Brazil Potash Corp. (NYSE: GRO)

Sector: Basic Materials Industry: Other Industrial Metals & Mining CIK: 0001472326
Market Cap 87.28 Mn
P/B 0.59
P/E -1.31
P/S 0.00
ROIC (Qtr) -46.56
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 655,445.00
Debt/Equity (Qtr) 0.00

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 9.34M provide 95.54x coverage of short-term debt 97728, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 151.65M provides 231.37x coverage of total debt 655445, indicating robust asset backing and low credit risk.
  • Robust tangible asset base of 151.65M provides 18.32x coverage of working capital 8.28M, indicating strong operational backing.
  • Cash reserves of 9.34M provide robust 5.50x coverage of current liabilities 1.70M, indicating strong short-term solvency.
  • Cash reserves of 9.34M provide solid 4x coverage of other non-current liabilities 2.33M, indicating strong liquidity.

Bear case

  • The company's operating cash flow of (19.33M) shows concerning coverage of stock compensation expenses of 51.33M, with a -0.38 ratio indicating potential earnings quality issues.
  • Operating cash flow of (19.33M) provides minimal -83.96x coverage of tax expenses of 230220, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of (26.77M) provides weak coverage of capital expenditures of 7.45M, with a -3.60 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (19.33M) barely covers operating expenses of 51.32M with a -0.38 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • High financing cash flow of 34.48M relative to working capital of 8.28M, which is 4.17x suggests concerning dependence on external funding for operational needs.

Peer comparison

Companies in the Other Industrial Metals & Mining
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BHP BHP Group Ltd 162.30 Bn 17.99 3.17 -
2 TECK Teck Resources Ltd 24.54 Bn 27.27 3.23 3.67 Bn
3 MP MP Materials Corp. / DE 10.73 Bn -91.17 46.08 1.00 Bn
4 SKE Skeena Resources Ltd 3.07 Bn -36.58 0.00 0.04 Bn
5 MTRN MATERION Corp 2.85 Bn 87.35 2.45 0.53 Bn
6 VZLA Vizsla Silver Corp. 2.28 Bn -205.10 0.00 0.00 Bn
7 SGML Sigma Lithium Corp 1.76 Bn -65.03 15.16 0.12 Bn
8 ALM Almonty Industries Inc. 1.65 Bn -145.44 82.20 0.14 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.52 3.13
EV to Cash from Ops. EV/CFO -4.11 -51.74
EV to Debt EV to Debt 121.19 863.55
EV to EBIT EV/EBIT -1.20 -27.66
EV to EBITDA EV/EBITDA -1.70 566.13
EV to Free Cash Flow [EV/FCF] EV/FCF -2.97 -24.46
EV to Market Cap EV to Market Cap 0.91 0.59
EV to Revenue EV to Revenue 0.00 42.69
Price to Book Value [P/B] P/B 0.59 10.60
Price to Earnings [P/E] P/E -1.31 -35.19
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -16.20
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 3.46
Dividend per Basic Share Div per Share (Qtr) 0.00 0.08
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.53
Interest Coverage Int. cover (Qtr) -176.00 51.59
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -53.39 -444.92
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 646.25 3,116.99
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.80
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -146.80 -69.51
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 20.12
EBIT Growth (1y) % EBIT 1y % (Qtr) -147.29 -24.32
EBT Growth (1y) % EBT 1y % (Qtr) -148.69 -92.39
EPS Growth (1y) % EPS 1y % (Qtr) -132.00 -31.76
FCF Growth (1y) % FCF 1y % (Qtr) -274.25 -5,473.04
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 9.09
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.13
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 5.50 5.35
Current Ratio Curr Ratio (Qtr) 5.87 6.87
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.74
Interest Cover Ratio Int Coverage (Qtr) -176.00 51.59
Times Interest Earned Times Interest Earned (Qtr) -176.00 51.59
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -684.18
EBIT Margin % EBIT Margin % 0.00 -696.12
EBT Margin % EBT Margin % 0.00 -788.27
Gross Margin % Gross Margin % 0.00 11.29
Net Profit Margin % Net Profit Margin % 0.00 -790.78