Minerals Technologies develops, produces and markets a broad range of specialty mineral, mineral-based and synthetic mineral products and related systems and services. The company serves the paper, foundry, steel, environmental, energy, polymer and consumer products industries. The company was founded in 1968 and is based in New York, New York.
MTX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Minerals Technologies Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Minerals Technologies Inc ranked in the 36th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 39.67%. In terms of the factors that were most noteworthy in this DCF analysis for MTX, they are:
Its compound free cash flow growth rate, as measured over the past 5.7 years, is -0.06% -- higher than only 17.65% of stocks in our DCF forecasting set.
Minerals Technologies Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 8.11% of tickers in our DCF set.
Relative to other stocks in its sector (Basic Materials), Minerals Technologies Inc has a reliance on debt greater than 63.85% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
BHP, HL, SUZ, KWR, and IFF can be thought of as valuation peers to MTX, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
Shape strategic responses through the phases of industry recovery. Luossavaara-Kiirunavaara AB, Minerals Technologies Inc., and Wyo-Ben Inc. will emerge as major bentonite market participants during 2020-2024. The bentonite market is expected to grow by 2.75 million MT during 2020-2024, according to Technavio. The report offers a detailed analysis of the impact of the COVID-19 pandemic on the bentonite market in optimistic, probable, and pessimistic forecast scenarios. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200923005626/en/ Technavio has announced its latest market research report titled Global Bentonite Market 2020-2024 (Graphic: Business Wire) The bentonite market will witness Negative and Inferior impact during the...