NYSE:ICL

Stock Analysis Report

Executive Summary

Israel Chemicals Ltd. operates as a specialty minerals and chemicals company worldwide.

Snowflake

Average dividend payer and fair value.

Rewards

PE ratio (11.7x) is below the US market (18.2x)

Earnings are forecast to grow by 5.44% next year

Earnings have grown 16.3% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of -0.04% per year for the next 3 years

Interest payments are not well covered by earnings

Unstable dividend track record

Large one-off items impacting financial results

+ 1 more risk


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ICL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.5%

ICL

-0.3%

US Chemicals

0.7%

US Market


1 Year Return

-25.9%

ICL

-3.5%

US Chemicals

12.9%

US Market

Return vs Industry: ICL underperformed the US Chemicals industry which returned -3.5% over the past year.

Return vs Market: ICL underperformed the US Market which returned 12.9% over the past year.


Shareholder returns

ICLIndustryMarket
7 Day1.5%-0.3%0.7%
30 Day-0.4%6.0%4.4%
90 Day-3.7%8.1%7.0%
1 Year-23.5%-25.9%11.6%-3.5%15.4%12.9%
3 Year34.9%22.6%44.5%17.6%49.1%39.5%
5 Year-22.2%-35.3%42.7%10.7%62.7%44.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

11.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ICL ($4.67) is trading above our estimate of fair value ($3.21)

Significantly Below Fair Value: ICL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ICL is good value based on its PE Ratio (11.7x) compared to the Chemicals industry average (20.2x).

PE vs Market: ICL is good value based on its PE Ratio (11.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: ICL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ICL is good value based on its PB Ratio (1.5x) compared to the US Chemicals industry average (2.2x).


Next Steps

Future Growth

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

-0.04%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ICL's earnings are forecast to decline over the next 3 years (-0.04% per year).

Earnings vs Market: ICL's earnings are forecast to decline over the next 3 years (-0.04% per year).

High Growth Earnings: ICL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ICL's revenue (5.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ICL's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ICL's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has Israel Chemicals performed over the past 5 years?

16.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ICL has large one-off items impacting its financial results.

Growing Profit Margin: ICL's current net profit margins (9.1%) are lower than last year (23.8%).


Past Earnings Growth Analysis

Earnings Trend: ICL's earnings have grown by 16.3% per year over the past 5 years.

Accelerating Growth: ICL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ICL had negative earnings growth (-61.2%) over the past year, making it difficult to compare to the Chemicals industry average (-20.3%).


Return on Equity

High ROE: ICL's Return on Equity (12.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Israel Chemicals's financial position?


Financial Position Analysis

Short Term Liabilities: ICL's short term assets ($2.7B) exceeds its short term liabilities ($1.8B)

Long Term Liabilities: ICL's short term assets (2.7B) do not cover its long term liabilities (3.3B)


Debt to Equity History and Analysis

Debt Level: ICL's debt to equity ratio (63.9%) is considered high

Reducing Debt: ICL's debt to equity ratio has reduced from 93.3% to 63.9% over the past 5 years.

Debt Coverage: ICL's debt is well covered by operating cash flow (39%).

Interest Coverage: ICL's interest payments on its debt are not well covered by EBIT (0.5x coverage).


Balance Sheet

Inventory Level: ICL has a high level of physical assets or inventory.

Debt Coverage by Assets: ICL's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

3.90%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Israel Chemicals before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.9%marketbottom25%1.4%markettop25%3.6%industryaverage2.1%forecastin3Years4.6%

Current dividend yield vs market & industry

Notable Dividend: ICL's dividend (3.9%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: ICL's dividend (3.9%) is in the top 25% of dividend payers in the US market (3.65%)


Stability and Growth of Payments

Stable Dividend: ICL's dividend payments have been volatile in the past 10 years.

Growing Dividend: ICL's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.6%), ICL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ICL's dividends in 3 years are forecast to be well covered by earnings (41.8% payout ratio).


Next Steps

Management

What is the CEO of Israel Chemicals's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Raviv Zoller (55yo)

1.5yrs

Tenure

US$2,601,650

Compensation

Mr. Raviv Zoller serves as the President of Israel Chemicals Limited since 2018 and Chief Executive Officer since May 14, 2018. Mr. Zoller serves as the Chief Executive Officer of Direct Insurance at Zur S ...


CEO Compensation Analysis

Compensation vs Market: Raviv's total compensation ($USD2.60M) is below average for companies of similar size in the US market ($USD6.73M).

Compensation vs Earnings: Insufficient data to compare Raviv's compensation with company performance.


Management Age and Tenure

3.3yrs

Average Tenure

54yo

Average Age

Experienced Management: ICL's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

59yo

Average Age

Experienced Board: ICL's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Raviv Zoller (55yo)

    President & CEO

    • Tenure: 1.5yrs
    • Compensation: US$2.60m
  • Yoav Doppelt (50yo)

    Executive Chairman

    • Tenure: 0.5yrs
  • Charlie Weidhas (60yo)

    Chief Operating Officer

    • Tenure: 3.3yrs
    • Compensation: US$1.67m
  • Limor Gruber

    Head of Investor Relations

    • Tenure: 0yrs
  • Miri Mishor (55yo)

    Senior Vice President Global Information Technology

    • Tenure: 5.8yrs
  • Kobi Altman (51yo)

    Chief Financial Officer

    • Tenure: 4.6yrs
    • Compensation: US$1.36m
  • Ido Lilian (55yo)

    Chief Procurement Officer

    • Tenure: 5.8yrs
  • Maya Avishai

    Head of Global External Communications

    • Tenure: 0yrs
  • Ilana Fahima (53yo)

    Executive Vice President of Global Human Resources

    • Tenure: 1yrs
  • Lilach Geva-Harel (42yo)

    Senior Vice President & Global General Counsel

    • Tenure: 0.8yrs

Board Members

  • Avisar Paz (62yo)

    Director

    • Tenure: 18.6yrs
  • Yoav Doppelt (50yo)

    Executive Chairman

    • Tenure: 0.5yrs
  • Ovadia Eli (74yo)

    Director

    • Tenure: 8.3yrs
  • Lior Reitblatt (61yo)

    Independent Director

    • Tenure: 2yrs
  • Aviad Kaufman (49yo)

    Director

    • Tenure: 5.7yrs
  • Sagi Kabla (43yo)

    Director

    • Tenure: 3.8yrs
  • Ruth Ralbag (59yo)

    External Director

    • Tenure: 1.8yrs
  • Reem Aminoach (58yo)

    Independent Director

    • Tenure: 2.7yrs
  • Nadav Kaplan (73yo)

    External Director

    • Tenure: 1.3yrs

Company Information

Israel Chemicals Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Israel Chemicals Ltd.
  • Ticker: ICL
  • Exchange: NYSE
  • Founded: 1968
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: ₪20.741b
  • Listing Market Cap: ₪5.969b
  • Shares outstanding: 1.28b
  • Website: https://www.icl-group.com

Number of Employees


Location

  • Israel Chemicals Ltd.
  • Millenium Tower
  • 23 Aranha Street
  • Tel Aviv
  • 61070
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ICLNYSE (New York Stock Exchange)YesOrdinary SharesUSUSDApr 1996
ICLTASE (The Tel-Aviv Stock Exchange)YesOrdinary SharesILILSApr 1996

Biography

Israel Chemicals Ltd. operates as a specialty minerals and chemicals company worldwide. It operates in four segments: Industrial Products, Potash, Phosphate Solutions, and Innovative Ag Solutions (IAS). Th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 23:52
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.