Intrepid Potash, Inc. (IPI) - Comprehensive Stock Analysis & Investment Research
Deep dive into Intrepid Potash, Inc.'s business profile, financial performance, AI predictions, and competitive positioning to make informed investment decisions.
Intrepid Potash, Inc. Investment Summary
When evaluating whether Intrepid Potash, Inc. (IPI) represents a compelling investment opportunity, investors must consider multiple factors including the company's financial health, market position, growth prospects, and what our AI-powered predictive models suggest about its near-term price trajectory.
Company Profile
Intrepid Potash, Inc. (IPI) operates within the Energy & Transportation sector, specifically in the Mining & Quarrying of Nonmetallic Minerals (No Fuels) industry. The company employs approximately 309 people. With a market capitalization of $371 million, the company is a small-cap stock that may offer higher growth potential but also carries higher volatility.
Financial Performance Analysis
Intrepid Potash, Inc. generates annual revenues of approximately $303 million. The company demonstrates exceptional profitability with a net margin of 91.9%, placing it among the most efficient operators in its industry.
From a profitability standpoint, the company delivers an outstanding Return on Equity (ROE) of 50.3%, demonstrating excellent shareholder value creation and management effectiveness. The Return on Assets (ROA) stands at 41.0%, indicating efficient asset utilization. The gross margin of 30.9% indicates healthy product or service economics.
Balance Sheet Strength
Examining the balance sheet health, the current ratio of 2.75x indicates excellent short-term liquidity, meaning the company can comfortably cover its near-term obligations. The debt-to-equity ratio of 0.07x reflects a conservative capital structure with low leverage.
Cash Flow Generation
Intrepid Potash, Inc. generates $70 million in annual free cash flow, providing financial flexibility for dividends, share buybacks, debt reduction, or strategic investments. Operating cash flow stands at $94 million, demonstrating the company's ability to generate cash from its core business operations. Year-over-year operating cash flow has changed by -36.9%, which merits investor attention.
Valuation Analysis
The P/E ratio of 32.0x indicates the market expects above-average growth from this company. Investors are paying a premium for anticipated future earnings expansion. The price-to-book ratio stands at 0.76x, potentially indicating undervaluation or market concerns about asset quality.
AI-Powered Price Predictions
Investment Considerations
When determining whether Intrepid Potash, Inc. is a suitable investment, consider your investment objectives, risk tolerance, and time horizon. As a small-cap stock, Intrepid Potash, Inc. may offer higher growth potential but also carries elevated volatility and risk.
This analysis is generated automatically using our proprietary AI systems and should not be considered personalized investment advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a financial advisor before making investment decisions.
Corporate Identity
Intrepid Potash, Inc. (Stock Symbol: IPI) is a prominent company operating within the Energy & Transportation sector, with a specific focus on the Mining & Quarrying of Nonmetallic Minerals (No Fuels) industry. The company's shares are publicly traded on the NYSE exchange.
Leadership & Workforce
The organization employs approximately 309 professionals, which is characteristic of a lean, focused organization that may emphasize efficiency and specialized expertise.
Market Classification
With a market capitalization of $371 million, Intrepid Potash, Inc. is classified as a small-cap stock. Small-cap companies often represent emerging businesses with substantial growth potential. While these investments typically carry higher volatility, they can offer significant upside for investors willing to accept greater risk.
Sector & Industry Context
Operating within the Energy & Transportation sector, Intrepid Potash, Inc. is subject to the unique dynamics, opportunities, and challenges that characterize this segment of the economy.
Revenue & Growth Analysis
Intrepid Potash, Inc. generates annual revenues of $303 million , representing an emerging company in its growth phase. While smaller in scale, such companies often offer higher growth potential as they capture market share and expand their operations.
Profitability Analysis
The company achieves a 91.9% net profit margin, which represents exceptional profitability significantly above most industry averages. Such high margins typically indicate strong pricing power, operational efficiency, asset-light business models, or valuable intellectual property. Companies with margins this high often enjoy sustainable competitive advantages.
Gross profit margin stands at 30.9%, a moderate margin common in manufacturing, retail, or distribution-heavy businesses where competition or cost structures limit pricing flexibility.
Operating margin is 22.1%, showing solid operational efficiency with balanced investment in sales, marketing, research, and administrative functions.
Market Valuation
Current market capitalization stands at $371 million . This small-cap classification typically represents higher-growth, higher-risk opportunities. Small-cap stocks can be more volatile but may offer substantial returns if the company successfully executes its growth strategy.
Return on Investment Metrics
Return on Equity (ROE) measures 50.3%, demonstrating exceptional efficiency in generating profits from shareholder equity. ROE at this level indicates excellent capital allocation and strong competitive positioning, making the company highly attractive to growth-focused investors.
Return on Assets (ROA) stands at 41.0%, representing exceptional asset efficiency typically seen in asset-light business models like software or consulting companies.
Return on Invested Capital (ROIC) measures 48.3%, indicating the company generates exceptional returns on the capital invested in its operations, a hallmark of companies with sustainable competitive advantages.
Cash Flow Generation
Free cash flow generation of $70 million annually indicates positive cash generation, though at a modest level that may limit flexibility for major investments or returns to shareholders.
Operating cash flow reaches $94 million , with year-over-year growth of -36.9%. Operating cash flow represents the cash generated from core business operations before capital investments, providing insight into the sustainability of the company's business model.
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Strategic Market Position
Intrepid Potash, Inc. strategically competes in the highly dynamic Mining & Quarrying of Nonmetallic Minerals (No Fuels) marketplace. As a small-cap company, it represents an emerging market participant with potentially significant growth opportunities. Small-caps often offer greater growth potential as they capture market share and scale their operations, though this comes with higher risk and volatility. Success at this stage can lead to substantial returns for early investors who identify winning business models.
Industry Competitive Landscape
Intrepid Potash, Inc. competes within the Energy & Transportation sector, navigating the competitive dynamics and market forces specific to this industry. The company's competitive position depends on its ability to differentiate through product quality, cost efficiency, customer relationships, or other strategic advantages relevant to its specific market segment.
Operational Efficiency
The company shows positive operational efficiency through free cash flow generation of $70 million annually , with year-over-year cash flow growth of -36.9%. Positive free cash flow indicates the business generates more cash than required for operations and capital investments, providing resources for growth initiatives or shareholder returns.
Margin & Pricing Power Analysis
The company maintains a 30.9% gross margin reflecting moderate pricing power typical of many manufacturing, retail, or service businesses. While not exceptionally high, these margins provide adequate room for operating expenses and profit generation. Competitive pressures or cost increases could impact profitability if margins compress.
Operating margin of 22.1% demonstrates how efficiently the company converts revenues into operating profits after accounting for all operating expenses including research and development, sales and marketing, and general administrative costs. This strong operating margin indicates excellent cost control and efficient organizational structure relative to the revenue base.
Asset Utilization Efficiency
Asset turnover ratio of 0.45x indicates moderate asset turnover common in capital-intensive industries such as utilities, real estate, or heavy manufacturing. Lower turnover in these sectors is expected due to the significant infrastructure required for operations.
Financial Strength & Leverage
Current ratio of 2.75 demonstrates strong short-term liquidity with current assets significantly exceeding current liabilities. This provides a substantial buffer for meeting near-term obligations and handling unexpected financial needs.