Northern Graphite (NGC) AI Stock Analysis

• Market Cap: C$25.79M
• Dividend Yield: N/A
• Average Volume (3M): 232.88K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.04
• Revenue Growth: 2.76%
• EPS Growth: -1.06%
• Country: CA
• Employees: 76
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.07
• Shares Outstanding: 147,366,840
• 10 Day Avg. Volume: 182,000
• 30 Day Avg. Volume: 232,875
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.95
• Price to Sales (P/S): 0.89
• P/FCF Ratio: -11.90
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: C$0.15 ▼(-32.73% Downside)

Northern Graphite's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, negative margins, and high leverage. Technical analysis further supports a bearish outlook with weak momentum and oversold conditions. The valuation is unattractive due to negative earnings and lack of dividends. These factors collectively suggest a high-risk investment with limited upside potential.

Positive Factors

Market Demand

Northern Graphite is well-positioned to benefit from the growing demand for graphite in EV batteries and renewable energy, supporting long-term revenue growth.

Strategic Partnerships

Strategic partnerships expand market access and provide stability through long-term supply agreements, supporting sustained cash flow and growth.

Product Portfolio

A diverse product portfolio in high-demand sectors like EVs and renewable energy positions Northern Graphite for sustained market relevance and growth.

Negative Factors

Financial Distress

The company's financial instability, characterized by declining revenues and high leverage, poses risks to its long-term viability and growth potential.

Negative Cash Flow

Poor cash flow generation limits Northern Graphite's ability to invest in growth opportunities and meet financial obligations, impacting long-term sustainability.

High Leverage

High leverage increases financial risk and limits flexibility, potentially hindering Northern Graphite's ability to navigate economic challenges and invest in growth.

Northern Graphite Business Overview & Revenue Model

Company Description

Northern Graphite Corporation (NGC) is a Canadian company focused on the exploration, development, and production of graphite and graphite-related products. The company operates in the mining sector, primarily targeting the growing demand for graphite in various industries, including electric vehicle batteries, renewable energy storage, and other advanced materials applications. NGC's core products include natural flake graphite and value-added graphite products, positioning the company to capitalize on the increasing adoption of sustainable technologies.

How the Company Makes Money

Northern Graphite generates revenue primarily through the sale of graphite products, particularly natural flake graphite, which is increasingly required in the production of lithium-ion batteries and other high-tech applications. The company has established key partnerships with manufacturers and distributors in the battery and industrial sectors, enhancing its market reach. Additionally, NGC may benefit from long-term supply agreements and pricing structures that align with market demand, ensuring stable cash flow. The rising global emphasis on sustainable technologies and the shift towards electric vehicles are significant factors contributing to increased demand for its products, thus driving revenue growth.

Northern Graphite Financial Statement Overview

Summary

Northern Graphite faces significant financial challenges. The income statement shows negative net profit margins and deteriorating gross profit margins. The balance sheet reveals high debt-to-equity ratio and negative stockholders' equity, indicating financial instability. Cash flow analysis shows some improvement, but overall financial health remains weak.

Income Statement

Northern Graphite's income statement reveals significant challenges. The company has consistently reported negative net profit margins, with the TTM showing a net profit margin of -118.54%. Despite a revenue growth rate of 7.26% in the TTM, profitability remains a concern with negative EBIT and EBITDA margins. The gross profit margin has also deteriorated over time, indicating cost management issues.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of -1.57 in the TTM, indicating financial leverage concerns. Stockholders' equity is negative, which is a significant risk factor. The return on equity is positive at 136.15% in the TTM, but this is due to negative equity, which distorts the metric. Overall, the balance sheet reflects financial instability.

Cash Flow

Cash flow analysis shows some improvement, with positive operating cash flow in the TTM. However, free cash flow growth is negative, and the operating cash flow to net income ratio is low at 0.05, indicating cash flow challenges. The free cash flow to net income ratio is relatively healthier at 0.85, suggesting some ability to generate cash relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.52M	22.73M	17.10M	11.99M	0.00	0.00
Gross Profit	-2.76M	-310.00K	1.93M	2.65M	-31.50K	-34.18K
EBITDA	-10.71M	-20.96M	-14.55M	-7.79M	-3.19M	-833.95K
Net Income	-31.60M	-38.80M	-23.64M	-14.55M	-3.23M	-943.96K
Balance Sheet
Total Assets	70.23M	77.24M	91.23M	102.06M	19.66M	15.22M
Cash, Cash Equivalents and Short-Term Investments	585.00K	373.00K	3.60M	5.64M	4.33M	1.39M
Total Debt	45.91M	41.10M	27.55M	21.90M	0.00	0.00
Total Liabilities	105.66M	98.64M	75.44M	65.88M	1.92M	553.66K
Stockholders Equity	-35.43M	-21.40M	15.79M	36.18M	17.73M	14.67M
Cash Flow
Free Cash Flow	557.00K	-1.70M	-9.65M	-16.96M	-2.08M	-700.36K
Operating Cash Flow	1.88M	-1.18M	-4.73M	-10.51M	-1.40M	-525.45K
Investing Cash Flow	-2.38M	-563.00K	-4.48M	-51.57M	-1.30M	352.22K
Financing Cash Flow	753.00K	-1.01M	7.34M	63.38M	5.06M	0.00

Northern Graphite Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.22
• 50DMA: Negative
• 100DMA: Positive
• 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:NGC, the sentiment is Positive. The current price of 0.22 is above the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.19, and above the 200-day MA of 0.14, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.94 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
LLG	61 Neutral	C$15.24M	0.80	45.75%	―	―	158.45%
GMA	59 Neutral	C$55.04M	-20.67	-102.86%	―	-100.00%	-33.58%
EMM	48 Neutral	C$25.15M	-3.79	-27.31%	―	―	41.07%
NGC	41 Neutral	C$25.79M	-0.73	―	―	2.76%	-1.06%
FMS	36 Underperform	C$46.01M	-12.28	-16.33%	―	―	-64.76%

Northern Graphite Corporate Events

Northern Graphite Reports Q3 2025 Results Amid Operational Challenges

Northern Graphite announced its third-quarter 2025 results, highlighting operational challenges due to maintenance and technical issues at the Lac des Îles mine, which affected production and financial performance. However, the company is optimistic about future performance improvements with planned plant upgrades and pit extensions. Despite a decrease in revenue due to lower production, Northern Graphite has secured significant financial support and continues to experience strong demand for its graphite products, particularly amid geopolitical uncertainties and the growing need for non-China graphite supply.

Northern Graphite Advances Lac des Iles Expansion Amid Maintenance

Northern Graphite has temporarily placed its Lac des Iles mine and mill on care and maintenance to address an unexpected equipment issue and accelerate maintenance ahead of its 2026 pit expansion. This strategic decision, prompted by a bearing failure at the mill, allows the company to consolidate maintenance efforts and avoid multiple shutdowns. The expansion program, supported by a $6.2 million interest-free contribution from Canada’s Regional Economic Growth Through Innovation Program, aims to extend the mine’s life by eight years. The company is working closely with regulatory authorities to ensure compliance and secure a sustainable North American supply chain for graphite, critical for the growing battery market.

Northern Graphite and Rain Carbon Partner on Sustainable Battery Anode Materials Project

Northern Graphite Corporation and Rain Carbon Canada Inc. have announced a collaborative project, supported by a grant of up to C$860,000, aimed at transforming natural graphite processing by-products into high-performance battery anode materials. This 24-month initiative seeks to enhance the yield from graphite mine concentrates while minimizing waste and carbon footprint, positioning both companies to offer a competitive Western supply chain alternative in the energy storage market. By integrating their expertise, the partners aim to advance sustainable battery materials innovation, reduce industrial waste, and meet the stringent quality standards of the energy storage industry.

Northern Graphite Partners with Alkeemia for Cleaner Graphite Purification

Northern Graphite has signed a Letter of Intent with Italy’s Alkeemia to secure access to a new graphite purification technology that is cleaner and more efficient than existing methods in China. This partnership aims to strengthen Northern’s position in the energy transition market by establishing a European-led purification process, potentially expanding to full industrial scale and integrating Northern’s upstream and downstream operations.

Northern Graphite Extends Lac des Iles Mine Life Amid Global Supply Challenges

Northern Graphite has begun overburden stripping activities at its Lac des Iles mine, aiming to extend the mine’s life by eight years with financial backing from the Canadian government. This initiative is part of Northern’s strategy to expand and modernize operations to meet increasing demand for graphite, particularly in the battery market, amid tightening global supply due to Chinese export controls. The Lac des Iles mine, Northern’s flagship operation, is crucial for supplying high-purity graphite, which is increasingly valuable in the energy transition and national security contexts.

Northern Graphite Secures $1.4M for Battery Anode Facility

Northern Graphite has completed a $1.4 million non-brokered private placement, with The BMI Group as the lead investor. The funds will be used for a feasibility study on a Battery Anode Material facility in Baie-Comeau, Québec, which is part of Northern’s strategy to establish a critical minerals supply chain in North America. This investment is seen as a significant endorsement of Northern’s mine-to-market strategy, aiming to address the demand for battery-grade anode material essential for the energy transition. The Baie-Comeau project is strategically positioned to process graphite from Northern’s mines, supporting economic growth and job creation in the region while contributing to the global energy transition.

Northern Graphite Announces $2.2 Million Private Placement for Battery Anode Facility

Northern Graphite Corporation has announced a non-brokered private placement of up to 20 million common shares at a price of C$0.11 per share, aiming to raise C$2.2 million. The proceeds will be used to finance a feasibility study for a Battery Anode Material facility in Baie-Comeau, Québec, as well as for working capital and corporate expenses. This initiative is part of Northern Graphite’s strategy to enhance its position in the battery materials market, potentially impacting its operational capabilities and market reach.