GICS Sector : Basic Materials
Imerys S.A. provides mineral-based specialty solutions for various industries worldwide.The company operates in Performance Minerals and High Temperature Solutions segments.It provides additives for interior decorative paints, as well as marine protection, facade coating, can coating, etc.; rubber, tires, medical rubber, and cables; and adhesives and sealants.
Imerys reported revenue of EUR 2.583 billion for the first 9 months, a 0.7% decrease like-for-like versus last year, with volumes slightly down and prices holding well. Adjusted EBITDA for the third quarter was EUR 140 million, representing a 17% margin. For the first 9 months, adjusted EBITDA reached EUR 421 million, a 21% decrease compared to last year, reflecting the impact of lower contribution of JVs, perimeter impact, and an unfavorable exchange rate effect. The adjusted EBITDA margin stood at 16.3% at the end of Q3 '25. As per Sebastien Rouge, CFO, the decrease in adjusted EBITDA "reflects the impact of lower contribution of JVs, perimeter impact, and an unfavorable exchange rate effect."
Publication Date: Nov -02
Imerys remains confident of achieving its guidance despite the current challenges. The group has signed a new acquisition, SB Mineração in Brazil, and has identified a potential partner for the EMILI project, securing the financing of the next steps. The company has also launched a comprehensive cost reduction and performance improvement program to achieve significant cost reduction and improve profitability from 2026 onwards. According to Alessandro Dazza, CEO, the company is "focusing on cost reduction through lean organization, simplification, and the use of AI to streamline administrative processes."
With a P/S Ratio of 0.35 and an EV/EBITDA of 8.2, the market seems to be pricing in a moderate growth trajectory for Imerys. Analysts estimate next year's revenue growth at 3.1%. The company's efforts to reduce costs and improve profitability are expected to drive growth in the coming years. The Dividend Yield stands at 6.78%, indicating an attractive return for income investors.
Volumes in Europe are still under pressure, but the worst is considered to be behind, with construction picking up. Graphite and carbon growth remains solid, despite a slowdown in Q3, due in part to a summer period effect. The company is addressing operational issues, including the installation of SAP in two operations, which is causing some disruptions.
Imerys is pursuing a careful approach to refinancing a EUR 600 million bond that is due in 2027, expecting to refinance it either late this year or in the first half of 2026. The Net Debt / EBITDA ratio stands at 3.61, indicating a relatively high level of debt. The company's focus on cost reduction and improving profitability is expected to help manage its debt burden.
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Sep -15
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Sep -09
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Imerys' Performance Minerals segment growth is driven by increasing demand for specialty minerals in energy-efficient applications, such as refractories and ceramics, as well as growing adoption in emerging markets. Additionally, the company's focus on innovation and sustainability, including the development of eco-friendly products, contributes to its 2% growth.
Imerys' Refractories, Abrasives and Construction segment growth is driven by increasing demand for high-performance materials in steel production, rising infrastructure development, and growing adoption of sustainable building practices. Additionally, the company's strategic acquisitions and investments in R&D have enhanced its product offerings and operational efficiency, contributing to the 4% growth rate.
Imerys S.A.'s growth is driven by increasing demand for specialty minerals in energy storage, filtration, and refractories. Strong sales in ceramic and refractory markets, coupled with strategic acquisitions, have contributed to its growth. Additionally, the company's focus on sustainability and innovation has enabled it to capitalize on emerging trends in clean energy and eco-friendly products.
A soft, white mineral used in paper, ceramics, and cosmetics
A type of clay used in foundry, drilling, and construction
A thermally treated kaolin used in ceramics, paint, and plastics
A soft, powdery mineral used in plastics, paint, and cosmetics
A sedimentary rock used in construction, paper, and water treatment
Heat-resistant minerals used in high-temperature applications
A calcium silicate mineral used in plastics, paint, and ceramics
A mineral used in paper, plastics, and construction
The threat of substitutes for Imerys S.A. is medium due to the availability of alternative materials and products that can replace its offerings.
The bargaining power of customers for Imerys S.A. is low due to the company's strong brand reputation and diversified customer base.
The bargaining power of suppliers for Imerys S.A. is medium due to the company's dependence on a few key suppliers for raw materials.
The threat of new entrants for Imerys S.A. is low due to the high barriers to entry in the industry, including significant capital requirements and regulatory hurdles.
The intensity of rivalry for Imerys S.A. is high due to the competitive nature of the industry, with several established players vying for market share.
| Value | |
|---|---|
| Debt Weight | 46.91% |
| Debt Cost | 11.19% |
| Equity Weight | 53.09% |
| Equity Cost | 11.19% |
| WACC | 11.19% |
| Leverage | 88.36% |
Value: 7.2
Growth: 8.2
Quality: 6.3
Yield: 8.1
Momentum: 5.5
Volatility: 6.7
1-Year Total Return ->
Value: 6.1
Growth: 7.3
Quality: 7.2
Yield: 3.8
Momentum: 8.0
Volatility: 4.3
1-Year Total Return ->
Value: 7.3
Growth: 1.9
Quality: 4.4
Yield: 6.2
Momentum: 6.0
Volatility: 9.0
1-Year Total Return ->
Value: 7.6
Growth: 2.7
Quality: 2.5
Yield: 4.4
Momentum: 6.0
Volatility: 5.3
1-Year Total Return ->
Value: 7.7
Growth: 1.3
Quality: 2.8
Yield: 8.8
Momentum: 1.5
Volatility: 4.3
1-Year Total Return ->
Value: 3.8
Growth: 1.6
Quality: 3.2
Yield: 6.2
Momentum: 1.0
Volatility: 4.3
1-Year Total Return ->