Minerals Technologies reported record adjusted earnings per share for the third quarter, surpassed analyst estimates, and raised its regular quarterly dividend by 9%. The company’s Engineered Solutions division achieved record operating margins, highlighting ongoing momentum.
See our latest analysis for Minerals Technologies.
Despite consistently topping earnings estimates and delivering record operating margins, Minerals Technologies’ recent share price return has been challenging. The stock is down 2.6% over the past quarter and off 20.4% year-to-date. The one-year total shareholder return stands at -21.4%, but multi-year returns remain in positive territory. This suggests that while short-term sentiment has been pressured, the company’s longer-term story is still one of growth amidst a few bumps. Recent investments, a sizable share buyback, and ongoing dividend hikes indicate that management remains focused on both immediate execution and future expansion.
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After a string of operating achievements and a lagging share price, investors are left to wonder whether Minerals Technologies is now trading at a bargain or if the market has already built in the company’s future growth prospects.
Most Popular Narrative: 28.9% Undervalued
Minerals Technologies' most widely followed valuation perspective highlights a fair value of $84 compared to the last close of $59.71. This suggests significant upside if current projections play out. Investors are watching for confirmation that ambitious expansion into higher-margin, sustainable businesses can transform recent record earnings into lasting outperformance.
Ongoing investments in capacity expansions for high-growth, sustainable products (such as sustainable aviation fuel purification, animal health solutions, fabric care, and pet litter in Asia) are positioned to benefit from global population growth, urbanization, and heightened sustainability demand, directly supporting revenue growth and above-average margin expansion.
Want to know what powers that valuation gap? The narrative’s playbook depends on bold forecasts for earnings and profit margins, as well as strategic share reductions. Find out how much future growth is baked in, and what would need to go right for such a sharp re-rating.
Result: Fair Value of $84 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, ongoing weakness in paper markets and sharper competition in pet care could threaten the company’s margin recovery and stall its near-term growth momentum.
Find out about the key risks to this Minerals Technologies narrative.
Build Your Own Minerals Technologies Narrative
If you see things differently or want to dive into the numbers for yourself, you can easily build your own perspective in just a few minutes. Do it your way
A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Minerals Technologies.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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