Opinions
Patricia Perez-Coutts
ICL Group
ICL-N
Unspecified
Sep 19, 2022
Stock price when the opinion was issued
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ICL pays a yield of 10.1%, which as a result from both dividend increases and its share price decline has increased from a yield of ~2% in early 2022 to 10% today. Sales and earnings are expected to be weak this year, with modest growth expected going forward. Profitability is good and margins are expanding, and its free cash flow is strong but is almost entirely used to pay dividends. It operates in a cyclical industry but its fundamentals are decent. Price momentum has been negative given falling sales expectations and a decline in net profits against last year. We feel the company looks OK here, although we do not like the recent negative momentum, and would prefer to see price stability before entering here.
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