Education
About Us
Working with TipRanks
Follow Us
MP Materials (MP)
NYSE:MP
Top Page
MP Materials
(NYSE:MP)
66Neutral
Positive Factors
Geopolitical and Strategic Value
MP's strategic value is increasing in a geopolitical environment that is growing increasingly complex, where domestic production is growing more economically critical.
Strategic Partnerships
The company's strategic partnerships could enhance its market reach and operational capabilities.
Negative Factors
Regulatory Challenges
Potential regulatory challenges may impact Mp Materials Corp's operations and profitability.
MP Materials (MP) vs. S&P 500 (SPY)
Market Cap
$3.98B
Dividend YieldN/A
Average Volume (3M)3.47M
Price to Earnings (P/E)―
Beta (1Y)1.04
Revenue Growth-19.57%
EPS Growth-392.96%
CountryUS
Employees681
SectorBasic Materials
Sector Strength64
IndustryMining
Share Statistics
EPS (TTM)-0.58
Shares Outstanding163,442,210
10 Day Avg. Volume3,286,017
30 Day Avg. Volume3,466,617
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)19.51
Price to Cash Flow (P/CF)32.60
P/FCF Ratio81.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$26.67Price Target Upside9.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
MP Materials Business Overview & Revenue Model
Company DescriptionMP Materials Corp. is a leading producer of rare earth materials, primarily focused on the extraction, processing, and sale of rare earth concentrates. The company operates the Mountain Pass mine in California, one of the few sources of rare earth materials outside China. These materials are critical components in various high-tech applications, including electric vehicles, wind turbines, and other advanced technologies.
How the Company Makes MoneyMP Materials makes money through the extraction and sale of rare earth concentrates. The company's primary revenue stream is derived from the sale of these concentrates to customers who use them to manufacture permanent magnets and other critical components for technology and industrial applications. MP Materials benefits from strategic partnerships and long-term supply agreements with key players in the technology and automotive sectors, ensuring a consistent demand for its products. Additionally, the company's vertically integrated operations, from mining to processing, help optimize cost efficiency and maximize profit margins.
MP Materials Financial Statement Overview
Summary
MP Materials shows a mixed financial performance with effective cost management leading to strong gross profit margins. However, profitability challenges and negative cash flows highlight areas for improvement. The balance sheet remains robust with low leverage, but the company should focus on enhancing profitability and cash flow generation to support future growth.Income Statement
MP Materials has experienced fluctuating revenue over the years with a notable decline in 2024 compared to 2023. The gross profit margin in 2024 was 100%, indicating effective cost management, but the net profit margin was negative due to a net loss driven by high expenses relative to revenue. The EBIT margin remained healthy at 59.1% in 2024, though EBITDA margin was relatively low at 8.6%, reflecting significant depreciation and amortization costs.65
Positive
Balance Sheet
The company maintains a strong equity position with an equity ratio of 45.2% in 2024, suggesting financial stability. The debt-to-equity ratio is low at 0.01, indicating minimal leverage. However, the return on equity was negatively impacted by the net loss, highlighting potential inefficiencies in generating returns for shareholders.72
Positive
Cash Flow
MP Materials faced challenges in cash flow generation, with a significant decline in operating cash flow in 2024. The free cash flow was negative, impacted by substantial capital expenditures. The operating cash flow to net income ratio was negative, indicating cash flow issues relative to profitability.58
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 203.85M | 253.44M | 527.51M | 331.95M | 134.31M | Gross Profit |
| -66.79M | 105.02M | 416.94M | 231.32M | 31.91M | EBIT |
| -169.43M | 22.28M | 327.41M | 165.34M | 25.23M | EBITDA |
| 7.72M | 94.95M | 366.77M | 195.86M | -25.27M | Net Income Common Stockholders |
| -65.42M | 24.31M | 289.00M | 135.04M | -21.82M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 850.87M | 997.84M | 1.18B | 1.18B | 519.65M | Total Assets |
| 2.33B | 2.34B | 2.24B | 1.89B | 1.07B | Total Debt |
| 5.80M | 688.81M | 678.44M | 691.82M | 70.82M | Net Debt |
| -276.64M | 425.46M | 541.82M | -487.48M | -448.84M | Total Liabilities |
| 1.28B | 970.67M | 925.15M | 880.93M | 220.41M | Stockholders Equity |
| 1.05B | 1.37B | 1.31B | 1.01B | 853.88M |
| Cash Flow | Free Cash Flow | |||
| -173.07M | -199.20M | 16.92M | -21.90M | -19.09M | Operating Cash Flow |
| 13.35M | 62.70M | 343.51M | 101.97M | 3.28M | Investing Cash Flow |
| 10.06M | 68.70M | -1.36B | -119.36M | -22.37M | Financing Cash Flow |
| -4.79M | -9.92M | -24.19M | 666.11M | 521.96M |
MP Materials Technical Analysis
Positive
24.38
Price Trends
22.43
Positive
20.64
Positive
17.47
Positive
Market Momentum
0.71
Negative
64.85
Neutral
78.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MP, the sentiment is Positive. The current price of 24.38 is above the 20-day moving average (MA) of 24.04, above the 50-day MA of 22.43, and above the 200-day MA of 17.47, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 64.85 is Neutral, neither overbought nor oversold. The STOCH value of 78.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MP.
MP Materials Risk Analysis
MP Materials disclosed 43 risk factors in its most recent earnings report. MP Materials reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
MP Materials Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Performance Comparison
MP
MP Materials
26.83
12.93
93.02%
REEMF
Rare Element Resources
0.69
0.49
245.00%
LYSCF
Lynas Rare Earths Limited
4.65
0.82
21.41%
MP Materials Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: 5.18% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
MP Materials reported a record-breaking year in REO production and significant achievements in midstream and magnetics, including new agreements and the first commercial production of NdPr metal in the US. However, challenges such as declining NdPr prices, Materials segment EBITDA losses, and elevated production costs in the midstream tempered the overall performance. The company remains optimistic about its growth trajectory and cost management improvements.Highlights
Record-Breaking REO Production
MP Materials set a new record by producing 45,455 metric tons of REO in 2024, which is a 9% increase compared to 2023.
Midstream NdPr Oxide Production Surge
NdPr oxide production skyrocketed to 1,294 metric tons in 2024, a significant increase from 200 tons in the previous year.
New Agreements and Customer Commitments
MP Materials signed new agreements with the Department of Defense for NdPr and lanthanum and secured a substantial direct volume commitment from a top five global automaker.
First Commercial Production of NdPr Metal in the US
MP Materials started producing NdPr metal at Independence, marking the first time rare earth metal has been commercially produced in the US in at least a generation.
Significant Customer Prepayments
Received a total of $100 million in customer prepayments in 2024, with an additional $50 million expected soon.
Strong Balance Sheet Management
Pushed out debt maturities to 2030 and retired over 90% of 2026 notes at a discount, buying back 8.6% of outstanding shares.
Lowlights
NdPr Pricing Pressure
Average price of NdPr dropped significantly over the years: $120/kg in 2022, $75/kg in 2023, and $55/kg in 2024, affecting profitability.
Materials Segment EBITDA Loss
The Materials segment experienced an adjusted EBITDA loss of $14.1 million in 2024, impacted by a $21.5 million inventory write-down.
Elevated Production Costs in Midstream
Production costs for separated products were temporarily elevated due to optimization and ramping efforts.
Challenges in Reaching Midstream Production Goals
Mechanical and process issues limited NdPr oxide production, requiring unexpected rework and consuming extra resources.
Company Guidance
In the MP Materials fourth quarter 2024 earnings call, the company provided several key metrics and guidance for the upcoming year. They reported a record production of 45,455 metric tons of rare earth oxides (REO), marking a 9% increase from 2023. The midstream operations produced 1,294 metric tons of NdPr oxide, a significant increase from 200 tons the previous year, with a target of over 20% sequential growth in Q1 2025. MP Materials also achieved critical milestones in their Magnetics division, including the commercial production of NdPr metal in the U.S. and initiating trial production of automotive-grade magnets. Financially, the company reported a consolidated adjusted EBITDA loss of $14.1 million for 2024, influenced by lower market pricing, ramping production costs, and a $21.5 million inventory write-down, partially offset by a $12.2 million tax credit. They expect to achieve gross margin profitability in midstream operations soon and anticipate magnet production revenues in 2026. The company projects 2025 capital expenditures between $150 million and $175 million and expects to receive additional customer prepayments and tax credits to support cash flow.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.