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Verde Agritech (NPK) AI Stock Analysis
Verde Agritech
(TSX:NPK)
The overall stock score is low primarily due to very weak financial performance, with steep revenue contraction, sustained and growing losses, rising leverage, and negative operating and free cash flows creating elevated fundamental and liquidity risk. Secondary factors slightly temper this weakness: technicals show modest short-term momentum within a broader downtrend, and valuation reflects ongoing unprofitability with no dividend rather than clear fundamental cheapness. The earnings call adds a cautiously constructive long-term angle through strong assets, scalable capacity and sustainability positioning, but near-term cash, credit and demand challenges remain unresolved, keeping the risk profile high and the score in the lower range.
Verde Agritech (NPK) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 38.38M
- Dividend Yield
- ―
- Average Volume (3M)
- 39.72K
- Price to Earnings (P/E)
- -2.9
- Beta (1Y)
- -0.24
- Revenue Growth
- -20.60%
- EPS Growth
- -8.43%
- Country
- Canada
- Employees
- 135
- Sector
- General
- Sector Strength
- 55
- Industry
- Agricultural Inputs
Verde Agritech Business Overview & Revenue Model
Company Description
Verde AgriTech Plc operates as an agritech firm, engaged in the production and distribution of fertilizers within Brazil and internationally. Its product portfolio features multi-nutrient potassium fertilizers sold under brand names including K Forte...
How the Company Makes Money
Verde Agritech makes money primarily by selling fertilizer products to agricultural customers. Its revenue model centers on (1) sales of potash-based fertilizers and related crop-nutrition products, including NPK blends and other formulated fertilize...
Verde Agritech Earnings Call Summary
The call presents a mix of underlying operational strengths (large invested asset base, vertical integration, strong per‑ton economics, sustainability advantage and active cost reductions) alongside significant near‑term challenges (sharp YoY declines in volume and revenue, negative EBITDA and net loss, customer default-driven bad‑debt provision, macroeconomic stress, and uncertain debt renegotiation). Management is taking cost and headcount actions and stresses the long‑term scalability and market opportunity, but current cash, credit and demand headwinds keep near‑term performance pressured.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management’s guidance was to prioritize commercial expansion in Brazil while preserving cash and renegotiating debt, with clear near‑term caution: Q2 volumes were 46k t (vs 80k t PY) and revenue CAD 3.4M (vs CAD 4.8M), average revenue/ton CAD 40 (38 PY) and gross profit/ton ~CAD 22–23, SG&A down 10% (sales & marketing down ~12%), EBITDA before non‑cash items negative CAD 1.2M (vs negative CAD 0.2M PY) and net loss ~CAD 1.2M; cash was CAD 4.1M with CAD 5.7M short‑term receivables (vs CAD 2.4M cash and CAD 8.2M receivables Jun‑2025) and a bad‑debt provision of ~CAD 518k (Lavoro). They reiterated no further CapEx is needed to reach 3.0 Mtpa (plant capacity) after CAD 500M invested, which at full 3 Mtpa would imply ~CAD 200M revenue, ~CAD 70M EBITDA (~35%) and ~CAD 40M net profit, with a resource base of ~5–6 billion tonnes (enough to supply Brazil >70 years) and >89% carbon reduction vs KCl; operating levers include holding ~8–10k t inventory (warehouse >15k t, Plant 2 can run ~300–400 t/hr), further headcount and contract cuts, and ongoing negotiations with 7–8 creditors (months–>1 year timeline for rephasing, rate reduction or possible principal adjustments) against a Brazilian policy rate ~14% and effective borrowing costs ~20–22%.
Verde Agritech Financial Statement Overview
Summary
Financial performance is very weak: revenue has fallen sharply from about CAD 80M to roughly CAD 14M, profitability has turned into deep and widening operating and net losses, leverage has risen with debt now high versus a shrinking equity base, and both operating and free cash flows are negative in the latest TTM, despite still-solid gross margins and a positive but pressured equity cushion.
Income Statement
23NegativeBalance Sheet
27NegativeCash Flow
18Very Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.05M | 16.61M | 21.60M | 37.86M | 80.27M | 27.71M |
| Gross Profit | 6.83M | 9.57M | 12.25M | 24.70M | 62.25M | 20.58M |
| EBITDA | -4.28M | -3.29M | -4.61M | 1.98M | 24.36M | 5.21M |
| Net Income | -12.83M | -11.67M | -12.56M | -5.98M | 17.80M | 3.52M |
Balance Sheet | ||||||
| Total Assets | 76.90M | 70.48M | 72.02M | 96.17M | 97.31M | 41.40M |
| Cash, Cash Equivalents and Short-Term Investments | 4.12M | 2.98M | 3.48M | 6.97M | 1.16M | 1.53M |
| Total Debt | 55.10M | 47.42M | 39.75M | 46.20M | 38.37M | 5.58M |
| Total Liabilities | 58.42M | 49.70M | 41.68M | 50.67M | 48.96M | 15.04M |
| Stockholders Equity | 18.48M | 20.78M | 30.34M | 45.51M | 48.35M | 26.36M |
Cash Flow | ||||||
| Free Cash Flow | -2.00M | -156.00K | -2.84M | 1.63M | -30.83M | -4.28M |
| Operating Cash Flow | -858.00K | 313.00K | -1.89M | 4.62M | 11.47M | -1.68M |
| Investing Cash Flow | -1.15M | -469.00K | 753.00K | -4.02M | -42.02M | -2.55M |
| Financing Cash Flow | 3.95M | -92.00K | -3.12M | 5.02M | 30.03M | 3.67M |
Verde Agritech Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NPK, the sentiment is Negative. The current price of 0.68 is below the 20-day moving average (MA) of 0.76, below the 50-day MA of 0.79, and below the 200-day MA of 0.97, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 36.82 is Neutral, neither overbought nor oversold. The STOCH value of 17.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NPK.
Verde Agritech Peers Comparison
Overall Rating
TSE:NTR71Outperform- TSE:NPK46Neutral
TSE:ALTA44Neutral
TSE:MGRO39Underperform
TSE:DAN38Underperform
TSE:KRN29Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TSE:NTR | 71Outperform | CAD 46.17B | 14.05 | 9.38% | 3.17% | 7.77% | 76.65% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TSE:NPK | 46Neutral | CAD 38.38M | -2.90 | -59.51% | ― | -20.60% | -8.43% |
| TSE:ALTA | 44Neutral | CAD 54.88M | -30.33 | -5.42% | ― | ― | 0.00% |
| TSE:MGRO | 39Underperform | CAD 25.36M | -3.71 | -218.75% | ― | -54.59% | 10.76% |
| TSE:DAN | 38Underperform | CAD 61.35M | 23.27 | 8.50% | ― | ― | 98.72% |
| TSE:KRN | 29Underperform | CAD 13.59M | -16.04 | -23.43% | ― | ― | -7.43% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:NPK | Verde Agritech | 0.68 | -0.45 | -39.82% | |
| TSE:DAN | Arianne Phosphate | 0.26 | 0.05 | 20.93% | |
| TSE:ALTA | Altamira Gold Corp | 0.18 | -0.02 | -7.50% | |
| TSE:KRN | Karnalyte Resources | 0.26 | 0.15 | 131.82% | |
| TSE:NTR | Nutrien | 96.96 | 22.75 | 30.65% | |
| TSE:MGRO | Mustgrow Biologics Corp. | 0.36 | -0.35 | -49.30% |
Verde Agritech Corporate Events
Verde AgriTech Reports Broad Near-Surface Rare Earth Finds at Minas Americas
PositiveVerde AgriTech, through its subsidiary Magnes Rare Earths, has reported broad, from-surface intersections of magnet and heavy rare earth elements at its Minas Americas project in Brazil, including a 30-metre reverse-circulation interval grading 1,853...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 21, 2026