Mp Materials Intrinsic Stock Value – MP MATERIALS Reports Fourth Quarter FY2022 Earnings Results on December 31, 2022

Earnings Overview

MP MATERIALS ($NYSE:MP) reported a 36.8% increase in total revenue, reaching USD 67.0 million for the fourth quarter of FY2022, which ended on February 23, 2023. Despite this, net income for the quarter decreased by 5.9%, amounting to USD 93.2 million.

Transcripts Simplified

MP Materials reported annual production of 10,485 metric tons of REO in their fourth quarter, which was up 2% year-over-year. Sales volumes increased 12% year-over-year and 1% sequentially. The company noted they would begin diverting inventory into the Stage II circuits, but it would not have a major impact on sales in the fourth quarter.

Realized pricing was down compared to both Q4 2021 and Q3 2022, likely due to Chinese COVID lockdown and unfavorable foreign exchange. Price volatility showed that small changes in supply and demand can cause large fluctuations in the market price, which will affect the realized price of concentrate sales.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Mp Materials. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Mp Materials. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Mp Materials. More…

Key Ratios Snapshot

Some of the financial key ratios for Mp Materials are shown below. More…

Stock Price

MP MATERIALS reported its fourth quarter FY2022 earnings results on Thursday, December 31, 2022. Upon the release of its financial results, the company’s stock opened at $32.1 before closing at $31.6, a slight increase of 0.3% from its prior closing price of $31.5. Operating income was up 6% while net income fell by 4%.

These earnings results reflect the company’s focus on cost-savings initiatives, increased efficiency and improved customer service. Looking ahead, MP MATERIALS is optimistic about its future as it continues to invest in research and development, increase production capacity and develop new product offerings. Live Quote…

Analysis – Mp Materials Intrinsic Stock Value

We at GoodWhale have conducted an analysis of MP MATERIALS‘ wellbeing and determined that the fair value of the company’s share is around $53.0. This was established by our proprietary Valuation Line, which utilizes a combination of factors to calculate the appropriate worth of an asset. Currently, MP MATERIALS stock is being traded at $31.6, representing a 40.4% discount to its fair value. This indicates that the company is being undervalued by the market, making it an attractive opportunity for investors to purchase the stock at a discount in the near future. More…

Peers

In recent years, the manganese industry has seen increased competition between MP Materials Corp and its major competitors South Manganese Investment Ltd, Chongyi Zhangyuan Tungsten Co Ltd, and Esrey Resources Ltd. While each company has its own unique strengths and weaknesses, MP Materials Corp has emerged as the leading player in the industry due to its large scale operations and efficient production processes.

– South Manganese Investment Ltd ($SEHK:01091)

South Manganese Investment Ltd is engaged in the business of manganese ore mining and beneficiation in the Guangxi Zhuang Autonomous Region of China. The company has a market capitalization of 1.89 billion as of 2022 and a return on equity of 23.93%. South Manganese Investment Ltd is involved in the production of high-quality manganese products used in the steel industry. The company’s products are used in a variety of applications including welding, casting, and steelmaking.

– Chongyi Zhangyuan Tungsten Co Ltd ($SZSE:002378)

Chongyi Zhangyuan Tungsten Co Ltd is a Chinese company that mines, processes, and sells tungsten products. It is one of the largest tungsten companies in the world, with a market cap of $6.55 billion as of 2022. The company has a return on equity of 12.18%. Zhangyuan Tungsten is headquartered in Jiangxi Province, China.

– Esrey Resources Ltd ($OTCPK:LNGYF)

The company’s market cap is 80.14k as of 2022. The company’s ROE is -0.36%. The company deals in oil and gas.

Summary

MP MATERIALS recently announced their financial results for the fourth quarter of FY2022, which showed total revenue of USD 67.0 million, a healthy 36.8% increase from the same period a year prior. Net income, however, dropped 5.9%, to USD 93.2 million. For investors, this could be a sign to consider further research into the company’s performance and potential growth opportunities. Nevertheless, the company’s revenue growth is encouraging and may suggest potential for long-term investments in the company, especially if net income can become more consistent in the future.