Uncommon earths are again in focus as a result of provide chain management, not simply demand, is now driving the funding story. China accounts for practically 70% of the world’s uncommon earth mining and roughly 90% of worldwide uncommon earth processing, holding a decent grip on supplies utilized in all the things from EVs to shopper electronics, so even a “delay” can transfer markets. Nevertheless, China’s promise to delay its latest uncommon earth export restrictions for a 12 months has created a slim window for the U.S. and allies to construct alternate options sooner.
That momentary opening is why traders are trying to find non‑Chinese language publicity heading into 2026. Neo Efficiency Supplies (NOPMF) has turn out to be one of many clearest public-market proxies, with a year-to-date (YTD) acquire of 108%. After a run like that, ought to traders hold shopping for for the brand new 12 months, or is the straightforward upside already gone? Let’s discover out.
Neo Efficiency Materials, with a market cap of about $480.5 million, is a Canada‑primarily based producer of engineered uncommon earth supplies and excessive‑efficiency magnets. Its dividend profile is modest however tangible, with a ahead annual dividend of $0.29, implying a yield of roughly 2.51%.
NOPMF is at the moment buying and selling at $11.75 as of this morning, Dec. 30. Whereas NOPMF inventory has slid 19% prior to now three months and 5% prior to now month, it’s nonetheless up 108% YTD.
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This valuation now embeds greater expectations. It trades at a ahead P/E of 26.25x versus a sector median close to 17.75x, suggesting traders are keen to pay a premium for its uncommon earth leverage and earnings momentum.
Their newest earnings report, launched on Nov. 13, helps clarify that confidence. This quarter ending 09/25 noticed EPS of $0.19 versus a $0.15 consensus, a $0.04 beat that translated right into a 26.67% optimistic shock. It additionally confirmed Q3 2025 income of $122.2 million in contrast with $111.3 million a 12 months earlier, whereas YTD gross sales rose to $358.5 million from $340.9 million, signaling regular demand for its excessive‑worth merchandise.
The corporate posted $8.5 million, or $0.20 per share, in Q3 2025 versus simply $1.1 million, or $0.03 per share, a 12 months earlier, and YTD adjusted EPS climbed to $0.48 from $0.16. That efficiency helped carry adjusted EBITDA to $19.2 million for Q3 and $55.3 million for the primary 9 months, with margins of 15.7% for the quarter and 15.4% YTD, displaying slight quarterly compression however a stable enchancment versus the prior YTD interval.
Neo’s latest elementary strikes assist clarify why the market is instantly keen to pay up for its uncommon earth story. The corporate is placing actual capital behind Europe’s push to scale back dependence on Chinese language provide, with a heavy uncommon earth pilot line at its Silmet facility now nearing completion and commissioning anticipated in early 2026.
This pilot line is designed to provide dysprosium and terbium, two crucial inputs for prime‑efficiency everlasting magnets that have to function reliably at excessive temperatures in EV motors and different demanding purposes.
The corporate has already accomplished the sale of a majority fairness curiosity in sure Chinese language uncommon earth separation property, which additional tilts its footprint towards Western‑aligned provide chains and frees up assets to backstop this European construct‑out.
Neo has additionally moved from plans to a bodily footprint. The corporate has held the grand opening of a brand new, state‑of‑the‑artwork everlasting magnet manufacturing facility in Estonia. That inauguration is positioned as a milestone in constructing a resilient, unbiased European base for crucial uncommon earth magnets. These magnets are tied on to electrical autos, wind power, robotics, and the broader power transition.
NOPMF can also be tightening its industrial ties with one of the essential clients within the area’s industrial panorama. The corporate lately introduced an extension of its strategic partnership for prime‑efficiency magnets with Robert Bosch GmbH, one of many world’s main automotive and industrial expertise teams.
This settlement retains Neo embedded in Bosch’s lengthy‑time period plans for superior magnet purposes, from electrified powertrains to precision industrial techniques, and helps underpin volumes for the brand new European magnet facility because it ramps up.
Analysts aren’t treating Neo’s 100%+ run in 2025 as a one‑off pop. They’re already waiting for the subsequent catalyst, with the subsequent earnings launch scheduled for March 17, 2026, masking the essential vacation season quarter that may shut out fiscal 2025. For the present quarter ending this December, the common EPS estimate sits at $0.10, an enormous swing from the prior 12 months’s -$0.12, which interprets into an anticipated YoY progress charge of about 183%.
For the subsequent quarter, in March, the Road is on the lookout for EPS of $0.15 versus $0.08 a 12 months earlier. That suggests one other hefty bounce, with estimated progress of roughly +87.50% as Neo’s greater‑margin uncommon earth and magnet volumes ramp.
The complete‑12 months numbers inform a good sharper inflection story, as for fiscal December 2025, the common EPS estimate sits at $0.44 in contrast with simply $0.05 within the prior 12 months. That works out to a projected progress charge of about 780%.
The ranking and goal image again that up, even when protection remains to be skinny, with a consensus “Average Purchase” on NOPMF primarily based on three analysts. Its common value goal is available in at $19.50, which, towards the latest value of about $11.50, implies roughly 70% upside from right here.
If the aim is long-term publicity to the West’s push to construct non‑Chinese language uncommon earth and magnet capability, NOPMF nonetheless seems like an inexpensive “hold shopping for,” however solely in small, disciplined increments after a 105%+ 12 months. Almost certainly, shares will drift greater into 2026 if outcomes proceed to enhance, however anticipate pullbacks and uneven buying and selling after such a substantial run. A clear break again above latest ranges would want contemporary proof in upcoming quarters, so averaging in (not chasing spikes) is the safer option to keep concerned.
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On the date of publication, Ebube Jones didn’t have (both instantly or not directly) positions in any of the securities talked about on this article. All data and information on this article is solely for informational functions. This text was initially printed on Barchart.com
