Now trading at a price of $6.1, ICL has moved 2.7% so far today.
ICL returned losses of -45.3% last year, with its stock price reaching a high of $12.53 and a low of $5.91. Over the same period, the stock underperformed the S&P 500 index by -44.0%. As of April 2023, the company's 50-day average price was $6.65. ICL 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 Growing Solutions. Based in Tel Aviv, Israel, the large-cap Industrials company has 12,733 full time employees. ICL has offered a 15.4% dividend yield over the last 12 months.
Wider Gross Margins Than the Industry Average of 13.23%:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $5,271 | $5,043 | $6,955 | $10,015 |
| Gross Margins | 34.5% | 29.6% | 37.5% | 50.2% |
| Operating Margins | 14.3% | 4.0% | 17.4% | 35.1% |
| Net Margins | 9.01% | 0.22% | 11.26% | 21.56% |
| Net Income (MM) | $475 | $11 | $783 | $2,159 |
| Net Interest Income | -$129,000 | -$158,000 | -$122,000 | -$113,000 |
| Depreciation & Amort. | -$443,000 | -$489,000 | -$490,000 | -$498,000 |
| Earnings Per Share | $0.37 | $0.01 | $0.6 | $1.61 |
| EPS Growth | n/a | -97.3% | 5900.0% | 168.33% |
| Diluted Shares (MM) | 1,282 | 1,280 | 1,287 | 1,289 |
| Free Cash Flow (MM) | $416 | $178 | $454 | $1,278 |
| Capital Expenditures (MM) | -$576 | -$626 | -$611 | -$747 |
| Net Current Assets (MM) | -$2,428 | -$2,735 | -$2,435 | -$1,489 |
| Current Ratio | 1.52 | 1.31 | 1.5 | 1.75 |
| Long Term Debt | $2,181,000 | $2,093,000 | $2,436,000 | $2,312,000 |
| Net Debt / EBITDA | 2.1 | 3.75 | 1.53 | 0.61 |
ICL has growing revenues and increasing reinvestment in the business, exceptional EPS growth, and low leverage. The company also benefits from wider gross margins than its peer group, decent operating margins with a positive growth rate, and generally positive cash flows. Furthermore, ICL has a decent current ratio.
ICL Has Attractive Multiples and Trades Below Its Graham Number:
ICL has a trailing twelve month P/E ratio of 4.1, compared to an average of 20.49 for the Industrials sector. Based on its EPS guidance of $0.72, the company has a forward P/E ratio of 9.2. According to the 14.2% compound average growth rate of ICL's historical and projected earnings per share, the company's PEG ratio is 0.29. Taking the weighted average of the company's EPS CAGR and the broader market's 5-year projected EPS growth rate, we obtain a normalized growth rate of 9.5%. On this basis, the company's PEG ratio is 0.44. This suggests that its shares are undervalued. Additionally, the market is possibly undervaluing ICL in terms of its equity because its P/B ratio is 1.44 whereas the sector average is 3.78. The company's shares are currently trading -22.5% below their Graham number.
Analysts Give ICL an Average Rating of Hold:
The 5 analysts following ICL have set target prices ranging from $7.0 to $9.1 per share, for an average of $8.12 with a hold rating. As of April 2023, the company is trading -18.1% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
ICL has a very low short interest because 0.3% of the company's shares are sold short. Institutions own 25.8% of the company's shares, and the insider ownership rate stands at 44.01%, suggesting a large amount of insider shareholders. The largest shareholder is Meitav Dash Investments Ltd, whose 0% stake in the company is worth $68,318,089.
