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Buy Day today: Poor (50) Mixed market breadth · today: CPI (September)
NEO.TO

Neo Performance Materials Inc

Basic Materials · Specialty Chemicals

27.50C$ -1.5% vs. previous close Closing price · As of: Oct 13, 2026
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Assessment

Our Rating

A journalistic assessment by our editorial team at the time of the deep dive — it rates the company, not the entry point. Not investment advice and not a solicitation to buy or sell.

Open questions

The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.

Why this colour

Yellow here is not about the share price or the valuation. Neo runs a functioning business with plants, customers and $476.2 million of equity, its loan covenants are met, and there is no documented existential risk such as a going-concern warning. One material operating question is open, though: in the first half of 2026, nearly two thirds of the record EBITDA depend on metal prices Neo does not control, and so far it is not arriving as cash — minus $54.0 million of operating cash flow in 2025 and minus $49.6 million in the first half of 2026. Net results also swung, with losses from 2023 through 2025. Green would become possible if inventories turn into cash and operating cash flow stays positive for several quarters, including at more normal hafnium prices. The decision is yours.

What the thesis turns on

Assessment: Opportunities & Risks

Neo Performance Materials reports record adjusted EBITDA for 2026, nearly two thirds of it from high hafnium and metal prices, while its operations have been losing cash to inventories and receivables since 2025 and the minority owners of its hafnium subsidiary hold an $85.6 million put option. Not investment advice.

Earnings trend

Record Q2 2026 with $57.0 million of adjusted EBITDA (prior year: $19.0 million), all three segments up; 2026 guidance of $140 million to $150 million after $75.6 million in 2025.

Dependence on metal prices

Rare Metals delivered 65.6 percent of segment EBITDA in the first half of 2026, driven by record hafnium prices; the guidance assumes elevated prices and implies $46.7 million to $56.7 million for the second half.

Cash flow

Operating cash flow of minus $54.0 million (2025) and minus $49.6 million (first half of 2026), mainly from inventories and receivables; funded with $83.3 million from new shares (May 2026) and higher debt.

Balance sheet and obligations

Cash of $96.2 million, debt of $157.2 million and total equity of $476.2 million (June 30, 2026), loan covenants met; plus the Buss & Buss minority put option of $85.6 million carried as current.

European magnet strategy

Commercial production at the Narva plant announced on September 14, 2026, first volumes to a Tier 1 EV traction motor supplier, expansion from 2,000 to 5,000 tonnes planned; Silmet’s feedstock comes mostly from Russia.

Worth Noting

This analysis was triggered by the wallstreet-online forum hot list (as of October 13, 2026); we track the company under its home listing NEO (Toronto Stock Exchange) as NEO.TO. It was not a hit from our in-house stock scanner.

Neo is not registered with the SEC. The basis is its Canadian filings from the investor site neomaterials.com (identical to SEDAR+): interim statements and MD&A as of 06/30/2026, MD&A as of 03/31/2026, 2025 annual financial statements, MD&A and Annual Information Form, news releases through 09/24/2026. The report as of 09/30/2026 was not yet available on 10/13/2026.

Calculated values are our own estimates: market value from 46,197,570 shares times the 10/09/2026 close; conversion at C$1.4257 per US$ (10/09/2026); enterprise value from market value plus net debt as of 06/30/2026; second-half range from full-year guidance minus the first-half figure.

“Adjusted EBITDA,” “adjusted net income” and “Free Cash Flow” are company-defined measures without an IFRS standard; Neo’s “Free Cash Flow” is adjusted EBITDA minus capital expenditures and ignores tax and interest payments as well as changes in inventories and receivables.

Read the Full Deep Dive Neo Performance: A Hafnium Record That Has Yet to Bring In Cash Neo Performance Materials (TSX: NEO, OTCQX: NOPMF) reports “Free Cash Flow” of plus $88.1 million for the first half of 2026. In the same six months, its operations consumed $49.6 million in cash. Both are true — and in the record quarter, with $57 million of adjusted EBITDA, 70 percent of segment EBITDA came from rare metals such as hafnium, which makes alloys for jet engines heat-resistant, not from the magnets the stock is known for. Most of it is sitting in $71.5 million of additional inventory. Read the analysis →

Stock Watch

This analysis is as of October 13, 2026. Stock Watch will tell you what's changed at NEO.TO since then.

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Price history

Chart

Interactive price chart (TradingView).

Last price: 27.50 C$ (As of: October 13, 2026)

Key figures

Key figures at a glance

Every figure we hold for this stock, grouped by topic. The question mark next to a label explains what the number means.

Basics

Market Cap ?The value of the entire company on the market: share price times total shares outstanding. 1.3C$B
Shares Outstanding ?Total number of shares issued. Price times share count gives market cap. –
Float ?Share of stock freely tradable on the market — not locked up in the hands of founders, insiders, or major shareholders. –
Beta ?Volatility versus the overall market: 1 = moves like the market, 2 = twice as much, under 1 = calmer than the market. –

Performance

Perf. 1M ?Price performance over the last month. -8.20%
Perf. 3M ?Price performance over the last 3 months. -34.20%
Perf. 6M ?Price performance over the last 6 months. 24.20%
YTD Performance (%) ?Price performance since the start of the year (Year to Date). 76.74%
52-Week-High Distance ?How far the price sits below its highest point over the last 52 weeks. 0% means the stock is at its year high. -38.0%

Valuation

P/E ?Price-to-earnings ratio: how many years of profit does the stock cost? The lower, the cheaper the valuation. No earnings means no P/E. very high 2,750.0
Forward P/E ?P/E based on expected earnings for the next 12 months instead of past earnings — analysts' bet on the future. –
PEG ?P/E divided by expected earnings growth: puts valuation in relation to growth. Around 1 is considered fair, well above that is pricey. –
P/B ?Price-to-book ratio: market value relative to book equity. 2.3
P/S ?Price-to-sales ratio: market value divided by annual sales. Important for companies that aren't (yet) profitable. –
EV/EBITDA ?Enterprise value including debt (EV) relative to operating profit before depreciation and amortization (EBITDA) — more comparable than P/E because debt counts too. Extreme values arise when EBITDA is near zero. –
Price/FCF ?Market value divided by free cash flow: how many years of freely available cash does the stock cost? More honest than P/E because cash flow is harder to dress up. –

Profitability

Gross Margin ?Gross margin: what's left of sales after only direct production costs are deducted — the product's pricing power. –
EBIT Margin ?EBIT margin: operating profit as a percentage of sales — the earning power of the core business before interest and taxes. 20.3%
Net Margin ?Net margin: what's left of sales as profit after ALL costs, interest, and taxes. –
Return on Equity ?Return on equity: how much profit does the company generate per year on shareholders' equity? 0.4%
Return on Assets ?Return on assets: how much profit the company generates from its total assets (equity and debt combined). –

Balance Sheet & Safety

Equity Ratio ?Equity ratio: equity as a share of total assets. The higher, the more resilient the balance sheet. 56.9%
Debt/Equity ?Leverage ratio: financial debt divided by equity. Under 1 is generally seen as solid; negative values mean negative equity. 0.2
Altman Z″ ?Edward Altman's bankruptcy early-warning score. We use the Z″ variant, built from four balance-sheet ratios — it is designed for service companies and non-manufacturers and uses book value instead of market value. On that scale: below 1.1 = danger zone, 2.6 and up = safe zone, in between a grey area. Because the classic Altman Z is calculated differently, the two numbers are not directly comparable. The formula does not fit banks, insurers, or real-estate stocks. –
Piotroski ?Balance-sheet health check by Joseph Piotroski: 9 yes/no criteria on profit, cash flow, leverage, and efficiency. 7+ is very solid, under 3 is a red flag. 3 out of 9

Growth

Sales Growth Last Quarter ?Sales growth in the most recently reported quarter versus the same quarter a year ago (YoY). 79.40%
EPS Growth Last Quarter ?Growth in earnings per share in the most recently reported quarter versus the same quarter a year ago (YoY). 192.30%
Sales Growth (Year) ?Sales growth in the last fiscal year versus the year before. 2.38%
Forward Sales Growth ?Sales growth analysts expect over the next 12 months — an estimate, not a guarantee. 44.30%
Forward EPS Growth ?Earnings-per-share growth analysts expect over the next 12 months — an estimate, not a guarantee. 1.00%

Dividend

No dividend data is available for this stock yet.

Quality & Screener

Stage ?Weinstein phases 1 through 4: 1 = basing, 2 = uptrend (the only buy phase), 3 = topping, 4 = downtrend. Measured against the 30-week line. –
RS Rating ?Relative strength from 1 to 99: an RS of 95 means the stock has outperformed 95% of all stocks. –
EPS Rating ?Earnings growth rating from 1 to 99 versus all stocks — high values mean above-average earnings growth. –
Fundamental Rating ?Our own Fundamental Rating: 0 to 100 points with an A+ to F grade. 50 points is the average across the universe, 100 the best possible score. It scores growth, earnings surprises, analyst estimates, margins, cash flow, and balance-sheet safety — every stock percentile-ranked against all others. Grades: A+ from 95, A from 75, B from 55, C from 45, D from 25, E from 5, F below. –

Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.

Comparison

Industry comparison

The stock alongside the largest companies in the same group. The median row is the middle value of the companies shown above — not of the whole industry.

Sector comparison: Basic Materials

Industry comparison
Company Market cap (C$B) P/E EV/EBITDA Gross Margin % EBIT Margin % Sales Growth (Year) % Perf. 1Y %
Neo Performance Materials Inc NEO.TO 1.3 2,750.0 – – 20.3 2.4 –
Heliostar Metals Ltd HSTR.TO 0.7 17.1 – – 35.2 – –
GoldMining Inc GOLD.TO 0.3 – – – 0.0 – –
Mogotes Metals Inc. MOG.TO 0.2 – – – 0.0 – –
Aurania Resources Ltd ARU.TO 0.0 – – – 0.0 – –
Median of companies shown 0.3 – – – 0.0 – –

Based on the most recently reported figures. Only stocks from the same trading venue are lined up, so the market caps are counted in one currency. Compare in a chart →

Quarters

Quarterly Figures

Each bar is one quarter, the last one is the most recent. Use the switch to step through the individual figures.

Revenue & Profit

Cash Flow

Balance Sheet

Margins

Per Share

Click the chart or tab into it, then use ← and → to step through the periods.

None of the selected stocks reports this metric. Pick another metric or switch between annual and quarterly.

These companies report in different currencies — switch on “Indexed” or pick a margin for a fair comparison.

The figures could not be loaded right now.

Sales Per Quarter ($M)
2024: Q3 · 111.3 $M Q3 2024: Q4 · 134.9 $M Q4 2025: Q1 · 121.6 $M Q1 2025: Q2 · 114.7 $M Q2 2025: Q3 · 122.2 $M Q3 2025: Q4 · 122.1 $M Q4 2026: Q1 · 152.4 $M Q1 2026: Q2 · 200.4 $M Q2

Source: fundamental data

Quarterly Figures
Quarter EPS (Earnings Per Share) EPS YoY (%) Sales ($M) Sales YoY (%) Net Margin (%) OCF ($M) FCF ($M)
2024: Q3 0.03 -66.70 111 -18.70 -2.40 4 -21
2024: Q4 -0.12 -300.00 135 4.80 -8.90 21 9
2025: Q1 0.08 700.00 122 -0.40 -1.20 -18 -29
2025: Q2 0.18 50.00 115 6.60 5.00 -5 -14
2025: Q3 0.19 533.30 122 9.80 1.10 -4 -11
2025: Q4 0.01 108.30 122 -9.50 -13.00 -30 -34
2026: Q1 -0.05 -167.90 152 25.30 -1.10 -38 -45
2026: Q2 0.51 183.30 200 74.70 8.50 -11 -20

What Do These Terms Mean?

EPS (Earnings Per Share):
Quarterly profit divided by the total share count — how much of the profit works out to a single share.
YoY (Year over Year):
Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
Sales:
All revenue for the quarter, before any costs are deducted — the top line of the income statement.
Net Margin:
What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
OCF (Operating Cash Flow):
The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
FCF (Free Cash Flow):
Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.

Compare with other stocks →

AI classification

AI Rating

Not yet rated — we only show a category once an SEC-backed file with at least two cited passages is available.

How the Rating Is Built

The company

About the Company

Neo Performance Materials Inc. ist in der Herstellung und dem Vertrieb von Seltenerd-, Magnetpulver-, Magnet- und Seltenmetall-basierten Funktionswerkstoffen in China, Japan, Thailand, Südkorea, Nordamerika, Europa und international tätig. Das Unternehmen ist in drei Segmenten aktiv: Magnequench, Chemicals & Oxides und Rare Metals. Es bietet magnetische Werkstoffe wie gebundene Neo-Pulver, kompressionsgeformte Magnete sowie ein Produktvergleichswerkzeug für Anwendungen in der Automobil-, Wohn- und Gerätetechnik sowie der Datenspeicherung; Chemikalien und Oxide, darunter hochentwickelte Industriewerkstoffe, Lanthanoid-Produkte und Wasseraufbereitungsprodukte für die Abgasreinigung im Automobilbereich, Unterhaltungselektronik, Erdölraffination, Hybrid- und Elektrofahrzeuge sowie Abwasserbehandlung; und Seltenmetalle, einschließlich Tantal-, Niob- und Rhenium-Produkten sowie Hafnium-, Gallium- und Indium-Produkten für Anwendungen im Bereich seltener Metalle, Superlegierungen für Luft- und Raumfahrt, medizinische Bildgebung, Flachbildschirme, drahtlose Technologien, LED-Beleuchtung, CIGS-Solarzellen, Stahlzusätze, Batterien, Elektronikanwendungen sowie supraleitende und katalytische Anwendungen. Neo Performance Materials Inc. wurde 1994 gegründet und hat seinen Hauptsitz in Toronto, Kanada.

ISIN
CA64046G1063

Data as of: October 13, 2026 · symbol.source_foreign

Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.

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