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Itafos Inc (TSE:IFOS)
:IFOS

Itafos (IFOS) AI Stock Analysis

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Itafos

(OTC:IFOS)

80Outperform
Itafos has demonstrated strong financial performance with improved profitability and strategic management of assets, reflected in its robust balance sheet and cash flow. Technical indicators suggest a positive stock trend, and valuation metrics indicate potential attractiveness for investors. The strategic sale and special dividend further enhance shareholder value, supporting a strong overall stock score.

Itafos (IFOS) vs. S&P 500 (SPY)

Itafos Business Overview & Revenue Model

Company DescriptionItafos (IFOS) is a vertically integrated phosphate fertilizers and specialty products company. It operates in the agriculture sector, focusing on essential plant nutrients and providing sustainable solutions for global food production. The company's core products include phosphate-based fertilizers, phosphoric acid, and other phosphate products, catering to the needs of farmers and agricultural businesses worldwide.
How the Company Makes MoneyItafos makes money through the production and sale of phosphate-based fertilizers and related products. Its revenue model primarily involves mining phosphate rock, processing it into phosphoric acid and fertilizers, and selling these products to agricultural markets. The company operates manufacturing facilities and distribution networks that enable it to deliver its products efficiently to its customers. Key revenue streams include the sale of its core products to both domestic and international markets. Strategic partnerships with agricultural distributors and ongoing investments in innovation and sustainability also play a significant role in enhancing its profitability and market presence.

Itafos Financial Statement Overview

Summary
Itafos demonstrates a solid financial recovery with improved profitability, reduced leverage, and stronger cash flow generation. The company's financials have turned around since 2020, with key metrics like gross profit margin and net profit margin showing substantial improvement. However, challenges remain in sustaining revenue growth and managing liabilities.
Income Statement
78
Positive
Itafos has shown a strong recovery in its income statement metrics. The gross profit margin improved significantly from -6.1% in 2020 to 30.3% in 2024. The net profit margin also turned positive, ending at 17.9% in 2024 compared to -23.9% in 2020. Revenue growth was impressive at 5.5% from 2023 to 2024, following a dip in 2022. However, revenue remains below the 2022 peak. EBIT and EBITDA margins have also strengthened to 24.5% and 30.4% in 2024, highlighting improved operational efficiency.
Balance Sheet
71
Positive
The balance sheet shows a healthier position with a debt-to-equity ratio decreasing from 1.92 in 2020 to 0.31 in 2024, indicating reduced leverage. Return on equity improved, reaching 25.2% in 2024, demonstrating effective use of equity to generate returns. The equity ratio also improved to 50.0%, suggesting a strong equity base. However, total liabilities remain substantial, and the company's growth in equity is relatively recent.
Cash Flow
75
Positive
Cash flow metrics indicate robust improvement, with free cash flow growing by 31.6% from 2023 to 2024. The operating cash flow to net income ratio is strong at 1.37, showing efficient cash generation relative to net income. Free cash flow to net income is also positive at 0.60, underscoring solid cash management. However, capital expenditures remain significant, impacting free cash flow levels.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
491.24M465.52M593.29M413.25M260.19M
Gross Profit
148.79M52.56M214.88M136.88M-16.22M
EBIT
120.46M24.57M185.38M110.98M-37.40M
EBITDA
149.25M53.75M219.59M134.33M-8.17M
Net Income Common Stockholders
87.79M3.86M115.10M51.03M-62.31M
Balance SheetCash, Cash Equivalents and Short-Term Investments
74.37M31.05M42.81M31.57M9.54M
Total Assets
695.86M587.23M614.01M633.85M477.30M
Total Debt
108.17M103.83M143.90M254.09M256.94M
Net Debt
33.80M73.08M101.09M222.53M247.40M
Total Liabilities
348.03M328.50M360.89M499.25M394.88M
Stockholders Equity
347.83M258.73M252.35M133.44M81.67M
Cash FlowFree Cash Flow
52.57M39.96M169.37M60.42M-17.41M
Operating Cash Flow
120.05M94.72M208.37M94.50M-3.44M
Investing Cash Flow
-65.20M-53.33M-39.00M-34.08M-13.96M
Financing Cash Flow
-9.37M-54.23M-158.32M-38.43M-2.16M

Itafos Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.24
Price Trends
50DMA
2.09
Positive
100DMA
1.93
Positive
200DMA
1.72
Positive
Market Momentum
MACD
0.05
Positive
RSI
55.96
Neutral
STOCH
32.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IFOS, the sentiment is Positive. The current price of 2.24 is above the 20-day moving average (MA) of 2.18, above the 50-day MA of 2.09, and above the 200-day MA of 1.72, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 55.96 is Neutral, neither overbought nor oversold. The STOCH value of 32.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:IFOS.

Itafos Peers Comparison

Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSSII
81
Outperform
$1.66B24.1615.66%2.50%19.98%18.77%
80
Outperform
C$430.11M3.5028.95%7.14%2344.75%
TSAEM
80
Outperform
$78.42B30.019.42%1.47%26.99%-6.63%
TSNTR
67
Neutral
$34.94B38.232.72%4.39%-9.23%-45.29%
TSFM
63
Neutral
$16.14B0.02%-24.38%99.06%
47
Neutral
$2.64B-3.21-21.68%3.30%4.19%-30.23%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:IFOS
Itafos
2.20
0.90
69.23%
TSE:NTR
Nutrien
71.53
-1.17
-1.61%
TSE:SII
Sprott
64.39
12.27
23.55%
TSE:AEM
Agnico Eagle
153.99
72.13
88.11%
TSE:FM
First Quantum Minerals
19.89
4.72
31.11%

Itafos Corporate Events

Dividends
Itafos Announces Special Dividend for Shareholders
Positive
Apr 1, 2025

Itafos Inc. has confirmed a special cash dividend of CAD$0.05 per share, payable on April 25, 2025, to shareholders of record as of April 9, 2025. This announcement reflects the company’s commitment to returning value to its shareholders, with dividends paid in Canadian dollars for Canadian residents and U.S. dollars for others, subject to applicable tax withholdings.

Executive/Board Changes
Itafos Grants Restricted Share Units to Directors and Officers
Neutral
Mar 26, 2025

Itafos Inc. announced the granting of 773,037 restricted share units (RSUs) to its directors and officers as part of its annual compensation process. These RSUs, which vest over three years, are designed to reward past contributions and incentivize future success, reflecting the company’s commitment to aligning management interests with shareholder value.

DividendsFinancial Disclosures
Itafos Inc. Reports Strong Q4 and FY 2024 Results, Announces Special Dividend
Positive
Mar 19, 2025

Itafos Inc. reported strong operational and financial results for Q4 and FY 2024, with significant increases in revenue and adjusted EBITDA driven by higher prices and sales volumes. The company announced a special dividend following the sale of its Araxa project, reflecting its commitment to shareholder value and improved financial liquidity.

M&A TransactionsBusiness Operations and Strategy
Itafos Sells Araxá Project to St George Mining
Positive
Feb 27, 2025

Itafos Inc. has completed the sale of its Araxá project in Brazil to St George Mining Limited, receiving $10 million and a 10% equity stake in St George. This strategic move aligns with Itafos’ focus on enhancing shareholder value by divesting non-core assets, while maintaining an indirect interest in the Araxá project’s development potential in niobium and rare earth elements.

Business Operations and StrategyFinancial Disclosures
Itafos Reports Record Q4 2024 Performance and Sets Ambitious 2025 Plans
Positive
Feb 3, 2025

Itafos Inc. reported strong operational performance in Q4 2024, achieving record production levels at its Conda facility despite a planned maintenance turnaround. The company saw a significant increase in production at Arraias, particularly in sulfuric acid and newly introduced dry products. Looking ahead to 2025, Itafos plans to extend the mine-life at Conda and enhance production capabilities at Arraias to meet growing demand, expecting to increase margins and support local market needs.

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.