Verde Agritech Plc J (TSE:NPK)
TSX:NPK
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Verde Agritech
(TSX:NPK)
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Rating:41Neutral
Price Target:
C$1.00
▼(-9.91% Downside)
Action:ReiteratedDate:03/27/26
The score is primarily weighed down by weak financial performance (current operating losses, negative free cash flow, and higher leverage with compressed equity). Technicals add downside bias with negative momentum and the price below key short/medium-term moving averages, while valuation is constrained by negative earnings and no indicated dividend support.
Positive Factors
Specialized K Forte product focus (Brazil)
Verde’s concentrated portfolio of K Forte potash and related NPK formulations, sold primarily in Brazil, represents a durable product-market fit. Localized, branded specialty fertilizers reduce dependence on imports, support distributor relations, and align with Brazilian crop cycles to sustain demand.
Negative Factors
Elevated leverage (~2.0x debt/equity)
Debt-to-equity near 2x and compressed equity materially reduce financial flexibility. High leverage increases interest expense and refinancing risk, and with ongoing losses the company faces potential covenant strain or dilutive recapitalization, constraining investment and strategic options.
Read all positive and negative factors
Positive Factors
Negative Factors
Specialized K Forte product focus (Brazil)
Verde’s concentrated portfolio of K Forte potash and related NPK formulations, sold primarily in Brazil, represents a durable product-market fit. Localized, branded specialty fertilizers reduce dependence on imports, support distributor relations, and align with Brazilian crop cycles to sustain demand.
Read all positive factors
Verde Agritech (NPK) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$60.39M
Dividend YieldN/A
Average Volume (3M)337.83K
Price to Earnings (P/E)―
Beta (1Y)-0.29
Revenue Growth-36.30%
EPS Growth10.13%
CountryCA
Employees181
SectorBasic Materials
Sector Strength58
IndustryAgricultural Inputs
Share Statistics
EPS (TTM)-0.06
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 makes money primarily by selling fertilizer products to customers in Brazil. Its main revenue stream is the commercial sale of finished fertilizers—most notably its K Forte potash fertilizer and associated multi-nutrient/NPK-type bl...
Verde Agritech Earnings Call Summary
Earnings Call Date:Nov 08, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:May 14, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with successful cost-cutting measures and debt renegotiations as positive aspects. However, significant challenges remain, such as declining sales, revenue, and cash position, compounded by a tough economic environment and credit market issues in Brazil.Positive Updates
Cost Reduction Efforts
The company achieved a reduction in general and administrative expenses by 21% in the quarter and 13% year-to-date.
Negative Updates
Decline in Sales Volume and Revenue
Sales in Q3 were 101,000 tonnes, compared to 108,000 tonnes in Q3 2023, with revenue dropping from CAD 9.4 million to CAD 7.1 million.
Read all updates
Q3-2024 Updates
Positive
Negative
Cost Reduction Efforts
The company achieved a reduction in general and administrative expenses by 21% in the quarter and 13% year-to-date.
Read all positive updates
Company Guidance
During the Q3 2024 earnings call for Verde AgriTech, several key metrics and market insights were addressed. The company reported sales of 101,000 tonnes in Q3 2024, slightly down from 108,000 tonnes in the same quarter of 2023. Revenue also declined to CAD 7.1 million from CAD 9.4 million the previous year, reflecting a challenging market environment. Despite these setbacks, Verde AgriTech managed to improve its EBITDA, reducing it from a negative CAD 620,000 in Q3 2023 to nearly breaking even at CAD 30,000 negative in Q3 2024. The call highlighted significant cost reduction efforts, including a 21% decrease in general and administrative expenses and a 43% reduction in sales agent fees. The company's total loan balance stood at CAD 42.2 million, with cash and receivables totaling CAD 14.7 million, marking a decrease from CAD 25.4 million in 2023. The management discussed the impacts of fluctuating KCl prices, which have dropped significantly to around $285 per tonne in Brazil, and the challenging credit environment for farmers due to high interest rates. Additionally, Verde AgriTech outlined its strategic focus on expanding market presence through field sales teams and exploring opportunities in carbon monetization and rare earths, while emphasizing the need for a conservative approach to credit risk.Verde Agritech Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
35
Negative
Cash Flow
33
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 16.61M | 21.60M | 37.86M | 80.27M | 27.71M |
| Gross Profit | 9.57M | 12.25M | 24.70M | 62.25M | 20.58M |
| EBITDA | -3.09M | -4.54M | 1.98M | 24.36M | 5.29M |
| Net Income | -11.67M | -12.56M | -5.98M | 17.80M | 3.52M |
Balance Sheet | |||||
| Total Assets | 70.48M | 72.02M | 96.17M | 97.31M | 41.40M |
| Cash, Cash Equivalents and Short-Term Investments | 2.98M | 3.48M | 6.97M | 1.16M | 1.53M |
| Total Debt | 47.42M | 39.75M | 46.20M | 38.37M | 5.58M |
| Total Liabilities | 49.70M | 41.68M | 50.67M | 48.96M | 15.04M |
| Stockholders Equity | 20.78M | 30.34M | 45.51M | 48.35M | 26.36M |
Cash Flow | |||||
| Free Cash Flow | -156.00K | -2.84M | 1.63M | -30.83M | -4.28M |
| Operating Cash Flow | 313.00K | -1.89M | 4.62M | 11.47M | -1.68M |
| Investing Cash Flow | -469.00K | 753.00K | -4.02M | -42.02M | -2.55M |
| Financing Cash Flow | -92.00K | -3.12M | 5.02M | 30.03M | 3.67M |
Verde Agritech Technical Analysis
Negative
1.11
Price Trends
1.33
Negative
1.25
Negative
0.99
Positive
Market Momentum
-0.06
Positive
40.72
Neutral
26.85
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 below the 20-day moving average (MA) of 1.18, below the 50-day MA of 1.33, and above the 200-day MA of 0.99, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 40.72 is Neutral, neither overbought nor oversold. The STOCH value of 26.85 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | C$49.85B | 13.01 | 9.13% | 3.52% | 2.67% | 154.37% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
51 Neutral | C$17.05M | -8.07 | -21.85% | ― | ― | 39.56% | |
51 Neutral | C$34.14M | -3.66 | -459.98% | ― | 51.04% | -2521.74% | |
48 Neutral | C$53.43M | -3.09 | -53.49% | ― | ― | -119.53% | |
44 Neutral | C$48.92M | -31.32 | -6.52% | ― | ― | 37.37% | |
41 Neutral | C$60.39M | -4.17 | -40.67% | ― | -36.30% | 10.13% |
* Basic Materials Sector Average
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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...
Business Operations and Strategy
Verde AgriTech Hits Best Rare Earth Intercept Yet at Minas Americas Project
Positive
Jan 26, 2026
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...
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.