Thank you for your opinion
NPK is a micro-cap ($92M in market cap) agricultural company that sells fertilizers in Brazil and the international market, and is now trading at 19.9x times' Forward P/E. In the last few years, sales growth exploded, as most fertilizer companies benefit from an inflationary environment and the supply chain disruption caused by the pandemic, but sales started to decline year-to-date. The balance sheet has net debt of $32M, the trailing twelve-month cash flow is -6.9M. The company has been issuing shares and investing in growth aggressively. Based on consensus estimates, sales are expected to decline by 37% and start to recover next year.
Overall, we consider the name to be highly volatile. For a fertilizer name, we like NTR better as the company is also trading quite cheaply and actively repurchasing shares.
NPK is based in Brazil, so it is not one we follow closely. But considering economic, interest rate and small cap risks, plus the possibility of tax-loss selling towards year end, we would be comfortable selling it today.