Umicore: Electrification leader at a sizeable discount
FY21 adjusted EBIT jumped 81% or c 30% if one excludes the exceptional € 270m metal price tailwind. Despite higher fixed costs and a negative impact from the industry shift to high nickel cathodes, Umicore guides for sales and earnings growth in RBM in 2022, with a rapid uptake of high nickel cathode volumes as from 2H23 onwards. Guidance of an 85% cathode capacity growth to 120GWh by 2024 and the JV with Volkswagen that will start up in 2025 (with a targeted cathode volume contribution of 160 GWh by 2030) underpin that the RBM growth potential remains huge. The establishment of a European supply chain is high on the agenda and Umicore secured to play a major role. Valuation multiples are clearly discounted vs cathode/battery peers and we maintain our BUY rating and € 54 TP.Umicore is global player in the materials technology and recycling industries. Co. focuses on application areas such as chemistry, materials science, metallurgy and recycling. Co.'s business model comprises four segments: Catalysis, Performance Materials, Energy Materials and Recycling. Catalysis focuses on the abatement of global automotive emissions; Performance Materials focuses on materials that help develop more sophisticated and safer products; Energy Materials produces materials used in the production and storage of clean energy including rechargeable batteries and photovoltaics; and Recycling treats complex waste streams containing precious and other non-ferrous metals.
We are a financial services provider for several types of professional clients, each with distinct needs.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.