MINERALS TECHNOLOGIES INC (MTX) Stock Fundamental Analysis
NYSE:MTX - New York Stock Exchange, Inc. - US6031581068 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to MTX. MTX was compared to 85 industry peers in the Chemicals industry. While MTX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MTX has a bad growth rate and is valued cheaply. With these ratings, MTX could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
MTX had positive earnings in the past year.
MTX had a positive operating cash flow in the past year.
In the past 5 years MTX has always been profitable.
MTX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MTX has a better Return On Assets (4.92%) than 75.29% of its industry peers.
MTX has a Return On Equity of 9.56%. This is in the better half of the industry: MTX outperforms 71.76% of its industry peers.
With a decent Return On Invested Capital value of 7.20%, MTX is doing good in the industry, outperforming 65.88% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MTX is in line with the industry average of 7.03%.
The 3 year average ROIC (6.89%) for MTX is below the current ROIC(7.20%), indicating increased profibility in the last year.
| 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 better Profit Margin (7.89%) than 77.65% of its industry peers.
In the last couple of years the Profit Margin of MTX has remained more or less at the same level.
The Operating Margin of MTX (13.48%) is better than 72.94% 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 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 | 13.48% | ||
| 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
An Altman-Z score of 2.87 indicates that MTX is not a great score, but indicates only limited risk for bankruptcy at the moment.
MTX has a Altman-Z score of 2.87. This is in the better half of the industry: MTX outperforms 77.65% 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.
Looking at the Debt to FCF ratio, with a value of 6.61, MTX is in the better half of the industry, outperforming 69.41% of the companies in the same industry.
MTX has a Debt/Equity ratio of 0.55. This is a neutral value indicating MTX is somewhat dependend on debt financing.
MTX has a Debt to Equity ratio (0.55) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 6.61 | ||
| Altman-Z | 2.87 |
ROIC/WACC0.82
WACC8.79%
2.3 Liquidity
A Current Ratio of 2.84 indicates that MTX has no problem at all paying its short term obligations.
MTX's Current ratio of 2.84 is amongst the best of the industry. MTX outperforms 84.71% 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%.
The Earnings Per Share has been growing slightly by 7.77% on average over the past years.
MTX shows a decrease in Revenue. In the last year, the revenue decreased by -2.37%.
The Revenue has been growing slightly by 3.42% on average over the past years.
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
MTX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.83% yearly.
MTX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.10% yearly.
EPS Next Y-5.32%
EPS Next 2Y3.83%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 9.79.
Compared to the rest of the industry, the Price/Earnings ratio of MTX indicates a rather cheap valuation: MTX is cheaper than 87.06% of the companies listed in the same industry.
MTX is valuated cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.56, the valuation of MTX can be described as very reasonable.
Based on the Price/Forward Earnings ratio, MTX is valued cheaply inside the industry as 83.53% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.15. MTX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.79 | ||
| Fwd PE | 8.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MTX is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MTX is valued cheaper than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.26 | ||
| EV/EBITDA | 6.47 |
4.3 Compensation for Growth
MTX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.26
EPS Next 2Y3.83%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.76%, MTX is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.76, MTX has a dividend in line with its industry peers.
With a Dividend Yield of 0.76, MTX pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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 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.
MTX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP7.9%
EPS Next 2Y3.83%
EPS Next 3YN/A
56.78
-1.12 (-1.93%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners98.24%
Inst Owner Change2.38%
Ins Owners1.21%
Ins Owner Change4.35%
Market Cap1.80B
Analysts80
Price Target84.15 (48.2%)
Short Float %1.28%
Short Ratio1.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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)-11.53%
PT rev (3m)-19.32%
EPS NQ rev (1m)-8.49%
EPS NQ rev (3m)-11.07%
EPS NY rev (1m)-8.78%
EPS NY rev (3m)-11.75%
Revenue NQ rev (1m)-1.19%
Revenue NQ rev (3m)-1.99%
Revenue NY rev (1m)-1.34%
Revenue NY rev (3m)-2.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.79 | ||
| Fwd PE | 8.56 | ||
| P/S | 0.85 | ||
| P/FCF | 12.26 | ||
| P/OCF | 7.62 | ||
| P/B | 1.03 | ||
| P/tB | 2.93 | ||
| EV/EBITDA | 6.47 |
EPS(TTM)5.8
EY10.21%
EPS(NY)6.63
Fwd EY11.68%
FCF(TTM)4.63
FCFY8.15%
OCF(TTM)7.45
OCFY13.12%
SpS66.77
BVpS55.06
TBVpS19.39
PEG (NY)N/A
PEG (5Y)1.26
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 | 2.87 |
F-Score7
WACC8.79%
ROIC/WACC0.82
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-5.32%
EPS Next 2Y3.83%
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 Year21.42%
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%