Intrepid Potash is the main U.S. producer of potash and supplies, used for crop development, industrial applications and as an ingredient in animal feed. The company is based in Denver, Colorado.
IPI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Intrepid Potash Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Intrepid Potash Inc ranked in the 14th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 83.83%. The most interesting components of our discounted cash flow analysis for Intrepid Potash Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 5.71 years, is -0.21% -- higher than only 7.5% of stocks in our DCF forecasting set.
As a business, Intrepid Potash Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Basic Materials), this tax rate is higher than merely 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
STLD, WDFC, DD, APD, and ITP can be thought of as valuation peers to IPI, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
Intrepid Potash (IPI) has three business segments namely, Potash, Trio and Oilfield Solutions. Though Q2 2020 results were lackluster, it seems that the worst is over. Our analysis shows that IPI’s earnings can recover as its businesses are expected to rebound from their troughs. A catalyst can be the strike...
Intrepid Potash, Inc. (IPI) Q2 2020 Earnings Conference Call August 4, 2020 12:00 PM ET Company Participants Matt Preston - Vice President of Finance Bob Jornayvaz - Chairman, President and CEO Brian Stone - Chief Operating Officer Mark McDonald - Vice President of Sales and Marketing Conference Call Participants Bria...
DENVER, CO, July 30, 2020 (GLOBE NEWSWIRE) -- Intrepid Potash Inc. (NYSE:IPI) (“Intrepid” or the “Company”) today announced that at the special meeting of stockholders held on July 28, 2020, Intrepid’s stockholders voted to approve all proposals presented, which together grant Intrepid’s Board of Directors (the “Board”) authority to effect a reverse stock split of its shares of common stock at a ratio not less than 1-for-3 and not greater than 1-for-15 and, conditional on the split, to effect a corresponding reduction in the number of authorized common shares according to the criteria outlined in Intrepid’s Definitive Proxy Statement dated June 30, 2020. Intrepid plans to convene its Board to discuss a possible split on August 10, 2020. In accordance with the approved proposals, the ex...