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Intrepid Potash Inc (IPI)
NYSE:IPI
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Intrepid Potash
(NYSE:IPI)
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Rating:58Neutral
Price Target:
$35.00
▲(5.23% Upside)
The score is held back primarily by weak profitability and declining revenue trends in the financial statements, despite a very low-leverage balance sheet and improving cash flow. Technicals are supportive with price above major averages and positive MACD, but overbought signals raise near-term risk. The latest earnings call was a positive swing factor, highlighting improved margins, profitability, and constructive guidance, partially offset by operational and segment headwinds.
Positive Factors
Improved Cost Efficiency
Improved cost efficiency in production enhances profitability and competitive positioning, allowing Intrepid Potash to better manage expenses and potentially increase margins over time.
Debt-Free Balance Sheet
A debt-free balance sheet provides financial flexibility and reduces risk, enabling the company to invest in growth opportunities and withstand market fluctuations without the burden of interest payments.
Positive Market Trends
Rising agricultural commodity prices and favorable trade conditions can drive demand for potash, supporting revenue growth and market expansion for Intrepid Potash.
Negative Factors
Lower Potash Production
Reduced potash production can limit revenue potential and market share, impacting the company's ability to meet demand and capitalize on favorable market conditions.
Oilfield Solutions Segment Decline
Declining performance in the Oilfield Solutions segment can weigh on overall profitability and diversification efforts, reducing the company's ability to offset agricultural market volatility.
Permitting Challenges at AMAX Cavern
Delays in permitting can postpone production expansion and revenue generation, hindering growth plans and operational efficiency improvements.
Intrepid Potash (IPI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$446.58M
Dividend YieldN/A
Average Volume (3M)135.65K
Price to Earnings (P/E)―
Beta (1Y)0.89
Revenue Growth8.88%
EPS Growth-349.99%
CountryUS
Employees468
SectorBasic Materials
Sector Strength58
IndustryAgricultural Inputs
Share Statistics
EPS (TTM)0.11
Shares Outstanding13,426,932
10 Day Avg. Volume163,966
30 Day Avg. Volume135,650
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.60
Price to Sales (P/S)1.11
P/FCF Ratio8.41
Enterprise Value/Market Cap0.74
Enterprise Value/Revenue1.19
Enterprise Value/Gross Profit7.15
Enterprise Value/Ebitda8.58
Forecast
1Y Price Target
$24.00Price Target Upside-27.84% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Intrepid Potash Business Overview & Revenue Model
Company DescriptionIntrepid Potash, Inc., together with its subsidiaries, engages in the extraction and production of the potash in the United States and internationally. It operates through three segments: Potash, Trio, and Oilfield Solutions. The Potash segment offers muriate of potash or potassium chloride for use as a fertilizer input in the agricultural market; as a component in drilling and fracturing fluids for oil and gas wells, as well as an input to other industrial processes in the industrial market; and as a nutrient supplement in the animal feed market. The Trio segment provides Trio, a specialty fertilizer that delivers potassium, sulfate, and magnesium in a single particle. The Oilfield Solutions segment sells water for use in the oil and gas services industry; and offers potassium chloride real-time mixing services on location for hydraulic fracturing operations and trucking services. The company also offers salt for use in animal feeds, industrial applications, pool salts, and treatment of roads and walkways for ice melting or to manage road conditions; magnesium chloride for use in the deicing and dedusting of roads; brines for well development and completion activities in the oil and gas industry; and metal recovery salt, a combination of potash and salt to enhance the recovery of aluminum in the aluminum recycling processing facilities. Intrepid Potash, Inc. was founded in 2000 and is based in Denver, Colorado.
How the Company Makes MoneyIntrepid Potash generates revenue primarily through the sale of potash, which is used extensively in fertilizers to enhance agricultural productivity. The company's revenue model is based on the direct sale of its products to agricultural retailers, wholesalers, and end-users. Key revenue streams include the sales of granular and standard potash products, as well as specialty fertilizers that incorporate potash. Additionally, Intrepid Potash benefits from strategic partnerships with agricultural distributors and cooperatives, which help to expand its market reach. Factors contributing to its earnings include demand for potash driven by global agricultural trends, pricing dynamics in the fertilizer market, and the company's operational efficiency in potash extraction and production.
Intrepid Potash Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 09, 2026
Earnings Call Sentiment Positive
Intrepid demonstrated strong financial performance with significant improvements in Trio production and cost efficiency. However, the company faces challenges with lower potash production and reduced activity in its Oilfield Solutions segment. Overall, the positive aspects of financial performance and market trends outweigh the challenges.Q3-2025 Updates
Positive Updates
Strong Financial Performance
Intrepid reported a net income of $3.7 million and adjusted EBITDA of $12 million for Q3 2025, compared to a net loss of $1.8 million and adjusted EBITDA of $10 million in the previous year.
Improved Cost Efficiency
Potash cost of goods sold improved by 9% to $327 per ton, and Trio's cost of goods sold improved by 15% to $238 per ton.
Positive Market Trends
U.S. agriculture market is improving with corn and soybean futures up by 15% since August lows, supported by a new trade deal with China.
Trio Production and Sales Growth
Trio production exceeded expectations with a forecast of 70,000 to 75,000 tons for 2026, and Q3 gross margin of $4.4 million was approximately $4 million higher than last year.
Debt-Free Balance Sheet
Intrepid maintains a debt-free status with a cash position of roughly $74 million.
Negative Updates
Lower Potash Production
Q3 potash production decreased to 41,000 tons due to delayed production at HB and weather impacts, with a forecast of 270,000 to 280,000 tons for 2026.
Oilfield Solutions Segment Decline
The segment experienced reduced gross margin due to lower water sales and oilfield activity, with expectations of continued lower activity in the near term.
Permitting Challenges at AMAX Cavern
Ongoing permitting process for the AMAX Cavern at the HB facility may delay potential benefits from this asset.
Company Guidance
During Intrepid Potash, Inc.'s third quarter 2025 earnings call, the company reported a net income of $3.7 million and an adjusted EBITDA of $12 million, a significant improvement from the previous year's net loss of $1.8 million and adjusted EBITDA of $10 million. Year-to-date adjusted EBITDA was $45 million, marking the best performance since 2015. The strong results were driven by higher pricing in Potash and Trio and improved unit economics due to increased production. Potash's cost of goods sold (COGS) per ton improved by 9% to $327, and Trio's by 15% to $238. The company also highlighted a favorable market environment, with corn and soybean futures up by 15% since August lows, and resilient demand in the potash market projected to continue through mid-2027. Looking ahead, Intrepid expects Trio production to reach 285,000 to 295,000 tons in 2026, driving a 5% to 7% improvement in per unit costs. Despite a challenging environment in Oilfield Solutions, Intrepid's balance sheet remains strong with $74 million in cash and no debt. The company plans to focus on operational efficiencies and capital investments to sustain growth.Intrepid Potash Financial Statement Overview
Summary
Intrepid Potash faces significant financial challenges, particularly in terms of profitability and revenue growth. While the balance sheet is stable with low leverage, the company struggles with negative margins and returns. Cash flow shows some positive signs, but overall, the company needs to focus on improving operational efficiency and profitability to enhance its financial health.Income Statement
Intrepid Potash's income statement reveals significant challenges. The company has experienced declining revenue growth, with a negative growth rate of -1.53% in the TTM period. Margins are under pressure, with a gross profit margin of 16.8% and a concerning net profit margin of -70.24%, indicating substantial losses. EBIT and EBITDA margins are also weak, reflecting operational inefficiencies. The company needs to address these issues to improve profitability.45
Neutral
Balance Sheet
The balance sheet shows a strong equity position with a low debt-to-equity ratio of 0.0076, indicating minimal leverage. However, the return on equity is negative at -40.54%, reflecting the company's inability to generate profits from its equity base. The equity ratio is healthy, suggesting a stable financial structure, but profitability remains a concern.60
Neutral
Cash Flow
Cash flow analysis indicates some positive trends, with a free cash flow growth rate of 38.72% in the TTM period. The operating cash flow to net income ratio of 1.29 suggests that the company generates sufficient cash from operations relative to its net income. However, the free cash flow to net income ratio of 0.66 highlights the need for improved cash management to support profitability.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 278.25M | 254.69M | 279.08M | 337.57M | 270.33M | 196.95M |
| Gross Profit | 46.10M | 29.08M | 36.85M | 141.41M | 55.76M | 10.53M |
| EBITDA | 38.46M | 18.76M | -5.19M | 133.60M | 77.50M | 10.88M |
| Net Income | -195.44M | -212.84M | -35.67M | 72.22M | 249.83M | -27.15M |
Balance Sheet | ||||||
| Total Assets | 616.54M | 594.52M | 768.57M | 794.20M | 766.89M | 550.19M |
| Cash, Cash Equivalents and Short-Term Investments | 77.21M | 42.30M | 7.04M | 24.47M | 36.45M | 19.52M |
| Total Debt | 3.71M | 4.25M | 6.19M | 2.21M | 1.88M | 56.88M |
| Total Liabilities | 125.81M | 120.13M | 84.14M | 79.13M | 103.49M | 138.93M |
| Stockholders Equity | 490.73M | 474.39M | 684.43M | 715.08M | 663.40M | 411.26M |
Cash Flow | ||||||
| Free Cash Flow | 27.95M | 33.59M | -21.83M | 20.13M | 59.28M | 14.70M |
| Operating Cash Flow | 54.43M | 72.50M | 43.23M | 88.82M | 79.07M | 31.14M |
| Investing Cash Flow | -15.21M | -29.53M | -59.55M | -79.18M | -14.82M | -15.16M |
| Financing Cash Flow | -45.00K | -5.72M | 1.89M | -27.70M | -47.28M | -17.04M |
Intrepid Potash Technical Analysis
Positive
33.26
Price Trends
27.13
Positive
27.96
Positive
30.78
Positive
Market Momentum
1.72
Negative
70.33
Negative
88.49
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IPI, the sentiment is Positive. The current price of 33.26 is above the 20-day moving average (MA) of 29.29, above the 50-day MA of 27.13, and above the 200-day MA of 30.78, indicating a bullish trend. The MACD of 1.72 indicates Negative momentum. The RSI at 70.33 is Negative, neither overbought nor oversold. The STOCH value of 88.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IPI.
Intrepid Potash Risk Analysis
Intrepid Potash disclosed 45 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.19B | 9.39 | 42.00% | 12.33% | 16.52% | 141.96% | |
65 Neutral | $8.36B | 6.84 | 10.00% | 3.70% | 3.82% | 239.39% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $6.88B | 18.64 | 6.15% | 3.36% | 1.77% | -8.72% | |
58 Neutral | $446.58M | -2.19 | -33.37% | ― | 8.88% | -349.99% | |
50 Neutral | $3.69B | 25.72 | ― | 4.52% | -3.93% | ― | |
47 Neutral | $1.92B | -3.61 | -11.52% | 16.68% | -13.42% | -136.59% |
* Basic Materials Sector Average
IPI
Intrepid Potash
33.26
6.13
22.59%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.