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. MTX has an excellent profitability rating, but there are some minor concerns on its financial health. MTX is cheap, but on the other hand it scores bad on growth. With these ratings, MTX could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year MTX was profitable.
In the past year MTX had a positive cash flow from operations.
MTX had positive earnings in each of the past 5 years.
MTX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MTX's Return On Assets of 4.92% is fine compared to the rest of the industry. MTX outperforms 75.29% of its industry peers.
MTX's Return On Equity of 9.56% is fine compared to the rest of the industry. MTX outperforms 70.59% of its industry peers.
MTX has a better Return On Invested Capital (7.20%) than 67.06% of its industry peers.
MTX had an Average Return On Invested Capital over the past 3 years of 6.89%. This is in line with the industry average of 7.01%.
The last Return On Invested Capital (7.20%) for MTX is above the 3 year average (6.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.92% | ||
| ROE | 9.56% | ||
| ROIC | 7.2% |
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 has a Profit Margin of 7.89%. This is in the better half of the industry: MTX outperforms 76.47% of its industry peers.
MTX's Profit Margin has been stable in the last couple of years.
MTX's Operating Margin of 13.48% is fine compared to the rest of the industry. MTX outperforms 71.76% of its industry peers.
MTX's Operating Margin has been stable in the last couple of years.
MTX has a Gross Margin (25.85%) 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 | 13.48% | ||
| PM (TTM) | 7.89% | ||
| GM | 25.85% |
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.
MTX has less shares outstanding than it did 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 2.88. 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.
MTX has a better Altman-Z score (2.88) than 78.82% of its industry peers.
The Debt to FCF ratio of MTX is 6.61, which is on the high side as it means it would take MTX, 6.61 years of fcf income to pay off all of its debts.
MTX has a Debt to FCF ratio of 6.61. This is in the better half of the industry: MTX outperforms 70.59% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that MTX is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.55, MTX perfoms like the industry average, outperforming 57.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 6.61 | ||
| Altman-Z | 2.88 |
ROIC/WACC0.83
WACC8.66%
2.3 Liquidity
MTX has a Current Ratio of 2.84. This indicates that MTX is financially healthy and has no problem in meeting its short term obligations.
MTX has a Current ratio of 2.84. This is amongst the best in the industry. MTX outperforms 83.53% of its industry peers.
A Quick Ratio of 1.98 indicates that MTX should not have too much problems paying its short term obligations.
MTX has a Quick ratio of 1.98. This is in the better half of the industry: MTX outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.84 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
MTX shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.13%.
MTX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.77% yearly.
Looking at the last year, MTX shows a decrease in Revenue. The Revenue has decreased by -2.37% in the last year.
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)-2.37%
Revenue growth 3Y4.47%
Revenue growth 5Y3.42%
Sales Q2Q%-7.99%
3.2 Future
The Earnings Per Share is expected to grow by 7.49% on average over the next years.
Based on estimates for the next years, MTX will show a small growth in Revenue. The Revenue will grow by 2.10% on average per year.
EPS Next Y3.79%
EPS Next 2Y7.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.42%
Revenue Next 2Y2.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
MTX is valuated reasonably with a Price/Earnings ratio of 10.00.
Based on the Price/Earnings ratio, MTX is valued cheaply inside the industry as 87.06% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MTX to the average of the S&P500 Index (24.85), we can say MTX is valued rather cheaply.
The Price/Forward Earnings ratio is 8.16, which indicates a very decent valuation of MTX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MTX indicates a rather cheap valuation: MTX is cheaper than 82.35% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.89, MTX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10 | ||
| Fwd PE | 8.16 |
4.2 Price Multiples
83.53% of the companies in the same industry are more expensive than MTX, based on the Enterprise Value to EBITDA ratio.
MTX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MTX is cheaper than 81.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.53 | ||
| EV/EBITDA | 6.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MTX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.64
PEG (5Y)1.29
EPS Next 2Y7.49%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MTX has a yearly dividend return of 0.80%, which is pretty low.
MTX's Dividend Yield is comparable with the industry average which is at 3.77.
Compared to an average S&P500 Dividend Yield of 2.40, MTX's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
5.2 History
The dividend of MTX is nicely growing with an annual growth rate of 15.37%!
MTX has been paying a dividend for at least 10 years, so it has a reliable track record.
MTX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)15.37%
Div Incr Years2
Div Non Decr Years31
5.3 Sustainability
7.90% 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 the earnings are growing slower. This means the dividend growth is not sustainable.
DP7.9%
EPS Next 2Y7.49%
EPS Next 3YN/A
58
-0.77 (-1.31%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners98.24%
Inst Owner Change-2.48%
Ins Owners1.21%
Ins Owner Change4.35%
Market Cap1.84B
Analysts80
Price Target84.15 (45.09%)
Short Float %1.28%
Short Ratio1.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
Yearly Dividend0.41
Dividend Growth(5Y)15.37%
DP7.9%
Div Incr Years2
Div Non Decr Years31
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.17%
Min EPS beat(2)-0.5%
Max EPS beat(2)6.85%
EPS beat(4)3
Avg EPS beat(4)5.89%
Min EPS beat(4)-0.5%
Max EPS beat(4)15.25%
EPS beat(8)7
Avg EPS beat(8)6.02%
EPS beat(12)9
Avg EPS beat(12)0.78%
EPS beat(16)13
Avg EPS beat(16)1.71%
Revenue beat(2)0
Avg Revenue beat(2)-2.5%
Min Revenue beat(2)-3.09%
Max Revenue beat(2)-1.92%
Revenue beat(4)0
Avg Revenue beat(4)-2.92%
Min Revenue beat(4)-3.69%
Max Revenue beat(4)-1.92%
Revenue beat(8)2
Avg Revenue beat(8)-1.52%
Revenue beat(12)5
Avg Revenue beat(12)-0.91%
Revenue beat(16)6
Avg Revenue beat(16)-0.76%
PT rev (1m)-18.32%
PT rev (3m)-17.71%
EPS NQ rev (1m)-0.58%
EPS NQ rev (3m)-19.06%
EPS NY rev (1m)-2.43%
EPS NY rev (3m)-6.51%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-9.41%
Revenue NY rev (1m)-2.06%
Revenue NY rev (3m)-4.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10 | ||
| Fwd PE | 8.16 | ||
| P/S | 0.87 | ||
| P/FCF | 12.53 | ||
| P/OCF | 7.78 | ||
| P/B | 1.05 | ||
| P/tB | 2.99 | ||
| EV/EBITDA | 6.55 |
EPS(TTM)5.8
EY10%
EPS(NY)7.11
Fwd EY12.25%
FCF(TTM)4.63
FCFY7.98%
OCF(TTM)7.45
OCFY12.85%
SpS66.77
BVpS55.06
TBVpS19.39
PEG (NY)2.64
PEG (5Y)1.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.92% | ||
| ROE | 9.56% | ||
| ROCE | 9.53% | ||
| ROIC | 7.2% | ||
| ROICexc | 8.11% | ||
| ROICexgc | 14.11% | ||
| OM | 13.48% | ||
| PM (TTM) | 7.89% | ||
| GM | 25.85% | ||
| FCFM | 6.93% |
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-Score7
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 6.61 | ||
| Debt/EBITDA | 2.54 | ||
| Cap/Depr | 94.31% | ||
| Cap/Sales | 4.22% | ||
| Interest Coverage | 4.52 | ||
| Cash Conversion | 62.15% | ||
| Profit Quality | 87.91% | ||
| Current Ratio | 2.84 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | 2.88 |
F-Score7
WACC8.66%
ROIC/WACC0.83
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 Y3.79%
EPS Next 2Y7.49%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-2.37%
Revenue growth 3Y4.47%
Revenue growth 5Y3.42%
Sales Q2Q%-7.99%
Revenue Next Year-0.42%
Revenue Next 2Y2.1%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y2%
EBIT growth 3Y5.84%
EBIT growth 5Y4.17%
EBIT Next Year31.01%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y4.85%
FCF growth 3YN/A
FCF growth 5Y-3.25%
OCF growth 1Y1.2%
OCF growth 3Y0.57%
OCF growth 5Y-0.16%