Ecovyst Inc. (NYSE: ECVT)

Sector: Basic Materials Industry: Specialty Chemicals CIK: 0001708035
Market Cap 1.20 Bn
P/B 1.97
P/E -11.17
P/S 1.60
ROIC (Qtr) 6.07
Div Yield % 0.00
Rev 1y % (Qtr) 33.17
Total Debt (Qtr) 895.52 Mn
Debt/Equity (Qtr) 1.47

About

Ecovyst Inc., also known by its stock symbol CVST, operates within the chemical industry, specifically as a provider of advanced materials, specialty catalysts, and services. The company boasts a rich history of innovation, having facilitated advancements in areas such as fuel efficiency, sustainable fuels, and the reduction of emissions from heavy-duty diesel engines. Ecovyst's operations span across two main segments: Ecoservices and Advanced Materials & Catalysts, which includes a 50% interest in the Zeolyst Joint Venture. The Ecoservices segment...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 81.98M provide 4.41x coverage of short-term debt 18.58M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 142.04M provides strong 12.76x coverage of stock compensation 11.13M, indicating sustainable incentive practices.
  • Strong operating cash flow of 142.04M provides 1.79x coverage of SG&A expenses 79.28M, showing efficient operational cost management.
  • Operating cash flow of 142.04M fully covers other non-current liabilities 117.89M by 1.20x, showing strong long-term stability.
  • Operating cash flow of 142.04M provides solid 1.08x coverage of current liabilities 132.09M, showing strong operational health.

Bear case

  • Operating cash flow of 142.04M barely covers its investment activities of (125.69M), with a coverage ratio of -1.13, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 81.98M provide limited coverage of acquisition spending of (41.31M), which is -1.98x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 83.27M relative to inventory of 24.13M (3.45 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating earnings of (50.39M) show weak coverage of depreciation charges of 80.59M, with a -0.63 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 80.59M relative to operating cash flow of 142.04M, which is 0.57x suggests significant maintenance capital requirements affecting free cash flow.

Equity Method Investment, Nonconsolidated Investee Breakdown of Revenue (2024)

Peer comparison

Companies in the Specialty Chemicals
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 LIN Linde Plc 218.63 Bn 38.41 6.61 25.93 Bn
2 SHW Sherwin Williams Co 110.34 Bn 170.54 11.54 13.58 Bn
3 ECL Ecolab Inc. 80.35 Bn 80.18 5.93 8.67 Bn
4 APD Air Products & Chemicals, Inc. 56.37 Bn 48.29 5.86 18.31 Bn
5 PPG Ppg Industries Inc 34.00 Bn 31.05 2.58 7.91 Bn
6 LYB LyondellBasell Industries N.V. 17.46 Bn 5.03 0.49 13.22 Bn
7 DD DuPont de Nemours, Inc. 16.63 Bn 3.65 0.32 8.90 Bn
8 ALB Albemarle Corp 14.44 Bn 48.94 6.36 3.63 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.17 1.52
EV to Cash from Ops. EV/CFO 14.24 12.52
EV to Debt EV to Debt 2.26 13.65
EV to EBIT EV/EBIT -40.14 21.45
EV to EBITDA EV/EBITDA 13.44 14.82
EV to Free Cash Flow [EV/FCF] EV/FCF 27.62 29.24
EV to Market Cap EV to Market Cap 1.69 3.84
EV to Revenue EV/Rev 2.70 89.11
Price to Book Value [P/B] P/B 1.97 5.48
Price to Earnings [P/E] P/E -11.17 16.02
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -5.31
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -75.74
Dividend per Basic Share Div per Share (Qtr) 0.00 1.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 23.50
Interest Coverage Int. cover (Qtr) -1.19 -8.92
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -25.93 -1.67
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -33.61 72.99
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -3.00
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -158.27 -31.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -9.74 51.49
EBIT Growth (1y) % EBIT 1y % (Qtr) -148.52 0.57
EBT Growth (1y) % EBT 1y % (Qtr) -266.38 -80.35
EPS Growth (1y) % EPS 1y % (Qtr) -308.89 -90.82
FCF Growth (1y) % FCF 1y % (Qtr) -36.84 -50.40
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -2.15 219.02
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.43 0.70
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.41
Cash Ratio Cash Ratio (Qtr) 0.62 1.28
Current Ratio Curr Ratio (Qtr) 2.25 3.42
Debt to Equity Ratio Debt/Equity (Qtr) 1.47 0.92
Interest Cover Ratio Int Coverage (Qtr) -1.19 -8.92
Times Interest Earned Times Interest Earned (Qtr) -1.19 -8.92
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 4.00 -333.97
EBIT Margin % EBIT Margin % (Qtr) -6.73 -374.34
EBT Margin % EBT Margin % (Qtr) -12.37 -379.75
Gross Margin % Gross Margin % (Qtr) 24.20 29.26
Net Profit Margin % Net Margin % (Qtr) -14.30 -380.67