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Intrepid Potash Inc (IPI)
:IPI
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Intrepid Potash
(NYSE:IPI)54Neutral
Positive Factors
Production Improvement
There is an improvement in potash production, reaching the highest level since the first quarter of 2020.
Segment Performance
The Potash and Trio segments' gross profit were ahead by $300k and $1.1M respectively.
Negative Factors
Earnings Estimates
The earnings per share estimates for Intrepid Potash have been significantly revised downward for the upcoming years.
Intrepid Potash (IPI) vs. S&P 500 (SPY)
Market Cap
$319.17M
Dividend YieldN/A
Average Volume (3M)133.78K
Price to Earnings (P/E)―
Beta (1Y)1.42
Revenue Growth-8.74%
EPS Growth-492.08%
CountryUS
Employees485
SectorBasic Materials
Sector Strength56
IndustryAgriculture
Share Statistics
EPS (TTM)-16.49
Shares Outstanding13,226,281
10 Day Avg. Volume161,725
30 Day Avg. Volume133,775
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.54
Price to Cash Flow (P/CF)-18.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.00Price Target Upside-18.64% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
Intrepid Potash Business Overview & Revenue Model
Company DescriptionIntrepid Potash, Inc. engages in the production and marketing of potash and langbeinite products. It operates through Potash, oilfield solutions and Trio segments. The Potash segment sells into the following markets: the agricultural market as a fertilizer input, the industrial market as a component in drilling and fracturing fluids for oil and gas wells and an input to other industrial processes, and the animal feed market as a nutrient supplement. The oilfield solutions segment sell water primarily for industrial use, such as in the oil and gas services industry. The Trio segment delivers potassium, sulfate, and magnesium in a single particle through its specialty fertilizer. The company was founded in January 2000 and is headquartered in Denver, CO.
How the Company Makes MoneyIntrepid Potash makes money through the extraction, production, and sale of potash and other minerals, which are essential components for fertilizers used in agriculture. The company's revenue model is driven by the demand for potash in the agricultural sector, where it is used to improve crop yields by providing essential nutrients. Additionally, Intrepid Potash generates revenue from the sale of salt and magnesium chloride, which are used in de-icing, dust control, and other industrial processes. The company benefits from strategic partnerships and contracts with agricultural producers and distributors, contributing to its earnings. Fluctuations in agricultural demand, commodity prices, and operational efficiencies are significant factors influencing the company's revenue.
Intrepid Potash Financial Statement Overview
Summary
Intrepid Potash is facing significant financial challenges, particularly in terms of profitability and revenue growth. The income statement shows a negative trend with declining revenues and margins. The balance sheet remains relatively stable with low leverage and a strong equity base, but the negative return on equity is concerning. Cash flow generation is a positive aspect, though it is offset by poor income performance. The overall financial health signals a need for strategic improvements to reverse the negative trends in profitability and revenue.Income Statement
The income statement reveals a challenging period for Intrepid Potash, with a notable decline in revenue from $279 million in the previous year to $254.7 million TTM (Trailing-Twelve-Months). Gross profit margin decreased to approximately 10.93%, and net profit margin turned negative at -83.58%, indicating significant profitability challenges. EBIT and EBITDA margins are also negative, reflecting operational difficulties. Overall, the income statement highlights a concerning downward trajectory in financial performance.45
Neutral
Balance Sheet
Intrepid Potash's balance sheet shows a relatively strong equity position with stockholders' equity accounting for 79.77% of total assets, demonstrating a solid equity base. The debt-to-equity ratio is low at 0.55%, indicating conservative leverage. However, return on equity is negative due to substantial net losses, which is a significant concern. Despite the healthy equity ratio, the negative ROE reflects poor financial performance impacting shareholder value.60
Neutral
Cash Flow
The cash flow statement shows a positive operating cash flow of $72.5 million TTM, demonstrating the company's ability to generate cash from operations. Free cash flow also improved to $39.9 million, indicating better cash management compared to the previous period's negative free cash flow. However, free cash flow to net income ratio is affected by substantial net losses, highlighting profitability issues. While cash flow generation is a positive, the underlying profitability concerns remain.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 254.69M | 279.08M | 337.57M | 270.33M | 196.95M | Gross Profit |
| 29.08M | 36.85M | 141.41M | 55.76M | 10.53M | EBIT |
| -5.21M | -43.97M | 95.44M | 32.27M | -17.04M | EBITDA |
| -5.21M | -2.52M | 133.60M | 80.25M | 14.99M | Net Income Common Stockholders |
| -212.84M | -35.67M | 72.22M | 249.83M | -27.15M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 42.30M | 7.04M | 24.47M | 36.45M | 19.52M | Total Assets |
| 594.52M | 768.47M | 794.20M | 766.89M | 550.19M | Total Debt |
| 2.62M | 8.54M | 2.21M | 1.88M | 56.88M | Net Debt |
| -38.69M | 4.44M | -16.31M | -34.57M | 37.36M | Total Liabilities |
| 120.13M | 84.05M | 79.13M | 103.49M | 138.93M | Stockholders Equity |
| 474.39M | 684.43M | 715.08M | 663.40M | 411.26M |
| Cash Flow | Free Cash Flow | |||
| 72.50M | -21.83M | 20.13M | 59.28M | 14.70M | Operating Cash Flow |
| 72.50M | 43.23M | 88.82M | 79.07M | 31.14M | Investing Cash Flow |
| -29.53M | -59.55M | -79.18M | -14.82M | -15.16M | Financing Cash Flow |
| -5.72M | 1.89M | -27.70M | -47.28M | -17.04M |
Intrepid Potash Technical Analysis
Negative
25.81
Price Trends
24.99
Negative
25.44
Negative
24.81
Negative
Market Momentum
-0.16
Positive
39.57
Neutral
38.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPI, the sentiment is Negative. The current price of 25.81 is above the 20-day moving average (MA) of 25.59, above the 50-day MA of 24.99, and above the 200-day MA of 24.81, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 39.57 is Neutral, neither overbought nor oversold. The STOCH value of 38.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IPI.
Intrepid Potash Risk Analysis
Intrepid Potash disclosed 43 risk factors in its most recent earnings report. Intrepid Potash reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Intrepid Potash Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $12.76B | 11.17 | 24.43% | 2.56% | -10.48% | -13.78% | |
68 Neutral | $763.44M | 12.54 | 20.44% | 9.26% | -22.91% | -64.68% | |
64 Neutral | $1.11B | 7.08 | 11.93% | 3.16% | 7.47% | 10.22% | |
63 Neutral | $7.33B | 42.32 | 1.52% | 3.60% | -18.79% | -84.24% | |
54 Neutral | $319.17M | ― | -36.73% | ― | -8.74% | -492.08% | |
47 Neutral | $2.64B | -4.00 | -31.55% | 3.33% | 2.93% | -29.90% |
* Basic Materials Sector Average
Performance Comparison
IPI
Intrepid Potash
25.81
4.41
20.61%
AGRO
Adecoagro SA
10.81
0.99
10.08%
CF
Cf Industries Holdings
76.31
-3.26
-4.10%
UAN
CVR Partners
75.18
18.54
32.73%
MOS
Mosaic Co
24.13
-6.61
-21.50%
NTR
Nutrien
49.87
-0.33
-0.66%
Intrepid Potash Earnings Call Summary
Earnings Call Date: Mar 3, 2025 | % Change Since: 4.88% | Next Earnings Date: May 5, 2025
Earnings Call Sentiment Positive
Intrepid Potash, Inc. reported a positive fourth quarter and fiscal year 2024 with significant improvements in production, unit economics, and cost reductions. The Trio segment was a standout performer, with record sales and pricing surpassing potash. However, the company faces challenges with a flat production outlook for 2025 and a valuation allowance against deferred tax assets. Overall, the positive achievements outweigh the lowlights.Highlights
Increased Production and Improved Unit Economics
Intrepid achieved a 30% increase in potash production in 2024 compared to 2023, with production reaching 295,000 tons, the highest since 2020. The company improved its EBITDA by maintaining a focus on core assets, resulting in a second-half adjusted EBITDA of $18.5 million, roughly double the prior year's figure.
Trio Segment Success
The Trio segment saw record sales volumes of 254,000 tons and improved margins due to operational efficiencies. Trio pricing surpassed potash pricing for the first time since 2016, contributing significantly to the company's financial performance.
Operational Cost Reductions
Intrepid lowered its direct cash production cost by approximately $11.5 million, exceeding the goal of $8 to $10 million in cost reduction for 2024. Trio production increased by 16% compared to the prior year, and COGS per ton improved by 20%.
Positive Oilfield Solutions Contribution
The Oilfield Solutions segment showed modest improvements in sales and margins compared to 2023, benefiting from strong oilfield activity and investment in the Permian Basin.
Lowlights
Deferred Tax Asset Valuation Allowance
Intrepid recorded a valuation allowance against its deferred tax assets due to a projected three-year pre-tax book loss, largely attributed to an impairment recorded at the East Mine in 2023.
Flat Production Outlook for 2025
The company anticipates flat year-over-year potash production for 2025, with expectations of maintaining the current production levels as opposed to achieving further increases.
Company Guidance
During the Intrepid Potash, Inc. Fourth Quarter 2024 Results Conference Call, the company reported an adjusted EBITDA of $8.6 million and an adjusted net loss of $1.4 million, showing improvement over the prior year's adjusted EBITDA of $7.1 million and adjusted net loss of $5.2 million. The enhancements were attributed to increased production and strong operational execution, leading to better unit economics. Potash production reached 117,000 tons in the fourth quarter, marking a year-over-year increase for the third consecutive quarter, with a total annual production of 295,000 tons, a 30% increase compared to 2023. The Trio segment also saw record sales volumes of 254,000 tons, with prices surpassing potash for the first time since 2016. The company anticipates 2025 potash production to remain flat year-over-year and projects first-quarter sales volumes of 95,000 to 105,000 tons for potash and 100,000 to 110,000 tons for Trio, with respective sales prices of $305 to $315 and $340 to $350 per ton. Additionally, Intrepid expects capital expenditures between $36 million and $42 million for 2025, with a focus on sustaining capital investments.Intrepid Potash Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Intrepid Potash Expands Board and Strengthens Governance
Positive
Jan 15, 2025
Intrepid Potash announced the appointment of Gonzalo Avendano as an independent director, effective January 14, 2025, expanding the board from seven to eight members. Avendano, with over 30 years in finance and wealth management, is expected to bring valuable insights into capital markets and business strategy. He joins various board committees and will receive compensation for his partial service term. The company also entered a cooperation agreement with Clearway Capital Management LLC, where Avendano is an investment advisor, to avoid proxy contests and adhere to voting commitments until the 2027 stockholders meeting. This move highlights Intrepid’s efforts to enhance governance and align with shareholder interests.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.