tiprankstipranks
Trending News
More News >
Umicore (OTC) (UMICY)
:UMICY
Advertisement

Umicore SA (UMICY) AI Stock Analysis

Compare
87 Followers

Top Page

UMICY

Umicore SA

(OTC:UMICY)

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)

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: -3.01%|
Next Earnings Date:Feb 13, 2026
Earnings Call Sentiment Neutral
Umicore demonstrated strong financial performance and efficiency improvements in H1 2025, with particular strength in Catalysis and Specialty Materials. However, challenges remain in the Battery Materials Solutions segment, and the company reported being slightly free cash flow negative. The overall sentiment is balanced by these positive and negative aspects.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Umicore reported a revenue of EUR 1.8 billion and an EBITDA of EUR 433 million for H1 2025, marking a significant increase compared to the previous year. The EBITDA margin improved to 24.3%, and the return on capital was 16.4%.
Efficiency Savings
The company achieved over EUR 50 million in efficiency savings in the first half of 2025, with a target of EUR 100 million for the full year.
Specialty Materials Performance
EBITDA for Specialty Materials increased by 35%, driven by higher margins in the cobalt product segment and operational efficiency improvements.
Catalysis Segment Growth
The Catalysis segment showed strong performance with revenues and earnings in line with H1 2024, despite declining ICE passenger car production.
Strategic Hedging
Umicore effectively hedged a substantial portion of its future strategic metal exposure, protecting future earnings from price volatility.
Negative Updates
Battery Materials Solutions Challenges
Revenues for Battery Materials Solutions were below H1 2024 levels, with an adjusted EBITDA of minus EUR 15 million, though the company remains confident in reaching breakeven for the full year.
Slight Free Cash Flow Negative
Umicore reported being slightly free cash flow negative for the first half of 2025.
Lower Battery Cathode Materials Revenues
Battery Cathode Materials revenues were EUR 208 million, below H1 2024, due to slightly lower refining and CAM volumes.
Precious Metals Refining Earnings Decline
Earnings in Precious Metals Refining were lower than H1 2024, reflecting decreased average hedge price levels and inflation.
Company Guidance
During the Umicore Half Year 2025 Results Conference Call, CEO Bart Sap provided guidance that highlighted a strategic focus on capital allocation, operational efficiency, and cultural transformation to drive future growth. The company plans to reduce capital expenditures (CapEx) by EUR 1.4 billion from 2025 to 2028, allocating a significant portion to its recycling business in Hoboken. For 2025, CapEx is projected to be EUR 350 million, down from EUR 550 million in 2024. Umicore aims for an EBITDA target of EUR 100 million, with a strong H1 performance already contributing EUR 15 million. The company reported H1 2025 revenues of EUR 1.8 billion and an EBITDA of EUR 433 million, resulting in a solid EBITDA margin of 24.3%. Additionally, the return on capital for the recycling business stood impressively at 154%. The company's guidance for 2025 has been upgraded to an EBITDA range of EUR 790 million to EUR 840 million.

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
45
Neutral
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
70
Positive
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
65
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue14.85B18.27B25.44B24.05B20.71B
Gross Profit2.21B1.51B2.01B1.99B1.52B
EBITDA432.60M900.43M1.08B1.15B542.99M
Net Income-1.48B385.07M569.88M618.96M130.53M
Balance Sheet
Total Assets9.41B9.97B9.94B9.05B8.34B
Cash, Cash Equivalents and Short-Term Investments2.01B1.52B1.24B1.19B1.01B
Total Debt0.002.75B2.35B2.16B2.43B
Total Liabilities7.49B6.27B6.38B5.88B5.72B
Stockholders Equity1.94B3.66B3.52B3.11B2.56B
Cash Flow
Free Cash Flow286.50M157.92M142.88M842.15M92.78M
Operating Cash Flow868.70M1.04B634.17M1.26B528.32M
Investing Cash Flow-775.70M-948.70M-480.77M-471.45M-429.46M
Financing Cash Flow413.50M129.28M-112.53M-602.37M638.08M

Umicore SA Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.87
Price Trends
50DMA
3.66
Positive
100DMA
3.00
Positive
200DMA
2.82
Positive
Market Momentum
MACD
0.10
Positive
RSI
40.41
Neutral
STOCH
-0.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UMICY, the sentiment is Neutral. The current price of 3.87 is below the 20-day moving average (MA) of 4.29, above the 50-day MA of 3.66, and above the 200-day MA of 2.82, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 40.41 is Neutral, neither overbought nor oversold. The STOCH value of -0.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for UMICY.

Umicore SA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$3.22B17.5895.48%0.53%1.43%12.88%
74
Outperform
$1.59B31.4019.67%15.74%294.80%
72
Outperform
$697.05M35.1010.35%10.93%6.99%
70
Outperform
$7.41B43.7210.81%0.79%4.74%30.64%
64
Neutral
$10.64B16.526.24%2.15%3.01%-28.89%
54
Neutral
$3.74B26.466.13%1.67%-18.63%-484.18%
38
Underperform
$2.41B-67.71%-180.10%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UMICY
Umicore SA
3.87
0.63
19.44%
CECO
Ceco Environmental
45.13
17.49
63.28%
ERII
Energy Recovery
12.79
-3.50
-21.49%
ZWS
Zurn Water Solutions
44.98
14.77
48.89%
PCT
PureCycle Technologies
12.62
5.59
79.52%
ATMU
Atmus Filtration Technologies, Inc.
37.49
6.70
21.76%
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.Date of analysis: May 03, 2025