Q: Your comments on the Q1, 2023 earning report of NPK ,released on May 16,would be appreciated. Buy, sell or hold?
5i Research Answer:
We don't have estimates on NPK; only one analyst covers it and it is based in Brazil. Revenue fell slightly to $11.1M. Cash rose to $34.3M from $22.3M. EBITDA fell about 45% to $2.0M. Net loss was $0.1M vs profit of $3M last year. Lower soybean prices and lower potash prices were the main reasons for the declines. The stock has had a tough year, down 55%. Its small size and cyclicality add risk. We do not follow it closely since it is not Canadian, but it is, we think, cheap enough to hold at 6X earnings.