NUTRIEN LTD (NTR) Stock Fundamental Analysis
USA - NYSE:NTR - CA67077M1086 - Common Stock
57.57 USD
+0.15 (+0.26%)
57.2333 USD
-0.34 (-0.58%)
We assign a fundamental rating of 4 out of 10 to NTR. NTR was compared to 83 industry peers in the Chemicals industry. NTR has a medium profitability rating, but doesn't score so well on its financial health evaluation. NTR has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NTR had positive earnings in the past year.
NTR had a positive operating cash flow in the past year.
NTR had positive earnings in each of the past 5 years.
Each year in the past 5 years NTR had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 2.56%, NTR is doing good in the industry, outperforming 62.65% of the companies in the same industry.
NTR has a Return On Equity of 5.43%. This is in the better half of the industry: NTR outperforms 63.86% of its industry peers.
The Return On Invested Capital of NTR (4.34%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for NTR is above the industry average of 6.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 5.43% | ||
| ROIC | 4.34% |
ROA(3y)5.91%
ROA(5y)5%
ROE(3y)12.48%
ROE(5y)10.56%
ROIC(3y)8.34%
ROIC(5y)7.09%
1.3 Margins
With a decent Profit Margin value of 5.25%, NTR is doing good in the industry, outperforming 69.88% of the companies in the same industry.
NTR's Profit Margin has declined in the last couple of years.
NTR's Operating Margin of 11.40% is fine compared to the rest of the industry. NTR outperforms 62.65% of its industry peers.
NTR's Operating Margin has improved in the last couple of years.
NTR has a Gross Margin of 29.18%. This is comparable to the rest of the industry: NTR outperforms 55.42% of its industry peers.
In the last couple of years the Gross Margin of NTR has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.4% | ||
| PM (TTM) | 5.25% | ||
| GM | 29.18% |
OM growth 3Y-13.46%
OM growth 5Y2.09%
PM growth 3Y-38.9%
PM growth 5Y-12.08%
GM growth 3Y-4.64%
GM growth 5Y1.41%
2. Health
2.1 Basic Checks
NTR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
NTR has less shares outstanding than it did 1 year ago.
NTR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NTR is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.66, we must say that NTR is in the distress zone and has some risk of bankruptcy.
NTR has a Altman-Z score of 1.66. This is in the lower half of the industry: NTR underperforms 60.24% of its industry peers.
The Debt to FCF ratio of NTR is 7.96, which is on the high side as it means it would take NTR, 7.96 years of fcf income to pay off all of its debts.
NTR has a better Debt to FCF ratio (7.96) than 73.49% of its industry peers.
NTR has a Debt/Equity ratio of 0.51. This is a neutral value indicating NTR is somewhat dependend on debt financing.
NTR has a Debt to Equity ratio of 0.51. This is in the better half of the industry: NTR outperforms 68.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 7.96 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.6
WACC7.27%
2.3 Liquidity
A Current Ratio of 1.33 indicates that NTR should not have too much problems paying its short term obligations.
NTR has a worse Current ratio (1.33) than 84.34% of its industry peers.
NTR has a Quick Ratio of 1.33. This is a bad value and indicates that NTR is not financially healthy enough and could expect problems in meeting its short term obligations.
NTR's Quick ratio of 0.85 is on the low side compared to the rest of the industry. NTR is outperformed by 75.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
NTR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.70%.
The Earnings Per Share has been growing by 10.65% on average over the past years. This is quite good.
Looking at the last year, NTR shows a decrease in Revenue. The Revenue has decreased by -3.26% in the last year.
The Revenue has been growing slightly by 5.28% on average over the past years.
EPS 1Y (TTM)-1.7%
EPS 3Y-17.44%
EPS 5Y10.65%
EPS Q2Q%13.25%
Revenue 1Y (TTM)-3.26%
Revenue growth 3Y-2.14%
Revenue growth 5Y5.28%
Sales Q2Q%2.84%
3.2 Future
NTR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.18% yearly.
The Revenue is expected to grow by 0.65% on average over the next years.
EPS Next Y30.61%
EPS Next 2Y14.62%
EPS Next 3Y7.09%
EPS Next 5Y2.18%
Revenue Next Year2.35%
Revenue Next 2Y1.82%
Revenue Next 3Y1.02%
Revenue Next 5Y0.65%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.64, the valuation of NTR can be described as correct.
NTR's Price/Earnings ratio is a bit cheaper when compared to the industry. NTR is cheaper than 62.65% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.69, NTR is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.52, which indicates a correct valuation of NTR.
63.86% of the companies in the same industry are more expensive than NTR, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.18. NTR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.64 | ||
| Fwd PE | 12.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NTR is valued a bit cheaper than the industry average as 78.31% of the companies are valued more expensively.
NTR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NTR is cheaper than 73.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.33 | ||
| EV/EBITDA | 7.16 |
4.3 Compensation for Growth
NTR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NTR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.54
PEG (5Y)1.56
EPS Next 2Y14.62%
EPS Next 3Y7.09%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.92%, NTR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.76, NTR pays a better dividend. On top of this NTR pays more dividend than 81.93% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, NTR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
5.2 History
The dividend of NTR has a limited annual growth rate of 2.94%.
NTR has been paying a dividend for over 5 years, so it has already some track record.
The dividend of NTR decreased recently.
Dividend Growth(5Y)2.94%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
78.21% of the earnings are spent on dividend by NTR. This is not a sustainable payout ratio.
The dividend of NTR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP78.21%
EPS Next 2Y14.62%
EPS Next 3Y7.09%
57.57
+0.15 (+0.26%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners71.84%
Inst Owner Change-0.08%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap27.97B
Analysts74.07
Price Target48.2 (-16.28%)
Short Float %1.08%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
Yearly Dividend2.15
Dividend Growth(5Y)2.94%
DP78.21%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-27.46%
Min EPS beat(2)-64.42%
Max EPS beat(2)9.5%
EPS beat(4)1
Avg EPS beat(4)-20.7%
Min EPS beat(4)-64.42%
Max EPS beat(4)9.5%
EPS beat(8)3
Avg EPS beat(8)-18.75%
EPS beat(12)3
Avg EPS beat(12)-20.54%
EPS beat(16)6
Avg EPS beat(16)-14.65%
Revenue beat(2)0
Avg Revenue beat(2)-5.13%
Min Revenue beat(2)-6.9%
Max Revenue beat(2)-3.35%
Revenue beat(4)0
Avg Revenue beat(4)-5.03%
Min Revenue beat(4)-6.9%
Max Revenue beat(4)-3.35%
Revenue beat(8)1
Avg Revenue beat(8)-4.98%
Revenue beat(12)3
Avg Revenue beat(12)-4.14%
Revenue beat(16)5
Avg Revenue beat(16)-2.21%
PT rev (1m)-0.69%
PT rev (3m)1.54%
EPS NQ rev (1m)2.67%
EPS NQ rev (3m)29.73%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)19.41%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)4.6%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.64 | ||
| Fwd PE | 12.52 | ||
| P/S | 1.08 | ||
| P/FCF | 16.33 | ||
| P/OCF | 7.62 | ||
| P/B | 1.11 | ||
| P/tB | 2.49 | ||
| EV/EBITDA | 7.16 |
EPS(TTM)3.46
EY6.01%
EPS(NY)4.6
Fwd EY7.99%
FCF(TTM)3.53
FCFY6.12%
OCF(TTM)7.56
OCFY13.12%
SpS53.44
BVpS51.64
TBVpS23.1
PEG (NY)0.54
PEG (5Y)1.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 5.43% | ||
| ROCE | 7.14% | ||
| ROIC | 4.34% | ||
| ROICexc | 4.49% | ||
| ROICexgc | 6.7% | ||
| OM | 11.4% | ||
| PM (TTM) | 5.25% | ||
| GM | 29.18% | ||
| FCFM | 6.6% |
ROA(3y)5.91%
ROA(5y)5%
ROE(3y)12.48%
ROE(5y)10.56%
ROIC(3y)8.34%
ROIC(5y)7.09%
ROICexc(3y)8.53%
ROICexc(5y)7.25%
ROICexgc(3y)13.18%
ROICexgc(5y)11.36%
ROCE(3y)13.73%
ROCE(5y)11.62%
ROICexcg growth 3Y-18.22%
ROICexcg growth 5Y4.99%
ROICexc growth 3Y-16.71%
ROICexc growth 5Y6.12%
OM growth 3Y-13.46%
OM growth 5Y2.09%
PM growth 3Y-38.9%
PM growth 5Y-12.08%
GM growth 3Y-4.64%
GM growth 5Y1.41%
F-Score6
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 7.96 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 82.51% | ||
| Cap/Sales | 7.54% | ||
| Interest Coverage | 3.98 | ||
| Cash Conversion | 68.84% | ||
| Profit Quality | 125.68% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 1.66 |
F-Score6
WACC7.27%
ROIC/WACC0.6
Cap/Depr(3y)112.14%
Cap/Depr(5y)101.14%
Cap/Sales(3y)7.97%
Cap/Sales(5y)7.55%
Profit Quality(3y)156.44%
Profit Quality(5y)184.5%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.7%
EPS 3Y-17.44%
EPS 5Y10.65%
EPS Q2Q%13.25%
EPS Next Y30.61%
EPS Next 2Y14.62%
EPS Next 3Y7.09%
EPS Next 5Y2.18%
Revenue 1Y (TTM)-3.26%
Revenue growth 3Y-2.14%
Revenue growth 5Y5.28%
Sales Q2Q%2.84%
Revenue Next Year2.35%
Revenue Next 2Y1.82%
Revenue Next 3Y1.02%
Revenue Next 5Y0.65%
EBIT growth 1Y2.92%
EBIT growth 3Y-15.31%
EBIT growth 5Y7.48%
EBIT Next Year98.5%
EBIT Next 3Y24.26%
EBIT Next 5Y14.2%
FCF growth 1Y-58.86%
FCF growth 3Y-13.08%
FCF growth 5Y-4.89%
OCF growth 1Y-47.55%
OCF growth 3Y-3.11%
OCF growth 5Y-0.72%