Executive Summary
Neo Performance Materials Inc. manufactures and sells rare earth and rare metal-based functional materials in Canada and internationally. More Details
Rewards
Risk Analysis
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
| NEO | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.8% | 3.5% | -0.5% |
| 30 Day | 15.6% | 4.0% | 3.0% |
| 90 Day | 39.1% | 25.4% | 2.4% |
| 1 Year | 5.7%1.3% | -8.2%-12.5% | -0.06%-3.5% |
| 3 Year | n/a | -27.7%-35.5% | 7.1%-3.3% |
| 5 Year | n/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
1 year ago | Simply Wall St
Have Insiders Been Buying Neo Performance Materials Inc (TSE:NEO) Shares?1 year ago | Simply Wall St
Is Neo Performance Materials Inc (TSE:NEO) A Great Dividend Stock?2 years ago | Simply Wall St
Neo Performance Materials Inc (TSE:NEO) Is Trading At A 21.99% DiscountValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.25yr | US$240.00k | 0.013% $ 56.7k | |
| Chief Financial Officer | 3.08yrs | US$590.48k | 0.12% $ 558.7k | |
| Executive VP & COO | 3.08yrs | US$654.91k | 0.10% $ 456.3k | |
| Executive Vice President of Chemicals & Oxides | 4.17yrs | US$571.94k | 0.065% $ 292.7k | |
| Executive Vice President of Magnequench | 5.75yrs | US$575.95k | 0.036% $ 164.6k | |
| Capital Markets & IR Executive | no data | no data | no data | |
| Senior Vice President of Neo Rare Metals | 4.17yrs | no data | 0.032% $ 144.4k | |
| Corporate Secretary | no data | no data | no data |
3.6yrs
Average Tenure
Experienced Management: NEO's management team is considered experienced (3.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.25yr | US$240.00k | 0.013% $ 56.7k | |
| Independent Director | 0.25yr | no data | no data | |
| Independent Director | 1.33yrs | US$102.39k | no data | |
| Director | 3yrs | no data | no data | |
| Lead Independent Director | 3yrs | US$147.00k | 0.010% $ 45.4k | |
| Independent Chairman of the Board | 0.25yr | US$185.00k | no data | |
| Director | 3yrs | no data | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| NEO | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Dec 2017 |
| N14 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Dec 2017 |
| NOPM.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Dec 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/24 00:26 |
| End of Day Share Price | 2020/10/23 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.