Verde Agritech (NPK) AI Stock Analysis

• Market Cap: C$27.91M
• Dividend Yield: N/A
• Average Volume (3M): 92.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: -42.96%
• EPS Growth: -110.04%
• Country: CA
• Employees: 181
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): -0.24
• Shares Outstanding: 52,669,724
• 10 Day Avg. Volume: 109,653
• 30 Day Avg. Volume: 92,890
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.41
• Price to Cash Flow (P/CF): 6.10
• P/FCF Ratio: 3.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Verde Agritech's overall stock score reflects significant financial and operational challenges, including declining revenues, profitability issues, and liquidity concerns. While there are positive developments in cost management, debt renegotiation, and strategic transactions, the negative financial performance and bearish technical indicators weigh heavily on the stock's outlook. Investors should remain cautious given the current market and economic conditions impacting the agricultural sector.

Verde Agritech Business Overview & Revenue Model

Company Description

Verde Agritech (NPK) is a company operating in the agricultural sector, primarily focused on the production and sale of multi-nutrient fertilizers. The company specializes in providing sustainable and innovative mineral fertilizers that enhance soil fertility and crop yields. Verde Agritech's core product is its proprietary fertilizer brand, which caters to the needs of farmers and agricultural businesses seeking environmentally friendly and effective fertilization solutions.

How the Company Makes Money

Verde Agritech makes money through the production and sale of its proprietary multi-nutrient fertilizers. The company's primary revenue stream is the direct sale of these fertilizers to agricultural producers, distributors, and retailers. Verde Agritech leverages its unique product formulation, which is designed to improve soil health and crop yield, to attract a range of customers in the agricultural sector. Additionally, the company may engage in strategic partnerships with other agricultural businesses or organizations to expand its market reach and enhance its product offerings. Factors such as the growing demand for sustainable agricultural practices and the company's commitment to environmentally friendly solutions contribute to its earnings.

Verde Agritech Financial Statement Overview

Summary

Verde Agritech faces significant financial challenges with declining revenues, negative profitability, and high leverage, which threaten its financial stability. Negative cash flow metrics further highlight operational struggles, necessitating strategic improvements for long-term sustainability.

Income Statement

Verde Agritech's income statement reveals significant challenges. The TTM data shows a drop in total revenue to $21.6M, a stark decrease from $80.3M in 2022. The company is currently experiencing negative gross and net profit margins, with a gross profit margin of 56.7% and a substantial net loss margin of -58.2%. The negative EBIT and EBITDA margins further highlight operational inefficiencies and declining profitability. The revenue growth rate is negative, indicating significant revenue contraction over the period.

Balance Sheet

Verde Agritech's balance sheet presents a mixed picture. The debt-to-equity ratio has increased to 1.31, indicating a high level of leverage, which could pose risks in periods of financial stress. The equity ratio stands at 42.1%, suggesting moderate reliance on equity financing. However, the return on equity is negative, impacted by the net losses, which points to insufficient returns on shareholder investments.

Cash Flow

The cash flow statement reveals significant weaknesses in Verde Agritech's cash management. The TTM operating cash flow is negative, and the free cash flow has deteriorated to -$2.84M. The operating cash flow to net income ratio is negative, reflecting poor cash generation relative to earnings. Additionally, the free cash flow to net income ratio is negative, underscoring challenges in covering net losses through operational cash flows.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
21.60M	37.86M	80.27M	27.71M	9.17M	6.03M
	Gross Profit
12.25M	24.70M	62.25M	20.58M	5.65M	2.86M
	EBIT
-7.89M	-2.19M	23.39M	4.86M	1.13M	-970.00K
	EBITDA
-4.54M	1.98M	24.36M	5.29M	1.37M	-735.00K
	Net Income Common Stockholders
-12.56M	-5.98M	17.80M	3.52M	550.00K	-1.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.77M	6.97M	1.16M	1.53M	2.24M	666.00K
	Total Assets
9.19M	96.17M	97.31M	41.40M	28.73M	31.60M
	Total Debt
0.00	46.20M	38.37M	5.58M	3.47M	596.00K
	Net Debt
-6.77M	39.23M	37.21M	4.05M	1.23M	-70.00K
	Total Liabilities
738.82K	50.67M	48.96M	15.04M	7.59M	7.69M
	Stockholders Equity
8.46M	45.51M	48.35M	26.36M	21.14M	23.91M
Cash Flow		Free Cash Flow
-2.84M	1.63M	-30.83M	-4.28M	-525.00K	-2.21M
	Operating Cash Flow
-1.89M	4.62M	11.47M	-1.68M	1.06M	-719.00K
	Investing Cash Flow
753.00K	-4.02M	-42.02M	-2.55M	-1.47M	-1.48M
	Financing Cash Flow
-3.12M	5.02M	30.03M	3.67M	2.08M	2.08M

Verde Agritech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NPK, the sentiment is Negative. The current price of 0.53 is below the 20-day moving average (MA) of 0.62, below the 50-day MA of 0.70, and below the 200-day MA of 0.70, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 39.48 is Neutral, neither overbought nor oversold. The STOCH value of 28.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NPK.

Verde Agritech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AFN	55 Neutral	C$589.16M	26.96	-6.52%	1.90%	-7.99%	-128.98%
Sector *	47 Neutral	$2.49B	-2.97	-22.82%	3.51%	4.13%	-28.53%
AGT	45 Neutral		―	-10.69%	―	―	―
NPK	42 Neutral	C$27.91M	―	-33.12%	―	-42.96%	-110.04%

Verde Agritech Corporate Events

Verde Agritech and Nautica Holdings Announce Strategic Rare Earths Transaction

Verde Agritech Ltd and Nautica Holdings Limited have announced a strategic transaction involving the sale of high-grade magnetic rare earth exploration assets in Brazil. This move allows Verde to unlock value for its shareholders, while Nautica positions itself as a key player in the rare earths sector, aiming to capitalize on the growing global demand for critical minerals. The transaction includes Nautica’s commitment of AUD $1 million towards an IPO on the Australian Securities Exchange, and the development and exploration of the acquired assets. This strategic alignment is expected to deliver long-term value to Verde’s shareholders and support Nautica’s vision of securing essential minerals for global technological advancements.

Spark’s Take on TSE:NPK Stock

According to Spark, TipRanks’ AI Analyst, TSE:NPK is a Neutral.

Verde Agritech is currently facing significant financial and operational challenges, with declining revenues and profitability, and weak technical indicators. While there are positive developments in cost management and debt renegotiation, the overall outlook remains cautious due to the tough economic environment and negative cash flows.

To see Spark’s full report on TSE:NPK stock, click here.

Verde AgriTech Navigates Challenges and Strengthens Financial Position Amidst Brazilian Agricultural Crisis

Verde AgriTech Ltd reported a challenging fiscal year 2024 due to economic and climatic adversities affecting Brazilian agriculture. Despite a significant reduction in sales volume and revenue, the company has shown resilience by renegotiating its debts, which has strengthened its financial position. The renegotiation efforts have led to substantial cash savings and reduced short-term obligations, positioning Verde strategically for future growth. The company anticipates improved market conditions in the latter half of 2025, driven by favorable geopolitical factors and a recovering global supply chain, which is expected to enhance Brazil’s agricultural profitability.