ENXTPA:NK

Stock Analysis Report

Executive Summary

Imerys S.A. provides mineral-based specialties various industries worldwide.

Rewards

Trading at 55.4% below its fair value

Earnings are forecast to grow 28.28% per year

Became profitable this year

Pays a high and reliable dividend of 9.4%

Risk Analysis

Has a high level of debt

Dividend of 9.4% is not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results



Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has Imerys's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NK's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.0%

NK

6.1%

FR Basic Materials

1.8%

FR Market


1 Year Return

-46.4%

NK

-24.9%

FR Basic Materials

-17.5%

FR Market

Return vs Industry: NK underperformed the French Basic Materials industry which returned -31.2% over the past year.

Return vs Market: NK underperformed the French Market which returned -23.2% over the past year.


Shareholder returns

NKIndustryMarket
7 Day8.0%6.1%1.8%
30 Day-22.3%-12.6%-12.1%
90 Day-33.7%-30.4%-24.9%
1 Year-43.5%-46.4%-22.5%-24.9%-14.6%-17.5%
3 Year-65.2%-68.7%-28.6%-34.6%1.8%-7.6%
5 Year-60.0%-65.9%-22.8%-32.1%8.3%-7.2%

Price Volatility Vs. Market

How volatile is Imerys's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Imerys undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NK (€22.88) is trading below our estimate of fair value (€51.32)

Significantly Below Fair Value: NK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NK is poor value based on its PE Ratio (14.9x) compared to the Basic Materials industry average (9.2x).

PE vs Market: NK is poor value based on its PE Ratio (14.9x) compared to the French market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: NK is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: NK is good value based on its PB Ratio (0.6x) compared to the XE Basic Materials industry average (0.8x).


Next Steps

Future Growth

How is Imerys forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

28.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NK's forecast earnings growth (28.3% per year) is above the savings rate (-0.1%).

Earnings vs Market: NK's earnings (28.3% per year) are forecast to grow faster than the French market (12.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NK's revenue is expected to decline over the next 3 years (-1.5% per year).

High Growth Revenue: NK's revenue is forecast to decline over the next 3 years (-1.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NK's Return on Equity is forecast to be low in 3 years time (8.6%).


Next Steps

Past Performance

How has Imerys performed over the past 5 years?

-30.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NK has a large one-off loss of €203.4M impacting its December 31 2019 financial results.

Growing Profit Margin: NK became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NK's earnings have declined by -30.5% per year over the past 5 years.

Accelerating Growth: NK has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Basic Materials industry (20.8%).


Return on Equity

High ROE: NK's Return on Equity (3.8%) is considered low.


Next Steps

Financial Health

How is Imerys's financial position?


Financial Position Analysis

Short Term Liabilities: NK's short term assets (€2.3B) exceed its short term liabilities (€1.5B).

Long Term Liabilities: NK's short term assets (€2.3B) do not cover its long term liabilities (€2.8B).


Debt to Equity History and Analysis

Debt Level: NK's debt to equity ratio (66.2%) is considered high.

Reducing Debt: NK's debt to equity ratio has increased from 63.3% to 66.2% over the past 5 years.

Debt Coverage: NK's debt is well covered by operating cash flow (24.6%).

Interest Coverage: NK's interest payments on its debt are well covered by EBIT (8.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Imerys's current dividend yield, its reliability and sustainability?

8.68%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: NK's dividend (9.4%) is higher than the bottom 25% of dividend payers in the French market (2.08%).

High Dividend: NK's dividend (9.4%) is in the top 25% of dividend payers in the French market (6.37%)


Stability and Growth of Payments

Stable Dividend: NK's dividends per share have been stable in the past 10 years.

Growing Dividend: NK's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (140.3%), NK's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NK's dividends in 3 years are forecast to be covered by earnings (74% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.4yrs

Average management tenure


CEO

Alessandro Dazza (48yo)

0.17

Tenure

Mr. Alessandro Dazza served as Chief Executive Officer of Flexible Packaging and Engineered Materials at Mondi plc since 2019 until 2020. He served as Chief Executive Officer of Fibre Packaging/Converting  ...


Leadership Team

NamePositionTenureCompensationOwnership
Alessandro Dazza
Chief Executive Officer0.17yrno datano data
Olivier Pirotte
Chief Financial Officer4.83yrsno datano data
Vincent Gouley
Head of Financial Communication5.5yrsno datano data
Frédérique Berthier-Raymond
Group General Counsel & Secretary of the Board1.42yrsno datano data
Vincent Lecerf
Chief Human Resources Officer3.25yrsno datano data
Olivier Hautin
Chief Strategy Officer1.42yrsno datano data
Jean-François Claver
Chief Industrial Officer3.5yrsno datano data
Philippe Bourg
Senior Vice President of Refractory Abrasives & Construction1.42yrsno datano data
Michel Cornelissen
Senior Vice President of High Temperature Solutions1.42yrsno datano data
Guillaume Delacroix
Senior Vice President of Performance Minerals EMEA1.42yrsno datano data

1.4yrs

Average Tenure

53.5yo

Average Age

Experienced Management: NK's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Aldo Cardoso
Independent Director14.92yrs€112.83k0.0021% 41.6k
Patrick Kron
Independent Chairman of the Board0.83yr€10.50k0.00076% 14.8k
Ian Gallienne
Director10yrs€102.28k0.00076% 14.8k
Ulysses Paris Kyriacopoulos
Director5yrs€53.50k0.00076% 14.8k
Marie-Françoise Walbaum
Independent Director7yrs€91.50k0.00076% 14.8k
Paul Desmarais
Vice Chairman3.92yrs€122.19k0.00076% 14.8k
Laurent Raets
Non-voting Observer1.92yrs€36.00k0.00076% 14.8k
Marion Guillou
Independent Director7.58yrs€53.50k0.00076% 14.8k
Éliane Augelet-Petit
Employee Representative Director5.5yrs€53.00k0.000010% 195.1
Enrico d'Ortona
Employee Representative Director5.5yrs€36.00kno data

5.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: NK's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Imerys S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Imerys S.A.
  • Ticker: NK
  • Exchange: ENXTPA
  • Founded: 1880
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: €1.951b
  • Shares outstanding: 78.80m
  • Website: https://www.imerys.com

Number of Employees


Location

  • Imerys S.A.
  • 43 Quai de Grenelle
  • Paris
  • Ile-de-France
  • 75015
  • France

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IMYS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1980
NKENXTPA (Euronext Paris)YesOrdinary SharesFREURJan 1980
IY4DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1980
0NPXLSE (London Stock Exchange)YesOrdinary SharesGBEURJan 1980
NKPBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJan 1980
IY4ETLX (Eurotlx)YesOrdinary SharesITEURJan 1980

Biography

Imerys S.A. provides mineral-based specialties various industries worldwide. The company operates through Energy Solutions & Specialties, Filtration & Performance Additives, Ceramic Materials, and High Resistance Minerals segments. It provides ground and precipitated calcium carbonates, and lime; cast/vibrated and quick dry castables, ramming and dry mixes, taphole clays, gunning materials, and prefabricated forms, as well as project management services for refractories; graphite and carbon products; and oilfield solutions. The company also offers performance additives; diatomite, perlite and expanded perlite, and structured alumino-silicate for filtration; and bauxite, bentonite, fluxes, moler, perlite, and zeolite products for metallurgy. In addition, it provides clay roof tiles and accessories, metal profiles, photovoltaic and heliothermal solar power generating solutions; kaolin; and mineral solutions for ceramics. Further, the company offers fused aluminas, tabular alumina, silicon carbide, fused magnesia, electrically fused mullite, zirconia-based chemicals, and electrically fused zirconia; and calcium aluminate-based binders, andalusite, ball clay, chamotte, metakaolin, mullite, and fused silica. It serves primarily serves aerospace, specialty paper, waste recycling, agriculture and horticulture, pharmaceuticals health and beauty, tableware, electronics, office paper, infrastructure, food, packaging, magazines, other consumer goods, renovation, construction, steelmaking, automotive, catalogs and advertising, industrial equipment, and energy sectors. The company was founded in 1880 and is headquartered in Paris, France. Imerys S.A. is a subsidiary of Belgian Securities BV. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 20:33
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.