If you are planning to speculate on the share price of the Belgian Umicore Company then we recommend that you first learn all the information that you will need to implement an effective strategy. In this article we will examine the significant stock market characteristics of this asset as well as detailing the company’s activities, its partners and major strengths and weaknesses. We will also explain how to complete a comprehensive fundamental analysis of this asset so you can identify any upcoming trends of this share price as well as their probable strength and volatility.
The Umicore Group, through its specialisations in this highly specific activity sector could also find itself in a quasi-monopoly situation in the coming years. It is therefore important to examine the growth in different parts of this market, sector by sector.
We would also closely follow any advances in the automobile industry, notably relating to the vehicle catalysers that offer a strong expansion potential.
Of course, given that Umicore is primarily a technological company based on innovative products and solutions, we would of course closely follow all investments of this company in R & D projects that would enable the creation of new products offering a high profitability margin or the improvements of existing products through an increase in their efficacy, notably those relating to solar energy and semi conductors that are two of this group’s core products.
We would also monitor the commodities market as any increases in costs in this sector could affect the profitability of the Umicore Company. This is also the case for any changes in interest rates as any increase here would also significantly negatively affect the company’s profitability.
Still relating to the monitoring of the Umicore Company’s profitability, we would also follow the level of the costs related to the work force and technicians in the coming years.
To conclude, the global economic situation will of course also exert an undeniable influence on the level of demand.
The Belgium group Umicore is actually one of the great specialists in the sector of materials technology and their recycling. In fact, it is above all well known for its zinc based products but also concentrates its expertise in specialised areas such as materials science, the chemistry of materials, and metal working which of course distinguishes this company from its competitors. To better understand the group’s core activities it can be useful to know how its activities can be separated into the following three major sectors:
Of course and as you have undoubtedly noted, each of these three large segments can itself be divided into different sub-categories according to the related materials. These smaller categories enable Umicore to offer their clients highly technological solutions that are truly necessary for them and respond perfectly to their requirements.
However Umicore is also a group that has invested heavily in research and innovation, notably in the green technologies sector which is currently experiencing a surge in growth. It has notably concentrated its efforts in the catalyst sector for controlling emissions, materials for the production of rechargeable batteries, and the recycling of materials. Due to this strategy Umicore is endeavouring to position itself as leader in the development, production, and recycling of materials.
From a geographical point of view Umicore is particularly well developed internationally with its industrial activities that are spread over different continents and a clientele that also extends worldwide.
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Umicore is currently the world market leader in its activity sector and notably that relating to the production and processing of zinc. But of course, it is not the only specialist in this sector and therefore faces stiff competition from other companies based around the world and especially those in Europe. To assist you in completing a comprehensive examination of the competition in this activity sector we offer you the opportunity now to learn about Umicore’s principal competitors in terms of turnover classified in order from the largest to the smallest:
To keep its place as leader and remain at the heart of its activity sector worldwide Umicore relies heavily on the implementation of partnerships and strategic alliances with other major companies. We will now provide details on a few of these more recent strategic alliances so you can better understand their significance.
In 2006 for example, the Umicore Group became associated with the chemicals giant Solvay through the creation of a joint company named SolviCore that has since formed a significant client portfolio. Through this joint venture the two companies combined their knowledge to create an innovative technology for the assembly of the membrane and electrodes that have been used ever since in the production of combustible batteries and membrane electrolysis. This joint venture, previously held 50/50 by Solvay and Umicore, has since been sold to the Japanese chemical group Toray.
In 2012 the Umicore Group signed a major partnership agreement with the Toyota automobile manufacturer. Through this collaboration Umicore entered into the specialised sector of recycling technologies relating to the Li-on batteries that were used in numerous hybrid Toyota vehicles.
To conclude, more recently, in 2017 to be precise, Umicore became associated with Mahindra Racing for a partnership of initially three years relating to the FIA Formula E Championship. The technologies from these two companies were highlighted by boosting the performances of the electric cars in this competition through alternative energy resources and the use of recycled materials with the batteries. It should be remembered that this type of racing is very popular as it promotes participating technological companies that benefit from a type of trampoline in the form of a significant showcase to enable them to become better known worldwide.
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