NYSE:MTX

Stock Analysis Report

Minerals Technologies

Executive Summary

Minerals Technologies Inc. develops, produces, and markets various specialty mineral, mineral-based, and synthetic mineral products, and supporting systems and services worldwide.

Rewards

Trading at 34.6% below its fair value

Earnings are forecast to grow 9.51% per year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Undervalued with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.8%

MTX

1.2%

US Chemicals

0.9%

US Market


1 Year Return

-4.8%

MTX

-3.9%

US Chemicals

20.0%

US Market

Return vs Industry: MTX underperformed the US Chemicals industry which returned -3.7% over the past year.

Return vs Market: MTX underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

MTXIndustryMarket
7 Day-0.8%1.2%0.9%
30 Day-5.8%-1.2%1.4%
90 Day2.0%1.0%8.8%
1 Year-4.4%-4.8%10.1%-3.9%22.5%20.0%
3 Year-29.5%-30.2%28.9%4.5%49.9%40.3%
5 Year-22.4%-23.6%38.4%8.3%73.2%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

34.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTX ($55.44) is trading below our estimate of fair value ($84.77)

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


Price To Earnings Ratio

PE vs Industry: MTX is good value based on its PE Ratio (14.6x) compared to the Chemicals industry average (22.2x).

PE vs Market: MTX is good value based on its PE Ratio (14.6x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: MTX is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: MTX is good value based on its PB Ratio (1.4x) compared to the US Chemicals industry average (2.1x).


Next Steps

Future Growth

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

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTX's forecast earnings growth (9.5% per year) is above the savings rate (1.7%).

Earnings vs Market: MTX's earnings (9.5% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: MTX's earnings are forecast to grow, but not significantly.

Revenue vs Market: MTX's revenue (2.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: MTX's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Minerals Technologies performed over the past 5 years?

11.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTX has high quality earnings.

Growing Profit Margin: MTX's current net profit margins (7.4%) are lower than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: MTX's earnings have grown by 11% per year over the past 5 years.

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

Earnings vs Industry: MTX had negative earnings growth (-21.5%) over the past year, making it difficult to compare to the Chemicals industry average (-14.6%).


Return on Equity

High ROE: MTX's Return on Equity (9.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Minerals Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: MTX's short term assets ($919.2M) exceed its short term liabilities ($398.5M).

Long Term Liabilities: MTX's short term assets ($919.2M) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: MTX's debt to equity ratio (65.1%) is considered high.

Reducing Debt: MTX's debt to equity ratio has reduced from 161.4% to 65.1% over the past 5 years.

Debt Coverage: MTX's debt is well covered by operating cash flow (25.5%).

Interest Coverage: MTX's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: MTX's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

0.36%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years0.4%

Current dividend yield vs market & industry

Notable Dividend: MTX's dividend (0.36%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: MTX's dividend (0.36%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: MTX is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: MTX is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: MTX is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MTX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

Doug Dietrich (50yo)

3.2yrs

Tenure

US$4,775,406

Compensation

Mr. Douglas T. Dietrich, also known as Doug, has been the Chief Executive Officer at Minerals Technologies Inc. (MTI) since December 13, 2016 and served as its Interim Co-Chief Executive Officer at Mineral ...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD4.78M) is about average for companies of similar size in the US market ($USD3.78M).

Compensation vs Earnings: Doug's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Douglas Dietrich
CEO & Director3.2yrsUS$4.78m0.24% $4.6m
Matthew Garth
Senior VP of Finance & Treasury and CFO3.1yrsUS$1.62m0.017% $332.7k
Thomas Meek
Senior VP of HR10.4yrsUS$2.30m0.21% $3.9m
Jonathan Hastings
Group President of Performance Materials1.7yrsUS$1.92m0.10% $2.0m
D. Monagle
Group President of Specialty Minerals & Refractories2.9yrsUS$2.54m0.17% $3.2m
Michael Cipolla
VP, Corporate Controller & Chief Accounting Officer22.1yrsno data0.11% $2.0m
Cindi Buckwalter
Head of Investor Relations0yrsno datano data
Douglas Mayger
Senior VP & Head of Global Operations - Performance Materials4.3yrsUS$1.69m0.12% $2.3m
Andrew Jones
VP & MD of Energy Services4.3yrsno data0.025% $485.8k
Brett Argirakis
VP & MD of Global Supply Chain4.1yrsno data0.034% $650.0k

4.1yrs

Average Tenure

56yo

Average Age

Experienced Management: MTX's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Douglas Dietrich
CEO & Director3.2yrsUS$4.78m0.24% $4.6m
Donald Winter
Independent Director6yrsUS$192.50k0.0012% $22.2k
Duane Dunham
Chairman3.4yrsUS$305.46k0.0049% $94.2k
John Carmola
Independent Director6.8yrsUS$199.18k0.0035% $66.5k
Marc Robinson
Independent Director8.1yrsUS$202.06k0.0012% $22.6k
Alison Deans
Director0.9yrsno data0.0012% $22.2k
Carolyn Pittman
Independent Director2.5yrsUS$190.44k0.0012% $22.2k
Joseph Breunig
Independent Director5.3yrsUS$188.52k0.0035% $66.5k
Franklin Feder
Independent Director2.3yrsUS$190.33k0.0013% $25.0k
Robert Clark
Independent Director10.1yrsUS$198.15k0.0012% $22.2k

4.3yrs

Average Tenure

57.5yo

Average Age

Experienced Board: MTX's board of directors are considered experienced (4.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Minerals Technologies Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Minerals Technologies Inc.
  • Ticker: MTX
  • Exchange: NYSE
  • Founded: 1968
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: US$1.911b
  • Shares outstanding: 34.47m
  • Website: https://www.mineralstech.com

Number of Employees


Location

  • Minerals Technologies Inc.
  • 622 Third Avenue
  • 38th Floor
  • New York
  • New York
  • 10017
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTXNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1992
MNKDB (Deutsche Boerse AG)YesCommon StockDEEUROct 1992

Biography

Minerals Technologies Inc. develops, produces, and markets various specialty mineral, mineral-based, and synthetic mineral products, and supporting systems and services worldwide. The company’s Specialty Minerals segment produces and sells precipitated calcium carbonate and quicklime; and provides natural mineral products comprising limestone and talc. This segment’s products are used in paper, building materials, paint and coatings, glass, ceramic, polymer, food, automotive, and pharmaceutical industries. Its Performance Materials segment supplies bentonite and bentonite-related products, as well as chromite and leonardite. This segment offers metal casting products; household, personal care, and specialty products; and basic minerals, environmental products, and building materials. In addition, this segment provides products for non-residential construction, environmental, and infrastructure projects, as well as for construction project customers. The company’s Refractories segment offers monolithic and shaped refractory materials; specialty products, services, and application and measurement equipment; and calcium metal and metallurgical wire products that are used in the applications of steel, non-ferrous metal, and glass industries. Its Energy Services segment provides offshore filtration and well testing services to the oil and gas industry. The company markets its products primarily through its direct sales force, as well as regional distributors. Minerals Technologies Inc. was founded in 1968 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 23:45
End of Day Share Price2020/02/14 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.