Verde Agritech (NPK) AI Stock Analysis

• Market Cap: C$77.95M
• Dividend Yield: N/A
• Average Volume (3M): 337.83K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.46
• Revenue Growth: -36.30%
• EPS Growth: 10.13%
• Country: CA
• Employees: 181
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): -0.04
• Shares Outstanding: 52,669,724
• 10 Day Avg. Volume: 883,877
• 30 Day Avg. Volume: 337,834
• PEG Ratio: -0.02
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 1.51
• P/FCF Ratio: -11.49
• 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: 53 Neutral
• Price Target: C$2.00 ▲(80.18% Upside)

The score is held back primarily by weak financial performance (declining revenue, large losses, high leverage, and deteriorating cash flow). Technicals are a meaningful offset, with the stock trading above all major moving averages and showing positive momentum. Valuation provides little support due to negative earnings (negative P/E) and no dividend yield data.

Positive Factors

Sustainable Agriculture Demand

The growing global demand for sustainable agriculture supports long-term revenue growth as more farmers adopt eco-friendly fertilizers.

Product Innovation

Proprietary mining operations and product innovation enhance competitive advantage, supporting long-term market position and revenue.

Strong Partnerships

Strategic partnerships with distributors and cooperatives expand market reach, supporting sustainable revenue growth and market penetration.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting flexibility and increasing vulnerability to economic downturns.

Declining Revenue

Declining revenue and profitability indicate challenges in maintaining market position and financial health, impacting long-term viability.

Cash Flow Constraints

Weak cash flow generation limits the company's ability to invest in growth opportunities and manage operational expenses effectively.

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% interests in the Cerrado Verde project, which is the source of potassium silicate rock, a glauconitic siltstone material located in the western Alto Paranaiba region of Minas Gerais State, Brazil. The company was formerly known as Verde Potash PLC and changed its name to Verde Agritech Plc in June 2016. Verde Agritech Plc was founded in 2005 and is headquartered in Belo Horizonte, Brazil.

How the Company Makes Money

Verde Agritech generates revenue primarily through the sale of its patented potassium-rich fertilizers, which are marketed to farmers and agricultural businesses. The company has established key partnerships with distributors and agricultural cooperatives to expand its market reach and customer base. Additionally, Verde Agritech benefits from the increasing global demand for sustainable agricultural practices, which drives the sales of its eco-friendly fertilizer solutions. The company's revenue model is supported by strong marketing strategies, ongoing research and development to enhance product offerings, and potential export opportunities to international markets.

Verde Agritech Financial Statement Overview

Summary

Weak fundamentals: revenue is declining (-7.28% TTM) and profitability is deeply negative (net margin -64.26%) despite a solid gross margin (55.90%). Leverage is elevated (debt-to-equity 1.76) with negative ROE (-38.08%), and cash generation is strained with sharp free cash flow deterioration (-221.93% TTM) and a low operating cash flow to net income ratio (0.17).

Income Statement

Verde Agritech's income statement shows a concerning trend with declining revenue and profitability. The TTM data reveals a negative revenue growth rate of -7.28% and a net profit margin of -64.26%, indicating significant losses. The gross profit margin remains relatively strong at 55.90%, but the negative EBIT and EBITDA margins highlight operational inefficiencies. Overall, the company is struggling to maintain profitability amidst declining sales.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.76 in the TTM period, indicating significant leverage. The return on equity is negative at -38.08%, suggesting that the company is not generating sufficient returns on shareholders' equity. The equity ratio stands at 32.08%, showing a moderate level of equity financing. While the company has a substantial asset base, the high leverage poses a risk to financial stability.

Cash Flow

Cash flow analysis reveals a challenging situation with negative free cash flow growth of -221.93% in the TTM period. The operating cash flow to net income ratio is low at 0.17, indicating weak cash generation relative to net losses. The free cash flow to net income ratio is negative, further highlighting cash flow difficulties. The company needs to improve its cash flow management to support operations and reduce reliance on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.41M	21.60M	37.86M	80.27M	27.71M	9.17M
Gross Profit	8.97M	12.25M	24.70M	62.25M	20.58M	5.65M
EBITDA	-3.43M	-4.54M	1.98M	24.36M	5.29M	1.48M
Net Income	-11.12M	-12.56M	-5.98M	17.80M	3.52M	550.00K
Balance Sheet
Total Assets	77.37M	72.02M	96.17M	97.31M	41.40M	28.73M
Cash, Cash Equivalents and Short-Term Investments	3.56M	3.48M	6.97M	1.16M	1.53M	2.24M
Total Debt	48.94M	39.75M	46.20M	38.37M	5.58M	3.47M
Total Liabilities	52.55M	41.68M	50.67M	48.96M	15.04M	7.59M
Stockholders Equity	24.82M	30.34M	45.51M	48.35M	26.36M	21.14M
Cash Flow
Free Cash Flow	139.00K	-2.84M	1.63M	-30.83M	-4.28M	-525.00K
Operating Cash Flow	640.00K	-1.89M	4.62M	11.47M	-1.68M	1.06M
Investing Cash Flow	-501.00K	753.00K	-4.02M	-42.02M	-2.55M	-1.47M
Financing Cash Flow	92.00K	-3.12M	5.02M	30.03M	3.67M	2.08M

Verde Agritech Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.11
• 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:NPK, the sentiment is Neutral. The current price of 1.11 is below the 20-day moving average (MA) of 1.55, below the 50-day MA of 1.27, and above the 200-day MA of 0.83, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 50.60 is Neutral, neither overbought nor oversold. The STOCH value of 23.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:NPK.

Verde Agritech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTR	75 Outperform	C$45.31B	18.25	7.22%	3.52%	2.67%	154.37%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALTA	56 Neutral	C$63.74M	-31.62	-5.78%	―	―	37.37%
NPK	53 Neutral	C$77.95M	-7.01	-37.27%	―	-36.30%	10.13%
MGRO	51 Neutral	C$43.55M	-6.14	-198.96%	―	51.04%	-2521.74%
DAN	48 Neutral	C$59.84M	-4.29	-51.05%	―	―	-119.53%
KRN	44 Neutral	C$10.12M	-9.95	-21.94%	―	―	39.56%

Verde Agritech Corporate Events

Verde AgriTech Hits Best Rare Earth Intercept Yet at Minas Americas Project

Verde AgriTech announced strong new drilling results from its PT-34 target at the Minas Americas Global Alliance rare earths project in Minas Gerais, Brazil, including its best intercept to date of 13.0 metres grading 0.83% total rare earth oxides (TREO), with an 8.0-metre interval at 1.01% TREO and a peak sample of 1.35% TREO. The company reported that 25% of the 279.8 metres drilled so far at PT-34 returned grades of at least 0.40% TREO, mineralization remains open at depth, and the magnet-rich rare earth basket strengthens with grade, prompting the board to expand the resource-definition footprint, drill additional metres, and advance dual-track technical disclosure under Canada’s NI 43-101 and U.S. SEC S-K 1300 ahead of a maiden resource estimate in the first half of 2026 and a preliminary economic assessment in the second half of 2026.

The most recent analyst rating on (TSE:NPK) stock is a Hold with a C$1.50 price target. To see the full list of analyst forecasts on Verde Agritech stock, see the TSE:NPK Stock Forecast page.

Verde AgriTech Reports High-Grade Rare Earth Mineralization in Brazil

Verde AgriTech has announced promising results from its initial drilling at the Minas Americas Global Alliance rare earths project in Minas Gerais, Brazil. The drilling confirmed continuous, high-grade rare earth mineralization from the surface, with significant potential for expansion. The results, which include high levels of magnet rare earths like neodymium and dysprosium, bolster the company’s confidence in the project’s scale and quality. Verde plans to continue its 200-hole drill program to support a maiden mineral resource estimate by Q1 2026, positioning itself as a key player in the rare earths market, crucial for the global energy transition.

The most recent analyst rating on (TSE:NPK) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on Verde Agritech stock, see the TSE:NPK Stock Forecast page.

Verde AgriTech Partners with UNDO for Carbon Credit Initiative

Verde AgriTech has entered an exclusive partnership with UNDO Carbon Ltd. to create and sell carbon removal credits from its enhanced rock weathering activities in Brazil. This collaboration combines Verde’s mineral resources with UNDO’s expertise in measurement and verification, aiming to establish a scalable revenue stream and strengthen both companies’ market positions in the carbon credit industry.

The most recent analyst rating on (TSE:NPK) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on Verde Agritech stock, see the TSE:NPK Stock Forecast page.

Verde AgriTech Reports Q3 2025 Results and Advances Rare Earths Project

Verde AgriTech Ltd reported its Q3 2025 financial results, highlighting a disciplined approach amidst the ongoing Great Brazilian Agriculture Crisis. Despite a decrease in sales volume and revenue, the company achieved a positive EBITDA for the first time since Q2 2023, demonstrating operational improvement. Verde also announced a significant discovery of a rare earth element mineralized zone in Brazil, which could enhance its industry positioning. The company is advancing its Minas Americas Global Alliance magnetic rare earths project, aiming to define high-quality resources and is fully funded to continue its operations.

The most recent analyst rating on (TSE:NPK) stock is a Hold with a C$1.00 price target. To see the full list of analyst forecasts on Verde Agritech stock, see the TSE:NPK Stock Forecast page.