MP Materials (NYSE: MP) is currently rated as an unattractive investment at approximately $27 per share, driven by concerns over its high valuation and weak operating performance. The company’s price-to-sales (P/S) ratio stands at 20.9, compared to the S&P 500’s 3.0, indicating it is more expensive relative to its sales.
Financially, MP Materials has reported a shrinking average revenue of -15.3% over the last three years, with recent revenues showing only 4.6% growth, from $206 million to $216 million. Its operating income was $-166 million, resulting in an operating margin of -77.0%, and it carries a debt of $916 million against a market cap of $4.5 billion as of June 10, 2025, creating a debt-to-equity ratio of 20.3%.
Historically, MP has performed poorly during downturns, experiencing a 50.2% drop from its peak during inflation shocks in 2022. Analysts conclude that despite a strong cash-to-assets ratio of 32.1%, its overall performance metrics are weak, thus categorizing it as a bad stock to buy at this time.
