Itafos (IFOS) AI Stock Analysis

• Market Cap: $483.09M
• Dividend Yield: N/A
• Average Volume (3M): 47.51K
• Price to Earnings (P/E): 3.5
• Beta (1Y): 0.47
• Revenue Growth: 8.78%
• EPS Growth: N/A
• Country: CA
• Employees: 437
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Chemicals
• EPS (TTM): 0.27
• Shares Outstanding: 192,466,920
• 10 Day Avg. Volume: 90,188
• 30 Day Avg. Volume: 47,512
• PEG Ratio: 0.01
• Price to Book (P/B): 0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.17
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 1.84
• Enterprise Value/Ebitda: 0.59
• 1Y Price Target: $4.25
• Price Target Upside: 67.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 83 Outperform
• Price Target: C$3.00 ▲(18.11%Upside)

Itafos scores highly due to its strong financial performance, undervaluation, and recent strategic corporate events. The company’s robust profitability metrics, efficient cash flow management, and attractive P/E ratio are significant strengths. Technical indicators suggest positive momentum, supported by recent successful strategic developments and special dividends, reflecting strong shareholder value commitment.

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 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 strong profitability with significant improvements in margins and effective cash flow management. The company maintains a robust balance sheet with manageable leverage and strong returns on equity. The modest revenue growth and reduction in total assets require monitoring for sustained growth.

Income Statement

Itafos has demonstrated a robust financial performance with significant improvements in profitability metrics. The TTM (Trailing-Twelve-Months) gross profit margin is 28.74%, and the net profit margin is 20.03%, reflecting strong operational efficiency. The revenue growth rate from 2024 to TTM is 1.57%, indicating modest top-line growth. The EBIT margin stands at 23.04%, and the EBITDA margin at 34.54%, suggesting healthy earnings before interest and taxes. The company has consistently improved its profitability over recent years, positioning itself well in the competitive chemicals industry.

Balance Sheet

The balance sheet of Itafos reveals a solid financial structure with a debt-to-equity ratio of 0.25, indicating a manageable level of leverage. The return on equity (ROE) is 26.46%, showcasing the company's ability to generate substantial returns on shareholders' investments. The equity ratio is 51.16%, reflecting a stable balance of equity financing. Despite the strong equity position, the reduction in total assets over the years may warrant attention.

Cash Flow

Itafos exhibits a strong cash flow position with a 12.00% growth in free cash flow from 2024 to TTM. The operating cash flow to net income ratio is 1.30, indicating efficient cash generation relative to profits. The free cash flow to net income ratio is 0.59, further highlighting effective cash management. The consistent positive free cash flow underscores the company's ability to support operations and potential investments.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
498.97M	491.24M	465.52M	593.29M	413.25M	260.19M
	Gross Profit
143.39M	148.79M	118.56M	214.88M	136.88M	-16.22M
	EBIT
115.01M	120.46M	24.57M	185.38M	110.98M	-37.40M
	EBITDA
172.37M	149.25M	129.16M	219.59M	134.33M	-8.17M
	Net Income Common Stockholders
99.94M	87.79M	3.86M	115.10M	51.03M	-62.31M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
100.33M	74.37M	31.05M	42.81M	31.57M	10.04M
	Total Assets
738.48M	695.86M	587.23M	614.01M	633.85M	477.30M
	Total Debt
95.78M	108.17M	103.83M	143.90M	254.09M	256.94M
	Net Debt
-4.55M	33.80M	73.08M	101.09M	222.53M	247.40M
	Total Liabilities
360.67M	348.03M	328.50M	360.89M	499.25M	394.88M
	Stockholders Equity
377.81M	347.83M	258.73M	252.35M	133.44M	81.67M
Cash Flow		Free Cash Flow
58.87M	52.57M	39.96M	169.37M	60.42M	-17.41M
	Operating Cash Flow
130.02M	120.05M	94.72M	208.37M	94.50M	-3.44M
	Investing Cash Flow
-61.53M	-65.20M	-53.33M	-39.00M	-34.08M	-13.96M
	Financing Cash Flow
-4.92M	-9.37M	-54.23M	-158.32M	-38.43M	-2.16M

Itafos Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 2.54 is above the 20-day moving average (MA) of 2.29, above the 50-day MA of 2.23, and above the 200-day MA of 1.89, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 72.67 is Negative, neither overbought nor oversold. The STOCH value of 93.03 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IFOS	83 Outperform	$483.09M	3.49	30.22%	―	8.78%	―
CHE.UN	68 Neutral	C$1.26B	9.72	17.46%	6.25%	2.31%	-37.58%
Sector *	51 Neutral	$2.04B	-1.15	-21.24%	3.95%	2.91%	-30.44%
OPC		C$605.63K	―		―	―	―

Itafos Corporate Events

Itafos to Present at Sidoti Small Cap Conference

Itafos Inc. announced its participation in the Sidoti Small Cap Conference, scheduled for June 12, 2025. This event provides Itafos an opportunity to present its business operations and strategies to a wide range of investors, potentially enhancing its visibility and investor relations within the small and microcap market segment.

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 Inc. Achieves Strong Q1 2025 Results Amid Strategic Developments

Itafos Inc. reported strong operational and financial results for Q1 2025, with production volumes exceeding previous levels and a revenue growth of 6% year-over-year. Despite higher input costs, the company achieved a net income increase due to the sale of the Araxá project, which also allowed for a special dividend declaration. The company’s strategic focus on safety, operational efficiency, and market positioning in the phosphate industry has been reinforced by the successful reduction of net debt and ongoing development projects.

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.