Ecovyst: Enticing, Attractively Priced

Jul. 09, 2024 4:20 AM ETEcovyst Inc. (ECVT) StockECVT1 Comment
Andrew Dvorak
117 Followers
(33min)

Summary

  • Ecovyst has seen some market-wide pressures recently, with industrial end-markets affecting their Ecoservices segment and randomness (timing) affecting their Catalyst Tech segment.
  • Over time, I think this is a business that can grow notwithstanding their material leverage to gasoline demand.
  • At the current price under $9/share, a fair value closer to $10 or $11 seems more reasonable, which is likely to be realized should sales stabilize.

Oil and Gas Industrial zone,The equipment of oil refining,Close-up of industrial pipelines of an oil-refinery plant,Detail of oil pipeline with valves in large oil refinery.

Rangsarit Chaiyakun

Introduction

I started tracking Ecovyst (NYSE:ECVT) in 2023 and quickly realized they had a very durable business, competitively speaking, which anyone would find attractive. Their share price has fallen nearly 20% since the ~$11/share price in March, leading me to circle back

This article was written by

117 Followers
Former buy-side analyst.Fundamental, cash-flow based investing. Always open to sharing ideas/thoughts.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of ECVT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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