# Neo Performance Materials Inc. (NEO.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Basic Materials / Chemicals. Price C$31.52, market value C$1.5 billion.

## Valuation
- **P/E (trailing): 3152.0×** (5-yr avg 16.2×). Neo Performance Materials Inc. trades at 3152.0× trailing earnings, well above its own five-year average of 16.2×: investors are paying up relative to the company's past. The Basic Materials median in the September 2026 study was 19.0×. Forward P/E is 15.3×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.68**. A PEG of 0.68 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.8×**. Each dollar of revenue is priced at 1.8×.
- **Price / book: 2.2×**. The shares trade at 2.2× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 13.1×**. Enterprise value is 13.1× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: -10.4%** (5-yr avg -3.3%). Free cash flow is negative: the business is consuming cash, which is normal for heavy investment phases but a warning otherwise.
- **Earnings yield: 0.0%**. The inverse of the P/E: 0.0% of the price is earned each year.

## Profitability
- **Gross margin: 31.3%**. Neo Performance Materials Inc. keeps 31.3% of revenue after the direct cost of what it sells.
- **Operating margin: 13.6%**. 13.6% of revenue is left after running the business.
- **Net margin: -2.1%**. The company reported a net loss over the last twelve months.
- **Return on equity: -2.6%**. Return on equity is negative because earnings are negative.
- **Return on invested capital: 9.0%**. Return on all capital, debt included, is 9.0%.
- **Return on assets: 0.2%**. Each dollar of assets produces 0.2% of profit.

## Growth
- **Revenue growth (1 yr): 2.4%** (3-yr -8.7%/yr, 5-yr 7.0%/yr). Revenue grew 2.4% over the last year, against 7.0% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 22.6%**. Earnings per share rose 22.6%, faster than revenue, so margins expanded or the share count shrank.

## Financial health
- **Debt to equity: 0.27**. Debt is 0.27 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.8×**. It would take 0.8 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 17.5×**. Operating profit covers interest 17.5× over, a safe margin.
- **Current ratio: 1.83** (quick 0.80). Current assets cover the next year's liabilities 1.83 times.
- **Altman Z-score: 4.93**. A Z-score of 4.93 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 3/9**. 3 of 9 checks pass: weak or deteriorating financials.

## Dividends
- **Dividend yield: 1.27%** (C$0.40 per share, trailing). Neo Performance Materials Inc. yields 1.27%, a modest yield more typical of a growth-oriented payer.
- **Consecutive years of increases: 6**. 6 straight years of increases.
- **Dividend growth (5 yr): 0.0%/yr** (1-yr 0.0%). The dividend has not grown over five years.

## Analyst view
- **Analyst consensus: strong_buy** (7 analysts). 7 analysts cover Neo Performance Materials Inc.; the consensus is strong_buy, with an average price target of C$53.10 (+68% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 91.9%** (YTD 104.0%, 3-mo 2.3%). The shares are up 91.9% over twelve months including dividends.
- **From 52-week high: -33.2%** (105.9% above the low). Trading 33% below its 52-week high, deep in a drawdown.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 41**. An RSI of 41 is neutral.
- **Beta (1 yr): 2.33** (volatility 69%). Beta of 2.33 against the S&P/TSX Composite: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=NEO.TO · Page: https://foliofundamentals.com/stocks/neo.to

Not investment advice.