Imerys - Mining Value

Summary

• Imerys S.A., a French specialty minerals company, has struggled with subdued industrial demand but shows signs of recovery with an 11% one-year return.
• The company projects a cautious yet positive outlook for FY 2024, targeting a 7.5% YOY EBITDA growth, and offers a secure 5% dividend yield.
• Imerys' valuation appears high compared to peers, with significant goodwill on the balance sheet and limited growth prospects beyond GDP.
• Litigation risks related to Talc production exist, but the company maintains a sound balance sheet and improving profitability, making it a HOLD.