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Icl Group Ltd. (ICL)
:ICL
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Icl
(NYSE:ICL)
Rating:73Outperform
Price Target:
$7.50
▲( 18.30% Upside)
Positive Factors
Product Performance
IP/bromine EBITDA exceeded estimates due to strong flame retardants volumes, offsetting lower prices.
Negative Factors
Earnings
ICL's adjusted EBITDA and EPS missed consensus estimates, with potash EBITDA missing due to lower sales volume and higher costs.
Market Performance
ICL continued to sell tonnes at lower 2024 China/India contract prices despite gains in non-contract markets, leading to underperformance compared to competitors.
Icl (ICL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.18B
Dividend Yield2.9%
Average Volume (3M)768.73K
Price to Earnings (P/E)21.0
Beta (1Y)0.84
Revenue Growth-3.48%
EPS Growth-18.34%
CountryUS
Employees12,349
SectorBasic Materials
Sector Strength63
IndustryAgricultural Inputs
Share Statistics
EPS (TTM)0.09
Shares Outstanding1,290,463,000
10 Day Avg. Volume744,787
30 Day Avg. Volume768,726
Financial Highlights & Ratios
PEG Ratio-7.01
Price to Book (P/B)1.56
Price to Sales (P/S)0.00
P/FCF Ratio12.76
Enterprise Value/Market Cap1.33
Enterprise Value/Revenue0.39
Enterprise Value/Gross Profit4.83
Enterprise Value/Ebitda1.96
Forecast
1Y Price Target
$6.08Price Target Upside-4.10% Downside
Rating ConsensusHold
Number of Analyst Covering4
Icl Business Overview & Revenue Model
Company DescriptionICL Group Ltd, together with its subsidiaries, operates as a specialty minerals and chemicals company worldwide. It operates in four segments: Industrial Products, Potash, Phosphate Solutions, and Innovative Ag Solutions (IAS). The Industrial Products segment produces bromine out of a solution that is a by-product of the potash production process, as well as bromine-based compounds; produces various grades of potash, salt, magnesium chloride, and magnesia products; and produces and markets phosphorous-based flame retardants and other phosphorus-based products. The Potash segment extracts potash from the Dead Sea; mines and produces potash and salt; produces Polysulphate; produces, markets, and sells magnesium and magnesium alloys, as well as related by-products, including chlorine and sylvinite; and sells salt. The Phosphate Solutions segment uses phosphate commodity products to produce specialty products; produces and markets phosphate-based fertilizers, as well as sulphuric acid, green phosphoric acid, and phosphate fertilizers; and manufactures thermal phosphoric acid for various industrial end markets, such as oral care, cleaning products, paints and coatings, water treatment, asphalt modification, construction, and metal treatment. It also develops and produces functional food ingredients and phosphate additives for use in the processed meat, poultry, seafood, dairy, beverage, and baked goods markets; and produces milk and whey proteins for the food ingredients industry. The IAS segment develops, manufactures, markets, and sells fertilizers based primarily on nitrogen, potash, and phosphate, including water soluble specialty, liquid, soluble, and controlled-release fertilizers. It sells its products through marketing companies, agents, and distributors. The company was formerly known as Israel Chemicals Ltd. and changed its name to ICL Group Ltd in May 2020. The company was founded in 1968 and is headquartered in Tel Aviv, Israel.
How the Company Makes MoneyICL makes money primarily through the sale of its wide range of chemical and mineral products. The company's revenue streams include the production and distribution of potash and phosphate fertilizers, which are critical for agricultural applications. ICL also generates income from specialty fertilizers that cater to specific agricultural needs, enhancing crop yield and quality. Additionally, the company produces and sells industrial products and specialty chemicals used in various industries, including flame retardants, water treatment solutions, and food additives. Significant partnerships with agricultural businesses and industrial clients help expand its market reach, contributing to its earnings. Furthermore, ICL benefits from vertically integrated operations that ensure a steady supply of raw materials and cost efficiencies, bolstering its financial performance.
Icl Financial Statement Overview
Summary
ICL shows financial stability with a solid balance sheet and strong cash flow generation. However, declining revenue and profit margins indicate potential operational challenges. The company must address profitability and growth concerns to maintain competitiveness.Income Statement
ICL's revenue has shown some fluctuation over the past years, with a notable drop from 2022 to 2023. The gross profit margin in 2024 was approximately 32.96%, indicating the company's ability to maintain a healthy margin, though it decreased from previous years indicating cost pressures. The net profit margin in 2024 was 5.95%, reflecting a decline from higher margins in past years, suggesting profitability challenges. The EBIT and EBITDA margins also show a similar declining trend, which could indicate operational inefficiencies or increased costs.65
Positive
Balance Sheet
ICL maintains a relatively stable balance sheet, with an equity ratio of 50.56% in 2024, suggesting a balanced approach to financing. The debt-to-equity ratio was approximately 0.40, which is manageable and indicates prudent financial leverage. Return on equity (ROE) has decreased over time, suggesting reduced efficiency in generating profits from shareholders' equity, which could be a concern if the trend continues.70
Positive
Cash Flow
ICL's operating cash flow remains strong, with a slight decrease from 2023 to 2024, indicating consistent cash generation capabilities. Free cash flow to net income ratio reflects the company's ability to convert earnings into cash effectively. However, the free cash flow growth rate has been negative, indicating reduced cash availability for reinvestment or debt reduction.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 6.84B | 7.54B | 10.02B | 6.96B | 5.04B | Gross Profit |
| 2.26B | 2.67B | 5.03B | 2.61B | 1.49B | EBIT |
| 775.00M | 1.14B | 3.52B | 1.21B | 202.00M | EBITDA |
| 1.37B | 1.67B | 4.04B | 1.66B | 821.00M | Net Income Common Stockholders |
| 407.00M | 647.00M | 2.16B | 783.00M | 24.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 442.00M | 592.00M | 508.00M | 564.00M | 314.00M | Total Assets |
| 11.32B | 11.63B | 11.75B | 11.08B | 9.66B | Total Debt |
| 2.29B | 2.69B | 2.82B | 3.01B | 2.78B | Net Debt |
| 1.97B | 2.27B | 2.41B | 2.54B | 2.56B | Total Liabilities |
| 5.33B | 5.59B | 6.04B | 6.34B | 5.58B | Stockholders Equity |
| 5.72B | 5.77B | 5.46B | 4.53B | 3.93B |
| Cash Flow | Free Cash Flow | |||
| 755.00M | 815.00M | 1.28B | 454.00M | 178.00M | Operating Cash Flow |
| 1.47B | 1.59B | 2.02B | 1.06B | 804.00M | Investing Cash Flow |
| -694.00M | -863.00M | -754.00M | -579.00M | -583.00M | Financing Cash Flow |
| -846.00M | -712.00M | -1.30B | -244.00M | -105.00M |
Icl Technical Analysis
Neutral
6.34
Price Trends
6.31
Positive
6.04
Positive
5.15
Positive
Market Momentum
0.05
Positive
37.66
Neutral
9.35
Positive
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 6.34 is below the 20-day moving average (MA) of 6.73, above the 50-day MA of 6.31, and above the 200-day MA of 5.15, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 37.66 is Neutral, neither overbought nor oversold. The STOCH value of 9.35 is Positive, 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 (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $14.24B | 11.60 | 26.14% | 2.24% | 0.66% | 25.75% | |
73 Outperform | $8.18B | 21.03 | 6.70% | 2.90% | -3.48% | -18.34% | |
69 Neutral | $11.27B | 30.66 | 3.09% | 2.39% | -13.37% | -50.63% | |
64 Neutral | $4.75B | 14.59 | 8.81% | 5.91% | 1.45% | -70.85% | |
64 Neutral | $492.72M | ― | -35.32% | ― | 0.63% | -369.50% | |
55 Neutral | $3.63B | 125.52 | 4.98% | 4.34% | 0.75% | ― | |
50 Neutral | $1.98B | -1.07 | -21.34% | 3.71% | 2.03% | -30.65% |
* Basic Materials Sector Average
Performance Comparison
ICL
Icl
6.34
1.64
34.89%
CF
Cf Industries Holdings
88.91
12.51
16.37%
FMC
FMC
38.01
-19.40
-33.79%
IPI
Intrepid Potash
36.23
9.35
34.78%
MOS
Mosaic Co
35.01
4.95
16.47%
SMG
Scotts Miracle-Gro Company
60.83
-2.28
-3.61%
Icl Earnings Call Summary
Earnings Call Date:May 19, 2025
(Q1-2025)
| % Change Since: -5.93%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a slight positive tilt, with significant growth in sales, specialties-driven revenue, and strategic acquisitions. However, challenges such as potash price declines, subdued flame retardant markets, and operational issues in potash operations balanced the narrative.Q1-2025 Updates
Positive Updates
Sales Growth
Sales were $1,767 million, up 2% year-over-year and 10% on a quarterly basis, demonstrating solid strategic execution.
Specialties-Driven Revenue Increase
Specialties-driven sales of $1,412 million were up 3% year-over-year and 15% on a quarterly basis.
EBITDA Improvement
Consolidated adjusted EBITDA was $359 million, while specialties-driven EBITDA of $262 million was up 7% year-over-year and 4% quarterly.
Industrial Products Performance
Sales of $344 million were up 3% year-over-year, with EBITDA up 6% and margin improving to 22%, driven by higher volumes.
Potash Division Volume Increase
Potash sales volumes of 1,103,000 metric tons increased by about 20,000 tons year-over-year, mainly to Brazil and China.
Growing Solutions Division Growth
Sales of $495 million were up 3% year-over-year, while EBITDA increased 9%, driven by strategic execution and regional acquisitions.
Acquisition Strategy
Recent acquisition of Lavie Bio to advance the goal of becoming a global powerhouse in ag biologicals.
Negative Updates
Potash Price Decline
Average potash price for the first quarter was $300 CIF per ton, down compared to the first quarter of last year.
Challenges in Flame Retardant Markets
Some key flame retardant end markets, such as electronics and building and construction, remain subdued.
Purified Phosphoric Acid Pricing Pressure
Pricing remained under pressure due to overcapacity of purified phosphoric acid, affecting Phosphate Specialties results.
Operational Issues in Potash Operations
Addressed operational issues related to the war, with a completed maintenance shutdown to stabilize operations.
Company Guidance
During the ICL First Quarter 2025 Earnings Call, the company provided an optimistic outlook for the year, maintaining its 2025 guidance. Sales reached $1,767 million, showing a 2% year-over-year increase, driven by a 3% rise in specialties-driven sales to $1,412 million. The consolidated adjusted EBITDA was $359 million, with specialties-driven EBITDA at $262 million, marking a 7% year-over-year and 4% quarterly increase. The Potash division reported sales of $405 million with an EBITDA of $118 million, while Phosphate Solutions division sales grew by 3% to $573 million with a 6% increase in EBITDA to $139 million. The Growing Solutions business division also showed a 3% rise in sales to $495 million, with a 9% increase in EBITDA to $47 million. The company highlighted its strategic focus on leveraging regional production, with a strong emphasis on innovation, efficiency, and potential acquisitions to sustain growth. Overall, the guidance reflects an expectation of strengthening market conditions and improving pricing trends in 2025.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.