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Verde Agritech
(TSX:NPK)
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Rating:46Neutral
Price Target:
C$0.80
▼(-27.57% Downside)
Action:Reiterated
Date:06/17/26
The score is held down primarily by weak financial performance (steep revenue decline, sustained losses, and higher leverage). Technicals also reflect a pressured downtrend. The earnings call adds some offset from liquidity-first actions and cost reductions plus rare-earths upside, but near-term operating and market headwinds remain significant, while valuation signals are limited due to negative earnings and no dividend data.
Positive Factors
Healthy Gross Margin
Sizable gross margins indicate the company’s potassium product economics remain strong versus raw material and milling costs. If volumes recover, this margin cushion supports rebuilding operating profitability and long-term cash generation, easing recovery and reinvestment prospects.
Negative Factors
Severe Revenue and Volume Decline
A sustained ~40%+ drop in revenues and volumes materially reduces scale, undermines fixed‑cost absorption and raises per‑unit costs. Prolonged low volumes can erode distributor and farmer relationships, limit bargaining power, and make achieving sustainable operating margins difficult without structural demand recovery.
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Positive Factors
Negative Factors
Healthy Gross Margin
Sizable gross margins indicate the company’s potassium product economics remain strong versus raw material and milling costs. If volumes recover, this margin cushion supports rebuilding operating profitability and long-term cash generation, easing recovery and reinvestment prospects.
Read all positive factors
Verde Agritech (NPK) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$46.28M
Dividend YieldN/A
Average Volume (3M)337.83K
Price to Earnings (P/E)―
Beta (1Y)-0.37
Revenue Growth-20.39%
EPS Growth1.91%
CountryCA
Employees135
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 operates as an agritech firm, engaged in the production and distribution of fertilizers within Brazil and internationally. Its product portfolio features multi-nutrient potassium fertilizers sold under brand names including K Fo...
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.
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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 | -3.21M | -3.29M | -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
Neutral
1.11
Price Trends
0.78
Positive
0.97
Negative
1.12
Negative
Market Momentum
<0.01
Negative
57.61
Neutral
86.03
Negative
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 above the 20-day moving average (MA) of 0.73, above the 50-day MA of 0.78, and below the 200-day MA of 1.12, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.61 is Neutral, neither overbought nor oversold. The STOCH value of 86.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | C$46.08B | 13.64 | 9.48% | 3.52% | 8.02% | 363.69% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
48 Neutral | C$70.53M | -414.29 | 0.16% | ― | ― | 98.72% | |
47 Neutral | C$15.99M | -15.86 | -21.85% | ― | ― | 44.97% | |
46 Neutral | C$46.28M | -3.61 | -49.69% | ― | -20.39% | 1.91% | |
46 Neutral | C$47.47M | -22.46 | -6.52% | ― | ― | 5.48% | |
40 Underperform | C$23.92M | -2.94 | -459.98% | ― | 10.13% | -14.94% |
* Basic Materials Sector Average
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Verde Agritech
0.78
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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.