Why invest in Umicore
Umicore is a global materials technology and recycling Group. It focuses on application areas where its expertise in materials science, chemistry and metallurgy makes a real difference. Its activities are organized in three business groups: Catalysis, Energy & Surface Technologies and Recycling. Each business group is divided into market-focused business units offering materials and solutions that are at the cutting edge of new technological development and essential to everyday life.
2021 Outlook
The global economy is showing signs of recovery from the severe collapse caused by the COVID-19 pandemic in the first half of 2020. However, a high degree of uncertainty remains with respect to the evolution of the pandemic and the pace and speed of the recovery in different regions. As a result, visibility on end market demand remains poor. Against this backdrop and under the assumption that the ongoing COVID-19 outbreak would not result in additional material or protracted disruptions to the economy or Umicore’s operations, Umicore expects to achieve substantial growth in earnings in 2021, with growth in all business Groups.
Catalysis should continue to benefit from its leading edge technology offering in gasoline applications in China and Europe, the initial impact of China VI legislation for heavy-duty diesel applications and savings from the footprint adjustments and cost improvements carried out in 2020.
In Energy & Surface Technologies, volume growth should more than offset the impact of pricing pressure, underutilized capacity in China and some € 50 million increase of fixed costs in RBM. Adjusted EBIT for E&ST is expected to grow meaningfully, in line with current market expectations [1].
Recycling should continue to strongly benefit from favourable metal prices, a supportive supply mix as well as moderate volume growth in PMR. If current elevated metal price levels were to prevail throughout the year, Recycling’s Adj EBIT would increase very significantly compared to 2020.
[1] Umicore has engaged Vara Research GmbH to survey brokerage analysts to provide analysts' consensus estimates to the market. The most recent consensus is available on https://vara-services.com/umicore/.
Reasons to invest in Umicore
- We are leaders in the markets we serve thanks to our metal know-how, innovative technology and a deep understanding of our customers’ needs. Additionally, our closed loop business model gives us a competitive edge.
- We have developed unique positions in recycling and in materials that enable clean mobility.
- We have a clear growth path based on providing solutions to the key megatrends of resource scarcity, the need for cleaner air and drive towards electrified transportation. And we’ve made significant investments to ensure that we capture these opportunities.
- We are a leader in sustainability: through our products and services and through the way we run our operations.
- We deliver value for our shareholders by consistently providing superior returns over the long term.
Who we are
Our Group structure
Umicore share
| Share price* | € 39.29 |
| Outstanding share number* | 246,400,000 |
| Market Capitalization* | € 9.7 billion |
| High/low 01/01/2020-31/12/2020 | € 29.8 - € 47.5 |
| Ticker symbol | UMI |
| *closing at 31/12/2020 |
H1 2020 key figures
| Million € | 2019 | 2020 | Difference |
|---|---|---|---|
| Revenues (excluding metal) | 3,361 | 3,239 | -4% |
| Adjusted EBITDA | 753 | 804 | 7% |
| Adjusted EBIT | 509 | 536 | 5% |
| Adjusted net profit (Group share) | 312 | 322 | 3% |
| Capital expenditure | 553 | 403 | -27% |
| Return on capital employed (ROCE) | 12.6% | 12.1% | |
| Adjusted EPS (in €) | 1.30 | 1.34 | |
| Dividend payout (in €)* | 0.75 | 0.25 | |
| Net debt, end of period | 1,443 | 1,414 | -2% |
| Net debt / LTM Adj. EBITDA | 1.92x | 1.76x | |
| Workforce, end of period (fully consolidated) | 11,152 | 10,859 | -3% |
* On 30 April 2020 the ordinary shareholders’ meeting approved to reduce the dividend for 2019 to € 0.375 per share, which corresponded to the amount of the interim dividend for 2019 which had been already paid out in the second half of 2019. Therefore, there was no dividend payout in the first half of 2020. In the second half of 2020, Umicore paid out an interim dividend for 2020 of € 0.25 € per share.
