NYSE:IPI

Stock Analysis Report

Executive Summary

Intrepid Potash, Inc. produces and sells potash and langbeinite products in the United States and internationally.

Snowflake

Fundamentals

Undervalued with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: IPI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-15.0%

IPI

0.2%

US Chemicals

0.4%

US Market


1 Year Return

-44.1%

IPI

-2.3%

US Chemicals

13.1%

US Market

Return vs Industry: IPI underperformed the US Chemicals industry which returned -2.3% over the past year.

Return vs Market: IPI underperformed the US Market which returned 13.1% over the past year.


Shareholder returns

IPIIndustryMarket
7 Day-15.0%0.2%0.4%
30 Day-34.2%6.2%4.0%
90 Day-29.4%9.3%7.4%
1 Year-44.1%-44.1%13.1%-2.3%15.6%13.1%
3 Year74.0%74.0%44.3%17.4%48.2%38.6%
5 Year-85.5%-85.5%44.7%12.3%62.6%44.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

3.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IPI ($2.21) is trading below our estimate of fair value ($2.3)

Significantly Below Fair Value: IPI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: IPI is good value based on its PE Ratio (14.8x) compared to the Chemicals industry average (20.7x).

PE vs Market: IPI is good value based on its PE Ratio (14.8x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: IPI is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: IPI is good value based on its PB Ratio (0.6x) compared to the US Chemicals industry average (2x).


Next Steps

Future Growth

How is Intrepid Potash forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

24.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IPI's forecast earnings growth (24.1% per year) is above the savings rate (2.7%).

Earnings vs Market: IPI's earnings (24.1% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IPI's revenue (6.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: IPI's revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IPI's Return on Equity is forecast to be low in 3 years time (5.9%).


Next Steps

Past Performance

How has Intrepid Potash performed over the past 5 years?

33.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IPI has high quality earnings.

Growing Profit Margin: IPI's current net profit margins (10.9%) are higher than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: IPI has become profitable over the past 5 years, growing earnings by 33.4% per year.

Accelerating Growth: IPI's earnings growth over the past year (518.4%) exceeds its 5-year average (33.4% per year).

Earnings vs Industry: IPI earnings growth over the past year (518.4%) exceeded the Chemicals industry -21.3%.


Return on Equity

High ROE: IPI's Return on Equity (4.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Intrepid Potash's financial position?


Financial Position Analysis

Short Term Liabilities: IPI's short term assets ($136.8M) exceeds its short term liabilities ($84.6M)

Long Term Liabilities: IPI's short term assets (136.8M) exceeds its long term liabilities (57.7M)


Debt to Equity History and Analysis

Debt Level: IPI's debt to equity ratio (16.1%) is considered satisfactory

Reducing Debt: IPI's debt to equity ratio has increased from 15.9% to 16.1% over the past 5 years.

Debt Coverage: IPI's debt is well covered by operating cash flow (70.3%).

Interest Coverage: IPI's interest payments on its debt are well covered by EBIT (7.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: IPI's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if IPI'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 IPI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Intrepid Potash's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Bob Jornayvaz (61yo)

5.3yrs

Tenure

US$3,687,768

Compensation

Mr. Robert P. Jornayvaz, III, also known as Bob, serves as an Owner and Principal at Intrepid Mining LLC. Mr. Jornayvaz Co-founded Intrepid Potash, Inc. Mr. Jornayvaz has been an Executive Chairman of the  ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD3.69M) is above average for companies of similar size in the US market ($USD1.14M).

Compensation vs Earnings: Bob's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.8yrs

Average Tenure

50yo

Average Age

Experienced Management: IPI's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

9.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: IPI's board of directors are considered experienced (9.5 years average tenure).


Insider Trading

Insider Buying: IPI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$112,37028 Aug 19
Robert Jornayvaz
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares39,500
Max PriceUS$2.90
BuyUS$15,25023 Aug 19
Robert Jornayvaz
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares5,000
Max PriceUS$3.05
BuyUS$7,00322 Aug 19
Robert Jornayvaz
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares2,296
Max PriceUS$3.05
BuyUS$151,14022 Aug 19
Clearway Capital Management Ltd
EntityCompany
Shares50,000
Max PriceUS$3.02
BuyUS$31620 Aug 19
Erica Wyatt
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer
Shares100
Max PriceUS$3.16
BuyUS$64,50014 Aug 19
Harvey Operating & Production Company
EntityCompany
Shares20,000
Max PriceUS$3.25
BuyUS$11,45530 May 19
Robert Jornayvaz
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares3,695
Max PriceUS$3.10
BuyUS$55,05028 May 19
Robert Jornayvaz
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares17,675
Max PriceUS$3.14
BuyUS$84,48017 May 19
Robert Jornayvaz
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares25,835
Max PriceUS$3.27
SellUS$35,15022 Mar 19
Joseph Montoya
EntityIndividual
Shares9,500
Max PriceUS$3.70
BuyUS$51,01322 Mar 19
Robert Jornayvaz
EntityIndividual
Role
Chief Executive Officer
Executive Chairman
Shares13,900
Max PriceUS$3.67
BuyUS$643,10013 Feb 19
Clearway Capital Management Ltd
EntityCompany
Shares200,000
Max PriceUS$3.22
BuyUS$647,53611 Jan 19
Clearway Capital Management Ltd
EntityCompany
Shares203,470
Max PriceUS$3.21
BuyUS$149,96513 Dec 18
Clearway Capital Management Ltd
EntityCompany
Shares50,000
Max PriceUS$3.00

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Hugh Harvey (67yo)

    Executive Vice Chairman of the Board

    • Tenure: 9.5yrs
    • Compensation: US$183.20k
  • Bob Jornayvaz (61yo)

    Executive Chairman

    • Tenure: 5.3yrs
    • Compensation: US$3.69m
  • Margaret McCandless (46yo)

    VP, General Counsel & Secretary

    • Tenure: 4.8yrs
    • Compensation: US$355.11k
  • Erica Wyatt (46yo)

    Chief Human Resources Officer

    • Tenure: 4.4yrs
    • Compensation: US$259.98k
  • Mark McDonald (54yo)

    Vice President of Sales & Marketing

    • Tenure: 2yrs
    • Compensation: US$284.09k
  • Matt Preston (35yo)

    VP of Finance

    • Tenure: 0yrs

Board Members

  • Terry Considine (71yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$182.50k
  • Lanny Martin (73yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$190.00k
  • Barth Whitham (62yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$185.00k
  • Chris Elliott (53yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$185.00k
  • Hugh Harvey (67yo)

    Executive Vice Chairman of the Board

    • Tenure: 9.5yrs
    • Compensation: US$183.20k
  • Bob Jornayvaz (61yo)

    Executive Chairman

    • Tenure: 5.3yrs
    • Compensation: US$3.69m

Company Information

Intrepid Potash, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Intrepid Potash, Inc.
  • Ticker: IPI
  • Exchange: NYSE
  • Founded: 2000
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: US$285.466m
  • Shares outstanding: 129.17m
  • Website: https://www.intrepidpotash.com

Number of Employees


Location

  • Intrepid Potash, Inc.
  • 1001 17th Street
  • Suite 1050
  • Denver
  • Colorado
  • 80202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
58IDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2008
IPINYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2008

Biography

Intrepid Potash, Inc. produces and sells potash and langbeinite products in the United States and internationally. It operates through three segments: Potash, Trio, and Oilfield Solutions. The Potash segme ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 00:07
End of Day Share Price2019/11/13 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.