Intrepid Potash, Inc. Fundamental Analysis (NYSE: IPI)
Intrepid Potash, Inc. (NYSE: IPI) shows moderate financial fundamentals with a PE ratio of 18.99, profit margin of 8.94%, and ROE of 5.27%. The company generates $0.3B in annual revenue with strong year-over-year growth of 17.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze IPI's fundamental strength across five key dimensions:
Efficiency Score
WeakIPI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIPI trades at attractive valuation levels.
Growth Score
ModerateIPI shows steady but slowing expansion.
Financial Health Score
ExcellentIPI maintains a strong and stable balance sheet.
Profitability Score
WeakIPI struggles to sustain strong margins.
Key Financial Metrics
Is IPI Expensive or Cheap?
P/E Ratio
IPI trades at 18.99 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, IPI's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values Intrepid Potash, Inc. at 0.97 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.29 times EBITDA. This signals the market has high growth expectations.
How Well Does IPI Make Money?
Net Profit Margin
For every $100 in sales, Intrepid Potash, Inc. keeps $8.94 as profit after all expenses.
Operating Margin
Core operations generate 4.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.27 in profit for every $100 of shareholder equity.
ROA
Intrepid Potash, Inc. generates $4.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Intrepid Potash, Inc. produces operating cash flow of $63.58M, showing steady but balanced cash generation.
Free Cash Flow
Intrepid Potash, Inc. generates strong free cash flow of $31.59M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.35 in free cash annually.
FCF Yield
IPI converts 6.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.99
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.006
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How IPI Stacks Against Its Sector Peers
| Metric | IPI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.99 | 27.31 | Better (Cheaper) |
| ROE | 5.27% | 1175.00% | Weak |
| Net Margin | 8.94% | 198.00% | Weak |
| Debt/Equity | 0.01 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 6.33 | 3.13 | Strong Liquidity |
| ROA | 4.05% | 2742.00% | Weak |
IPI outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Intrepid Potash, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
51.23%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
141.12%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
78.81%
Industry Style: Cyclical, Commodity, Value
High Growth