -1.31B | -1.48B | 385.07M | 569.88M | 618.96M | 130.53M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 99.25M | 2.01B | 1.52B | 1.24B | 1.19B | 1.01B | Total Assets |
| 3.51B | 9.41B | 9.97B | 9.94B | 9.05B | 8.34B | Total Debt |
| 318.70M | 0.00 | 2.75B | 2.35B | 2.16B | 2.43B | Net Debt |
| 219.45M | -2.01B | 1.24B | 1.11B | 966.99M | 1.42B | Total Liabilities |
| 1.79B | 7.49B | 6.27B | 6.38B | 5.88B | 5.72B | Stockholders Equity |
| 1.68B | 1.94B | 3.66B | 3.52B | 3.11B | 2.56B |
| Cash Flow | Free Cash Flow | ||||
| 345.81M | 286.50M | 157.92M | 142.88M | 842.15M | 92.78M | Operating Cash Flow |
| 1.13B | 868.70M | 1.04B | 634.17M | 1.26B | 528.32M | Investing Cash Flow |
| -909.30M | -775.70M | -948.70M | -480.77M | -471.45M | -429.46M | Financing Cash Flow |
| -258.12M | 413.50M | 129.28M | -112.53M | -602.37M | 638.08M |
Umicore SA Technical Analysis
Negative
2.25
Price Trends
2.49
Negative
2.59
Negative
2.92
Negative
Market Momentum
0.04
Negative
53.20
Neutral
82.74
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UMICY, the sentiment is Negative. The current price of 2.25 is below the 20-day moving average (MA) of 2.48, below the 50-day MA of 2.49, and below the 200-day MA of 2.92, indicating a bearish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 53.20 is Neutral, neither overbought nor oversold. The STOCH value of 82.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UMICY.
Umicore SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $8.72B | 9.84 | 16.11% | 4.34% | 1.91% | 2.94% | |
69 Neutral | $63.01B | 16.45 | 24.40% | 2.69% | -3.12% | 64.53% | |
68 Neutral | $2.97B | 17.64 | 7.32% | 3.25% | 3.11% | 123.46% | |
65 Neutral | $22.50B | 16.62 | 19.13% | 2.71% | -4.59% | 11.09% | |
62 Neutral | $7.26B | 12.38 | 3.01% | 3.40% | 3.58% | -14.13% | |
53 Neutral | $2.16B | ― | -52.87% | 5.56% | -18.63% | -484.18% | |
42 Neutral | $6.88B | ― | -12.18% | 2.76% | -44.08% | -183.44% |
* Industrials Sector Average
Performance Comparison
UMICY
Umicore SA
2.25
-3.13
-58.18%
APD
Air Products and Chemicals
263.47
31.72
13.69%
ALB
Albemarle
58.51
-70.85
-54.77%
EMN
Eastman Chemical
75.53
-21.67
-22.29%
AVNT
Avient
30.43
-11.25
-26.99%
PPG
PPG Industries
99.15
-37.74
-27.57%
Umicore SA Earnings Call Summary
Earnings Call Date: Feb 14, 2025 | % Change Since: -18.48% | Next Earnings Date: Aug 1, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in the foundation businesses, significant cost-saving measures, and a strong liquidity position. However, the company faced substantial challenges in the Battery Materials segment, including a €1.6 billion impairment and decreased revenues and earnings across the board. The reduction in dividends also reflects the overall cautious stance in the face of market uncertainties.Highlights
Strong Foundation Business Performance
Catalysis reported EBITDA margins close to 26% and a return on capital more than 40%. Recycling reported a return on capital close to 80% with EBITDA margins of 36%.
Significant Cost-Saving Achievements
The company implemented efficiency and cost-saving measures leading to €100 million in EBITDA ahead of the €70 million target.
CapEx Reduction Success
CapEx came in at €555 million, well below the target of €650 million. This represents a 35% reduction year-on-year.
Strong Liquidity Position
The company maintained a strong liquidity position with €2 billion in cash and a balanced net gearing ratio of 42.6%.
Lowlights
Battery Materials Business Challenges
The Battery Materials segment reported a slowdown in demand due to the slow growth of electric vehicles, leading to a decrease in revenues and EBITDA.
Significant Impairment in Battery Materials
The company had to take a €1.6 billion impairment in the Battery Materials business during H1.
Decreased Revenues and Earnings
Revenues decreased by 11% to €3.5 billion, and adjusted EBITDA fell by €209 million from the previous year.
Dividend Reduction
The Supervisory Board proposed a reduced gross annual dividend of €0.50 per share, reflecting a payout ratio of 47% on current net earnings per share.
Company Guidance
During the call discussing Umicore's full-year 2024 results, key financial metrics were shared, including a group revenue of €3.5 billion and an EBITDA of €763 million, resulting in an EBITDA margin of 22%. The company's operational cash flow was noted at €384 million, while capital expenditures (CapEx) were significantly reduced to €555 million, under the mid-year target of €650 million. The return on capital employed was 12.3%, with a leverage ratio of 1.9. Specific business segments were highlighted, such as Catalysis, which achieved an EBITDA margin of close to 26% and a return on capital exceeding 40%, and Recycling, which recorded an EBITDA margin of 36% and a return on capital close to 80%. Challenges were noted in the Battery Materials segment due to a slowdown in electric vehicle demand, impacting revenues and prompting adjustments in CapEx and operations. Despite these challenges, Umicore implemented efficiency measures yielding €100 million in EBITDA savings, surpassing the original target of €70 million. The proposed dividend was set at €0.50 per share, reflecting a payout ratio of 47% on net earnings per share. Looking ahead to 2025, Umicore anticipates adjusted EBITDA between €720 million and €780 million, with plans to further reduce CapEx by 20% and achieve an additional €100 million in efficiency savings.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.