TSX:NEO

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Neo Performance Materials

Executive Summary

Neo Performance Materials Inc. manufactures and sells rare earth and rare metal-based functional materials in Canada and internationally. More Details


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Neo Performance Materials's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.8%

NEO

3.5%

CA Chemicals

-0.5%

CA Market


1 Year Return

1.3%

NEO

-12.5%

CA Chemicals

-3.5%

CA Market

Return vs Industry: NEO exceeded the Canadian Chemicals industry which returned -13.4% over the past year.

Return vs Market: NEO exceeded the Canadian Market which returned -4.3% over the past year.


Shareholder returns

NEOIndustryMarket
7 Day0.8%3.5%-0.5%
30 Day15.6%4.0%3.0%
90 Day39.1%25.4%2.4%
1 Year5.7%1.3%-8.2%-12.5%-0.06%-3.5%
3 Yearn/a-27.7%-35.5%7.1%-3.3%
5 Yearn/a-11.3%-26.7%36.8%15.8%

Price Volatility Vs. Market

How volatile is Neo Performance Materials's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Neo Performance Materials undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NEO (CA$12.11) is trading below our estimate of fair value (CA$25.41)

Significantly Below Fair Value: NEO is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NEO is unprofitable, so we can't compare its PE Ratio to the CA Chemicals industry average.

PE vs Market: NEO is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: NEO is good value based on its PB Ratio (1x) compared to the CA Chemicals industry average (2.3x).


Next Steps

Future Growth

How is Neo Performance Materials forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

118.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: NEO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NEO's is expected to become profitable in the next 3 years.

Revenue vs Market: NEO's revenue (6.1% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: NEO's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if NEO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Neo Performance Materials performed over the past 5 years?

-0.07%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEO is currently unprofitable.

Growing Profit Margin: NEO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NEO is unprofitable, and losses have increased over the past 5 years at a rate of 0.07% per year.

Accelerating Growth: Unable to compare NEO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NEO is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-17.5%).


Return on Equity

High ROE: NEO has a negative Return on Equity (-15.22%), as it is currently unprofitable.


Next Steps

Financial Health

How is Neo Performance Materials's financial position?


Financial Position Analysis

Short Term Liabilities: NEO's short term assets ($235.3M) exceed its short term liabilities ($59.7M).

Long Term Liabilities: NEO's short term assets ($235.3M) exceed its long term liabilities ($24.0M).


Debt to Equity History and Analysis

Debt Level: NEO is debt free.

Reducing Debt: NEO had no debt 5 years ago.

Debt Coverage: NEO has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NEO has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Neo Performance Materials's current dividend yield, its reliability and sustainability?

3.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NEO's dividend (3.23%) is higher than the bottom 25% of dividend payers in the Canadian market (1.69%).

High Dividend: NEO's dividend (3.23%) is low compared to the top 25% of dividend payers in the Canadian market (5.83%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, NEO has been paying a dividend for less than 10 years.

Growing Dividend: NEO's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: NEO is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: NEO's dividends in 3 years are forecast to be covered by earnings (63.9% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Constantine Karayannopoulos (59 yo)

0.25

Tenure

US$240,000

Compensation

Mr. Constantine E. Karayannopoulos, BASc, MASc, PEng., has been President and Chief Executive Officer at Neo Performance Materials Inc. since July 07, 2020. Mr. Karayannopoulos was the Chairman of Neo Perf ...


Leadership Team

NamePositionTenureCompensationOwnership
Constantine Karayannopoulos
President0.25yrUS$240.00k0.013%
$ 56.7k
Rahim Suleman
Chief Financial Officer3.08yrsUS$590.48k0.12%
$ 558.7k
Kevin Morris
Executive VP & COO3.08yrsUS$654.91k0.10%
$ 456.3k
Jeffrey Hogan
Executive Vice President of Chemicals & Oxides4.17yrsUS$571.94k0.065%
$ 292.7k
Gregory Kroll
Executive Vice President of Magnequench5.75yrsUS$575.95k0.036%
$ 164.6k
Ali Mahdavi
Capital Markets & IR Executiveno datano datano data
Frank Timmerman
Senior Vice President of Neo Rare Metals4.17yrsno data0.032%
$ 144.4k
Alexander Caldwell
Corporate Secretaryno datano datano data

3.6yrs

Average Tenure

Experienced Management: NEO's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Constantine Karayannopoulos
President0.25yrUS$240.00k0.013%
$ 56.7k
Gregory Share
Independent Director0.25yrno datano data
G. Edwards
Independent Director1.33yrsUS$102.39kno data
Edgar Lee
Director3yrsno datano data
Eric Noyrez
Lead Independent Director3yrsUS$147.00k0.010%
$ 45.4k
Claire M. Kennedy
Independent Chairman of the Board0.25yrUS$185.00kno data
Brook Hinchman
Director3yrsno datano data

3.0yrs

Average Tenure

53yo

Average Age

Experienced Board: NEO's board of directors are considered experienced (3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Neo Performance Materials Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Neo Performance Materials Inc.
  • Ticker: NEO
  • Exchange: TSX
  • Founded: 1994
  • Industry: Specialty Chemicals
  • Sector: Materials
  • Market Cap: CA$453.099m
  • Shares outstanding: 37.60m
  • Website: https://www.neomaterials.com

Number of Employees


Location

  • Neo Performance Materials Inc.
  • 121 King Street West
  • Suite 1740
  • Toronto
  • Ontario
  • M5H 3T9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NEOTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 2017
N14DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2017
NOPM.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2017

Biography

Neo Performance Materials Inc. manufactures and sells rare earth and rare metal-based functional materials in Canada and internationally. The company operates in three segments: Magnequench, Chemicals and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 00:26
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.