MINERALS TECHNOLOGIES INC (MTX) Stock Fundamental Analysis
NYSE:MTX - New York Stock Exchange, Inc. - US6031581068 - Common Stock - Currency: USD
Taking everything into account, MTX scores 4 out of 10 in our fundamental rating. MTX was compared to 85 industry peers in the Chemicals industry. MTX has an average financial health and profitability rating. MTX has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MTX had positive earnings in the past year.
In the past year MTX had a positive cash flow from operations.
MTX had positive earnings in each of the past 5 years.
Each year in the past 5 years MTX had a positive operating cash flow.
1.2 Ratios
MTX has a Return On Assets of -0.69%. This is in the lower half of the industry: MTX underperforms 64.71% of its industry peers.
MTX has a Return On Equity (-1.48%) which is comparable to the rest of the industry.
MTX has a Return On Invested Capital of 1.51%. This is in the lower half of the industry: MTX underperforms 70.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MTX is in line with the industry average of 6.84%.
The last Return On Invested Capital (1.51%) for MTX is well below the 3 year average (6.89%), which needs to be investigated, but indicates that MTX had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.69% | ||
| ROE | -1.48% | ||
| ROIC | 1.51% |
ROA(3y)3.68%
ROA(5y)3.88%
ROE(3y)7.46%
ROE(5y)8.15%
ROIC(3y)6.89%
ROIC(5y)6.42%
1.3 Margins
MTX's Profit Margin has been stable in the last couple of years.
The Operating Margin of MTX (2.72%) is worse than 71.76% of its industry peers.
In the last couple of years the Operating Margin of MTX has remained more or less at the same level.
MTX has a Gross Margin (25.60%) which is in line with its industry peers.
MTX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.72% | ||
| PM (TTM) | N/A | ||
| GM | 25.6% |
OM growth 3Y1.32%
OM growth 5Y0.73%
PM growth 3Y-3.75%
PM growth 5Y1.26%
GM growth 3Y2.47%
GM growth 5Y1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MTX is destroying value.
The number of shares outstanding for MTX has been reduced compared to 1 year ago.
The number of shares outstanding for MTX has been reduced compared to 5 years ago.
MTX has a better debt/assets ratio than last year.
2.2 Solvency
MTX has an Altman-Z score of 2.45. This is not the best score and indicates that MTX is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.45, MTX is in the better half of the industry, outperforming 67.06% of the companies in the same industry.
MTX has a debt to FCF ratio of 11.63. This is a negative value and a sign of low solvency as MTX would need 11.63 years to pay back of all of its debts.
MTX has a Debt to FCF ratio of 11.63. This is in the better half of the industry: MTX outperforms 61.18% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that MTX is somewhat dependend on debt financing.
MTX has a Debt to Equity ratio (0.61) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 11.63 | ||
| Altman-Z | 2.45 |
ROIC/WACC0.17
WACC8.71%
2.3 Liquidity
A Current Ratio of 1.89 indicates that MTX should not have too much problems paying its short term obligations.
The Current ratio of MTX (1.89) is comparable to the rest of the industry.
A Quick Ratio of 1.31 indicates that MTX should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.31, MTX perfoms like the industry average, outperforming 56.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.13% over the past year.
Measured over the past 5 years, MTX shows a small growth in Earnings Per Share. The EPS has been growing by 7.77% on average per year.
MTX shows a decrease in Revenue. In the last year, the revenue decreased by -3.82%.
MTX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.42% yearly.
EPS 1Y (TTM)4.13%
EPS 3Y7.07%
EPS 5Y7.77%
EPS Q2Q%-23.49%
Revenue 1Y (TTM)-3.82%
Revenue growth 3Y4.47%
Revenue growth 5Y3.42%
Sales Q2Q%-7.99%
3.2 Future
MTX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.81% yearly.
MTX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.50% yearly.
EPS Next Y-7.98%
EPS Next 2Y2.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-1.59%
Revenue Next 2Y1.5%
Revenue Next 3YN/A
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MTX is valuated reasonably with a Price/Earnings ratio of 10.19.
Compared to the rest of the industry, the Price/Earnings ratio of MTX indicates a rather cheap valuation: MTX is cheaper than 88.24% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, MTX is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.09, the valuation of MTX can be described as very reasonable.
85.88% of the companies in the same industry are more expensive than MTX, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, MTX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.19 | ||
| Fwd PE | 9.09 |
4.2 Price Multiples
MTX's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. MTX is more expensive than 63.53% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MTX is valued a bit cheaper than 68.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.11 | ||
| EV/EBITDA | 16.65 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.31
EPS Next 2Y2.81%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MTX has a yearly dividend return of 0.79%, which is pretty low.
MTX's Dividend Yield is comparable with the industry average which is at 3.69.
With a Dividend Yield of 0.79, MTX pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
On average, the dividend of MTX grows each year by 15.37%, which is quite nice.
MTX has paid a dividend for at least 10 years, which is a reliable track record.
MTX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)15.37%
Div Incr Years2
Div Non Decr Years31
5.3 Sustainability
MTX has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of MTX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-57.63%
EPS Next 2Y2.81%
EPS Next 3YN/A
59.1
+0.15 (+0.25%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners99.67%
Inst Owner Change2.16%
Ins Owners1.15%
Ins Owner Change4.39%
Market Cap1.88B
Analysts80
Price Target82.96 (40.37%)
Short Float %2.13%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend0.41
Dividend Growth(5Y)15.37%
DP-57.63%
Div Incr Years2
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.05%
Min EPS beat(2)-4.75%
Max EPS beat(2)6.85%
EPS beat(4)2
Avg EPS beat(4)0.89%
Min EPS beat(4)-4.75%
Max EPS beat(4)6.85%
EPS beat(8)6
Avg EPS beat(8)4.39%
EPS beat(12)8
Avg EPS beat(12)-0.24%
EPS beat(16)12
Avg EPS beat(16)0.79%
Revenue beat(2)0
Avg Revenue beat(2)-1.55%
Min Revenue beat(2)-1.92%
Max Revenue beat(2)-1.18%
Revenue beat(4)0
Avg Revenue beat(4)-2.47%
Min Revenue beat(4)-3.69%
Max Revenue beat(4)-1.18%
Revenue beat(8)1
Avg Revenue beat(8)-1.98%
Revenue beat(12)4
Avg Revenue beat(12)-1.01%
Revenue beat(16)5
Avg Revenue beat(16)-1.17%
PT rev (1m)-1.41%
PT rev (3m)-19.47%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)-19.73%
EPS NY rev (1m)-2.8%
EPS NY rev (3m)-13.5%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-5.32%
Revenue NY rev (1m)-1.17%
Revenue NY rev (3m)-3.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.19 | ||
| Fwd PE | 9.09 | ||
| P/S | 0.9 | ||
| P/FCF | 22.11 | ||
| P/OCF | 10.65 | ||
| P/B | 1.17 | ||
| P/tB | 4.01 | ||
| EV/EBITDA | 16.65 |
EPS(TTM)5.8
EY9.81%
EPS(NY)6.5
Fwd EY11%
FCF(TTM)2.67
FCFY4.52%
OCF(TTM)5.55
OCFY9.39%
SpS65.42
BVpS50.37
TBVpS14.74
PEG (NY)N/A
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.69% | ||
| ROE | -1.48% | ||
| ROCE | 2.01% | ||
| ROIC | 1.51% | ||
| ROICexc | 1.7% | ||
| ROICexgc | 3.1% | ||
| OM | 2.72% | ||
| PM (TTM) | N/A | ||
| GM | 25.6% | ||
| FCFM | 4.09% |
ROA(3y)3.68%
ROA(5y)3.88%
ROE(3y)7.46%
ROE(5y)8.15%
ROIC(3y)6.89%
ROIC(5y)6.42%
ROICexc(3y)7.67%
ROICexc(5y)7.18%
ROICexgc(3y)13.35%
ROICexgc(5y)12.39%
ROCE(3y)9.31%
ROCE(5y)8.65%
ROICexcg growth 3Y6.72%
ROICexcg growth 5Y4.56%
ROICexc growth 3Y6.7%
ROICexc growth 5Y3.44%
OM growth 3Y1.32%
OM growth 5Y0.73%
PM growth 3Y-3.75%
PM growth 5Y1.26%
GM growth 3Y2.47%
GM growth 5Y1%
F-Score4
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 11.63 | ||
| Debt/EBITDA | 6.48 | ||
| Cap/Depr | 96.21% | ||
| Cap/Sales | 4.4% | ||
| Interest Coverage | 0.9 | ||
| Cash Conversion | 116.39% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.89 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 2.45 |
F-Score4
WACC8.71%
ROIC/WACC0.17
Cap/Depr(3y)93.37%
Cap/Depr(5y)131.49%
Cap/Sales(3y)4.14%
Cap/Sales(5y)6.45%
Profit Quality(3y)91.22%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)4.13%
EPS 3Y7.07%
EPS 5Y7.77%
EPS Q2Q%-23.49%
EPS Next Y-7.98%
EPS Next 2Y2.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.82%
Revenue growth 3Y4.47%
Revenue growth 5Y3.42%
Sales Q2Q%-7.99%
Revenue Next Year-1.59%
Revenue Next 2Y1.5%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-80.82%
EBIT growth 3Y5.84%
EBIT growth 5Y4.17%
EBIT Next Year21.42%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y64.98%
FCF growth 3YN/A
FCF growth 5Y-3.25%
OCF growth 1Y26.6%
OCF growth 3Y0.57%
OCF growth 5Y-0.16%