TSX:NPK

Stock Analysis Report

Executive Summary

Verde Agritech Plc, an agri-tech company, evaluates, explores for, and develops mineral properties primarily in Brazil.


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

How has Verde Agritech's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NPK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

30.4%

NPK

8.7%

CA Chemicals

7.1%

CA Market


1 Year Return

-53.8%

NPK

-43.0%

CA Chemicals

-25.3%

CA Market

Return vs Industry: NPK underperformed the Canadian Chemicals industry which returned -43% over the past year.

Return vs Market: NPK underperformed the Canadian Market which returned -25.3% over the past year.


Shareholder returns

NPKIndustryMarket
7 Day30.4%8.7%7.1%
30 Day-16.7%-22.7%-24.1%
90 Day-29.4%-34.4%-26.7%
1 Year-53.8%-53.8%-41.3%-43.0%-22.9%-25.3%
3 Year-45.5%-45.5%-66.9%-69.3%-15.6%-23.4%
5 Year-29.4%-29.4%-66.0%-70.1%-3.2%-17.5%

Price Volatility Vs. Market

How volatile is Verde Agritech's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Verde Agritech undervalued compared to its fair value and its price relative to the market?

0.58x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate NPK's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate NPK's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

PE vs Market: NPK 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 NPK's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NPK is good value based on its PB Ratio (0.6x) compared to the CA Chemicals industry average (0.7x).


Next Steps

Future Growth

How is Verde Agritech forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

12.0%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Verde Agritech has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Verde Agritech performed over the past 5 years?

-9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NPK is currently unprofitable.

Growing Profit Margin: NPK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NPK is unprofitable, and losses have increased over the past 5 years at a rate of -9.2% per year.

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

Earnings vs Industry: NPK is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-9.2%).


Return on Equity

High ROE: NPK has a negative Return on Equity (-7.29%), as it is currently unprofitable.


Next Steps

Financial Health

How is Verde Agritech's financial position?


Financial Position Analysis

Short Term Liabilities: NPK's short term assets (CA$3.5M) exceed its short term liabilities (CA$1.9M).

Long Term Liabilities: NPK's short term assets (CA$3.5M) do not cover its long term liabilities (CA$6.1M).


Debt to Equity History and Analysis

Debt Level: NPK's debt to equity ratio (1.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if NPK's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: NPK has a high level of physical assets or inventory.

Debt Coverage by Assets: NPK's debt is covered by short term assets (assets are 8.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: NPK has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: NPK has less than a year of cash runway if free cash flow continues to grow at historical rates of 26.7% each year.


Next Steps

Dividend

What is Verde Agritech's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NPK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NPK's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NPK's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NPK's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NPK's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

8.5yrs

Average board tenure


CEO

Cristiano Veloso (38yo)

no data

Tenure

CA$496,411

Compensation

Mr. Cristiano Botelho Veloso is the Founder of Verde Agritech Plc (formerly, Verde Potash Plc), serves as its Chief Executive Officer and President. Mr. Veloso founded Amazon Mining Limited in 2005 and has ...


CEO Compensation Analysis

Compensation vs Market: Cristiano's total compensation ($USD352.72K) is above average for companies of similar size in the Canadian market ($USD157.44K).

Compensation vs Earnings: Cristiano's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Cristiano Veloso
Founderno dataCA$496.41k15.33% CA$1.9m
Derek Fray
Member of Technical Advisory Committeeno datano datano data
Getulio de Paula Fonseca
Independent Non-Executive Director12.75yrsCA$42.02k0.47% CA$57.4k
Paulo Sergio Machado
Independent Non-Executive Director3.08yrsCA$20.40k0.20% CA$24.1k
Renato Gomes
Independent Non-Executive Director10.75yrsCA$43.02k0.40% CA$48.8k
Alysson Paolinelli
Independent Non-Executive Director6.17yrsCA$11.00k0.079% CA$9.6k
Gaspar Korndörfer
Member of Technical Advisory Committeeno datano datano data
Michael St Aldwyn
Independent Non-Executive Director1.75yrsCA$122.42k0.21% CA$25.1k

8.5yrs

Average Tenure

63.5yo

Average Age

Experienced Board: NPK's board of directors are considered experienced (8.5 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 been diluted in the past year, with total shares outstanding growing by 10.3%.


Top Shareholders

Company Information

Verde Agritech Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Verde Agritech Plc
  • Ticker: NPK
  • Exchange: TSX
  • Founded: 2005
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: CA$12.201m
  • Shares outstanding: 46.93m
  • Website: https://www.verdeagritech.com

Number of Employees


Location

  • Verde Agritech Plc
  • Av. Álvares Cabral 1777
  • 2° andar
  • Belo Horizonte
  • Minas Gerais
  • 30180-008
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NPKTSX (The Toronto Stock Exchange)YesOrdinary SharesCACADNov 2007
AZADB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2007
AMHP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2007

Biography

Verde Agritech Plc, an agri-tech company, evaluates, explores for, and develops mineral properties primarily in Brazil. The company produces Super Greensand, a fertilizer and a soil conditioner; and focuses on mining of glauconitic siltstone material, a potassium silicate rock that is used in the production of TK47, a fertilizer product. It also holds interests in the Cerrado Verde potash project and the Calcario limestone project located in the western Alto Paranaiba region of Minas Gerais State, Brazil. The company was formerly known as Verde Potash PLC and changed its name to Verde Agritech Plc in June 2016. Verde Agritech Plc was founded in 2005 and is headquartered in Belo Horizonte, Brazil. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 02:28
End of Day Share Price2020/03/27 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.