Umicore: Doubled Since I Called The Bottom, What Now?

Far Horizon1.71K FollowersFollow5ShareSavePlay(9min)CommentsSummaryUmicore SA delivered a strong 2025 turnaround, with EBITDA up 11% and improved free cash flow after a challenging 2024.UMICF's hedging strategy stabilizes earnings but limits upside from precious metals price spikes, despite high share price correlation with those commodities.Valuation has re-rated to peer levels at 14.4x FCF and 11.3x earnings; cost reduction tailwinds are now behind, with costs and capex set to rise.I re-rate Umicore to Hold, expecting top-line growth with some margin compression; I would consider adding below $17.50 amid share price volatility.baranozdemir/iStock via Getty Images Umicore S.A. (UMICF) (UMICY) is a materials technology and recycling company based in Belgium. The company traces its roots back 200 years, when it started life as a smelting company, quickly diversifying into mining. At the beginningThis article was written byFar Horizon1.71K FollowersFollowThe author has an honours degree in economics and politics with a focus on economic development. With 36 years of experience in executive management he has extensive knowledge of insurance/reinsurance, Global and Asia Pacific markets, climate change and ESG. He invests in his personal capacity.Analyst’s Disclosure: I/we have a beneficial long position in the shares of UMICF 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. The author is not a financial advisor and offers no advice here. He shares his own analysis solely for the interest of readers.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.