Northern Graphite (NGC) AI Stock Analysis

• Market Cap: $19.47M
• Dividend Yield: N/A
• Average Volume (3M): 269.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: 13.10%
• EPS Growth: 18.64%
• Country: CA
• Employees: 76
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Industrial Materials
• EPS (TTM): >-0.01
• Shares Outstanding: 134,252,290
• 10 Day Avg. Volume: 297,376
• 30 Day Avg. Volume: 269,497
• 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: 2.72
• Enterprise Value/Revenue: 2.50
• Enterprise Value/Gross Profit: -473.56
• Enterprise Value/Ebitda: -3.01
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: C$0.00 ▼(-100.00% Downside)

Northern Graphite's overall stock score is primarily impacted by its weak financial performance, characterized by negative profitability and high leverage. While technical analysis shows some positive trends, the stock's valuation is concerning due to ongoing losses. However, positive corporate events, including strategic positioning amid U.S. tariffs and intellectual property acquisitions, provide potential growth opportunities.

Northern Graphite Business Overview & Revenue Model

Company Description

Northern Graphite Corporation explores for and develops graphite properties in Canada. The company's principal asset is the Bissett Creek graphite project located in southern Canada, which comprises Ontario mining lease number 109550 covering 565 hectares; and Ontario mining lease number 109335 covering 1,938 hectares. It also holds interest in the Mousseau West graphite project located in Quebec; and explores for nickel-copper-cobalt properties. The company was formerly known as Industrial Minerals Canada Inc. and changed its name to Northern Graphite Corporation in March 2010. Northern Graphite Corporation was incorporated in 2002 and is headquartered in Ottawa, Canada.

How the Company Makes Money

Northern Graphite primarily generates revenue through the sale of graphite products produced from its mining operations. The company focuses on producing high-quality, large flake graphite, which commands premium prices in the market due to its various applications, particularly in the fast-growing electric vehicle sector. Key revenue streams include the sale of processed graphite to manufacturers in industries such as automotive, electronics, and renewable energy. Additionally, Northern Graphite may benefit from strategic partnerships, long-term supply agreements, and potential joint ventures that can provide stable demand for its products and enhance its market position. The company also explores opportunities to add value through downstream processing and product development, further contributing to its revenue potential.

Northern Graphite Financial Statement Overview

Summary

Northern Graphite's financial performance is under significant pressure. The income statement shows negative net profit margins and declining revenue, indicating operational inefficiencies. The balance sheet reveals negative stockholders' equity and high leverage, signaling financial instability. Although there is a slight improvement in operating cash flow, free cash flow remains negative, raising liquidity concerns.

Income Statement

Northern Graphite's income statement reveals significant challenges. The company experienced negative net profit margins, indicating consistent losses over the periods. The TTM net income significantly worsened to -$35.37 million compared to previous year figures. Revenue growth from 2024 to 2025 was negative, indicating a decline in sales. Both EBIT and EBITDA margins were negative, reflecting operational inefficiencies and high costs relative to revenue. These factors collectively result in a low score for the income statement.

Balance Sheet

The balance sheet presents a concerning scenario with negative stockholders' equity and a high debt load. The debt-to-equity ratio cannot be calculated due to negative equity, signaling financial instability and high leverage. The equity ratio is also negative, underscoring financial distress and potential insolvency risks. The company's assets have decreased over time, further highlighting balance sheet weaknesses.

Cash Flow

Cash flow analysis shows a slight improvement in operating cash flow, turning positive in TTM. However, free cash flow remains negative, raising concerns about liquidity and financial sustainability. The operating cash flow to net income ratio is not favorable due to persistent negative net income. While there's a slight improvement, the cash flow health remains weak, warranting a cautious outlook.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.24M	22.73M	17.10M	11.99M	0.00	0.00
Gross Profit	-112.00K	-310.00K	1.93M	2.65M	-31.50K	-34.18K
EBITDA	-17.62M	-20.96M	-14.55M	-7.79M	-3.19M	-833.95K
Net Income	-35.37M	-38.80M	-23.64M	-14.55M	-2.79M	-943.96K
Balance Sheet
Total Assets	77.39M	77.24M	91.23M	102.06M	19.66M	15.22M
Cash, Cash Equivalents and Short-Term Investments	323.00K	373.00K	3.60M	5.64M	4.33M	1.39M
Total Debt	42.96M	41.10M	27.55M	21.90M	0.00	0.00
Total Liabilities	103.30M	98.64M	75.44M	65.88M	1.92M	553.66K
Stockholders Equity	-25.91M	-21.40M	15.79M	36.18M	17.73M	14.67M
Cash Flow
Free Cash Flow	-168.00K	-1.70M	-9.65M	-16.96M	-2.08M	-700.36K
Operating Cash Flow	252.00K	-1.18M	-4.73M	-10.51M	-1.40M	-525.45K
Investing Cash Flow	-563.00K	-563.00K	-4.48M	-51.57M	-1.30M	352.22K
Financing Cash Flow	-104.00K	-1.01M	7.34M	63.38M	5.06M	0.00

Northern Graphite Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NGC, the sentiment is Neutral. The current price of 0.14 is below the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.13, and above the 200-day MA of 0.12, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.10 is Neutral, neither overbought nor oversold. The STOCH value of 20.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:NGC.

Northern Graphite Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.48B	7.52	-0.05%	2.87%	2.87%	-36.73%
LLG	61 Neutral	C$13.54M	0.88	-18.56%	―	―	-419.15%
GMA	59 Neutral	C$43.14M	―	-96.23%	―	-100.00%	-26.06%
NGC	54 Neutral	$19.47M	―	-329.25%	―	13.10%	18.64%
EMM	48 Neutral	C$17.83M	―	-28.69%	―	―	22.03%
FCSMF	―	$24.73M	―	-16.33%	―	―	―
CYLYF	―	$3.12M	―		―	―	―

Northern Graphite Corporate Events

Northern Graphite Poised for Growth Amid U.S. Tariffs on Chinese Graphite

Northern Graphite has commented on the recent U.S. Department of Commerce’s decision to impose antidumping tariffs on Chinese graphite-based active anode material (AAM), which is crucial for lithium-ion batteries. This decision, alongside President Trump’s ‘Big Beautiful Bill,’ is expected to shift U.S. battery manufacturers towards domestic suppliers like Northern Graphite, enhancing their market position as North America’s sole natural graphite producer. With plans to establish a significant AAM plant in Quebec, Northern Graphite is poised to capitalize on this opportunity, further supported by their role in the North American Graphite Alliance, which aims to foster a competitive domestic graphite industry.

Northern Graphite Hosts EU Delegation, Strengthens Transatlantic Mineral Ties

Northern Graphite recently hosted Stéphane Séjourné, Executive Vice-President of the European Commission, at its Lac des Iles mine in Quebec, North America’s only operating graphite mine. The visit emphasized the importance of secure and sustainable critical mineral supply chains amidst global trade shifts and highlighted the strategic alliance potential between Canada and the European Union. The discussions focused on enhancing industrial partnerships, with Northern Graphite poised to play a key role in supporting the clean energy transition and establishing a transatlantic critical minerals value chain. The company’s plans to develop a battery anode material facility in France, using feedstock from its Namibian mine, have been granted strategic project status under the EU’s Critical Raw Materials Act, reinforcing its commitment to strengthening Europe’s self-sufficiency in graphite.

Northern Graphite Acquires Key Intellectual Property for Carbon Material Processing

Northern Graphite has entered into agreements to acquire intellectual property related to carbon material processing technology previously licensed from Heraeus, enabling it to develop, produce, and sell Porocarb®. This acquisition allows Northern to establish commercial production agreements and license the technology to third parties, generating short- and long-term royalty revenues. The company aims to enhance its integrated growth strategy and strengthen its position in the graphite industry by advancing the development and commercialization of its carbon material processing technology.

Northern Graphite Reports Q1 2025 Results Amid Strategic Advances

Northern Graphite Corporation reported its first-quarter 2025 results, highlighting record-high average sales prices despite a decrease in revenue due to a maintenance shutdown at the Lac des Iles mine. The company achieved strategic project status under the EU’s Critical Raw Materials Act for its Battery Materials Division, which plans to build a Battery Anode Material facility in France. This recognition aligns with Northern Graphite’s strategy to enhance its presence in the battery materials market. The company is also exploring the feasibility of a BAM plant in Baie-Comeau and is in discussions with various government bodies to support its projects. Despite production challenges, Northern Graphite remains focused on cost control and increasing output to meet customer demand.

Northern Graphite Applauds U.S. Tariffs on Chinese Graphite AAM

Northern Graphite has welcomed a preliminary decision by the U.S. Department of Commerce to impose tariffs of up to 721% on Chinese graphite active anode material (AAM). This decision is part of a broader investigation into whether China is subsidizing its graphite AAM production, with final determinations expected by December 2025. As the only current producer of natural graphite in North America, Northern Graphite is well-positioned to benefit from this decision, which aims to create a more level playing field and boost local demand for graphite AAM. This move could significantly impact the graphite industry by encouraging the establishment of independent supply chains in North America.