ICL GROUP LTD (ICL) Stock Fundamental Analysis
NYSE:ICL - New York Stock Exchange, Inc. - IL0002810146 - Common Stock - Currency: USD
ICL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. ICL scores excellent on profitability, but there are some minor concerns on its financial health. ICL is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ICL was profitable.
In the past year ICL had a positive cash flow from operations.
Each year in the past 5 years ICL has been profitable.
ICL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ICL has a better Return On Assets (3.50%) than 61.45% of its industry peers.
ICL has a Return On Equity (6.88%) which is comparable to the rest of the industry.
With a decent Return On Invested Capital value of 5.79%, ICL is doing good in the industry, outperforming 65.06% of the companies in the same industry.
ICL had an Average Return On Invested Capital over the past 3 years of 14.30%. This is significantly above the industry average of 6.65%.
The 3 year average ROIC (14.30%) for ICL is well above the current ROIC(5.79%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 6.88% | ||
| ROIC | 5.79% |
ROA(3y)10.34%
ROA(5y)7.26%
ROE(3y)22.68%
ROE(5y)16.08%
ROIC(3y)14.3%
ROIC(5y)10.38%
1.3 Margins
The Profit Margin of ICL (5.83%) is better than 67.47% of its industry peers.
In the last couple of years the Profit Margin of ICL has declined.
With a decent Operating Margin value of 11.21%, ICL is doing good in the industry, outperforming 62.65% of the companies in the same industry.
ICL's Operating Margin has improved in the last couple of years.
ICL has a better Gross Margin (32.91%) than 62.65% of its industry peers.
ICL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.21% | ||
| PM (TTM) | 5.83% | ||
| GM | 32.91% |
OM growth 3Y37.77%
OM growth 5Y2.93%
PM growth 3Y240.16%
PM growth 5Y-17.39%
GM growth 3Y6.25%
GM growth 5Y1.21%
2. Health
2.1 Basic Checks
ICL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ICL has about the same amout of shares outstanding than it did 1 year ago.
ICL has more shares outstanding than it did 5 years ago.
ICL has a better debt/assets ratio than last year.
2.2 Solvency
ICL has an Altman-Z score of 2.53. This is not the best score and indicates that ICL is in the grey zone with still only limited risk for bankruptcy at the moment.
ICL's Altman-Z score of 2.53 is fine compared to the rest of the industry. ICL outperforms 72.29% of its industry peers.
The Debt to FCF ratio of ICL is 3.36, which is a good value as it means it would take ICL, 3.36 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.36, ICL belongs to the top of the industry, outperforming 83.13% of the companies in the same industry.
ICL has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.31, ICL is in the better half of the industry, outperforming 69.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.36 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.77
WACC7.5%
2.3 Liquidity
ICL has a Current Ratio of 1.56. This is a normal value and indicates that ICL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.56, ICL is doing worse than 67.47% of the companies in the same industry.
A Quick Ratio of 0.91 indicates that ICL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.91, ICL is doing worse than 71.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The earnings per share for ICL have decreased strongly by -46.67% in the last year.
The Earnings Per Share has been growing by 9.03% on average over the past years. This is quite good.
Looking at the last year, ICL shows a very negative growth in Revenue. The Revenue has decreased by -12.11% in the last year.
The Revenue has been growing slightly by 6.29% on average over the past years.
EPS 1Y (TTM)-46.67%
EPS 3Y39.49%
EPS 5Y9.03%
EPS Q2Q%0%
Revenue 1Y (TTM)-12.11%
Revenue growth 3Y14.33%
Revenue growth 5Y6.29%
Sales Q2Q%-5.85%
3.2 Future
Based on estimates for the next years, ICL will show a decrease in Earnings Per Share. The EPS will decrease by -4.15% on average per year.
ICL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.38% yearly.
EPS Next Y-29.7%
EPS Next 2Y-12.84%
EPS Next 3Y-4.15%
EPS Next 5YN/A
Revenue Next Year-6.77%
Revenue Next 2Y-1.76%
Revenue Next 3Y0.38%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.42, the valuation of ICL can be described as correct.
67.47% of the companies in the same industry are more expensive than ICL, based on the Price/Earnings ratio.
ICL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 14.25, which indicates a correct valuation of ICL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ICL indicates a somewhat cheap valuation: ICL is cheaper than 67.47% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, ICL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.43 | ||
| Fwd PE | 14.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ICL indicates a rather cheap valuation: ICL is cheaper than 84.34% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ICL indicates a rather cheap valuation: ICL is cheaper than 81.93% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.91 | ||
| EV/EBITDA | 7.25 |
4.3 Compensation for Growth
The decent profitability rating of ICL may justify a higher PE ratio.
A cheap valuation may be justified as ICL's earnings are expected to decrease with -4.15% in the coming years.
PEG (NY)N/A
PEG (5Y)1.71
EPS Next 2Y-12.84%
EPS Next 3Y-4.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.30%, ICL has a reasonable but not impressive dividend return.
ICL's Dividend Yield is rather good when compared to the industry average which is at 3.27. ICL pays more dividend than 81.93% of the companies in the same industry.
ICL's Dividend Yield is a higher than the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
5.2 History
The dividend of ICL is nicely growing with an annual growth rate of 14.30%!
ICL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)14.3%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ICL pays out 62.13% of its income as dividend. This is not a sustainable payout ratio.
ICL's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP62.13%
EPS Next 2Y-12.84%
EPS Next 3Y-4.15%
6.17
-0.06 (-0.96%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners26.04%
Inst Owner Change-15.09%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap7.96B
Analysts48
Price Target0.05 (-99.19%)
Short Float %0.19%
Short Ratio1.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
Yearly Dividend0.37
Dividend Growth(5Y)14.3%
DP62.13%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.06%
Min EPS beat(2)16.94%
Max EPS beat(2)25.18%
EPS beat(4)4
Avg EPS beat(4)22.64%
Min EPS beat(4)3.92%
Max EPS beat(4)44.54%
EPS beat(8)5
Avg EPS beat(8)10.36%
EPS beat(12)9
Avg EPS beat(12)25.24%
EPS beat(16)13
Avg EPS beat(16)24.05%
Revenue beat(2)0
Avg Revenue beat(2)-1.41%
Min Revenue beat(2)-1.41%
Max Revenue beat(2)-1.41%
Revenue beat(4)1
Avg Revenue beat(4)-1.77%
Min Revenue beat(4)-5.35%
Max Revenue beat(4)1.08%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.25%
PT rev (3m)3.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.49%
EPS NY rev (1m)5.1%
EPS NY rev (3m)5.1%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-13.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.43 | ||
| Fwd PE | 14.25 | ||
| P/S | 1.15 | ||
| P/FCF | 10.91 | ||
| P/OCF | 5.56 | ||
| P/B | 1.36 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 7.25 |
EPS(TTM)0.4
EY6.48%
EPS(NY)0.43
Fwd EY7.02%
FCF(TTM)0.57
FCFY9.17%
OCF(TTM)1.11
OCFY17.98%
SpS5.37
BVpS4.55
TBVpS3.84
PEG (NY)N/A
PEG (5Y)1.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.5% | ||
| ROE | 6.88% | ||
| ROCE | 8.53% | ||
| ROIC | 5.79% | ||
| ROICexc | 6.13% | ||
| ROICexgc | 6.86% | ||
| OM | 11.21% | ||
| PM (TTM) | 5.83% | ||
| GM | 32.91% | ||
| FCFM | 10.53% |
ROA(3y)10.34%
ROA(5y)7.26%
ROE(3y)22.68%
ROE(5y)16.08%
ROIC(3y)14.3%
ROIC(5y)10.38%
ROICexc(3y)15.18%
ROICexc(5y)10.96%
ROICexgc(3y)16.84%
ROICexgc(5y)12.14%
ROCE(3y)21.8%
ROCE(5y)15.86%
ROICexcg growth 3Y50.41%
ROICexcg growth 5Y5.23%
ROICexc growth 3Y49.81%
ROICexc growth 5Y5.09%
OM growth 3Y37.77%
OM growth 5Y2.93%
PM growth 3Y240.16%
PM growth 5Y-17.39%
GM growth 3Y6.25%
GM growth 5Y1.21%
F-Score4
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 3.36 | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 119.83% | ||
| Cap/Sales | 10.12% | ||
| Interest Coverage | 6.7 | ||
| Cash Conversion | 105.07% | ||
| Profit Quality | 180.69% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 2.53 |
F-Score4
WACC7.5%
ROIC/WACC0.77
Cap/Depr(3y)140.07%
Cap/Depr(5y)135.65%
Cap/Sales(3y)8.86%
Cap/Sales(5y)9.99%
Profit Quality(3y)81.05%
Profit Quality(5y)389.78%
High Growth Momentum
Growth
EPS 1Y (TTM)-46.67%
EPS 3Y39.49%
EPS 5Y9.03%
EPS Q2Q%0%
EPS Next Y-29.7%
EPS Next 2Y-12.84%
EPS Next 3Y-4.15%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.11%
Revenue growth 3Y14.33%
Revenue growth 5Y6.29%
Sales Q2Q%-5.85%
Revenue Next Year-6.77%
Revenue Next 2Y-1.76%
Revenue Next 3Y0.38%
Revenue Next 5YN/A
EBIT growth 1Y-49.28%
EBIT growth 3Y57.51%
EBIT growth 5Y9.4%
EBIT Next Year25.59%
EBIT Next 3Y11.24%
EBIT Next 5YN/A
FCF growth 1Y-38.24%
FCF growth 3Y66.05%
FCF growth 5Y72.73%
OCF growth 1Y-24.76%
OCF growth 3Y25.65%
OCF growth 5Y20.61%