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Umicore SA (UMICY)
OTHER OTC:UMICY
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Umicore SA
(OTC:UMICY)
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Rating:54Neutral
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 (UMICY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.70B
Dividend Yield1.66%
Average Volume (3M)1.27K
Price to Earnings (P/E)26.4
Beta (1Y)0.60
Revenue Growth3.16%
EPS GrowthN/A
CountryUS
Employees11,251
SectorIndustrials
Sector Strength72
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)0.16
Shares Outstanding985,600,000
10 Day Avg. Volume0
30 Day Avg. Volume1,270
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.50
Enterprise Value/Revenue0.37
Enterprise Value/Gross Profit2.51
Enterprise Value/Ebitda12.83
Forecast
1Y Price Target
$4.24Price Target Upside9.28% Upside
Rating ConsensusHold
Number of Analyst Covering1
Umicore SA Business Overview & Revenue Model
Company DescriptionUmicore SA (UMICY) is a global materials technology and recycling group headquartered in Belgium. It is organized into three main business segments: Catalysis, Energy & Surface Technologies, and Recycling. The company specializes in the development and production of high-performance materials, including automotive catalysts, rechargeable battery materials, and precious metal recycling services. Umicore is committed to sustainability and innovation, focusing on clean mobility and recycling solutions as part of its core operations.
How the Company Makes MoneyUmicore 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 Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 20, 2026
Earnings Call Sentiment Neutral
The earnings call presented a generally positive outlook with strong performance in Catalysis and operational efficiency improvements. However, challenges remain in the Battery Materials Solutions segment, and the impact of metal price volatility and foreign exchange headwinds continue to be areas of concern.Q2-2025 Updates
Positive Updates
Encouraging H1 2025 Performance
Umicore reported revenues of EUR 1.8 billion and an EBITDA of EUR 433 million, which is well up from last year. The return on capital was 16.4%, with a solid EBITDA margin of 24.3%.
Strong Performance Across Business Groups
Catalysis achieved a return on capital of 43.7%, Recycling 154%, and Specialty Materials over 12.5%, aligning with the 2028 target.
Efficiency Savings
EUR 50 million in efficiency savings were achieved in the first half, with a target of EUR 100 million for the year.
Strategic Focus on Sustainability and Partnerships
Investment continued in sustainability improvements with EUR 25 million annually, and the company is exploring partnerships in battery material solutions.
Positive Catalysis and Precious Metals Management Performance
Catalysis revenues remained in line with H1 2024, and Precious Metals Management experienced a favorable trading environment with an EBITDA margin above 41%.
Negative Updates
Battery Materials Solutions Revenue Decline
Revenues for Battery Materials Solutions were somewhat lower, with an adjusted EBITDA of minus EUR 15 million in H1 2025.
Lower Battery Cathode Materials Volumes
Battery Cathode Materials revenue was EUR 208 million, below H1 2024, with slightly lower refining volumes and CAM volumes.
Challenges in ICE Passenger Car Production
Overall ICE passenger car production declined from 38.3 million to 37.5 million, with market contractions in North America and Europe.
Free Cash Flow Negative
Umicore was slightly free cash flow negative for the first half of 2025.
Continued Impact of Metal Price and FX Volatility
A EUR 53 million headwind from inflation and foreign exchange was noted, affecting earnings despite operational efficiencies.
Company Guidance
During the Umicore Half Year 2025 Results Conference Call, CEO Bart Sap provided guidance for the rest of 2025, highlighting several key metrics and strategies. The company aims for an EBITDA target of €790 million to €850 million for the full year, after reporting €433 million in EBITDA for the first half. This reflects a solid increase from the previous year, driven by operational efficiencies and sustained demand. Umicore focuses on capital, performance, people and culture, and partnerships as its core strategic pillars. Capital expenditures for 2025 are projected to be reduced to €350 million, down from €550 million in the previous year, reflecting a disciplined approach to capital allocation. The company has also achieved €55 million in efficiency savings in the first half, with a full-year target of €100 million. Additionally, Umicore's adjusted EBITDA margin increased to 24.3%, with a return on capital of 16.4%. The leverage ratio is maintained below 2.5x, specifically at 2.3x, despite being slightly free cash flow negative for the first half. The guidance was further supported by hedging strategies and take-or-pay contracts, which offer some visibility into earnings stability amid a volatile market environment.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.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 | 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
Positive
3.88
Price Trends
4.08
Negative
3.53
Positive
3.00
Positive
Market Momentum
-0.04
Positive
45.89
Neutral
31.08
Neutral
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 3.88 is below the 20-day moving average (MA) of 3.91, below the 50-day MA of 4.08, and above the 200-day MA of 3.00, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 45.89 is Neutral, neither overbought nor oversold. The STOCH value of 31.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UMICY.
Umicore SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | 7.91B | 46.65 | 11.12% | 0.75% | 4.74% | 30.64% | |
79 Outperform | 3.77B | 20.25 | 81.62% | 0.44% | 1.53% | 8.93% | |
76 Outperform | 1.73B | 35.73 | 17.58% | ― | 15.74% | 294.80% | |
74 Outperform | 776.70M | 36.63 | 13.03% | ― | 6.19% | 15.04% | |
54 Neutral | $3.70B | 26.45 | 6.13% | 1.66% | 3.16% | ― | |
38 Underperform | 2.37B | -8.23 | 0.00% | ― | 0.00% | -79.12% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
UMICY
Umicore SA
3.88
0.78
25.16%
CECO
Ceco Environmental
51.15
22.15
76.38%
ERII
Energy Recovery
15.14
-2.10
-12.18%
FTEK
Fuel Tech
3.32
2.29
222.33%
SCWO
374Water
0.34
-1.32
-79.52%
PCT
PureCycle Technologies
13.77
4.49
48.38%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.