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Neo Performance Materials

TSX:NEO
Snowflake Description

Good value with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NEO
TSX
CA$495M
Market Cap
  1. Home
  2. CA
  3. Materials
Company description

Neo Performance Materials Inc., through its subsidiaries, manufactures rare earth- and rare metal-based functional materials in Canada and internationally. The last earnings update was 7 days ago. More info.


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  • Neo Performance Materials has significant price volatility in the past 3 months.
NEO Share Price and Events
7 Day Returns
22.8%
TSX:NEO
-0.1%
CA Chemicals
0.9%
CA Market
1 Year Returns
-22.6%
TSX:NEO
6.4%
CA Chemicals
-0.2%
CA Market
NEO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Neo Performance Materials (NEO) 22.8% -25.3% -24.8% -22.6% - -
CA Chemicals -0.1% 0.1% 14.9% 6.4% 41.7% -9.2%
CA Market 0.9% 2.2% 10.5% -0.2% 15.7% 4.9%
1 Year Return vs Industry and Market
  • NEO underperformed the Chemicals industry which returned 6.4% over the past year.
  • NEO underperformed the Market in Canada which returned -0.2% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

NEO Value

 Is Neo Performance Materials undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Neo Performance Materials to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Neo Performance Materials.

TSX:NEO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:NEO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Chemicals Unlevered Beta Simply Wall St/ S&P Global 1.34
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.345 (1 + (1- 26.5%) (1.07%))
1.238
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.24
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.238 * 5.96%)
9.33%

Discounted Cash Flow Calculation for TSX:NEO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Neo Performance Materials is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:NEO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.33%)
2019 52.38 Analyst x3 47.91
2020 53.48 Analyst x3 44.74
2021 54.57 Est @ 2.03% 41.76
2022 55.66 Est @ 2.01% 38.96
2023 56.77 Est @ 1.99% 36.35
2024 57.89 Est @ 1.98% 33.90
2025 59.03 Est @ 1.97% 31.62
2026 60.19 Est @ 1.96% 29.49
2027 61.37 Est @ 1.96% 27.50
2028 62.57 Est @ 1.95% 25.65
Present value of next 10 years cash flows $357.90
TSX:NEO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $62.57 × (1 + 1.95%) ÷ (9.33% – 1.95%)
$864.33
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $864.33 ÷ (1 + 9.33%)10
$354.34
TSX:NEO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $357.90 + $354.34
$712.24
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $712.24 / 39.65
$17.96
TSX:NEO Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:NEO)
1.334
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $17.96 x 1.334
CA$23.95
Value per share (CAD) From above. CA$23.95
Current discount Discount to share price of CA$12.48
= -1 x (CA$12.48 - CA$23.95) / CA$23.95
47.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Neo Performance Materials is available for.
Intrinsic value
48%
Share price is CA$12.48 vs Future cash flow value of CA$23.95
Current Discount Checks
For Neo Performance Materials to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Neo Performance Materials's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Neo Performance Materials's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Neo Performance Materials's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Neo Performance Materials's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:NEO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $1.02
TSX:NEO Share Price ** TSX (2019-03-15) in CAD CA$12.48
TSX:NEO Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.75 $9.36
Canada Chemicals Industry PE Ratio Median Figure of 6 Publicly-Listed Chemicals Companies 9.05x
Canada Market PE Ratio Median Figure of 542 Publicly-Listed Companies 14.84x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Neo Performance Materials.

TSX:NEO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:NEO Share Price ÷ EPS (both in USD)

= 9.36 ÷ 1.02

9.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Neo Performance Materials is overvalued based on earnings compared to the CA Chemicals industry average.
  • Neo Performance Materials is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Neo Performance Materials's expected growth come at a high price?
Raw Data
TSX:NEO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.14x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
0.8%per year
North America Chemicals Industry PEG Ratio Median Figure of 49 Publicly-Listed Chemicals Companies 1.45x
Canada Market PEG Ratio Median Figure of 251 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

TSX:NEO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.14x ÷ 0.8%

11.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Neo Performance Materials is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Neo Performance Materials's assets?
Raw Data
TSX:NEO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $10.91
TSX:NEO Share Price * TSX (2019-03-15) in CAD CA$12.48
TSX:NEO Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.75 $9.36
Canada Chemicals Industry PB Ratio Median Figure of 29 Publicly-Listed Chemicals Companies 1.38x
Canada Market PB Ratio Median Figure of 2,348 Publicly-Listed Companies 1.57x
TSX:NEO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:NEO Share Price ÷ Book Value per Share (both in USD)

= 9.36 ÷ 10.91

0.86x

* Primary Listing of Neo Performance Materials.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Neo Performance Materials is good value based on assets compared to the CA Chemicals industry average.
X
Value checks
We assess Neo Performance Materials's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Chemicals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Chemicals industry average (and greater than 0)? (1 check)
  5. Neo Performance Materials has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

NEO Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
0.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Neo Performance Materials expected to grow at an attractive rate?
  • Neo Performance Materials's earnings growth is positive but not above the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Neo Performance Materials's earnings growth is positive but not above the Canada market average.
  • Neo Performance Materials's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:NEO Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:NEO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 0.8%
TSX:NEO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 2.5%
Canada Chemicals Industry Earnings Growth Rate Market Cap Weighted Average 28.7%
Canada Chemicals Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
Canada Market Earnings Growth Rate Market Cap Weighted Average 17.9%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:NEO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:NEO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 477 61 41 6
2019-12-31 456 65 36 6
TSX:NEO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 454 -9 41
2018-09-30 454 2 35
2018-06-30 456 44 35
2018-03-31 448 51 25
2017-12-31 434 60 25
2017-09-30 272 14 18
2017-06-30 250 -16 3
2017-03-31 242 6 -4
2016-12-31 229 13 -14

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Neo Performance Materials's earnings are expected to grow by 0.8% yearly, however this is not considered high growth (20% yearly).
  • Neo Performance Materials's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:NEO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from Neo Performance Materials Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:NEO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 1.02 1.03 1.00 2.00
2019-12-31 0.89 0.95 0.82 2.00
TSX:NEO Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 1.02
2018-09-30 0.87
2018-06-30 0.88
2018-03-31 0.63
2017-12-31 0.62
2017-09-30 0.38
2017-06-30 0.09
2017-03-31 -0.11
2016-12-31 -0.80

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Neo Performance Materials is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Neo Performance Materials's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Neo Performance Materials has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

NEO Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Neo Performance Materials's growth in the last year to its industry (Chemicals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Unable to establish if Neo Performance Materials's year on year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.
  • Unable to compare Neo Performance Materials's 1-year earnings growth to the 5-year average as it has been trading publicly for less than 3 years.
  • Neo Performance Materials's earnings growth has exceeded the North America Chemicals industry average in the past year (65.7% vs 13.2%).
Earnings and Revenue History
Neo Performance Materials's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Neo Performance Materials Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:NEO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 454.20 40.80 53.38 16.84
2018-09-30 454.29 34.61 60.93 17.44
2018-06-30 456.49 34.99 64.60 17.49
2018-03-31 447.69 25.11 69.45 16.77
2017-12-31 434.17 24.62 69.46 15.71
2017-09-30 272.12 17.78 43.10 9.07
2017-06-30 250.39 3.19 39.01 8.17
2017-03-31 241.97 -4.47 32.59 7.75
2016-12-31 228.53 -14.28 29.78 7.90

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Neo Performance Materials has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Neo Performance Materials used its assets less efficiently than the CA Chemicals industry average last year based on Return on Assets.
  • Unable to establish if Neo Performance Materials improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Neo Performance Materials's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Chemicals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Neo Performance Materials has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

NEO Health

 How is Neo Performance Materials's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Neo Performance Materials's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Neo Performance Materials is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Neo Performance Materials's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Neo Performance Materials's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 70.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Neo Performance Materials Company Filings, last reported 2 months ago.

TSX:NEO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 437.18 3.97 71.02
2018-09-30 437.57 0.01 69.34
2018-06-30 438.70 0.01 74.66
2018-03-31 431.58 0.55 94.54
2017-12-31 419.25 0.18 96.81
2017-09-30 443.44 0.00 113.06
2017-06-30 430.54 0.00 77.97
2017-03-31 404.10 7.93 79.41
2016-12-31 404.10 7.93 79.41
  • Neo Performance Materials's level of debt (0.9%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Neo Performance Materials's debt level has increased without past 5-year debt data.
  • Operating cash flow is negative therefore debt is not well covered.
  • Neo Performance Materials earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Neo Performance Materials's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Neo Performance Materials has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

NEO Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.03%
Current annual income from Neo Performance Materials dividends. Estimated to be 3.03% next year.
If you bought CA$2,000 of Neo Performance Materials shares you are expected to receive CA$61 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Neo Performance Materials's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.09%).
  • Neo Performance Materials's dividend is below the markets top 25% of dividend payers in Canada (5.65%).
Upcoming dividend payment

Purchase Neo Performance Materials on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:NEO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
North America Chemicals Industry Average Dividend Yield Market Cap Weighted Average of 55 Stocks 2.3%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:NEO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31 0.28 1.00
TSX:NEO Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-11 0.283 3.252
2018-11-14 0.278 2.469
2018-08-13 0.287 2.134
2018-03-08 0.285 2.204

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Neo Performance Materials has stable dividend payments.
  • Neo Performance Materials only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Neo Performance Materials's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.7x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Neo Performance Materials's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Neo Performance Materials afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Neo Performance Materials has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

NEO Management

 What is the CEO of Neo Performance Materials's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Geoff Bedford
COMPENSATION $1,926,371
AGE 51
TENURE AS CEO 1.5 years
CEO Bio

Mr. Geoffrey R. Bedford, also known as Geoff, has been Chief Executive Officer and President at Neo Performance Materials Inc. since September 2017. Previously, he served as President and Chief Executive Officer of Molycorp, Inc. since December 2, 2013. Mr. Bedford served as the Chief Operating Officer and Executive Vice President of Molycorp, Inc. from March 22, 2013 to December 2, 2013. He served as the Chief Operating Officer and Executive Vice President of Neo Material Technologies Inc. from August 2011 to March 2013. He served as an Executive Vice President of Rare Earths & Magnetics at Molycorp, Inc. from June 2012 to March 22, 2013. He served as an Executive Vice President of Performance Materials Division of Neo Material Technologies Inc. since 2005 until 2011. He served as Executive Vice President of Finance and Chief Financial Officer at Neo Materials from 1999 to 2005. He served as an Executive Vice President of AMR Performance Materials Division at Neo Material Technologies Inc. since August 31, 2005. Mr. Bedford served as the Chief Financial Officer of AMR Technologies Inc. since July 1999 and also served as its Executive Vice President since December 2004, Executive Vice President of Rare Earths and Zirconium Operations since September 2005 and Vice President of Finance from July 1999 to December 14, 2004. Before joining Neo Materials, Mr. Bedford held successively senior financial positions with The Woodbridge Group and Champion Road Machinery. He began his professional career with Price Waterhouse and has a broad range of operating, management and financial experience. He has been Director at Neo Performance Materials Inc. since September 2017. He has been a Director of Molycorp, Inc since December 19, 2013. He has been a Director of Neo Material Technologies Inc. since May 2012. He is a Canadian Chartered Accountant holding a Bachelor of Science degree from the University of Western Ontario and a Masters of Business and Administration from Northwestern University and is a graduate of the Kellogg-Schulich Executive Masters of Business Administration program.

CEO Compensation
  • Insufficient data for Geoff to compare compensation growth.
  • Geoff's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Neo Performance Materials management team in years:

2.6
Average Tenure
  • The tenure for the Neo Performance Materials management team is about average.
Management Team

Geoff Bedford

TITLE
President
COMPENSATION
$2M
AGE
51
TENURE
1.5 yrs

Kevin Morris

TITLE
Executive VP & COO
COMPENSATION
$868K
AGE
49
TENURE
1.5 yrs

Jeff Hogan

TITLE
Executive VP of Neo Chemicals & Oxides
COMPENSATION
$757K
TENURE
2.6 yrs

Ali Mahdavi

TITLE
Capital Markets & IR Executive

Frank Timmerman

TITLE
Senior Vice President of Neo Rare Metals
TENURE
2.6 yrs

Greg Kroll

TITLE
Executive Vice President of Magnquech
TENURE
4.2 yrs

Alex Caldwell

TITLE
Corporate Secretary
Board of Directors Tenure

Average tenure and age of the Neo Performance Materials board of directors in years:

1.4
Average Tenure
51
Average Age
  • The average tenure for the Neo Performance Materials board of directors is less than 3 years, this suggests a new board.
Board of Directors

Constantine Karayannopoulos

TITLE
Chairman
COMPENSATION
$163K
AGE
57
TENURE
1.4 yrs

Geoff Bedford

TITLE
President
COMPENSATION
$2M
AGE
51
TENURE
1.5 yrs

Eric Noyrez

TITLE
Lead Independent Director
COMPENSATION
$77K
AGE
56
TENURE
1.4 yrs

Claire M. Kennedy

TITLE
Independent Director
COMPENSATION
$13K
AGE
51
TENURE
1.4 yrs

Rahim Suleman

TITLE
Executive VP & CFO
COMPENSATION
$2M
TENURE
1.5 yrs

Nicholas Basso

TITLE
Director
TENURE
1.4 yrs

Brook Hinchman

TITLE
AGE
35
TENURE
1.4 yrs

Aman Kumar

TITLE
Director
TENURE
1.4 yrs

Edgar Lee

TITLE
Director
AGE
42
TENURE
1.4 yrs

Emily Stephens

TITLE
Director
AGE
42
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
25. Jun 18 Buy Geoffrey Bedford Individual 22. Jun 18 22. Jun 18 6,000 CA$16.40 CA$98,400
X
Management checks
We assess Neo Performance Materials's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Neo Performance Materials has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

NEO News

Simply Wall St News

Have Insiders Been Buying Neo Performance Materials Inc (TSE:NEO) Shares?

So before you buy or sell Neo Performance Materials Inc (TSE:NEO), you may well want to know whether insiders have been buying or selling. … The Last 12 Months Of Insider Transactions At Neo Performance Materials. … In total, Neo Performance Materials insiders bought more than they sold over the last year

Simply Wall St -

Is Neo Performance Materials Inc (TSE:NEO) A Great Dividend Stock?

Neo Performance Materials Inc (TSE:NEO) has begun paying dividends recently. … Let's take a look at Neo Performance Materials in more detail. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:

Simply Wall St -

Neo Performance Materials Inc (TSE:NEO) Is Trading At A 21.99% Discount

In this article I am going to calculate the intrinsic value of Neo Performance Materials Inc (TSE:NEO). … by estimating the company's future cash flows and discounting them to their present value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Does Neo Performance Materials Inc's (TSE:NEO) PE Ratio Warrant A Buy?

I am writing today to help inform people who are new to the stock market. … and want to learn about the link between company’s fundamentals and stock market performance. … View our latest analysis for Neo Performance Materials

Simply Wall St -

How Did Neo Performance Materials Inc's (TSE:NEO) 6.03% ROE Fare Against The Industry?

and want to learn about Return on Equity using a real-life example. … With an ROE of 6.03%, Neo Performance Materials Inc (TSE:NEO) returned in-line to its own industry which delivered 8.83% over the past year. … Check out our latest analysis for Neo Performance Materials

Simply Wall St -

Is It Too Late To Buy Neo Performance Materials Inc (TSE:NEO) At Its July Price?

Growth expectations for Neo Performance Materials Inc (TSE:NEO) are high, but many investors are starting to ask whether its last close at CA$17.01 can still be rationalized by the future potential. … View our latest analysis for Neo Performance Materials? … Neo Performance Materials is poised for extremely high earnings growth in the near future

Simply Wall St -

What To Know Before Buying Neo Performance Materials Inc (TSE:NEO) For Its Dividend

Recently, Neo Performance Materials Inc (TSE:NEO) has returned an average of 2.00% per year to shareholders in terms of dividend yield. … Does Neo Performance Materials tick all the boxes of a great dividend stock? … See our latest analysis for Neo Performance Materials

Simply Wall St -

Read This Before Buying Neo Performance Materials Inc (TSE:NEO) For Its Upcoming CA$00.095 Dividend

On the 29 June 2018, Neo Performance Materials Inc (TSE:NEO) will be paying shareholders an upcoming dividend amount of $0.095 per share. … Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … Let's take a look at Neo Performance Materials's most recent financial data to examine its dividend characteristics in more detail.

Simply Wall St -

Does Neo Performance Materials Inc's (TSE:NEO) PE Ratio Signal A Selling Opportunity?

By comparing a stock’s price per share to its earnings per share, we are able to see how much investors are paying for each dollar of the company’s earnings. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for NEO Price per share = $13.54 Earnings per share = $0.619 ∴ Price-Earnings Ratio = $13.54 ÷ $0.619 = 21.9x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … NEO’s P/E of 21.9x is higher than its industry peers (17.9x), which implies that each dollar of NEO’s earnings is being overvalued by investors.

Simply Wall St -

Analysts Bullish On Neo Performance Materials Inc (TSE:NEO)

NEO has high near term liquidity, with short term assets (cash and other liquid assets) amply covering upcoming one-year liabilities, as well as long-term commitments. … NEO has managed its cash well at a current level of US$96.81M. … However, comparing NEO's current share price to its peers based on its industry and earnings level, it's trading at a fair value, with a PE ratio of 22.77x vs.

Simply Wall St -

NEO Company Info

Description

Neo Performance Materials Inc., through its subsidiaries, manufactures rare earth- and rare metal-based functional materials in Canada and internationally. It operates through three segments: Magnequench, Chemicals & Oxides (C&O), and Rare Metals. The Magnequench segment produces magnetic powders that are used in bonded and hot deformed fully dense neodymium-iron-boron magnets. Its powders are used in the production of bonded permanent magnets that are components in automotive, micro, and traction motors, as well as sensors and other applications. The C&O segment manufactures and distributes a range of light and heavy rare earth functional materials for use in auto catalyst, consumer electronic, petroleum refining, hybrid and electric vehicle, and wastewater treatment applications. The Rare Metals segment sources, produces, reclaims, refines, and markets high value metals and their compounds. Its products comprise high temperature metals consisting of tantalum, niobium, hafnium, and rhenium; and electronic metals, such as gallium and indium. This segment’s products are used in superalloys for jet engines, medical imaging, wireless technologies, and LED lighting, as well as flat panel display, solar, steel additive, battery, and electronics applications. The company was founded in 1994 and is headquartered in Toronto, Canada.

Details
Name: Neo Performance Materials Inc.
NEO
Exchange: TSX
Founded: 1994
CA$494,836,243
39,650,340
Website: http://www.neomaterials.com
Address: Neo Performance Materials Inc.
121 King Street West,
Suite 1740,
Toronto,
Ontario, M5H 3T9,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX NEO Common Shares The Toronto Stock Exchange CA CAD 08. Dec 2017
OTCPK NOPM.F Common Shares Pink Sheets LLC US USD 08. Dec 2017
DB N14 Common Shares Deutsche Boerse AG DE EUR 08. Dec 2017
Number of employees
Current staff
Staff numbers
1,815
Neo Performance Materials employees.
Industry
Specialty Chemicals
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/18 00:50
End of day share price update: 2019/03/15 00:00
Last estimates confirmation: 2019/03/12
Last earnings filing: 2019/03/11
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.