MINERALS TECHNOLOGIES INC (MTX) Stock Fundamental Analysis
NYSE:MTX - New York Stock Exchange, Inc. - US6031581068 - Common Stock - Currency: USD
Overall MTX gets a fundamental rating of 6 out of 10. We evaluated MTX against 85 industry peers in the Chemicals industry. Both the profitability and the financial health of MTX get a neutral evaluation. Nothing too spectacular is happening here. MTX scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make MTX a good candidate for value investing.
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.
Each year in the past 5 years MTX has been profitable.
Of the past 5 years MTX 4 years had a positive operating cash flow.
1.2 Ratios
MTX has a Return On Assets of 4.50%. This is in the better half of the industry: MTX outperforms 68.67% of its industry peers.
MTX has a better Return On Equity (8.96%) than 66.27% of its industry peers.
MTX's Return On Invested Capital of 7.10% is fine compared to the rest of the industry. MTX outperforms 69.88% 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 6.61%.
The 3 year average ROIC (6.88%) for MTX is below the current ROIC(7.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.5% | ||
| ROE | 8.96% | ||
| ROIC | 7.1% |
ROA(3y)3.67%
ROA(5y)3.88%
ROE(3y)7.46%
ROE(5y)8.15%
ROIC(3y)6.88%
ROIC(5y)6.42%
1.3 Margins
MTX's Profit Margin of 7.19% is fine compared to the rest of the industry. MTX outperforms 71.08% of its industry peers.
In the last couple of years the Profit Margin of MTX has remained more or less at the same level.
MTX's Operating Margin of 13.20% is fine compared to the rest of the industry. MTX outperforms 74.70% of its industry peers.
MTX's Operating Margin has been stable in the last couple of years.
MTX has a Gross Margin (25.43%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of MTX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.2% | ||
| PM (TTM) | 7.19% | ||
| GM | 25.43% |
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.
MTX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MTX has been reduced compared to a year ago.
2.2 Solvency
MTX has an Altman-Z score of 2.96. 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.
The Altman-Z score of MTX (2.96) is better than 78.31% of its industry peers.
MTX has a debt to FCF ratio of 5.54. This is a neutral value as MTX would need 5.54 years to pay back of all of its debts.
MTX's Debt to FCF ratio of 5.54 is fine compared to the rest of the industry. MTX outperforms 72.29% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that MTX is somewhat dependend on debt financing.
MTX has a Debt to Equity ratio of 0.56. This is comparable to the rest of the industry: MTX outperforms 54.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 5.54 | ||
| Altman-Z | 2.96 |
ROIC/WACC0.8
WACC8.89%
2.3 Liquidity
A Current Ratio of 2.46 indicates that MTX has no problem at all paying its short term obligations.
MTX's Current ratio of 2.46 is fine compared to the rest of the industry. MTX outperforms 60.24% of its industry peers.
A Quick Ratio of 1.72 indicates that MTX should not have too much problems paying its short term obligations.
MTX has a Quick ratio of 1.72. This is in the better half of the industry: MTX outperforms 67.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.72 |
3. Growth
3.1 Past
MTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.82%, which is quite good.
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.
The Revenue has decreased by -2.37% in the past year.
Measured over the past years, MTX shows a small growth in Revenue. The Revenue has been growing by 3.42% on average per year.
EPS 1Y (TTM)17.82%
EPS 3Y7.07%
EPS 5Y7.77%
EPS Q2Q%17.19%
Revenue 1Y (TTM)-2.37%
Revenue growth 3Y4.47%
Revenue growth 5Y3.42%
Sales Q2Q%-1.22%
3.2 Future
Based on estimates for the next years, MTX will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.74% on average per year.
Based on estimates for the next years, MTX will show a small growth in Revenue. The Revenue will grow by 4.58% on average per year.
EPS Next Y7.28%
EPS Next 2Y9.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.52%
Revenue Next 2Y4.58%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.56 indicates a reasonable valuation of MTX.
Based on the Price/Earnings ratio, MTX is valued cheaper than 87.95% of the companies in the same industry.
MTX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.30.
With a Price/Forward Earnings ratio of 10.78, the valuation of MTX can be described as very reasonable.
81.93% of the companies in the same industry are more expensive than MTX, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.06. MTX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 10.78 |
4.2 Price Multiples
MTX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MTX is cheaper than 79.52% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MTX is valued a bit cheaper than the industry average as 77.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.78 | ||
| EV/EBITDA | 7.64 |
4.3 Compensation for Growth
MTX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of MTX may justify a higher PE ratio.
PEG (NY)1.59
PEG (5Y)1.49
EPS Next 2Y9.74%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MTX has a yearly dividend return of 0.60%, which is pretty low.
MTX's Dividend Yield is slightly below the industry average, which is at 3.27.
Compared to an average S&P500 Dividend Yield of 2.29, MTX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
5.2 History
The dividend of MTX has a limited annual growth rate of 4.42%.
MTX has been paying a dividend for at least 10 years, so it has a reliable track record.
MTX has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.42%
Div Incr Years2
Div Non Decr Years31
5.3 Sustainability
8.44% of the earnings are spent on dividend by MTX. This is a low number and sustainable payout ratio.
The dividend of MTX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP8.44%
EPS Next 2Y9.74%
EPS Next 3YN/A
71.1
-0.06 (-0.08%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners97.99%
Inst Owner Change0.61%
Ins Owners1.1%
Ins Owner Change4.03%
Market Cap2.27B
Analysts80
Price Target102.26 (43.83%)
Short Float %0.91%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Yearly Dividend0.25
Dividend Growth(5Y)4.42%
DP8.44%
Div Incr Years2
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.72%
Min EPS beat(2)-0.5%
Max EPS beat(2)1.94%
EPS beat(4)3
Avg EPS beat(4)4.52%
Min EPS beat(4)-0.5%
Max EPS beat(4)15.25%
EPS beat(8)6
Avg EPS beat(8)-0.39%
EPS beat(12)9
Avg EPS beat(12)0.37%
EPS beat(16)13
Avg EPS beat(16)2.35%
Revenue beat(2)0
Avg Revenue beat(2)-3.39%
Min Revenue beat(2)-3.69%
Max Revenue beat(2)-3.09%
Revenue beat(4)1
Avg Revenue beat(4)-1.82%
Min Revenue beat(4)-3.69%
Max Revenue beat(4)2.5%
Revenue beat(8)2
Avg Revenue beat(8)-1.63%
Revenue beat(12)5
Avg Revenue beat(12)-1.04%
Revenue beat(16)7
Avg Revenue beat(16)-0.12%
PT rev (1m)1.26%
PT rev (3m)-0.5%
EPS NQ rev (1m)-0.36%
EPS NQ rev (3m)-0.36%
EPS NY rev (1m)-4.07%
EPS NY rev (3m)-4.07%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 10.78 | ||
| P/S | 1.07 | ||
| P/FCF | 12.78 | ||
| P/OCF | 8.68 | ||
| P/B | 1.33 | ||
| P/tB | 3.98 | ||
| EV/EBITDA | 7.64 |
EPS(TTM)6.15
EY8.65%
EPS(NY)6.6
Fwd EY9.28%
FCF(TTM)5.56
FCFY7.82%
OCF(TTM)8.19
OCFY11.52%
SpS66.63
BVpS53.5
TBVpS17.86
PEG (NY)1.59
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.5% | ||
| ROE | 8.96% | ||
| ROCE | 9.57% | ||
| ROIC | 7.1% | ||
| ROICexc | 7.97% | ||
| ROICexgc | 13.89% | ||
| OM | 13.2% | ||
| PM (TTM) | 7.19% | ||
| GM | 25.43% | ||
| FCFM | 8.35% |
ROA(3y)3.67%
ROA(5y)3.88%
ROE(3y)7.46%
ROE(5y)8.15%
ROIC(3y)6.88%
ROIC(5y)6.42%
ROICexc(3y)7.67%
ROICexc(5y)7.18%
ROICexgc(3y)13.34%
ROICexgc(5y)12.38%
ROCE(3y)9.31%
ROCE(5y)8.65%
ROICexcg growth 3Y6.65%
ROICexcg growth 5Y4.52%
ROICexc growth 3Y6.66%
ROICexc growth 5Y3.41%
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-Score8
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 5.54 | ||
| Debt/EBITDA | 2.55 | ||
| Cap/Depr | 89.16% | ||
| Cap/Sales | 3.95% | ||
| Interest Coverage | 4.3 | ||
| Cash Conversion | 69.75% | ||
| Profit Quality | 116.1% | ||
| Current Ratio | 2.46 | ||
| Quick Ratio | 1.72 | ||
| Altman-Z | 2.96 |
F-Score8
WACC8.89%
ROIC/WACC0.8
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.82%
EPS 3Y7.07%
EPS 5Y7.77%
EPS Q2Q%17.19%
EPS Next Y7.28%
EPS Next 2Y9.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.37%
Revenue growth 3Y4.47%
Revenue growth 5Y3.42%
Sales Q2Q%-1.22%
Revenue Next Year4.52%
Revenue Next 2Y4.58%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y10.13%
EBIT growth 3Y5.84%
EBIT growth 5Y4.17%
EBIT Next Year36.69%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y105.09%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y44.84%
OCF growth 3YN/A
OCF growth 5YN/A