Itafos (IFOS) AI Stock Analysis

• Market Cap: $398.41M
• Dividend Yield: N/A
• Average Volume (3M): 28.86K
• Price to Earnings (P/E): 3.3
• Beta (1Y): 0.51
• Revenue Growth: 7.14%
• EPS Growth: 2344.75%
• Country: CA
• Employees: 437
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Agricultural Inputs
• EPS (TTM): 0.63
• Shares Outstanding: 192,466,920
• 10 Day Avg. Volume: 17,062
• 30 Day Avg. Volume: 28,858
• PEG Ratio: 0.00140
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.65
• Price to Cash Flow (P/CF): 12.00
• P/FCF Ratio: 0.00
• 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: $4.25
• Price Target Upside: 93.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Itafos demonstrates strong financial recovery and strategic corporate actions, positioning it well for future growth. Its undervalued status further enhances its appeal. However, challenges in sustaining revenue growth and managing significant liabilities persist, necessitating cautious optimism.

Itafos Business Overview & Revenue Model

Company Description

Itafos (IFOS) is a company engaged in the exploration, development, and production of phosphate-based fertilizers and related products. The company operates in the agricultural sector, providing essential nutrients that enhance crop yield and quality. Itafos is involved in various stages of the phosphate value chain, including mining, beneficiation, and the production of fertilizers, catering to both domestic and international markets.

How the Company Makes Money

Itafos makes money primarily through the sale of phosphate-based fertilizers and related products. The company's revenue model revolves around extracting phosphate rock, processing it into various phosphate fertilizers, and selling these products to agricultural markets around the world. Key revenue streams include the sale of products such as monoammonium phosphate (MAP), diammonium phosphate (DAP), and other phosphate derivatives. Revenue is also supported by strategic partnerships and long-term supply agreements with agricultural companies and distributors. Factors contributing to earnings include market demand for fertilizers, pricing strategies, and efficient production processes.

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

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

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

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
491.24M	465.52M	593.29M	413.25M	260.19M
	Gross Profit
148.79M	52.56M	214.88M	136.88M	-16.22M
	EBIT
120.46M	24.57M	185.38M	110.98M	-37.40M
	EBITDA
149.25M	53.75M	219.59M	134.33M	-8.17M
	Net Income Common Stockholders
87.79M	3.86M	115.10M	51.03M	-62.31M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
74.37M	31.05M	42.81M	31.57M	9.54M
	Total Assets
695.86M	587.23M	614.01M	633.85M	477.30M
	Total Debt
108.17M	103.83M	143.90M	254.09M	256.94M
	Net Debt
33.80M	73.08M	101.09M	222.53M	247.40M
	Total Liabilities
348.03M	328.50M	360.89M	499.25M	394.88M
	Stockholders Equity
347.83M	258.73M	252.35M	133.44M	81.67M
Cash Flow		Free Cash Flow
52.57M	39.96M	169.37M	60.42M	-17.41M
	Operating Cash Flow
120.05M	94.72M	208.37M	94.50M	-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: Negative
• Last Price: 2.19
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IFOS, the sentiment is Negative. The current price of 2.19 is above the 20-day moving average (MA) of 2.13, above the 50-day MA of 2.10, and above the 200-day MA of 1.73, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.00 is Neutral, neither overbought nor oversold. The STOCH value of 54.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:IFOS.

Itafos Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEM	80 Outperform	C$84.67B	32.24	9.42%	1.29%	26.99%	-6.63%
SII	79 Outperform	$1.93B	28.16	15.66%	2.12%	19.98%	18.77%
IFOS	76 Outperform	$398.41M	3.29	28.95%	―	7.14%	2344.75%
NTR	67 Neutral	$36.11B	39.56	2.72%	4.07%	-9.23%	-45.29%
FM	58 Neutral	$13.90B	―	0.02%	―	-24.38%	99.06%
Sector *	49 Neutral	$1.93B	-1.63	-22.26%	3.87%	0.68%	-27.45%

Itafos Corporate Events

Itafos Announces Special Dividend for Shareholders

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.

Itafos Grants Restricted Share Units to Directors and Officers

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.

Itafos Inc. Reports Strong Q4 and FY 2024 Results, Announces Special Dividend

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.

Itafos Sells Araxá Project to St George Mining

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.

Itafos Reports Record Q4 2024 Performance and Sets Ambitious 2025 Plans

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.