Neo Performance Materials Inc. Fundamental Analysis (TSX: NEO.TO)
Neo Performance Materials Inc. Fundamental Analysis (TSX: NEO.TO)
Neo Performance Materials Inc. (TSX: NEO.TO) shows weak financial fundamentals with a PE ratio of 7126.14, profit margin of 0.15%, and ROE of 0.21%. The company generates $0.6B in annual revenue with weak year-over-year growth of 2.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 25.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NEO.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakNEO.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateNEO.TO shows balanced valuation metrics.
Growth Score
ModerateNEO.TO shows steady but slowing expansion.
Financial Health Score
ExcellentNEO.TO maintains a strong and stable balance sheet.
Profitability Score
WeakNEO.TO struggles to sustain strong margins.
Key Financial Metrics
Is NEO.TO Expensive or Cheap?
P/E Ratio
NEO.TO trades at 7126.14 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NEO.TO's PEG of -450.05 indicates potential undervaluation.
Price to Book
The market values Neo Performance Materials Inc. at 2.22 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.10 times EBITDA. This signals the market has high growth expectations.
How Well Does NEO.TO Make Money?
Net Profit Margin
For every $100 in sales, Neo Performance Materials Inc. keeps $0.15 as profit after all expenses.
Operating Margin
Core operations generate 13.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.21 in profit for every $100 of shareholder equity.
ROA
Neo Performance Materials Inc. generates $0.10 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Neo Performance Materials Inc. generates limited operating cash flow of $-78.48M, signaling weaker underlying cash strength.
Free Cash Flow
Neo Performance Materials Inc. generates weak or negative free cash flow of $-105.87M, restricting financial flexibility.
FCF Per Share
Each share generates $-2.52 in free cash annually.
FCF Yield
NEO.TO converts -10.80% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7126.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-450.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.002
vs 25 benchmark
ROA
Return on assets percentage
0.001
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How NEO.TO Stacks Against Its Sector Peers
| Metric | NEO.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7126.14 | 27.39 | Worse (Expensive) |
| ROE | 0.21% | 1206.00% | Weak |
| Net Margin | 0.15% | 372.00% | Weak |
| Debt/Equity | 0.34 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 2.06 | 3.14 | Strong Liquidity |
| ROA | 0.10% | 2761.00% | Weak |
NEO.TO outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Neo Performance Materials Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
26.77%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
85.01%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
-591.89%
Industry Style: Cyclical, Commodity, Value
Declining