Verde Agritech (NPK) AI Stock Analysis

• Market Cap: C$26.86M
• Dividend Yield: N/A
• Average Volume (3M): 168.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.53
• 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: 222,620
• 30 Day Avg. Volume: 168,991
• PEG Ratio: 0.43
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.41
• 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

• Rating: 45 Neutral
• Price Target: C$0.50 ▼(-3.85%Downside)

The overall stock score for Verde Agritech is impacted primarily by significant financial challenges, as indicated by declining revenues and profitability, high leverage, and negative cash flows. While technical indicators are neutral, the valuation remains unattractive due to a negative P/E ratio. However, recent corporate events show promise in potentially strengthening the company's position and enhancing liquidity.

Verde Agritech Business Overview & Revenue Model

Company Description

Verde Agritech is a leading agricultural technology company focused on producing innovative and sustainable mineral fertilizers. Operating primarily in the agribusiness sector, the company is known for its flagship product, a multi-nutrient fertilizer marketed under the brand name Super Greensand. Verde Agritech is dedicated to improving soil fertility and increasing agricultural yields while promoting environmentally friendly farming practices.

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 is facing severe financial difficulties, with a significant revenue drop, negative gross and net profit margins, high leverage, and deteriorating cash flows. These issues indicate substantial operational challenges 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: 0.52
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 0.52 is below the 20-day moving average (MA) of 0.52, above the 50-day MA of 0.51, and below the 200-day MA of 0.64, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.45 is Neutral, neither overbought nor oversold. The STOCH value of 35.90 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IFOS	82 Outperform	$511.96M	3.71	30.22%	―	8.78%	―
MGRO	57 Neutral	C$42.86M	―	-201.16%	―	-91.55%	-495.60%
GSP	49 Neutral	C$36.06M	―	-24.23%	―	―	56.08%
NPK	45 Neutral	C$26.86M	―	-32.62%	―	-39.06%	-9.07%
Sector *	44 Neutral	C$958.76M	-6.68	-13.31%	2.79%	17.55%	-32.28%
KRN	43 Neutral	C$8.79M	―	-35.90%	―	―	-16.48%
MRZ	39 Underperform	C$27.57M	―	-387.94%	―	―	30.14%

Verde Agritech Corporate Events

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.

Verde Agritech Updates Technical Report for Man of War Project

Verde Agritech has filed an amended NI 43-101 Technical Report for its Man of War Rare Earths Project in Brazil, following a review by the Ontario Securities Commission. The updated report, which addresses the OSC’s comments, removes certain resource disclosures and adjusts mineral resource estimates. This amendment could impact Verde’s operations by aligning its reporting with regulatory standards, potentially affecting its market positioning and stakeholder perceptions.

Verde Agritech Secures Court Approval for Debt Restructuring

Verde Agritech has received court approval for its Debt Renegotiation Agreement, which extends payment terms and reduces interest rates, thereby enhancing the company’s liquidity. The agreement affects 92.2% of its creditors with an 18-month grace period and a 108-month repayment plan, while non-adherent creditors, representing 5.3% of the debt, will see a 75% principal reduction. This restructuring is expected to improve Verde’s financial stability and operational flexibility, potentially strengthening its position in the sustainable agriculture industry.

Verde Agritech and Nautica Holdings Announce Strategic Rare Earths Transaction

Verde Agritech Ltd and Nautica Holdings Limited have announced a strategic transaction involving the sale of high-grade magnetic rare earth exploration assets in Brazil. This move allows Verde to unlock value for its shareholders, while Nautica positions itself as a key player in the rare earths sector, aiming to capitalize on the growing global demand for critical minerals. The transaction includes Nautica’s commitment of AUD $1 million towards an IPO on the Australian Securities Exchange, and the development and exploration of the acquired assets. This strategic alignment is expected to deliver long-term value to Verde’s shareholders and support Nautica’s vision of securing essential minerals for global technological advancements.