Neo Performance Materials Inc (NEO) AI Stock Analysis

• Market Cap: C$525.73M
• Dividend Yield: 3.18%
• Average Volume (3M): 199.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: -12.01%
• EPS Growth: -698.83%
• Country: CA
• Employees: 1,773
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals - Specialty
• EPS (TTM): 0.11
• Shares Outstanding: 41,824,497
• 10 Day Avg. Volume: 208,722
• 30 Day Avg. Volume: 199,645
• PEG Ratio: -0.35
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -21.59
• Enterprise Value/Market Cap: 0.38
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 1.55
• Enterprise Value/Ebitda: 1.82
• 1Y Price Target: C$17.50
• Price Target Upside: 39.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: C$14.00 ▲(11.38%Upside)

Neo Performance Materials Inc shows strong technical momentum and positive earnings call outcomes, supported by strategic corporate events. However, the overall score is tempered by financial performance challenges and a high valuation risk due to negative profitability reflected in the P/E ratio. Continued improvements in profitability and strategic execution are critical for enhancing the stock's long-term investment potential.

Neo Performance Materials Inc Business Overview & Revenue Model

Company Description

Neo Performance Materials Inc. (NEO) is a global leader in the innovation and manufacturing of rare earth and rare metal-based functional materials. The company operates across several sectors, including automotive, electronics, and environmental technologies, providing advanced industrial materials crucial for various applications. NEO's core products include magnetic powders, specialty chemicals, metals, and alloys, which are integral in the production of high-performance components used in green technologies, advanced electronics, and efficient transportation solutions.

How the Company Makes Money

NEO makes money primarily through the production and sale of engineered materials derived from rare earth elements and rare metals. The company's revenue streams are diverse, stemming from its three main business units: Magnequench, Chemicals & Oxides, and Rare Metals. Magnequench supplies high-performance magnetic powders used in electric motors and other applications. The Chemicals & Oxides unit produces specialty chemicals and materials for automotive catalysts and other advanced technology applications. The Rare Metals segment focuses on the production and supply of high-purity gallium, indium, rhenium, tantalum, and other metallic materials. NEO's earnings are significantly bolstered by strategic partnerships and long-term contracts with major clients in technology, automotive, and environmental sectors, ensuring a steady demand for its advanced material solutions.

Neo Performance Materials Inc Financial Statement Overview

Summary

Neo Performance Materials Inc has a mixed financial performance. The company shows efficient cost management with a TTM gross profit margin of 27.22% but faces profitability challenges with negative net profit margins and declining revenues. The balance sheet is strong with low leverage and good liquidity, but cash flows are under pressure from high capital expenditures.

Income Statement

Neo Performance Materials Inc has shown a mixed performance in its income statement. The TTM gross profit margin is 27.22%, indicating reasonable efficiency in managing production costs. However, the net profit margin is negative due to a net loss, highlighting profitability issues. Revenue has declined over the past few years, with a notable drop from 2022 to 2023. The EBIT margin has improved slightly in the TTM, reflecting better operational control, but the negative EBITDA margin is concerning.

Balance Sheet

The balance sheet of Neo Performance Materials Inc shows a solid equity base with an equity ratio of 64.97%. The debt-to-equity ratio is low at 0.18, indicating conservative leverage, which is a strength. However, the return on equity is negative due to the company's net losses, which is a weakness. The company maintains a good level of cash and short-term investments, enhancing liquidity.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow in the TTM due to high capital expenditures. The operating cash flow to net income ratio is positive, showing operational cash generation despite net losses. However, the free cash flow to net income ratio is negative, indicating that capital expenditures are not being sufficiently covered by cash flows from operations.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
475.34M	475.83M	571.54M	640.30M	539.25M	346.69M
	Gross Profit
129.35M	123.96M	108.73M	149.37M	150.53M	80.33M
	EBIT
38.94M	35.30M	11.17M	58.61M	59.89M	1.11M
	EBITDA
22.67M	24.54M	23.67M	74.92M	57.99M	18.29M
	Net Income Common Stockholders
-15.30M	-12.95M	-8.44M	25.95M	35.18M	-61.15M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
77.33M	85.49M	86.89M	147.49M	89.04M	72.22M
	Total Assets
621.13M	653.25M	627.00M	676.46M	594.08M	486.54M
	Total Debt
70.90M	71.40M	29.42M	50.00M	9.48M	5.97M
	Net Debt
-6.43M	-14.09M	-57.48M	-97.49M	-79.56M	-66.26M
	Total Liabilities
216.87M	248.37M	191.69M	198.82M	163.57M	123.06M
	Stockholders Equity
403.66M	402.17M	432.15M	474.45M	427.63M	362.00M
Cash Flow		Free Cash Flow
-37.13M	-12.67M	19.88M	-13.77M	-11.63M	2.46M
	Operating Cash Flow
22.53M	51.53M	61.62M	3.70M	-2.16M	10.07M
	Investing Cash Flow
-32.70M	-59.42M	-59.12M	-17.43M	-7.01M	-7.36M
	Financing Cash Flow
-14.92M	13.12M	-62.04M	74.79M	26.20M	-17.91M

Neo Performance Materials Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.57
• 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:NEO, the sentiment is Positive. The current price of 12.57 is above the 20-day moving average (MA) of 10.88, above the 50-day MA of 10.64, and above the 200-day MA of 8.63, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 71.29 is Negative, neither overbought nor oversold. The STOCH value of 83.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NEO.

Neo Performance Materials Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEO	72 Outperform	C$525.73M	―	-3.70%	3.18%	-12.01%	-698.83%
VNP	71 Outperform	C$775.78M	25.51	15.41%	―	28.27%	36.49%
BOS	58 Neutral	C$127.06M	―	-11.69%	2.98%	-2.69%	66.63%
GMG	54 Neutral	C$68.25M	―	-72.52%	―	-9.37%	22.80%
Sector *	51 Neutral	$1.98B	-1.26	-21.11%	5.99%	2.92%	-30.46%
ECO	48 Neutral	C$236.25M	―	-3.46%	―	29.27%	42.35%
NANO	45 Neutral	C$76.93M	―	-51.47%	―	―	13.34%

Neo Performance Materials Inc Corporate Events

Neo’s European Magnet Showcased at G7 Summit

Neo Performance Materials Inc. announced that its Made-in-Europe permanent magnet, produced in Estonia, was showcased at the 2025 G7 Summit by EU Commission President Ursula von der Leyen. This magnet, which meets the specifications of major automotive OEMs, highlights Neo’s commitment to providing a localized supply chain for critical materials in the automotive industry. The new facility in Estonia represents a significant milestone in Neo’s global expansion, marking progress in their magnetics operations and reflecting their technical expertise. This initiative is part of Neo’s broader strategy to scale magnet production across Europe and beyond, supporting diversified supply chains for rare earth magnetics.

The most recent analyst rating on (TSE:NEO) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Neo Performance Materials Inc stock, see the TSE:NEO Stock Forecast page.

Neo Performance Materials Expands European Operations with New Magnet Facility

Neo Performance Materials Inc. recently hosted the Prime Minister of Estonia at its new magnet facility in Narva, marking a significant step in its expansion within the European automotive and renewable energy supply chains. The facility’s establishment is part of Neo’s strategy to scale magnet manufacturing across Europe, leveraging its expertise in rare earth magnetics to build resilient global supply chains. The visit underscores the importance of Neo’s integrated rare earth separation and magnetics hub in Estonia, which aims to support rapidly accelerating markets and Neo’s growth plans.

The most recent analyst rating on (TSE:NEO) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Neo Performance Materials Inc stock, see the TSE:NEO Stock Forecast page.

Neo Performance Materials Expands European Operations with New Magnet Facility

Neo Performance Materials Inc. recently hosted the Prime Minister of Estonia at its new magnet facility in Narva, highlighting the strategic importance of the site for European automotive and renewable energy supply chains. The facility marks a significant milestone in Neo’s global expansion, aiming to build resilient supply chains for rare earth magnetics. The visit underscores Neo’s commitment to growth and collaboration with the Estonian government to enhance business operations and remove barriers, furthering its mission to scale magnet manufacturing across Europe and globally.

The most recent analyst rating on (TSE:NEO) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Neo Performance Materials Inc stock, see the TSE:NEO Stock Forecast page.

Neo Performance Materials Announces Board Refreshment and AGM Details

Neo Performance Materials Inc. has announced the filing of its management information circular for the upcoming annual general meeting of shareholders. The meeting will see the election of new board members, including Paul A. Mascarenas and Jonathan Evans, who bring significant expertise in automotive development and capital markets, respectively. The company is undergoing a board refreshment to align with its future business needs. The announcement marks a strategic move to strengthen the board’s capabilities, potentially enhancing Neo’s market position and shareholder value.

The most recent analyst rating on (TSE:NEO) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Neo Performance Materials Inc stock, see the TSE:NEO Stock Forecast page.

Neo Performance Materials Accelerates Strategic Plan Post-Review

Neo Performance Materials Inc. has concluded a strategic review and decided to accelerate its current strategic plan, focusing on its leadership in rare earth magnetics and critical materials. The company aims to maximize shareholder value by optimizing its portfolio, enhancing capital efficiency, and expanding its operations in Europe and the US. This decision comes after evaluating potential en bloc sale opportunities, which were deemed risky due to geopolitical factors. Neo’s strategic direction includes scaling its European magnet operations, improving capital allocation, and exiting low-profitability businesses, thereby strengthening its market position and reducing exposure to rare earth price volatility.

The most recent analyst rating on (TSE:NEO) stock is a Buy with a C$11.00 price target. To see the full list of analyst forecasts on Neo Performance Materials Inc stock, see the TSE:NEO Stock Forecast page.

Neo Performance Materials Reports Strong Q1 2025 Results and Strategic Advancements

Neo Performance Materials Inc. reported strong financial results for the first quarter of 2025, with a 59% increase in Adjusted EBITDA, highlighting its operational excellence and strategic importance in global supply chains. The company is advancing its growth projects, including the ramp-up of rare earth permanent magnet production in Europe and the engineering of a heavy rare earth separation line in Estonia, positioning itself to meet the rising demand for its products and reinforcing its market position.

Neo Performance Materials Reports Strong Q1 2025 Results and Advances Strategic Projects

Neo Performance Materials Inc. reported a strong financial performance in the first quarter of 2025, with a 59% increase in Adjusted EBITDA, highlighting its operational excellence and strategic importance in global supply chains. The company is advancing its European permanent magnet facility, expected to commence large-scale production in 2026, and has shipped sintered magnet samples to a Tier 1 motor customer, marking significant progress in the electric vehicle market. Neo’s ongoing projects, including the heavy rare earth pilot line at its Silmet facility, position it to meet growing demand in sectors like robotics, wind farms, and electric vehicles.

Neo Performance Materials Launches Magnet Production at New European Facility

Neo Performance Materials Inc. has shipped its first sintered magnet samples from its new facility in Estonia to a Tier 1 traction motor customer, marking a significant milestone in its efforts to supply high-performance materials for the electric vehicle market. This development underscores Neo’s strategic positioning in the rare earth magnetics industry, with the facility expected to enhance its production capabilities and meet the growing demand for high-performance magnets in EVs and other applications. Supported by substantial financial backing, the facility is poised to become a key player in Europe’s critical materials sector, further strengthening Neo’s market presence.

Neo Performance Materials to Announce Q1 2025 Financial Results

Neo Performance Materials Inc. announced it will release its first-quarter 2025 financial results on May 9, 2025, before the Toronto market opens. The company will hold a webcast and teleconference on the same day to discuss the results, providing stakeholders an opportunity to gain insights into the company’s financial performance and strategic direction.

Neo Performance Materials Secures Niobium Supply from Malawi

Neo Performance Materials Inc. has signed a non-binding memorandum of understanding with Globe Metals & Mining for the offtake of niobium pentoxide from the Kanyika Niobium Project in Malawi. This agreement marks a significant step in Neo’s strategy to diversify and secure its supply chain for critical metals, enhancing its position in the global market for strategic materials. The deal also allows Neo to plan for long-term supply chain optimization, potentially impacting its operations and stakeholder relationships positively.

Neo Performance Materials Sells Majority Stake in Chinese Assets to Shenghe

Neo Performance Materials Inc. has sold a majority equity interest in its Chinese rare earth separation assets, JAMR and ZAMR, to Shenghe Resources Holding Co., Ltd. This transaction is part of Neo’s strategy to streamline its operations and focus on high-margin downstream products. The sale is expected to enhance Neo’s operational transformation by improving capital returns and reducing earnings volatility associated with rare earth price fluctuations. Neo retains a minority stake in both companies and secures exclusive distribution rights for JAMR’s products outside China, ensuring continuity of supply for its customers. This move aligns with Neo’s strategic initiatives to optimize its asset portfolio and support long-term growth ambitions.