CNSX:OPC

Stock Analysis Report

Executive Summary

Organic Potash Corporation produces, exports, and sells potassium carbonate in West Africa and internationally.

Risk Analysis

Debt is not well covered by operating cash flow

Shares are highly illiquid

Does not have a meaningful market cap (CA$2M)

Large one-off items impacting financial results

+ 1 more risk


Snowflake Analysis

Poor track record with weak fundamentals.

Share Price & News

How has Organic Potash's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OPC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

OPC

-3.7%

CA Chemicals

0.6%

CA Market


1 Year Return

-20.0%

OPC

-24.4%

CA Chemicals

5.8%

CA Market

Return vs Industry: OPC exceeded the Canadian Chemicals industry which returned -24.4% over the past year.

Return vs Market: OPC underperformed the Canadian Market which returned 5.8% over the past year.


Shareholder returns

OPCIndustryMarket
7 Day0%-3.7%0.6%
30 Day-20.0%-10.8%0.5%
90 Day300.0%-13.1%3.6%
1 Year-20.0%-20.0%-21.8%-24.4%9.1%5.8%
3 Year-33.3%-33.3%-30.4%-34.6%15.4%5.0%
5 Yearn/a-23.5%-31.9%33.6%14.0%

Price Volatility Vs. Market

How volatile is Organic Potash's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Organic Potash undervalued compared to its fair value and its price relative to the market?

136.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate OPC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate OPC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: OPC is poor value based on its PE Ratio (136.1x) compared to the Chemicals industry average (18x).

PE vs Market: OPC is poor value based on its PE Ratio (136.1x) compared to the Canadian market (15.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate OPC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: OPC has negative assets, so we can't compare its PB Ratio to the CA Chemicals industry average.


Next Steps

Future Growth

How is Organic Potash forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.2%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Organic Potash has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Organic Potash performed over the past 5 years?

68.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OPC has a large one-off gain of CA$62.1K impacting its September 30 2019 financial results.

Growing Profit Margin: Insufficient data to determine if OPC's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: OPC has become profitable over the past 5 years, growing earnings by 68% per year.

Accelerating Growth: OPC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: OPC had negative earnings growth (-99%) over the past year, making it difficult to compare to the Chemicals industry average (-16.5%).


Return on Equity

High ROE: OPC's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Organic Potash's financial position?


Financial Position Analysis

Short Term Liabilities: OPC has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: OPC has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: OPC has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: OPC's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: OPC has a low level of unsold assets or inventory.

Debt Coverage by Assets: OPC has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: OPC is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: OPC is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Organic Potash's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate OPC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate OPC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if OPC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OPC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OPC's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.5yrs

Average board tenure


CEO

Heather Welner 0

0

Mrs. Heather Welner serves as the Chief Executive Officer and President of Organic Potash Corporation and has been its Director since June 26, 2009. 


CEO Compensation Analysis

Compensation vs Market: Heather's total compensation ($USD0.00) is below average for companies of similar size in the Canadian market ($USD155.16K).

Compensation vs Earnings: Heather's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Heather Welner
President0yrsno data5.98% CA$129.4k
Augustus Tanoh
Executive VP & Director8.6yrsno datano data
Wally Rudensky
Non-Executive Director8.6yrsno datano data
Jayson Schwarz
Non-Executive Director8.3yrsno data3.38% CA$73.0k
Graeme Norval
Independent Director4yrsno data0.90% CA$19.5k
Jean Anga
Director0.2yrsno datano data

8.5yrs

Average Tenure

Experienced Board: OPC's board of directors are considered experienced (8.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: OPC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.7%.


Top Shareholders

Company Information

Organic Potash Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Organic Potash Corporation
  • Ticker: OPC
  • Exchange: CNSX
  • Founded: 2009
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: CA$2.162m
  • Shares outstanding: 108.12m
  • Website: https://www.organicpotash.com

Location

  • Organic Potash Corporation
  • 10 Wilkinson Road
  • Suite #22
  • Brampton
  • Ontario
  • L6T 5B1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OPCCNSX (Canadian National Stock Exchange)YesCommon SharesCACADOct 2015
OPCG.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDOct 2015

Biography

Organic Potash Corporation produces, exports, and sells potassium carbonate in West Africa and internationally. It produces potassium carbonate from the agricultural waste, primarily cocoa husks using a proprietary patented production technology. The company focuses on serving food, consumer and industrial products manufacturing, and pharmaceutical industries. Organic Potash Corporation was incorporated in 2009 and is headquartered in Brampton, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 00:35
End of Day Share Price2020/02/10 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.