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ICL Group (ICL)
NYSE:ICL
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Icl
(NYSE:ICL)76Outperform
Positive Factors
Commodity Performance
Phosphate is performing particularly well, helping ICL cope effectively with a volatile commodity setup.
Financial Performance
ICL raised the 2024 'specialties' umbrella EBITDA guidance range by approximately $100M to between $800M and $1B.
Negative Factors
Construction and Development
ICL is delaying the construction schedule for the St. Louis LFP cathode materials plant to better align start-up with Western world customer needs.
Icl (ICL) vs. S&P 500 (SPY)
Market Cap
$7.78B
Dividend Yield3.3%
Average Volume (3M)1.03M
Price to Earnings (P/E)19.1
Beta (1Y)0.87
Revenue Growth-12.11%
EPS Growth-55.68%
CountryUS
Employees13,350
SectorBasic Materials
Sector Strength56
IndustryAgriculture
Share Statistics
EPS (TTM)0.32
Shares Outstanding1,290,375,900
10 Day Avg. Volume1,650,240
30 Day Avg. Volume1,030,840
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.69
Price to Cash Flow (P/CF)4.80
P/FCF Ratio18.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.63Price Target Upside-2.60% Downside
Rating ConsensusHold
Number of Analyst Covering3
Icl Business Overview & Revenue Model
Company DescriptionICL (Israel Chemicals Ltd.) is a global specialty minerals and chemicals company that develops, manufactures, and markets a diverse range of products for agriculture, food, and engineered materials industries. Headquartered in Israel, ICL operates through various segments, including Fertilizers, Industrial Products, Performance Products, and Innovative Agriculture Solutions. The company is a leading supplier of potash and phosphates, which are essential components in the production of fertilizers that enhance agricultural productivity and food security worldwide.
How the Company Makes MoneyICL generates revenue primarily through the sale of potash, phosphate fertilizers, and specialty chemicals. The Fertilizers segment contributes significantly to its revenue by providing essential nutrients for crop production. The Industrial Products segment offers bromine-based products and other chemical solutions used in various industrial applications. The Performance Products segment provides specialty phosphates and other compounds for the food and engineered materials markets. Additionally, the Innovative Agriculture Solutions segment focuses on advanced crop nutrition solutions and technologies that enhance yield and crop quality. ICL also benefits from strategic partnerships and joint ventures that expand its market reach and product offerings, as well as from its global distribution network that ensures efficient delivery to customers worldwide.
Icl Financial Statement Overview
Summary
ICL's financial performance is steady, with a stable leverage and reasonable cash flow management. However, challenges such as revenue contraction and a decline in free cash flow growth are evident. Despite these, the company maintains operational efficiency and a solid equity base.Income Statement
ICL's income statement shows variable performance. The TTM (Trailing-Twelve-Months) gross profit margin stands at 32.9%, reflecting efficient cost management. Their net profit margin at 5.8% is modest, indicating room for improvement in profitability. Revenue decreased 7.1% from the previous year, highlighting potential challenges in sustaining growth. The EBIT margin of 11.7% and EBITDA margin of 19.1% suggest moderate operational efficiency but indicate a decline compared to previous periods.65
Positive
Balance Sheet
ICL's balance sheet demonstrates stable financial health. The debt-to-equity ratio of 0.42 indicates a reasonable level of leverage, providing financial stability. Return on equity (ROE) at 6.9% suggests moderate profitability from shareholder investments. Equity accounts for 50.8% of total assets, showing a solid equity base. However, there has been a slight decrease in stockholders' equity over past periods.72
Positive
Cash Flow
ICL's cash flow analysis reveals balanced cash management. The free cash flow has decreased by 15.6%, suggesting pressures on cash availability. Operating cash flow to net income ratio of 3.46 indicates robust cash generation relative to income. The free cash flow to net income ratio of 1.70 reflects healthy cash conversion, albeit with room for improvement.70
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 9.23B | 7.54B | 10.02B | 6.96B | 5.04B | 5.27B | Gross Profit |
| 4.33B | 2.67B | 5.03B | 2.61B | 1.49B | 1.82B | EBIT |
| 2.82B | 1.14B | 3.52B | 1.21B | 202.00M | 756.00M | EBITDA |
| 3.55B | 1.67B | 4.04B | 1.66B | 821.00M | 1.15B | Net Income Common Stockholders |
| 1.70B | 647.00M | 2.16B | 783.00M | 24.00M | 475.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 592.00M | 592.00M | 508.00M | 564.00M | 314.00M | 191.00M | Total Assets |
| 11.63B | 11.63B | 11.75B | 11.08B | 9.66B | 9.17B | Total Debt |
| 2.69B | 2.69B | 2.82B | 3.01B | 2.78B | 2.60B | Net Debt |
| 2.27B | 2.27B | 2.41B | 2.54B | 2.56B | 2.51B | Total Liabilities |
| 5.59B | 5.59B | 6.04B | 6.34B | 5.58B | 5.11B | Stockholders Equity |
| 5.77B | 5.77B | 5.46B | 4.53B | 3.93B | 3.92B |
| Cash Flow | Free Cash Flow | ||||
| 905.00M | 815.00M | 1.28B | 454.00M | 178.00M | 416.00M | Operating Cash Flow |
| 1.57B | 1.59B | 2.02B | 1.06B | 804.00M | 992.00M | Investing Cash Flow |
| -689.00M | -863.00M | -754.00M | -579.00M | -583.00M | -525.00M | Financing Cash Flow |
| -762.00M | -712.00M | -1.30B | -244.00M | -105.00M | -490.00M |
Icl Technical Analysis
Neutral
5.78
Price Trends
5.66
Positive
5.03
Positive
4.64
Positive
Market Momentum
0.08
Positive
45.46
Neutral
40.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICL, the sentiment is Neutral. The current price of 5.78 is below the 20-day moving average (MA) of 6.04, above the 50-day MA of 5.66, and above the 200-day MA of 4.64, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 45.46 is Neutral, neither overbought nor oversold. The STOCH value of 40.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ICL.
Icl Risk Analysis
Icl disclosed 60 risk factors in its most recent earnings report. Icl reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Icl Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $7.78B | 19.11 | 6.88% | 3.30% | -12.11% | -55.68% | |
73 Outperform | $13.74B | 12.02 | 24.43% | 2.56% | -10.48% | -13.78% | |
70 Outperform | $37.41B | 40.58 | 2.94% | 4.38% | -13.24% | -65.53% | |
67 Neutral | $70.34B | 18.36 | 22.98% | 2.24% | -3.12% | 64.53% | |
63 Neutral | $4.57B | 13.50 | -0.06% | 6.53% | -5.36% | -74.25% | |
63 Neutral | $7.33B | 42.32 | 1.52% | 3.60% | -18.79% | -84.24% | |
47 Neutral | $2.64B | -4.00 | -31.55% | 3.33% | 2.93% | -29.90% |
* Basic Materials Sector Average
Performance Comparison
ICL
Icl
5.78
0.70
13.78%
APD
Air Products and Chemicals
305.35
71.98
30.84%
CF
Cf Industries Holdings
75.28
-2.28
-2.94%
FMC
FMC
36.60
-20.74
-36.17%
MOS
Mosaic Co
23.08
-7.25
-23.90%
TSE:NTR
Nutrien
70.21
3.96
5.98%
Icl Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -10.39% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call highlighted the strong performance of ICL's specialty-driven businesses, strategic growth in key segments, and effective management of challenges, such as potash pricing headwinds and operational disruptions in Israel. Despite some lowlights, the overall sentiment leans towards positive with strong financial metrics and strategic initiatives positioning the company well for future growth.Highlights
Strong Specialty-Driven Business Performance
Specialty-driven businesses represented 70% of 2024 EBITDA and 73% of fourth-quarter EBITDA. Annual EBITDA for specialties segments increased by 8%.
Industrial Products Segment Growth
Industrial Products segment sales were $1.239 billion, with a significant fourth-quarter EBITDA increase of 25% due to cost efficiency improvements.
Growing Solutions Business Improvement
Growing Solutions business saw EBITDA increase by 70% year-over-year, with fourth-quarter EBITDA margin improving from 3% to 12%.
Record Potash Production in Spain
Suria site in Spain achieved record potash production of over 800,000 metric tons, despite challenges.
Continued Dividend Distribution
ICL delivered a total of $242 million in dividend distribution, maintaining an industry-leading dividend yield of 3.8%.
Strategic Partnerships and Innovations
ICL expanded strategic relationships and launched new innovative products, strengthening its market position.
Lowlights
Potash Pricing Headwinds
Potash prices decreased 24% compared to the previous year, impacting overall revenue.
Challenges in Phosphate Solutions
Phosphate Solutions saw a slight year-over-year decrease in sales for the fourth quarter, with annual EBITDA also slightly decreasing.
Operational and Logistical Challenges in Israel
War-related disruptions affected production and logistics at Dead Sea operations, although mitigated to some extent.
Company Guidance
During the ICL Fourth Quarter 2024 Earnings Call, the company provided guidance for 2025, highlighting key financial metrics and strategic achievements. The CEO, Raviv Zoller, reported 2024 sales of $6.841 billion and adjusted EBITDA of $1.469 billion, with an EBITDA margin of 21%. Adjusted diluted earnings per share were $0.38. Despite a 24% decrease in potash prices, the specialties-driven business segments—Industrial Products, Phosphate Solutions, and Growing Solutions—contributed to an 8% annual EBITDA increase, representing 70% of total 2024 EBITDA. Free cash flow was $758 million, and a $242 million dividend was distributed, offering a 3.8% yield. For 2025, ICL expects specialties-driven EBITDA between $0.95 billion to $1.15 billion, with total potash sales volume projections of 4.5 to 4.7 million metric tons and an effective annual tax rate of approximately 30%. The company anticipates improvements in potash prices and highlighted strategic expansions in battery materials and sustainability-focused initiatives.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.