Executive Summary
Neo Performance Materials Inc., through its subsidiaries, manufactures rare earth and rare metal-based functional materials in Canada and internationally.
Snowflake
Fundamentals
Very undervalued with excellent balance sheet.
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
Market Performance
7 Day Return
6.8%
NEO
-2.2%
CA Chemicals
0.2%
CA Market
1 Year Return
-31.0%
NEO
-11.0%
CA Chemicals
3.5%
CA Market
Return vs Industry: NEO underperformed the Canadian Chemicals industry which returned -11% over the past year.
Return vs Market: NEO underperformed the Canadian Market which returned 3.5% over the past year.
Shareholder returns
| NEO | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.8% | -2.2% | 0.2% |
| 30 Day | 15.4% | -4.6% | -3.3% |
| 90 Day | -1.3% | -5.9% | -1.9% |
| 1 Year | -28.8%-31.0% | -7.9%-11.0% | 7.3%3.5% |
| 3 Year | n/a | -8.8%-14.2% | 14.7%4.4% |
| 5 Year | n/a | -22.3%-30.5% | 26.2%7.7% |
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
10 months ago | Simply Wall St
Have Insiders Been Buying Neo Performance Materials Inc (TSE:NEO) Shares?11 months ago | Simply Wall St
Is Neo Performance Materials Inc (TSE:NEO) A Great Dividend Stock?1 year 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?
41.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NEO (CA$11.91) is trading below our estimate of fair value (CA$20.35)
Significantly Below Fair Value: NEO is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NEO is good value based on its PE Ratio (13.2x) compared to the Chemicals industry average (15x).
PE vs Market: NEO is good value based on its PE Ratio (13.2x) compared to the Canadian market (13.7x).
Price to Earnings Growth Ratio
PEG Ratio: NEO is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: NEO is good value based on its PB Ratio (0.8x) compared to the CA Chemicals industry average (1.2x).
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?
14.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NEO's forecast earnings growth (14.1% per year) is above the savings rate (1.9%).
Earnings vs Market: NEO's earnings (14.1% per year) are forecast to grow faster than the Canadian market (13% per year).
High Growth Earnings: NEO's earnings are forecast to grow, but not significantly.
Revenue vs Market: NEO's revenue (4.4% per year) is forecast to grow slower than the Canadian market (5.5% per year).
High Growth Revenue: NEO's revenue (4.4% 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?
-22.0%
Last years earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: Insufficient data to determine if NEO's year-on-year earnings growth rate was positive over the past 5 years.
Accelerating Growth: NEO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NEO had negative earnings growth (-22%) over the past year, making it difficult to compare to the Chemicals industry average (-25.7%).
Return on Equity
High ROE: NEO's Return on Equity (6.3%) is considered low.
Return on Assets
ROA vs Industry: NEO has a higher Return on Assets than the Chemicals industry average last year.
Return on Capital Employed
ROCE Improving: Insufficient data to calculate NEO's Return on Capital Employed to determine if it has improved over the past 3 years.
Next Steps
Financial Health
How is Neo Performance Materials's financial position?
Financial Position Analysis
Short Term Liabilities: NEO's short term assets ($274.8M) exceeds its short term liabilities ($59.3M)
Long Term Liabilities: NEO's short term assets (274.8M) exceeds its long term liabilities (41.0M)
Debt to Equity History and Analysis
Debt Level: NEO's debt to equity ratio (0.2%) is considered satisfactory
Reducing Debt: Insufficient data to determine if NEO's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: NEO's debt is well covered by operating cash flow (2054%).
Interest Coverage: NEO's interest payments on its debt are well covered by EBIT (16.1x coverage).
Balance Sheet
Inventory Level: NEO has a high level of physical assets or inventory.
Debt Coverage by Assets: NEO's debt is covered by short term assets (assets are 291.4x debt).
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
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: NEO's dividend (3.25%) is higher than the bottom 25% of dividend payers in the Canadian market (1.98%).
High Dividend: NEO's dividend (3.25%) is low compared to the top 25% of dividend payers in the Canadian market (5.92%).
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 2 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (41.1%), NEO's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
What is the CEO of Neo Performance Materials's salary, the management and board of directors tenure and is there insider trading?
3.2yrs
Average management tenure
CEO
Geoff Bedford (52yo)
2.1yrs
Tenure
US$1,654,360
Compensation
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 O ...
CEO Compensation Analysis
Compensation vs. Market: Insufficient data to establish whether Geoff's total compensation is reasonable compared to companies of similar size in the Canadian market.
Compensation vs Earnings: Geoff's compensation has been consistent with company performance over the past year.
Management Age and Tenure
3.2yrs
Average Tenure
Experienced Management: NEO's management team is considered experienced (3.2 years average tenure).
Board Age and Tenure
2.0yrs
Average Tenure
52yo
Average Age
Experienced Board: NEO's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Executive VP & CFO |
| Shares | 5,000 |
| Max Price | US$11.20 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive VP & CFO |
| Shares | 2,800 |
| Max Price | US$12.00 |
| Entity | Individual |
| Role | Chief Executive Officer President |
| Shares | 10,000 |
| Max Price | US$12.79 |
| Entity | Individual |
| Role | Member of the Board of Directors Executive VP & CFO |
| Shares | 10,000 |
| Max Price | US$12.82 |
Ownership Breakdown
Management Team
Alex Caldwell
Corporate Secretary
- Tenure: 0yrs
Geoff Bedford (52yo)
President
- Tenure: 2.1yrs
- Compensation: US$1.65m
Kevin Morris (50yo)
Executive VP & COO
- Tenure: 2.1yrs
- Compensation: US$658.77k
Jeff Hogan
Executive VP of Neo Chemicals & Oxides
- Tenure: 3.2yrs
- Compensation: US$519.44k
Frank Timmerman
Senior Vice President of Neo Rare Metals
- Tenure: 3.2yrs
Greg Kroll
Executive Vice President of Magnquech
- Tenure: 4.8yrs
- Compensation: US$1.18m
Ali Mahdavi
Capital Markets & IR Executive
- Tenure: 0yrs
Board Members
G. Edwards (63yo)
Independent Director
- Tenure: 0.3yrs
Constantine Karayannopoulos (58yo)
Independent Chairman
- Tenure: 2yrs
- Compensation: US$240.00k
Geoff Bedford (52yo)
President
- Tenure: 2.1yrs
- Compensation: US$1.65m
Edgar Lee (43yo)
Independent Director
- Tenure: 2yrs
Emily Stephens (43yo)
Independent Director
- Tenure: 2yrs
Eric Noyrez (57yo)
Lead Independent Director
- Tenure: 2yrs
- Compensation: US$147.00k
Claire M. Kennedy (52yo)
Independent Director
- Tenure: 2yrs
- Compensation: US$145.00k
Brook Hinchman (36yo)
Independent Director
- Tenure: 2yrs
Nicholas Basso
Independent Director
- Tenure: 2yrs
Rahim Suleman
Executive VP & CFO
- Tenure: 2.1yrs
- Compensation: US$604.39k
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$458.918m
- Shares outstanding: 38.53m
- 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., through its subsidiaries, manufactures rare earth and rare metal-based functional materials in Canada and internationally. The company operates through three segments: Magne ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/23 00:34 |
| End of Day Share Price | 2019/10/22 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.