Neo Performance Materials Inc (NEO) AI Stock Analysis

• Market Cap: C$702.19M
• Dividend Yield: 2.31%
• Average Volume (3M): 336.86K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.49
• Revenue Growth: 8.04%
• EPS Growth: -195.66%
• Country: CA
• Employees: 1,773
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.27
• Shares Outstanding: 41,598,854
• 10 Day Avg. Volume: 633,430
• 30 Day Avg. Volume: 336,861
• PEG Ratio: -0.32
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.50
• P/FCF Ratio: -18.82
• 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: C$22.50
• Price Target Upside: 29.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: C$16.00 ▼(-7.67% Downside)

Neo Performance Materials Inc. receives a score of 50, primarily influenced by its stable balance sheet and positive earnings call, which highlighted strategic advancements and strong financial performance. However, significant challenges in profitability, cash flow management, and bearish technical indicators weigh heavily on the score. The negative P/E ratio further impacts the valuation, suggesting caution for potential investors.

Positive Factors

Strategic Partnerships

The partnership with Bosch enhances Neo's market position in advanced magnetics, aligning with long-term growth in e-motor platforms and increasing demand.

Facility Expansion

The new facility increases Neo's production capacity, supporting growth in the European market and meeting rising demand for permanent magnets.

Revenue and EBITDA Growth

Strong revenue and EBITDA growth indicate effective business strategies and operational efficiency, supporting long-term financial health.

Negative Factors

Profitability Challenges

Ongoing profitability issues may hinder Neo's ability to reinvest in growth and innovation, affecting long-term competitiveness.

Cash Flow Issues

Cash flow challenges limit Neo's financial flexibility, potentially impacting its ability to fund operations and strategic initiatives.

Rare Metals Segment Decline

Decline in the Rare Metals segment reflects market volatility and pricing pressures, which could affect future revenue stability.

Neo Performance Materials Inc Business Overview & Revenue Model

Company Description

Neo Performance Materials Inc. manufactures and sells rare earth, magnetic powders, magnets, and rare metal-based functional materials in Canada and internationally. The company operates in three segments: Magnequench, Chemicals and Oxides, and Rare Metals. The Magnequench segment produces magnetic powders that are used in bonded and hot deformed fully dense neodymium-iron-boron magnets. Its powders are used in the production of bonded permanent magnets that are components in automotive motors, micro motors, traction motors, sensors, and other applications. The Chemicals and Oxides segments manufactures and distributes a range of industrial materials for use in auto catalysts, petroleum refining and other chemical catalysts, magnets, hybrid and electric vehicles, water treatment, consumer electronics, and other applications. The Rare Metals segment sources, produces, reclaims, refines, and markets high-temperature metals that include tantalum, niobium, hafnium, and rhenium; and electronic metals, such as gallium and indium. Its products are applied in super alloys for jet engines, medical imaging, wireless technologies, and LED lightings, as well as flat panel displays, solar, steel additives, batteries, and electronic applications. The company was founded in 1994 and is headquartered in Toronto, Canada.

How the Company Makes Money

Neo Performance Materials generates revenue primarily through the sale of its advanced materials and rare earth products. The company's revenue model is built on several key streams, including direct sales to manufacturers in the automotive, electronics, and clean technology sectors. NEO also benefits from long-term supply agreements and contracts with strategic partners, which provide stable revenue sources. Additionally, the company engages in value-added services such as material processing and recycling, which further contribute to its earnings. Factors such as the growing demand for electric vehicles and renewable energy technologies, as well as geopolitical dynamics affecting rare earth supply chains, play a significant role in enhancing NEO's profitability.

Neo Performance Materials Inc Financial Statement Overview

Summary

Neo Performance Materials Inc. has a stable balance sheet with low leverage, but faces significant challenges in profitability and cash flow management. The income statement shows slight revenue growth but negative net profit margin, while cash flow analysis indicates difficulties in converting income into cash.

Income Statement

Neo Performance Materials Inc. shows a mixed performance in its income statement. The TTM data reveals a slight revenue growth of 1.5%, but the company is struggling with profitability, as indicated by a negative net profit margin of -3.2%. The gross profit margin is moderate at 27.2%, suggesting some efficiency in production. However, the EBIT and EBITDA margins are low, indicating challenges in managing operating expenses.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.18, indicating conservative leverage. However, the return on equity is negative at -3.7%, pointing to inefficiencies in generating returns for shareholders. The equity ratio is strong, suggesting a solid capital structure.

Cash Flow

Cash flow analysis shows significant challenges, with negative free cash flow and a high free cash flow to net income ratio of -1.65, indicating cash flow issues relative to earnings. The operating cash flow to net income ratio is low at 0.17, reflecting difficulties in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	482.49M	475.83M	571.54M	640.30M	539.25M	346.69M
Gross Profit	135.97M	123.96M	108.73M	149.37M	150.53M	80.33M
EBITDA	24.72M	24.54M	23.67M	59.05M	57.99M	18.29M
Net Income	-10.39M	-12.95M	-8.44M	25.95M	35.18M	-61.15M
Balance Sheet
Total Assets	652.47M	653.25M	627.00M	676.46M	594.08M	486.54M
Cash, Cash Equivalents and Short-Term Investments	80.34M	85.49M	86.89M	147.49M	89.04M	72.22M
Total Debt	93.22M	71.40M	29.42M	50.00M	9.48M	5.97M
Total Liabilities	247.37M	248.37M	191.69M	198.82M	163.57M	123.06M
Stockholders Equity	404.60M	402.17M	432.15M	474.45M	427.63M	362.00M
Cash Flow
Free Cash Flow	-55.19M	-12.67M	19.88M	-13.77M	-11.63M	2.46M
Operating Cash Flow	2.68M	51.53M	61.62M	3.70M	-2.16M	10.07M
Investing Cash Flow	-31.54M	-59.42M	-59.12M	-17.43M	-7.01M	-7.36M
Financing Cash Flow	5.58M	13.12M	-62.04M	74.79M	26.20M	-17.91M

Neo Performance Materials Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.33
• 50DMA: Negative
• 100DMA: Negative
• 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:NEO, the sentiment is Positive. The current price of 17.33 is above the 20-day moving average (MA) of 16.87, below the 50-day MA of 18.85, and above the 200-day MA of 13.98, indicating a neutral trend. The MACD of -0.40 indicates Negative momentum. The RSI at 50.54 is Neutral, neither overbought nor oversold. The STOCH value of 78.71 is Neutral, 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
VNP	73 Outperform	C$1.73B	28.28	26.65%	―	30.36%	181.15%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GMG	53 Neutral	C$136.50M	-16.67	-92.59%	―	6.29%	-3.71%
ECO	51 Neutral	C$252.00M	-311.59	-2.11%	―	30.76%	52.23%
NEO	50 Neutral	C$702.19M	-48.34	-1.61%	2.31%	8.04%	-195.66%
BOS	50 Neutral	C$115.66M	-20.70	-2.95%	3.41%	5.06%	93.02%
NANO	45 Neutral	C$183.97M	-16.79	-64.59%	―	―	56.03%

Neo Performance Materials Inc Corporate Events

Neo Performance Materials Reports Strong Q3 2025 Results and Expands European Operations

Neo Performance Materials Inc. reported strong third-quarter financial results for 2025, with a notable increase in Adjusted EBITDA and an upward revision of its full-year guidance. The company achieved significant milestones, including the opening of a new permanent magnet plant in Europe and securing key contracts, positioning itself as a crucial player in the localized supply chains for permanent magnets, which are essential for electrification and sustainability efforts.

The most recent analyst rating on (TSE:NEO) stock is a Hold with a C$17.50 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 to Announce Q3 2025 Financial Results

Neo Performance Materials Inc. announced that it will release its third-quarter 2025 financial results on November 14, 2025, before the Toronto market opens. This announcement is significant as it provides stakeholders with insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:NEO) stock is a Buy with a C$22.00 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 Opens New Magnet Facility in Estonia

Neo Performance Materials Inc. has inaugurated a new permanent magnet manufacturing facility in Narva, Estonia, marking a significant step in establishing a European presence to supply critical components for the energy transition. This facility, co-funded by the European Union, is expected to satisfy up to 15% of the EU’s magnet demand, supporting the electric vehicle and wind energy sectors. Neo has also extended its strategic partnership with Bosch, ensuring a stable supply chain and fostering localized production.

The most recent analyst rating on (TSE:NEO) stock is a Buy with a C$22.00 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 Strengthens Partnership with Bosch for Magnet Production

Neo Performance Materials Inc. has extended its strategic partnership with Bosch through a multi-year Memorandum of Understanding, securing significant annual magnet production capacity for Bosch. This collaboration aims to enhance supply chain stability and foster localized production, positioning Neo as a key supplier for automotive and other applications. The partnership is a critical step in Neo’s strategy to build a resilient supply chain and optimize its manufacturing capabilities, particularly in its Estonian facility, reinforcing its role as a preferred supplier for major global companies.

The most recent analyst rating on (TSE:NEO) stock is a Hold with a C$18.00 price target. To see the full list of analyst forecasts on Neo Performance Materials Inc stock, see the TSE:NEO Stock Forecast page.