Verde Agritech Plc J (TSE:NPK)
TSX:NPK
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Verde Agritech
(TSX:NPK)
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Rating:42Neutral
Price Target:
C$0.80
▼(-28.20% Downside)
Action:Reiterated
Date:05/20/26
The score is held down primarily by deteriorating financial performance (sharp revenue decline, sustained losses, and higher leverage) and bearish technicals (below major moving averages with negative MACD). Earnings-call actions to protect liquidity and cut costs, plus rare-earth upside, provide some offset, but valuation remains difficult to support while the company is loss-making.
Positive Factors
Healthy Gross Margin
A ~51% TTM gross margin indicates the company’s potassium product retains strong unit economics. That structural margin implies the core product (K Forte) can be profitable at scale if volumes recover and fixed costs are reduced, supporting durable recovery potential.
Negative Factors
Severe Revenue Decline & Losses
A multi-year collapse in revenue and persistently deep net losses materially erode scale and the company’s ability to cover fixed costs. Sustained negative margins and negative ROE require substantial volume or cost improvements to restore profitability and capital access.
Read all positive and negative factors
Positive Factors
Negative Factors
Healthy Gross Margin
A ~51% TTM gross margin indicates the company’s potassium product retains strong unit economics. That structural margin implies the core product (K Forte) can be profitable at scale if volumes recover and fixed costs are reduced, supporting durable recovery potential.
Read all positive factors
Verde Agritech (NPK) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$51.93M
Dividend YieldN/A
Average Volume (3M)337.83K
Price to Earnings (P/E)―
Beta (1Y)-0.30
Revenue Growth-20.39%
EPS Growth1.91%
CountryCA
Employees181
SectorBasic Materials
Sector Strength58
IndustryAgricultural Inputs
Share Statistics
EPS (TTM)-0.22
Shares Outstanding56,443,726
10 Day Avg. Volume883,877
30 Day Avg. Volume337,834
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)2.71
Price to Sales (P/S)3.40
P/FCF Ratio-361.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Verde Agritech Business Overview & Revenue Model
Company Description
Verde Agritech Plc, an agricultural technology company, produces and sells fertilizers in Brazil and internationally. The company offers multi-nutrient potassium fertilizer under the K Forte, BAKS, and Super Greensand brand names. It holds 100% in...
How the Company Makes Money
Verde Agritech primarily makes money by selling fertilizer products to customers in Brazil, with revenues driven mainly by sales of its flagship potassium-based product (K Forte) and related specialty fertilizer offerings. The company generates re...
Verde Agritech Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Negative
The call conveyed a mixed picture: management executed prudent actions (cash raise, stricter credit, cost reductions) and uncovered a materially promising rare earths opportunity, but the core fertilizer business is facing severe near-term headwinds — large declines in revenue and volumes, margin compression, ongoing net losses, and macro/sector credit stress. While structural fixes (cost cuts, deleveraging, strategic corporate sales pipeline) may help, the magnitude of the revenue and margin deterioration and the broad agribusiness insolvency trend weigh heavily on the near-term outlook.Positive Updates
Cash Position Strengthened via Private Placement
Quarter-end cash of $6.4M versus $2.5M a year ago (+156.0%) supported by a private placement with net proceeds of ~ $4.0M; short-term receivables reduced to $5.2M from $7.7M (-32.5%).
Negative Updates
Significant Revenue Decline and Volume Drop
Revenue fell to $1.7M in Q1 from $2.9M a year earlier (-41.4%); total volumes sold fell to ~27,000 tonnes from 47,000 tonnes (-42.6%), reflecting weak demand and stricter credit terms limiting sales.
Read all updates
Q1-2026 Updates
Positive
Negative
Cash Position Strengthened via Private Placement
Quarter-end cash of $6.4M versus $2.5M a year ago (+156.0%) supported by a private placement with net proceeds of ~ $4.0M; short-term receivables reduced to $5.2M from $7.7M (-32.5%).
Read all positive updates
Company Guidance
Management guided a cautious, liquidity‑first plan focused on cost cuts and credit discipline: Q1 revenue was $1.7M (vs $2.9M LY) on ~27k tonnes sold (vs 47k), EBITDA before non‑cash items improved modestly to -$1.3M, cash was $6.4M plus $5.2M short‑term receivables (vs $2.5M cash / $7.7M receivables LY) after a ~$4.0M private placement, and the KCl bad‑debt provision fell to ~$0 from $500k as the company stopped extending risky credit; cost per ton rose from $16 to $23 (~+44%) and gross margin excluding freight dropped from 56% to 41%, sales expenses fell from $851k to $727k, and management targets BRL 7.5M in savings this year (BRL ~9.4M over 12 months) with further G&A reductions expected from Q2; operational/dev guidance included continued bank renegotiations (earlier ~18‑month relief), delaying the rare‑earth MRE to year‑end, five drill rigs on site (targeting +2 by next month), a 1.3 billion tonne rare‑earth resource estimate with leachate concentrate ~40% magnetic oxides and assays up to 26%, and macro assumptions of a ~14.5% policy rate and potash up ≈$50 YTD.Verde Agritech Financial Statement Overview
Summary
Income Statement
23
Negative
Balance Sheet
34
Negative
Cash Flow
31
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.43M | 16.61M | 21.60M | 37.86M | 80.27M | 27.71M |
| Gross Profit | 7.79M | 9.57M | 12.25M | 24.70M | 62.25M | 20.58M |
| EBITDA | -3.29M | -3.09M | -4.54M | 1.98M | 24.36M | 5.29M |
| Net Income | -11.62M | -11.67M | -12.56M | -5.98M | 17.80M | 3.52M |
Balance Sheet | ||||||
| Total Assets | 77.16M | 70.48M | 72.02M | 96.17M | 97.31M | 41.40M |
| Cash, Cash Equivalents and Short-Term Investments | 6.38M | 2.98M | 3.48M | 6.97M | 1.16M | 1.53M |
| Total Debt | 52.22M | 47.42M | 39.75M | 46.20M | 38.37M | 5.58M |
| Total Liabilities | 55.02M | 49.70M | 41.68M | 50.67M | 48.96M | 15.04M |
| Stockholders Equity | 22.14M | 20.78M | 30.34M | 45.51M | 48.35M | 26.36M |
Cash Flow | ||||||
| Free Cash Flow | 58.00K | -156.00K | -2.84M | 1.63M | -30.83M | -4.28M |
| Operating Cash Flow | 671.00K | 313.00K | -1.89M | 4.62M | 11.47M | -1.68M |
| Investing Cash Flow | -613.00K | -469.00K | 753.00K | -4.02M | -42.02M | -2.55M |
| Financing Cash Flow | 3.97M | -92.00K | -3.12M | 5.02M | 30.03M | 3.67M |
Verde Agritech Technical Analysis
Negative
1.11
Price Trends
1.05
Negative
1.23
Negative
1.06
Negative
Market Momentum
-0.05
Negative
41.87
Neutral
79.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NPK, the sentiment is Negative. The current price of 1.11 is above the 20-day moving average (MA) of 0.94, above the 50-day MA of 1.05, and above the 200-day MA of 1.06, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 41.87 is Neutral, neither overbought nor oversold. The STOCH value of 79.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NPK.
Verde Agritech Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | C$46.37B | 70.49 | 9.49% | 3.52% | 8.02% | 363.69% | |
49 Neutral | C$17.05M | -7.31 | -21.85% | ― | ― | 44.97% | |
48 Neutral | C$101.75M | 0.98 | 0.16% | ― | ― | 98.72% | |
47 Neutral | C$31.78M | -4.42 | -459.98% | ― | 1981.95% | -40.13% | |
44 Neutral | C$63.75M | -31.32 | -6.52% | ― | ― | 32.00% | |
42 Neutral | C$51.93M | -4.12 | -49.69% | ― | -20.39% | 1.91% |
* Basic Materials Sector Average
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Verde Agritech
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Verde Agritech Corporate Events
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Verde AgriTech Tightens Credit, Cuts Loss Provisions Amid Brazil Farm Crisis and Advances Rare Earth Project
Negative
Mar 26, 2026
Verde AgriTech reported a decline in full-year 2025 revenue to $16.6 million and lower sales volumes amid what it described as an ongoing Brazilian agriculture credit crisis, but maintained strong gross margins and sharply reduced expected credit ...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Verde AgriTech Balances Credit Discipline With Growth Options Amid Brazil Farm Slump
Neutral
Mar 26, 2026
Verde AgriTech reported weaker full-year 2025 revenue and sales volumes as Brazil’s ongoing agricultural credit crisis led the company to tighten lending standards and sacrifice volume to protect liquidity and receivables quality. Despite th...
Business Operations and Strategy
Verde AgriTech Extends High-Grade Rare Earth Footprint at Minas Americas
Positive
Mar 17, 2026
Verde AgriTech reported new assay results from 17 auger holes at its Minas Americas rare earths project in Brazil, confirming shallow ionic-clay mineralization and extending the drill-confirmed footprint beyond 3.5 square kilometres. The latest ho...
Business Operations and StrategyPrivate Placements and Financing
Verde AgriTech Raises $4.5 Million to Accelerate Brazilian Rare Earth Project
Positive
Mar 12, 2026
Verde AgriTech has closed a brokered private placement for gross proceeds of $4.5 million, issuing 3,750,000 units at $1.20 each, with the majority subscribed by a leading resources institutional investor. Each unit comprises one share and one war...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.