Umicore SA (UMICY) AI Stock Analysis

• Market Cap: $4.04B
• Dividend Yield: 3.34%
• Average Volume (3M): 2.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• Revenue Growth: -18.63%
• EPS Growth: -484.18%
• Country: US
• Employees: 11,251
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): 0.15
• Shares Outstanding: 985,600,000
• 10 Day Avg. Volume: 7,443
• 30 Day Avg. Volume: 2,481
• PEG Ratio: -0.46
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.36
• 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: $2.36
• Price Target Upside: -44.21% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: ―

Umicore's overall stock score of 54 reflects a mixed performance. Financially, the company struggles with profitability despite a strong balance sheet and cash flow management. Technical analysis suggests cautious optimism with short-term upward momentum but long-term bearish trends. Valuation metrics are weak due to negative earnings, and the earnings call highlights both strengths in core segments and challenges in Battery Materials. The score indicates a need for strategic improvements to enhance operational efficiency and revenue generation.

Umicore SA Business Overview & Revenue Model

Company Description

Umicore 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 Money

Umicore generates revenue through its diversified operations across three main segments. In the Catalysis segment, the company produces automotive catalysts that reduce harmful emissions, catering to the automotive industry's demand for emission control technologies. The Energy & Surface Technologies segment focuses on materials for rechargeable batteries used in electric vehicles and consumer electronics, benefiting from the growing shift towards electrification and sustainable energy solutions. The Recycling segment is a major revenue contributor, where Umicore's advanced technologies allow for the recovery and refining of precious and base metals from industrial residues and end-of-life products, capitalizing on the increasing need for efficient resource utilization. Strategic partnerships, technological innovations, and a focus on sustainable practices further bolster Umicore's revenue streams.

Umicore SA Financial Statement Overview

Summary

Umicore SA faces significant profitability challenges as evidenced by negative net income and EBIT margins in 2024, indicating operational inefficiencies. However, the balance sheet remains robust with strong cash reserves and no debt, providing financial stability. Cash flow management is effective, with positive free cash flow growth, but the company must address its declining revenue and profitability to ensure long-term sustainability. The mixed financial performance highlights the need for strategic initiatives to improve operational efficiency and revenue generation.

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.

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.

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.85B	18.27B	25.44B	24.05B	20.71B
Gross Profit	2.21B	1.51B	2.01B	1.99B	1.52B
EBITDA	432.60M	900.43M	1.08B	1.15B	542.99M
Net Income	-1.48B	385.07M	569.88M	618.96M	130.53M
Balance Sheet
Total Assets	9.41B	9.97B	9.94B	9.05B	8.34B
Cash, Cash Equivalents and Short-Term Investments	2.01B	1.52B	1.24B	1.19B	1.01B
Total Debt	0.00	2.75B	2.35B	2.16B	2.43B
Total Liabilities	7.49B	6.27B	6.38B	5.88B	5.72B
Stockholders Equity	1.94B	3.66B	3.52B	3.11B	2.56B
Cash Flow
Free Cash Flow	286.50M	157.92M	142.88M	842.15M	92.78M
Operating Cash Flow	868.70M	1.04B	634.17M	1.26B	528.32M
Investing Cash Flow	-775.70M	-948.70M	-480.77M	-471.45M	-429.46M
Financing Cash Flow	413.50M	129.28M	-112.53M	-602.37M	638.08M

Umicore SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UMICY, the sentiment is Positive. The current price of 4.23 is above the 20-day moving average (MA) of 3.51, above the 50-day MA of 2.87, and above the 200-day MA of 2.69, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 83.95 is Negative, neither overbought nor oversold. The STOCH value of 100.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UMICY.

Umicore SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CECO	80 Outperform	$1.06B	23.17	18.34%	―	8.89%	278.44%
ZWS	76 Outperform	$6.32B	38.40	10.49%	0.96%	3.22%	38.39%
ATMU	72 Outperform	$3.12B	17.07	95.48%	0.53%	1.43%	12.88%
Sector *	65 Neutral	$10.77B	15.80	5.51%	1.90%	3.03%	-26.66%
ERII	64 Neutral	$719.39M	36.22	10.35%	―	10.93%	6.99%
UMICY	54 Neutral	$4.04B	―	-52.87%	3.34%	-18.63%	-484.18%
PCT	38 Underperform	$2.47B	―	-67.71%	―	―	-180.10%