Last Updated on April 7, 2023 by George
A global leader in recycling and materials technologies, UMICY Stock, is headquartered in Belgium. Circular material technology is the company’s main line of business, utilizing its knowledge of material science, chemistry, and metallurgy.
This stock may interest you if you are a stock and commodity investor because it operates in a developing industry. Many of the company’s clients are in the electric vehicle business, and it also recycles and supplies specialist materials.
Given the anticipated industry expansion in the foreseeable future, there may be promising growth opportunities for UMICY stock. As it deals with lithium, gold, silver, and molybdenum, among many other rare elements, this company is also a play on commodities.
According to the corporation, designing, producing, and recycling products for a “Better living” is part of its objective. Using a circular economy to create and recycle materials is part of their goal. Forty-six industrial facilities and 11,050 employees worldwide are part of Umicore.
UMICY stock is dedicated to offering ecologically clean and sustainable solutions. In a world that is changing quickly, they are at the forefront of circularity, considerably enhancing sustainability while addressing the growing demand for specialist materials.
Minière du Haut Katanga, the business’s original name, was dropped in favor of Umicore SA in 2001. The company operates explicitly in the following sectors:
Activator Segment
- Automobile catalysts for applications involving gasoline, light, and heavy diesel.
- Stationary catalysts for use in fuel cell applications, the pharmaceutical and fine chemical industries, and
- the management of industrial pollutants.
Section for Energy Technologies
- Specialty materials and cobalt
- materials for rechargeable batteries
- Electro-optic components
PVD coating and electroplating
Section for Recycling
- Treatment of end-of-life material waste streams from the precious and other specialty metals sectors.
- Production of materials based on precious metals for the glass, electric, and electronic industries.
UMICY in the News
Let’s look at the most recent news stories on the UMICY stock. Throughout 2022, Umicore made a lot of news and shared a variety of positive developments. The volume of news for the corporation reveals how proactive the organization’s management is.
Strategic Alliances
The business partnered with PowerCo to create battery materials on September 26, 2022.
The VW Group owns Powerco, and the joint venture will work to establish a sizable supply network for environmentally friendly batteries. By 2030, the two businesses will have invested €3 billion ($2.95 billion) in producing battery components for 2.2 million electric vehicles.
On September 21, 2022, Umicore opened Poland’s first gigafactory for battery components. The plant produces active cathode materials for electric vehicles for the first time in Europe. The plant will supply the firm’s clients across Europe and has no carbon footprint.
Umicore announced on September 15, 2022, that it had signed two separate power purchase agreements with Statkraft and Gasum to maintain a sustainable operation. According to the agreements, Umicore will receive ten years of green energy from Finnish wind turbines.
The two agreements will supply electricity to a facility owned by Umicore in Kokkola, Finland. The cobalt used in rechargeable batteries for electric cars is refined at this firm with precursor cathode active elements.
Fresh Production Ideas
Umicore disclosed intentions to construct a factory in Ontario, Canada, to manufacture active cathode batteries and precursor materials on July 13, 2022. The facility, the first in North America, would finish the Canadian supply chain to switch to electric mobility.
On July 7, 2022, Umicore announced plans to construct a sizable fuel cell catalyst plant in China. The facility would allow UMCIY shares to take advantage of the quickly expanding hydrogen fuel cell mobility sector opportunities.
UMICY Stock Profile
- Market Capitalization: $7.81 billion
- Price Earnings Ratio (TTM): 15.11
- Dividend Yield: 2.52%
- Average Daily Volume: 140,973 shares
- 52-Week Range: $6.95 – $14.67
- Gross Profits: 2 years consecutive increases
UMICY Stock: Fundamental Analysis
Let’s examine some financial data for the UMICY stock and review the industry fundamentals in which Umicore competes.
Unified Core Principles
Given its strong financial position and the low debt-to-asset ratio of 0.65, the company appears highly solvent. For the previous two years in a row, the gross earnings have increased. The table below shows that gross profits increased from €1.448 billion in 2018 to €1.987 billion in 2021.
When writing, the S&P 500’s TTM price-earnings ratio was 19.81, while UMICY stock’s TTM P/E was 15.11. Thus, Umicore isn’t overvalued compared to the general stock markets.
Of course, the price-earnings ratios of UMICY would have to be compared to those of its competitors. An in-depth financial examination of UMCIY would also be necessary, but both are sadly outside the purview of this article.
Business Foundations
Look at changes in this company’s sector to understand the future of UMICY stock. According to recent reports, the electric car industry and its related by-industries are expected to increase during the next few years.
According to a survey by Prophecy Market Insights, the value of recycling electric car batteries will reach $1.93 billion in 2022. And that by 2032, the industry is anticipated to grow at a CAGR of 31.8 percent to a value of $30.5 billion.
According to Straits Research, the market value for cobalt is anticipated to reach $19.47 billion by 2030. They estimate that the cobalt industry will be worth $8.7 billion in 2021 and will increase at a CAGR of 9.3% from 2022 to 2030.
In the upcoming years, the hydrogen industry is expected to experience rapid growth, particularly in Europe. According to Goldman Sachs, the market for hydrogen fuel cells could someday reach $1 trillion annually.
UMICY Stock: Technical Analysis
To comprehend the overall general trend, looking at some technical analysis of the UNICY stock is usually required. The price of UMICY stock reached an all-time high in August 2021 at $17.71, as seen by the weekly chart below.
Since then, it has routinely had lower lows and lower highs, indicating a bear trend. The fate of the stock has been determined mainly by the larger stock market. The S&P 500, on the other hand, has decreased by 17.18% since August 21, 2021. UMICY stock is currently 34.79 percent off its all-time high.
In July 2022, the 50-day moving average deviated below the 200-day moving average. Since November 2021, the price movement has also remained below the 200-day moving average. The medium-term trend is still negative, according to this configuration.
Temporal Trend
We can look at the daily chart below to see how this stock is performing in the near term. Over the entire year, the 50-day moving average has been lower than the 200-day moving average. Yet, the price of UMICY stock has been able to rise since its most recent low.
Price movement crossed the 50-day moving average on October 21, 2022, and has continued to do so as of this writing. This momentum might suggest that there are still higher highs to be attained.
Yet, the 200-day moving average level will present some resistance to price movement. However, a price increase over the stock’s 200-day moving average would provide a definite short-term bullish signal. For further confirmation, the 50-day moving average would also need to cross above the 200-day moving average.
UMICY Stock: Conclusion
Prospects for the industry that a stock serves must be given significant consideration when selecting one. The idea of sustainable mobility is spreading throughout many nations on the planet.
If the trend persists, the recycling and materials industries should profit from the growth. How these marketplaces evolve, though, is still very much up in the air. Because electricity is getting more expensive, there might eventually be limits to the use of electric vehicles.
Nonetheless, Umicore is actively involved in developing hydrogen fuel cell materials. This could be a future segment of sustainable mobility that is not negatively impacted by high energy prices.
Final Thought- Umicy
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