Verde Agritech (NPK) AI Stock Analysis

• Market Cap: C$25.28M
• Dividend Yield: N/A
• Average Volume (3M): 58.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• Revenue Growth: -36.74%
• EPS Growth: 15.76%
• Country: CA
• Employees: 181
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): -0.04
• Shares Outstanding: 52,669,724
• 10 Day Avg. Volume: 73,377
• 30 Day Avg. Volume: 58,202
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$0.50
• Price Target Upside: 4.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: C$0.50 ▲(4.17% Upside)

Verde Agritech's overall stock score is primarily impacted by its financial performance, which is challenged by declining revenues, high leverage, and cash flow issues. The technical analysis suggests a bearish trend, and the valuation is unattractive due to negative profitability and lack of dividends. These factors collectively result in a lower stock score.

Verde Agritech Business Overview & Revenue Model

Company Description

Verde Agritech Plc, an agricultural technology company, produces and sells fertilizers in Brazil and internationally. The company offers multi-nutrient potassium fertilizer under the K Forte, BAKS, and Super Greensand brand names. It holds 100% interests in the Cerrado Verde project, which is the source of potassium silicate rock, a glauconitic siltstone material 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.

How the Company Makes Money

Verde Agritech makes money through the sale of its mineral fertilizers to farmers, agricultural businesses, and distributors. The company's primary revenue stream is derived from the production and sale of its Super Greensand product, which is used as a soil conditioner and fertilizer to enhance crop productivity. Additionally, Verde Agritech may engage in strategic partnerships and collaborations with other agricultural firms to expand its market reach and distribution channels. The company's earnings are influenced by factors such as global agricultural demand, commodity prices, and environmental regulations that encourage sustainable farming practices.

Verde Agritech Financial Statement Overview

Summary

Verde Agritech faces financial challenges with declining revenues and profitability, high leverage, and cash flow constraints. While the gross profit margin remains robust, operational inefficiencies and high debt levels pose significant risks.

Income Statement

Verde Agritech has experienced declining revenue and profitability over the recent periods. The TTM data shows a negative revenue growth rate of -8.67%, and the company has been operating at a net loss with a net profit margin of -64.26%. The gross profit margin remains relatively strong at 55.90%, but the negative EBIT and EBITDA margins indicate operational challenges.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 1.76, indicating significant leverage. Return on equity is negative at -38.08%, reflecting the company's inability to generate profits from its equity base. The equity ratio stands at 34.54%, suggesting moderate financial stability but with potential risks due to high leverage.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth at -83.50% in the TTM period. The operating cash flow to net income ratio is low at 0.17, and the free cash flow to net income ratio is negative, indicating cash flow issues relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.70M	21.60M	37.86M	80.27M	27.71M	9.17M
Gross Profit	9.89M	12.25M	24.70M	62.25M	20.58M	5.65M
EBITDA	-3.93M	-4.54M	1.98M	24.36M	5.29M	1.48M
Net Income	-11.37M	-12.56M	-5.98M	17.80M	3.52M	550.00K
Balance Sheet
Total Assets	74.62M	72.02M	96.17M	97.31M	41.40M	28.73M
Cash, Cash Equivalents and Short-Term Investments	2.38M	3.48M	6.97M	1.16M	1.53M	2.24M
Total Debt	45.47M	39.75M	46.20M	38.37M	5.58M	3.47M
Total Liabilities	48.84M	41.68M	50.67M	48.96M	15.04M	7.59M
Stockholders Equity	25.78M	30.34M	45.51M	48.35M	26.36M	21.14M
Cash Flow
Free Cash Flow	-114.00K	-2.84M	1.63M	-30.83M	-4.28M	-525.00K
Operating Cash Flow	604.00K	-1.89M	4.62M	11.47M	-1.68M	1.06M
Investing Cash Flow	-718.00K	753.00K	-4.02M	-42.02M	-2.55M	-1.47M
Financing Cash Flow	-437.00K	-3.12M	5.02M	30.03M	3.67M	2.08M

Verde Agritech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NPK, the sentiment is Positive. The current price of 0.48 is above the 20-day moving average (MA) of 0.47, below the 50-day MA of 0.50, and below the 200-day MA of 0.60, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.03 is Neutral, neither overbought nor oversold. The STOCH value of 42.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NPK.

Verde Agritech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IFOS	70 Neutral	544.68M	3.58	26.96%	―	15.95%	―
MGRO	57 Neutral	32.48M	-5.70	―	―	49.17%	-1068.82%
GSP	49 Neutral	36.06M	-12.31	―	―	―	37.50%
NPK	45 Neutral	C$25.28M	―	-36.07%	―	-36.74%	15.76%
KRN	43 Neutral	5.33M	-6.76	―	―	―	51.79%
MRZ	39 Underperform	36.42M	-3.33	―	―	―	18.64%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Verde Agritech Corporate Events

Verde AgriTech Secures Patent for Sustainable Fertilizer Technology

Verde AgriTech has been granted a Brazilian patent for a new fertilizer production technology that combines glauconitic siltstone with beneficial microorganisms. This innovation eliminates the drying stage in fertilizer manufacturing, reducing production costs and preserving microorganism viability, which enhances sustainable agriculture practices. The patent strengthens Verde’s intellectual property portfolio and positions the company as a leader in agricultural innovation, allowing it to meet the growing demand for sustainable solutions and support long-term business growth.

The most recent analyst rating on (TSE:NPK) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Verde Agritech stock, see the TSE:NPK Stock Forecast page.

Verde AgriTech Reports Resilient Q2 2025 Amid Market Challenges

Verde AgriTech Ltd reported its Q2 2025 financial results, highlighting a 6% decrease in sales volume compared to the previous year, yet maintaining a strong gross margin of 58%. The company successfully renegotiated its debt, converting the majority into long-term liabilities, which strengthens its financial position amidst challenging market conditions. Verde’s products continue to offer significant environmental benefits, including carbon capture and chloride reduction, which differentiate it in the fertilizer market. Despite a tough economic environment in Brazil’s agricultural sector, Verde remains resilient and focused on long-term growth by launching new multi-nutrient formulations and maintaining a conservative commercial strategy.

Verde AgriTech Secures Shareholder Approval at 2025 AGM

Verde AgriTech announced the successful approval of all items at its 2025 Annual General Meeting of shareholders, including the re-election of directors and the adoption of the 2024 audited statement of accounts. The meeting’s outcomes reinforce Verde’s strategic direction and stability, potentially strengthening its position in the potash industry, particularly in Brazil, which heavily relies on potash imports. This approval could have positive implications for stakeholders, as it ensures continuity in leadership and operational plans.