MP MATERIALS CORP (MP)
US5533681012 - Common Stock
Taking everything into account, MP scores 4 out of 10 in our fundamental rating. MP was compared to 154 industry peers in the Metals & Mining industry. MP has an average financial health and profitability rating. MP is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MP was profitable.
MP had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MP reported negative net income in multiple years.
MP had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of MP (1.04%) is comparable to the rest of the industry.
The Return On Equity of MP (1.77%) is better than 60.39% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.36%, MP is in line with its industry, outperforming 47.40% of the companies in the same industry.
MP had an Average Return On Invested Capital over the past 3 years of 6.73%. This is below the industry average of 8.93%.
The 3 year average ROIC (6.73%) for MP is well above the current ROIC(0.36%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.04% | ||
| ROE | 1.77% | ||
| ROIC | 0.36% |
ROA(3y)7.03%
ROA(5y)2.48%
ROE(3y)12.39%
ROE(5y)N/A
ROIC(3y)6.73%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of MP (9.57%) is better than 77.27% of its industry peers.
MP has a Operating Margin of 3.96%. This is comparable to the rest of the industry: MP outperforms 49.35% of its industry peers.
In the last couple of years the Operating Margin of MP has declined.
With an excellent Gross Margin value of 63.43%, MP belongs to the best of the industry, outperforming 95.45% of the companies in the same industry.
MP's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.96% | ||
| PM (TTM) | 9.57% | ||
| GM | 63.43% |
OM growth 3Y-29.19%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y7.74%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MP is destroying value.
Compared to 1 year ago, MP has more shares outstanding
MP has a better debt/assets ratio than last year.
2.2 Solvency
MP has an Altman-Z score of 2.69. This is not the best score and indicates that MP is in the grey zone with still only limited risk for bankruptcy at the moment.
MP has a Altman-Z score (2.69) which is in line with its industry peers.
A Debt/Equity ratio of 0.50 indicates that MP is somewhat dependend on debt financing.
The Debt to Equity ratio of MP (0.50) is worse than 76.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.69 |
ROIC/WACC0.05
WACC7.59%
2.3 Liquidity
MP has a Current Ratio of 10.42. This indicates that MP is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 10.42, MP belongs to the best of the industry, outperforming 92.21% of the companies in the same industry.
A Quick Ratio of 9.54 indicates that MP has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 9.54, MP belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 10.42 | ||
| Quick Ratio | 9.54 |
3. Growth
3.1 Past
The earnings per share for MP have decreased strongly by -77.78% in the last year.
MP shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -51.96%.
Measured over the past years, MP shows a very strong growth in Revenue. The Revenue has been growing by 23.58% on average per year.
EPS 1Y (TTM)-77.78%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-104.76%
Revenue 1Y (TTM)-51.96%
Revenue growth 3Y23.58%
Revenue growth 5YN/A
Revenue growth Q2Q-55.79%
3.2 Future
Based on estimates for the next years, MP will show a very strong growth in Earnings Per Share. The EPS will grow by 83.62% on average per year.
Based on estimates for the next years, MP will show a very strong growth in Revenue. The Revenue will grow by 62.66% on average per year.
EPS Next Y-59.79%
EPS Next 2Y33.41%
EPS Next 3Y47.61%
EPS Next 5Y83.62%
Revenue Next Year1.46%
Revenue Next 2Y36.5%
Revenue Next 3Y39.57%
Revenue Next 5Y62.66%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 43.21, MP can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as MP.
The average S&P500 Price/Earnings ratio is at 25.02. MP is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 107.47 indicates a quite expensive valuation of MP.
The rest of the industry has a similar Price/Forward Earnings ratio as MP.
When comparing the Price/Forward Earnings ratio of MP to the average of the S&P500 Index (21.32), we can say MP is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.21 | ||
| Fwd PE | 107.47 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 28.63 |
4.3 Compensation for Growth
A more expensive valuation may be justified as MP's earnings are expected to grow with 47.61% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y33.41%
EPS Next 3Y47.61%
5. Dividend
5.1 Amount
MP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MP MATERIALS CORP
NYSE:MP (4/29/2024, 7:14:49 PM)
Premarket: 16.24 -0.18 (-1.1%)16.42
+0.42 (+2.63%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.92B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.21 | ||
| Fwd PE | 107.47 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.04% | ||
| ROE | 1.77% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.96% | ||
| PM (TTM) | 9.57% | ||
| GM | 63.43% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 10.42 | ||
| Quick Ratio | 9.54 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-77.78%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-59.79%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-51.96%
Revenue growth 3Y23.58%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y