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Itafos (TSE:IFOS)
:IFOS
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Itafos (IFOS) AI Stock Analysis

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TSE:IFOS

Itafos

(IFOS)

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Outperform 78 (OpenAI - 4o)
Rating:78Outperform
Price Target:
C$3.50
▲(1.45% Upside)
Itafos receives a strong overall stock score driven by its robust financial performance and attractive valuation. The technical analysis indicates a bullish trend, although caution is advised due to the RSI nearing overbought levels. The low P/E ratio suggests potential undervaluation, making it an appealing investment opportunity. However, the decline in free cash flow growth is a concern that needs addressing for sustained long-term growth.

Itafos (IFOS) vs. iShares MSCI Canada ETF (EWC)

Itafos Business Overview & Revenue Model

Company DescriptionItafos 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 MoneyItafos 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
78
Positive
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
72
Positive
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
65
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue520.71M491.24M465.52M593.29M413.25M260.19M
Gross Profit143.60M148.79M118.56M214.88M136.88M-16.22M
EBITDA172.96M149.25M129.16M219.59M134.33M-8.17M
Net Income108.56M87.79M3.86M115.10M51.03M-62.31M
Balance Sheet
Total Assets786.06M695.86M587.23M614.01M633.85M477.30M
Cash, Cash Equivalents and Short-Term Investments98.06M74.37M31.05M42.81M31.57M10.04M
Total Debt93.15M108.17M103.83M143.90M254.09M256.94M
Total Liabilities383.35M348.03M328.50M360.89M499.25M394.88M
Stockholders Equity402.71M347.83M258.73M252.35M133.44M81.67M
Cash Flow
Free Cash Flow26.92M52.57M39.96M169.37M60.42M-17.41M
Operating Cash Flow103.67M120.05M94.72M208.37M94.50M-3.44M
Investing Cash Flow-66.90M-65.20M-53.33M-39.00M-34.08M-13.96M
Financing Cash Flow1.95M-9.37M-54.23M-158.32M-38.43M-2.16M

Itafos Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.45
Price Trends
50DMA
2.91
Positive
100DMA
2.88
Positive
200DMA
2.49
Positive
Market Momentum
MACD
0.13
Negative
RSI
75.05
Negative
STOCH
91.01
Negative
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 3.45 is above the 20-day moving average (MA) of 3.01, above the 50-day MA of 2.91, and above the 200-day MA of 2.49, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 75.05 is Negative, neither overbought nor oversold. The STOCH value of 91.01 is Negative, 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$590.87M3.8830.90%15.95%
C$1.51B12.2317.57%5.09%6.31%-7.95%
$10.43B7.12-0.05%2.87%2.86%-36.73%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:IFOS
Itafos
3.45
1.86
116.71%
TSE:CHE.UN
Chemtrade Logistics
13.30
3.10
30.39%
TSE:OPC
Organic Potash

Itafos Corporate Events

Business Operations and StrategyFinancial Disclosures
Itafos to Release Q3 2025 Financial Results and Business Update
Neutral
Oct 28, 2025

Itafos Inc. announced the release date for its Q3 2025 financial results, which will be available after market close on November 5, 2025. An on-demand webcast providing management commentary and business updates will be accessible on November 10, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting investor confidence and market positioning.

The most recent analyst rating on (TSE:IFOS) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on Itafos stock, see the TSE:IFOS Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Itafos Monetizes Stake in St George Mining to Boost Financial Position
Positive
Oct 16, 2025

Itafos Inc. has partially monetized its equity interest in St George Mining Limited, acquired from the sale of its Araxá project. The transaction, which involved selling over 277 million shares, is expected to generate approximately USD$18.3 million in gross proceeds. This move aligns with Itafos’s strategy to monetize non-core assets and strengthen its financial position, while also delivering value to shareholders. The appreciation of St George’s shares since the initial sale has allowed Itafos to recognize significant value, furthering its focus on core business operations.

The most recent analyst rating on (TSE:IFOS) stock is a Hold with a C$3.00 price target. To see the full list of analyst forecasts on Itafos stock, see the TSE:IFOS Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Itafos to Present at Vancouver Smallcap Discoveries Conference
Positive
Sep 12, 2025

Itafos Inc. announced its participation in the Annual Smallcap Discoveries Conference in Vancouver, where CEO David Delaney will present the company’s recent results and long-term strategies. This event provides an opportunity for Itafos to engage with investors and highlight its growth potential in the phosphate and specialty fertilizer industry.

The most recent analyst rating on (TSE:IFOS) stock is a Hold with a C$3.00 price target. To see the full list of analyst forecasts on Itafos stock, see the TSE:IFOS Stock Forecast page.

Business Operations and StrategyFinancial DisclosuresProduct-Related Announcements
Itafos Reports Strong Q2 2025 Performance and Strategic Developments
Positive
Aug 6, 2025

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.

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.Date of analysis: Oct 26, 2025