TSXV:IFOS

Stock Analysis Report

Executive Summary

Itafos operates as a vertically integrated phosphate fertilizers and specialty products company.

Risk Analysis

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year

Does not have a meaningful market cap (CA$71M)



Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

18.3%

IFOS

-3.7%

CA Chemicals

0.6%

CA Market


1 Year Return

-33.6%

IFOS

-24.4%

CA Chemicals

5.8%

CA Market

Return vs Industry: IFOS underperformed the Canadian Chemicals industry which returned -24.4% over the past year.

Return vs Market: IFOS underperformed the Canadian Market which returned 5.8% over the past year.


Shareholder returns

IFOSIndustryMarket
7 Day18.3%-3.7%0.6%
30 Dayn/a-10.8%0.5%
90 Day-53.8%-13.1%3.6%
1 Year-33.6%-33.6%-21.8%-24.4%9.1%5.8%
3 Year-79.8%-79.8%-30.4%-34.6%15.4%5.0%
5 Yearn/a-23.5%-31.9%33.6%14.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.25x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: IFOS is good value based on its PB Ratio (0.2x) compared to the CA Chemicals industry average (1.3x).


Next Steps

Future Growth

How is Itafos forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

64.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IFOS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: IFOS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: IFOS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: IFOS's revenue is expected to decline over the next 3 years (-7.9% per year).

High Growth Revenue: IFOS's revenue is forecast to decline over the next 3 years (-7.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if IFOS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Itafos performed over the past 5 years?

-12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IFOS is currently unprofitable.

Growing Profit Margin: IFOS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IFOS is unprofitable, and losses have increased over the past 5 years at a rate of -12.5% per year.

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

Earnings vs Industry: IFOS is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-16.5%).


Return on Equity

High ROE: IFOS has a negative Return on Equity (-97.77%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Itafos's financial position?


Financial Position Analysis

Short Term Liabilities: IFOS's short term assets ($165.2M) exceed its short term liabilities ($89.7M).

Long Term Liabilities: IFOS's short term assets ($165.2M) do not cover its long term liabilities ($263.2M).


Debt to Equity History and Analysis

Debt Level: IFOS's debt to equity ratio (89.8%) is considered high.

Reducing Debt: IFOS's debt to equity ratio has reduced from 126% to 89.8% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: IFOS's debt is not covered by short term assets (assets are 0.9x 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: IFOS has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: IFOS has less than a year of cash runway if free cash flow continues to grow at historical rates of 15.7% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate IFOS'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 IFOS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IFOS'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 IFOS'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?

0.8yrs

Average management tenure


CEO

Mhamed Ibnabdeljalil (54yo)

0.8yrs

Tenure

US$180,473

Compensation

Dr. Mhamed Ibnabdeljalil, Ph.D., has been Chief Executive Officer of Itafos since January 20, 2020. He was an Interim Chief Executive Officer of Itafos since May 16, 2019. Dr. Ibnabdeljalil is the Founder  ...


Leadership Team

NamePositionTenureCompensationOwnership
Mhamed Ibnabdeljalil
CEO & Director0.8yrsUS$180.47k0.0064% $4.5k
George Burdette
Chief Financial Officer1.8yrsUS$341.93kno data
Fernando Padula
General Counsel & Corporate Secretary3yrsUS$414.23k0.0038% $2.7k
Timothy Vedder
VP Operations & GM of Itafos Conda0.3yrsno datano data
Wynand van Dyk
Vice President of Operations0.8yrsno datano data

0.8yrs

Average Tenure

Experienced Management: IFOS's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mhamed Ibnabdeljalil
CEO & Director0.8yrsUS$180.47k0.0064% $4.5k
George Delaney
Independent Director3yrsUS$180.47k0.026% $18.7k
Ronald Wilkinson
Independent Director2.1yrsUS$180.47kno data
Evgenij Iorich
Director2.6yrsUS$180.47k0.0093% $6.5k
Anthony Cina
Interim Chairman of the Board0.3yrsUS$180.47k0.020% $14.1k

2.6yrs

Average Tenure

54yo

Average Age

Experienced Board: IFOS's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.8%.


Top Shareholders

Company Information

Itafos's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Itafos
  • Ticker: IFOS
  • Exchange: TSXV
  • Founded:
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: CA$70.560m
  • Shares outstanding: 145.48m
  • Website: https://www.itafos.com

Number of Employees


Location

  • Itafos
  • Ugland House
  • George Town
  • Grand Cayman
  • KY1-1104
  • Cayman Islands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MBCF.FOTCPK (Pink Sheets LLC)YesNew Common SharesUSUSDNov 2016
IFOSTSXV (TSX Venture Exchange)YesNew Common SharesCACADNov 2016
MBNDB (Deutsche Boerse AG)YesNew Common SharesDEEURNov 2016

Biography

Itafos operates as a vertically integrated phosphate fertilizers and specialty products company. It operates through Itafos Conda, Itafos Arraias, and Development and Exploration segments. The company produces and sells monoammonium phosphate, superphosphoric acid, merchant grade phosphoric acid, single superphosphate, and ammonium polyphosphate. It owns, develops, and operates various projects, including Itafos Conda located in Idaho, the United States; Itafos Arraias situated in Tocantins, Brazil; Itafos Paris Hills, a phosphate mine project located in Idaho, the United States; Itafos Farim, a phosphate mine project situated in Farim, Guinea-Bissau; Itafos Santana, an integrated phosphate fertilizer project located in Pará, Brazil; Itafos Araxá, a phosphate and rare earth oxide mine project situated in Minas Gerais, Brazil; and Itafos Mantaro, a phosphate mine project located in Junin, Peru. Itafos has an engineering, procurement, and construction management agreement with Lycopodium Minerals Canada Limited for mine site development; and W.F Baird and Associates Ltd. for port site development. The company was formerly known as MBAC Fertilizer Corp. and changed its name to Itafos in December 2016. Itafos is based in George Town, the Cayman Islands. Itafos is a subsidiary of CL Fertilizers Holding LLC. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 01:19
End of Day Share Price2020/02/13 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.