Verde Agritech (NPK) AI Stock Analysis

• Market Cap: C$33.18M
• Dividend Yield: N/A
• Average Volume (3M): 320.66K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.42
• Revenue Growth: -39.06%
• EPS Growth: -9.07%
• Country: CA
• Employees: 181
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Agricultural Inputs
• EPS (TTM): -0.07
• Shares Outstanding: 52,669,724
• 10 Day Avg. Volume: 523,342
• 30 Day Avg. Volume: 320,664
• PEG Ratio: 0.64
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.23
• 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$0.50
• Price Target Upside: -15.25% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: C$0.50 ▼(-15.25%Downside)

The overall score reflects significant financial struggles and mixed technical signals. Positive corporate events and strategic leadership changes offer some optimism, but they do not offset the financial and valuation challenges.

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 makes money through the sale of its mineral fertilizers, primarily Super Greensand, which is marketed to farmers, agricultural cooperatives, and distributors. The company's revenue model is based on leveraging its proprietary technology to produce high-quality, sustainable fertilizers that enhance soil health and crop productivity. Key revenue streams include direct sales to agricultural operators and partnerships with distributors who help expand the product's reach in domestic and international markets. Additionally, Verde Agritech may engage in licensing agreements or collaborations with other agritech companies to further monetize its proprietary technologies.

Verde Agritech Financial Statement Overview

Summary

Verde Agritech faces significant financial challenges with declining revenues, negative profitability, and high leverage. The financial statements show negative gross and net profit margins, a high debt-to-equity ratio, and negative cash flows, all of which highlight the company's operational inefficiencies and financial instability.

Income Statement

Verde Agritech's income statement reveals significant challenges. The TTM data shows a drop in total revenue to $21.6M, a stark decrease from $80.3M in 2022. The company is currently experiencing negative gross and net profit margins, with a gross profit margin of 56.7% and a substantial net loss margin of -58.2%. The negative EBIT and EBITDA margins further highlight operational inefficiencies and declining profitability. The revenue growth rate is negative, indicating significant revenue contraction over the period.

Balance Sheet

Verde Agritech's balance sheet presents a mixed picture. The debt-to-equity ratio has increased to 1.31, indicating a high level of leverage, which could pose risks in periods of financial stress. The equity ratio stands at 42.1%, suggesting moderate reliance on equity financing. However, the return on equity is negative, impacted by the net losses, which points to insufficient returns on shareholder investments.

Cash Flow

The cash flow statement reveals significant weaknesses in Verde Agritech's cash management. The TTM operating cash flow is negative, and the free cash flow has deteriorated to -$2.84M. The operating cash flow to net income ratio is negative, reflecting poor cash generation relative to earnings. Additionally, the free cash flow to net income ratio is negative, underscoring challenges in covering net losses through operational cash flows.

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

Verde Agritech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.59 is below the 20-day moving average (MA) of 0.64, above the 50-day MA of 0.56, and below the 200-day MA of 0.64, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 47.67 is Neutral, neither overbought nor oversold. The STOCH value of 7.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NPK.

Verde Agritech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GSP	49 Neutral	C$36.06M	―	-24.23%	―	―	56.08%
NPK	48 Neutral	C$33.18M	―	-32.62%	―	-39.06%	-9.07%
Sector *	44 Neutral	C$967.00M	-6.65	-13.73%	2.47%	17.55%	-32.57%
KRN	43 Neutral	C$7.09M	―	-35.90%	―	―	-16.48%
MRZ	39 Underperform	C$30.01M	―	-387.94%	―	―	30.14%
ITFS	―	$414.71M	4.15	30.22%	―	―	―
MGROF	―	$31.76M	―	-201.16%	―	―	―

Verde Agritech Corporate Events

Verde AgriTech Secures Shareholder Approval at 2025 AGM

Verde AgriTech announced the successful approval of all items at its 2025 Annual General Meeting of shareholders, including the re-election of directors and the adoption of the 2024 audited statement of accounts. The meeting’s outcomes reinforce Verde’s strategic direction and stability, potentially strengthening its position in the potash industry, particularly in Brazil, which heavily relies on potash imports. This approval could have positive implications for stakeholders, as it ensures continuity in leadership and operational plans.

Verde AgriTech Navigates Q1 2025 Challenges and Eyes Recovery

Verde AgriTech Ltd reported a challenging Q1 2025, with a 44% decrease in sales volume and revenue compared to Q1 2024, due to a severe crisis in the Brazilian agricultural sector. However, the company is experiencing a recovery in orders for the second half of 2025, with confirmed orders 40% higher than the same period in 2024, driven by increased credit approvals. Verde secured court approval for a debt renegotiation agreement, which extends repayment terms and reduces interest rates, positioning the company for future growth. The company’s products also contribute to environmental benefits, such as carbon capture and reduced chloride application in soils.

Verde AgriTech Navigates Q1 Challenges with Optimism for Recovery

Verde AgriTech Ltd reported a challenging Q1 2025 due to a crisis in the Brazilian agricultural sector, leading to a significant reduction in sales volume and revenue compared to the previous year. Despite these setbacks, the company is experiencing a recovery in orders and expects stronger sales performance in the second half of 2025 as market conditions improve. Verde has also secured a debt renegotiation agreement, which provides extended repayment terms and reduced interest rates, aiding its financial stability. Additionally, the company’s products have contributed to significant carbon capture and chloride reduction, emphasizing its environmental impact.

Verde AgriTech Appoints New CMO to Drive Global Expansion

Verde AgriTech has appointed Guilherme Medeiros as Chief Marketing Officer to drive marketing innovation and support the introduction of new low-carbon products. His extensive experience in strategic marketing and customer engagement is expected to enhance Verde’s market presence and visibility, particularly as the company expands its operations in Brazil and globally. This appointment is seen as a pivotal step in Verde’s strategy to reshape the agricultural inputs market and strengthen its position as a leader in sustainable agriculture solutions.