Neo Performance Materials Inc.

TSX:NEO Stock Report

Market Cap: CA$326.9m

Neo Performance Materials Valuation

Is NEO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NEO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NEO (CA$7.65) is trading below our estimate of fair value (CA$167.7)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NEO?

Key metric: As NEO is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for NEO. This is calculated by dividing NEO's market cap by their current revenue.
What is NEO's PS Ratio?
PS Ratio0.5x
SalesUS$469.59m
Market CapUS$234.11m

Price to Sales Ratio vs Peers

How does NEO's PS Ratio compare to its peers?

The above table shows the PS ratio for NEO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.2x
ECO EcoSynthetix
10.4xn/aCA$232.1m
VNP 5N Plus
1.4x9.4%CA$583.2m
AIM Aimia
0.5x11.3%CA$243.1m
IFOS Itafos
0.5xn/aCA$334.1m
NEO Neo Performance Materials
0.5x2.3%CA$326.9m

Price-To-Sales vs Peers: NEO is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (3.2x).

Price to Sales Ratio vs Industry

How does NEO's PS Ratio compare vs other companies in the CA Chemicals Industry?

3 CompaniesPrice / SalesEstimated GrowthMarket Cap
BOS AirBoss of America
0.2x9.0%US$82.08m
PRH Pearl River Holdings
0.08xn/aUS$2.93m
GDNP.H good natured Products
0.03xn/aUS$1.31m
No more companies available in this PS range
NEO 0.5xIndustry Avg. 0.9xNo. of Companies6PS01.22.43.64.86+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: NEO is good value based on its Price-To-Sales Ratio (0.5x) compared to the Canadian Chemicals industry average (0.9x).

Price to Sales Ratio vs Fair Ratio

What is NEO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NEO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.5x
Fair PS Ratio0.7x

Price-To-Sales vs Fair Ratio: NEO is good value based on its Price-To-Sales Ratio (0.5x) compared to the estimated Fair Price-To-Sales Ratio (0.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst NEO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$7.65
CA$13.36
+74.7%
8.1%CA$14.88CA$11.93n/a4
Nov ’25CA$8.01
CA$13.03
+62.6%
10.5%CA$15.15CA$11.14n/a5
Oct ’25CA$8.11
CA$12.71
+56.8%
9.8%CA$14.37CA$10.90n/a5
Sep ’25CA$8.30
CA$12.71
+53.2%
9.8%CA$14.37CA$10.90n/a5
Aug ’25CA$7.79
CA$11.46
+47.1%
8.6%CA$13.04CA$10.09n/a5
Jul ’25CA$8.25
CA$11.39
+38.0%
8.7%CA$13.00CA$10.03n/a5
Jun ’25CA$6.84
CA$10.26
+50.0%
14.5%CA$11.79CA$7.50n/a5
May ’25CA$5.73
CA$10.54
+83.9%
19.9%CA$13.72CA$7.51n/a5
Apr ’25CA$6.34
CA$10.42
+64.4%
19.6%CA$13.54CA$7.52n/a5
Mar ’25CA$7.12
CA$12.17
+70.9%
18.3%CA$15.65CA$8.99n/a5
Feb ’25CA$7.36
CA$12.32
+67.3%
18.8%CA$15.89CA$8.94n/a5
Jan ’25CA$7.63
CA$12.32
+61.4%
18.8%CA$15.89CA$8.94n/a5
Dec ’24CA$7.59
CA$12.32
+62.3%
18.8%CA$15.89CA$8.94n/a5
Nov ’24CA$6.82
CA$13.30
+95.1%
16.5%CA$16.21CA$9.49CA$8.015
Oct ’24CA$8.03
CA$13.16
+63.9%
16.0%CA$15.99CA$9.52CA$8.115
Sep ’24CA$9.45
CA$13.16
+39.2%
16.0%CA$15.99CA$9.52CA$8.305
Aug ’24CA$8.35
CA$12.49
+49.5%
20.7%CA$15.86CA$8.00CA$7.795
Jul ’24CA$8.20
CA$12.38
+50.9%
21.7%CA$16.06CA$8.15CA$8.255
Jun ’24CA$8.23
CA$12.42
+50.9%
21.3%CA$15.96CA$8.23CA$6.845
May ’24CA$8.96
CA$16.75
+87.0%
26.2%CA$25.04CA$13.24CA$5.735
Apr ’24CA$9.28
CA$16.97
+82.9%
24.8%CA$24.99CA$12.95CA$6.345
Mar ’24CA$10.10
CA$19.43
+92.3%
32.4%CA$31.85CA$15.04CA$7.125
Feb ’24CA$11.99
CA$18.98
+58.3%
32.1%CA$31.02CA$14.87CA$7.365
Jan ’24CA$9.60
CA$18.60
+93.8%
30.7%CA$31.22CA$14.96CA$7.636
Dec ’23CA$10.38
CA$18.60
+79.2%
30.7%CA$31.22CA$14.96CA$7.596
Nov ’23CA$10.25
CA$23.19
+126.2%
21.2%CA$31.99CA$16.99CA$6.826

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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