Want to see TSE:NPK full AI Analyst Report?
Top Page
Verde Agritech
(TSX:NPK)
Select Model
Select Model
Rating:48Neutral
Price Target:
C$0.70
▼(-15.30% Downside)
Action:Reiterated
Date:08/21/26
The score is driven primarily by weak financial performance: sharp multi-year revenue contraction, very large operating/net losses, rising leverage, and a return to cash burn. Technicals provide only modest support (slight near-term improvement but still below longer-term averages). Valuation is constrained by ongoing losses (negative P/E), while the latest earnings call is mixed—credible long-term capacity upside and cost actions, but continued volume declines, negative EBITDA, credit losses, and uncertain debt renegotiation keep near-term risk elevated.
Positive Factors
Scalable asset base
The existing 3.0M-tonne annual capacity and very large resource base give Verde a platform to grow without proportional expansion of its mineral supply. If commercial volumes recover, this infrastructure can support meaningful operating leverage and a longer runway in Brazil.
Negative Factors
Severe financial deterioration
The steep revenue contraction has left the current sales base unable to cover operating costs, producing deeply negative EBIT and net margins. A durable recovery therefore depends on restoring volume growth and improving fixed-cost absorption, not merely maintaining gross margin.
Read all positive and negative factors
Positive Factors
Negative Factors
Scalable asset base
The existing 3.0M-tonne annual capacity and very large resource base give Verde a platform to grow without proportional expansion of its mineral supply. If commercial volumes recover, this infrastructure can support meaningful operating leverage and a longer runway in Brazil.
Read all positive factors
Verde Agritech (NPK) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$39.51M
Dividend YieldN/A
Average Volume (3M)40.91K
Price to Earnings (P/E)―
Beta (1Y)-0.24
Revenue Growth-20.60%
EPS Growth-8.43%
CountryCA
Employees135
SectorGeneral
Sector StrengthN/A
IndustryAgricultural Inputs
Share Statistics
EPS (TTM)-0.23
Shares Outstanding56,443,726
10 Day Avg. Volume52,403
30 Day Avg. Volume40,905
Financial Highlights & Ratios
PEG Ratio0.58
Price to Book (P/B)2.71
Price to Sales (P/S)3.40
P/FCF Ratio-361.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 Fo...
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 fertil...
Verde Agritech Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Neutral
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.Positive Updates
Strong asset base and scalability
Company has received ~USD 500M (investment) into R&D, infrastructure and plant capacity; current nameplate capacity 3.0M tonnes/year with scalable resources quoted at ~5–6 billion tonnes enabling supply of Brazil's potassium demand for ~70 years. Plant footprint includes 2 production plants, in‑house R&D and field validation.
Negative Updates
Sharp volume and revenue decline
Q2 sales volume fell to 46,000 tonnes from 80,000 tonnes YoY (≈‑42% decline). Q2 revenue declined to CAD 3.4M from CAD 4.8M YoY (≈‑29% decline), driven by broad industry volume weakness and customer purchasing delays.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong asset base and scalability
Company has received ~USD 500M (investment) into R&D, infrastructure and plant capacity; current nameplate capacity 3.0M tonnes/year with scalable resources quoted at ~5–6 billion tonnes enabling supply of Brazil's potassium demand for ~70 years. Plant footprint includes 2 production plants, in‑house R&D and field validation.
Read all positive 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
Income Statement
18
Very Negative
Balance Sheet
32
Negative
Cash Flow
24
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 | -4.27M | -3.29M | -4.54M | 1.98M | 24.36M | 5.29M |
| 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
Negative
0.83
Price Trends
0.79
Negative
0.78
Negative
1.01
Negative
Market Momentum
-0.02
Positive
35.32
Neutral
30.30
Neutral
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 0.83 is above the 20-day moving average (MA) of 0.77, above the 50-day MA of 0.79, and below the 200-day MA of 1.01, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 35.32 is Neutral, neither overbought nor oversold. The STOCH value of 30.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NPK.
Verde Agritech Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | C$47.66B | 14.41 | 9.38% | 3.04% | 7.77% | 76.65% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | C$69.71M | -36.36 | -5.82% | ― | ― | 5.63% | |
48 Neutral | C$39.51M | -3.41 | -59.51% | ― | -20.60% | -8.43% | |
46 Neutral | C$13.85M | -16.35 | -23.43% | ― | ― | -7.43% | |
45 Neutral | C$29.59M | -4.33 | -218.75% | ― | -54.59% | 10.76% | |
42 Neutral | C$66.07M | 26.79 | 8.50% | ― | ― | 98.72% |
* General Sector Average
TSE:NPK
Verde Agritech
0.80
-0.11
-12.09%
TSE:DAN
Arianne Phosphate
0.30
0.08
39.53%
TSE:ALTA
Altamira Gold Corp
0.24
-0.10
-30.43%
TSE:KRN
Karnalyte Resources
0.26
0.15
136.36%
TSE:NTR
Nutrien
101.35
19.45
23.75%
TSE:MGRO
MustGrow Biologics
0.42
-0.26
-38.24%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.