Itafos (IFOS) AI Stock Analysis

• Market Cap: $540.83M
• Dividend Yield: N/A
• Average Volume (3M): 54.87K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 0.02
• Revenue Growth: 15.95%
• EPS Growth: N/A
• Country: CA
• Employees: 437
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.18
• Shares Outstanding: 192,466,920
• 10 Day Avg. Volume: 46,506
• 30 Day Avg. Volume: 54,865
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 1.03
• Enterprise Value/Gross Profit: 3.74
• Enterprise Value/Ebitda: 3.11
• 1Y Price Target: $3.00
• Price Target Upside: 8.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 70 Neutral
• Price Target: C$3.00 ▲(8.70% Upside)

Itafos's overall stock score is driven by its strong valuation, indicating potential undervaluation with a low P/E ratio. Financial performance is solid, with profitability and a stable balance sheet, though free cash flow concerns need addressing. Technical analysis suggests a neutral to slightly bearish outlook, with indicators showing a lack of upward momentum.

Itafos Business Overview & Revenue Model

Company Description

Itafos Inc. operates as a phosphate and specialty fertilizer platform company. The company produces and sells monoammonium phosphate (MAP), MAP with micronutrients, superphosphoric acid, merchant grade phosphoric acid, ammonium polyphosphate, single superphosphate (SSP), SSP with micronutrients, and sulfuric acid. It also owns interests in the Farim, a phosphate mine project situated in Farim, Guinea-Bissau; Araxá, a rare earth element and niobium mine and extraction plant project that covers an area of approximately 226 hectares situated in Minas Gerais, Brazil; and Santana, an integrated phosphate mine and fertilizer plant project, which covers an area of approximately 233,070 hectares located in Pará, Brazil. The company was formerly known as MBAC Fertilizer Corp. and changed its name to Itafos Inc. in December 2016. The company was incorporated in 1999 and is headquartered in Houston, Texas. Itafos Inc. is a subsidiary of CL Fertilizers Holding LLC.

How the Company Makes Money

Itafos generates revenue primarily through the sale of its specialty fertilizers, which are sold to agricultural producers and distributors. The company has established key revenue streams from the production of various fertilizer products, including monoammonium phosphate (MAP) and diammonium phosphate (DAP). Additionally, Itafos benefits from long-term supply contracts and strategic partnerships with agricultural distributors, which help secure consistent sales and market reach. Factors contributing to its earnings include the global demand for fertilizers driven by increasing agricultural production needs, as well as market dynamics related to crop prices and agricultural trends.

Itafos Financial Statement Overview

Summary

Itafos demonstrates strong financial performance with solid profitability and a stable balance sheet. The income statement shows consistent growth and profitability, while the balance sheet reflects moderate leverage and strong equity returns. However, the decline in free cash flow growth is a concern that needs to be addressed to ensure long-term financial health.

Income Statement

Itafos has shown a strong recovery in its income statement metrics over the years. The TTM data indicates a healthy gross profit margin of 28.5% and a net profit margin of 20.0%, reflecting improved profitability. Revenue growth has been positive at 4.4% in the TTM, indicating a steady upward trajectory. The EBIT and EBITDA margins are robust at 26.9% and 34.5% respectively, showcasing efficient operational management. However, the gross profit margin has slightly decreased from the previous year, suggesting room for improvement in cost management.

Balance Sheet

The balance sheet of Itafos reflects a stable financial position with a debt-to-equity ratio of 0.31, indicating moderate leverage. The return on equity is strong at 30.0%, suggesting effective use of shareholder funds to generate profits. The equity ratio stands at 51.2%, highlighting a solid equity base. Despite these strengths, the company should remain cautious of any potential increase in debt levels to maintain financial stability.

Cash Flow

Cash flow analysis reveals some challenges for Itafos. The free cash flow growth rate has declined significantly by 54.3% in the TTM, which could impact future investments and debt repayments. However, the operating cash flow to net income ratio is favorable at 1.59, indicating good cash generation relative to net income. The free cash flow to net income ratio is 0.45, suggesting that a portion of earnings is being converted into free cash flow. The company should focus on improving its free cash flow generation to strengthen its cash position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	520.71M	491.24M	465.52M	593.29M	413.25M	260.19M
Gross Profit	143.60M	148.79M	118.56M	214.88M	136.88M	-16.22M
EBITDA	172.96M	149.25M	129.16M	219.59M	134.33M	-8.17M
Net Income	108.56M	87.79M	3.86M	115.10M	51.03M	-62.31M
Balance Sheet
Total Assets	786.06M	695.86M	587.23M	614.01M	633.85M	477.30M
Cash, Cash Equivalents and Short-Term Investments	98.06M	74.37M	31.05M	42.81M	31.57M	10.04M
Total Debt	93.15M	108.17M	103.83M	143.90M	254.09M	256.94M
Total Liabilities	383.35M	348.03M	328.50M	360.89M	499.25M	394.88M
Stockholders Equity	402.71M	347.83M	258.73M	252.35M	133.44M	81.67M
Cash Flow
Free Cash Flow	26.92M	52.57M	39.96M	169.37M	60.42M	-17.41M
Operating Cash Flow	103.67M	120.05M	94.72M	208.37M	94.50M	-3.44M
Investing Cash Flow	-66.90M	-65.20M	-53.33M	-39.00M	-34.08M	-13.96M
Financing Cash Flow	1.95M	-9.37M	-54.23M	-158.32M	-38.43M	-2.16M

Itafos Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.76
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Neutral. The current price of 2.76 is below the 20-day moving average (MA) of 2.77, below the 50-day MA of 2.87, and above the 200-day MA of 2.39, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 43.67 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:IFOS.

Itafos Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHE.UN	74 Outperform	C$1.52B	12.17	17.57%	5.09%	6.31%	-7.95%
IFOS	70 Neutral	$540.83M	3.55	30.90%	―	15.95%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Itafos Corporate Events

Itafos Reports Strong Q2 2025 Performance and Strategic Developments

Itafos Inc. reported strong operational and financial performance for Q2 2025, with increased production volumes and revenues, despite facing higher input costs. The company successfully completed its planned turnaround at the Conda plant and introduced a new granulated fertilizer product, SuperForte Gran, to the market. The ongoing infrastructure development at the Husky 1 / North Dry Ridge mines is progressing as planned, positioning Itafos well for future growth amid favorable market conditions with rising phosphate prices.

The most recent analyst rating on (TSE:IFOS) stock is a Buy with a C$4.25 price target. To see the full list of analyst forecasts on Itafos stock, see the TSE:IFOS Stock Forecast page.

Itafos Upgrades to OTCQX Best Market, Enhancing Market Access

Itafos Inc. has upgraded its trading status to the OTCQX Best Market from the Pink market, as approved by the OTC Markets Group Inc. This move provides the company with a more efficient and cost-effective way to access U.S. capital markets, offering transparent trading for U.S. investors and aligning with international market reporting standards. The upgrade signifies Itafos’ adherence to high financial standards and best practice corporate governance, potentially enhancing its industry positioning and providing new opportunities for stakeholders.

The most recent analyst rating on (TSE:IFOS) stock is a Buy with a C$4.25 price target. To see the full list of analyst forecasts on Itafos stock, see the TSE:IFOS Stock Forecast page.

Itafos Secures Shareholder Approval for Key Business Items at 2025 AGM

Itafos Inc. announced that all business items were approved at its 2025 annual general meeting of shareholders, including the re-election of six incumbent directors and the ratification of PricewaterhouseCoopers LLP as the company’s auditor. This approval reinforces the company’s stable governance structure, potentially strengthening its market position and providing assurance to stakeholders.

The most recent analyst rating on (TSE:IFOS) stock is a Buy with a C$4.25 price target. To see the full list of analyst forecasts on Itafos stock, see the TSE:IFOS Stock Forecast page.