Northland Cuts Rating on MP Materials as NdPr Prices Plummet
April 19, 2023
Trending News 🌧️
Northland has taken the drastic measure of cutting its rating on MP ($NYSE:MP) Materials due to the sharp decline of NdPr prices. MP Materials is a well-established company that produces a variety of materials for automotive, industrial, medical, and other markets. It has a strong presence in Europe, North America, and Asia, with manufacturing facilities in multiple countries. NdPr prices have been in freefall in recent months, which has had a devastating impact on the MP Materials stock price. The company has been unable to offset the losses from the downturn in the market, resulting in a downgrade of the stock’s rating by Northland. This has caused investors to be wary about investing in the company, as uncertainty about its future prospects remains.
The company has taken steps to reduce costs and increase efficiency in order to weather the storm, but it may take some time for the stock to recover its former value. It is uncertain how long it will take for NdPr prices to rebound, leaving MP Materials and its investors in a difficult position. Until then, Northland’s decision to downgrade their rating on the stock is a sign of things to come.
Stock Price
Northland analysts issued a blunt assessment of MP Materials on Tuesday, cutting their rating on the company’s stock as prices of the key ingredient, NdPr, fell sharply. At the start of trading, MP Materials’ stock opened at $27.5 and closed at $26.3, suffering a 5.9% drop in value from its previous closing price of 28.0. The Northland report stated that the decline in NdPr prices is likely to continue due to weakening demand and an oversupply of the metal, and as a result, MP Materials could suffer further losses as a result. The report suggested that investors should exercise caution when considering investing in MP Materials as a result of the current market conditions. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Mp Materials. More…
| Total Revenues | Net Income | Net Margin |
| 527.51 | 289 | 54.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Mp Materials. More…
| Operations | Investing | Financing |
| 343.51 | -1.36k | -24.19 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Mp Materials. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.24k | 925.15 | 7.39 |
Key Ratios Snapshot
Some of the financial key ratios for Mp Materials are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 93.0% | – | 65.8% |
| FCF Margin | ROE | ROA |
| 3.2% | 17.0% | 9.7% |
Analysis
At GoodWhale, we conducted an analysis of MP MATERIALS‘ fundamentals. Based on our Risk Rating, MP MATERIALS is a high risk investment in terms of financial and business aspects. Our analysis has detected 4 risk warnings in income sheet, balance sheet, cashflow statement, financial journal. If you are interested in accessing this information, become a registered user and check it out. More…
Peers
In recent years, the manganese industry has seen increased competition between MP Materials Corp and its major competitors South Manganese Investment Ltd, Chongyi Zhangyuan Tungsten Co Ltd, and Esrey Resources Ltd. While each company has its own unique strengths and weaknesses, MP Materials Corp has emerged as the leading player in the industry due to its large scale operations and efficient production processes.
– South Manganese Investment Ltd ($SEHK:01091)
South Manganese Investment Ltd is engaged in the business of manganese ore mining and beneficiation in the Guangxi Zhuang Autonomous Region of China. The company has a market capitalization of 1.89 billion as of 2022 and a return on equity of 23.93%. South Manganese Investment Ltd is involved in the production of high-quality manganese products used in the steel industry. The company’s products are used in a variety of applications including welding, casting, and steelmaking.
– Chongyi Zhangyuan Tungsten Co Ltd ($SZSE:002378)
Chongyi Zhangyuan Tungsten Co Ltd is a Chinese company that mines, processes, and sells tungsten products. It is one of the largest tungsten companies in the world, with a market cap of $6.55 billion as of 2022. The company has a return on equity of 12.18%. Zhangyuan Tungsten is headquartered in Jiangxi Province, China.
– Esrey Resources Ltd ($OTCPK:LNGYF)
The company’s market cap is 80.14k as of 2022. The company’s ROE is -0.36%. The company deals in oil and gas.
Summary
MP Materials is a global supplier of rare earth minerals, which have recently seen a sharp decline in prices. On the day news of the decline was released, the stock price of MP Materials moved sharply downward. This could be a sign of investors responding to the bad news and reflecting their view of the company’s future prospects. It may be wise to wait and see how the stock price responds to further changes in the market, as well as any additional information that emerges from the company itself.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
