NUTRIEN LTD (NTR) Stock Fundamental Analysis
NYSE:NTR - New York Stock Exchange, Inc. - CA67077M1086 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to NTR. NTR was compared to 85 industry peers in the Chemicals industry. While NTR is still in line with the averages on profitability rating, there are concerns on its financial health. NTR has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year NTR was profitable.
In the past year NTR had a positive cash flow from operations.
In the past 5 years NTR has always been profitable.
In the past 5 years NTR always reported a positive cash flow from operatings.
1.2 Ratios
NTR has a Return On Assets of 0.99%. This is comparable to the rest of the industry: NTR outperforms 49.41% of its industry peers.
The Return On Equity of NTR (2.19%) is comparable to the rest of the industry.
NTR has a Return On Invested Capital of 4.05%. This is comparable to the rest of the industry: NTR outperforms 47.06% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NTR is in line with the industry average of 6.84%.
The 3 year average ROIC (8.32%) for NTR is well above the current ROIC(4.05%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.19% | ||
| ROIC | 4.05% |
ROA(3y)5.91%
ROA(5y)5%
ROE(3y)12.48%
ROE(5y)10.56%
ROIC(3y)8.32%
ROIC(5y)7.08%
1.3 Margins
With a Profit Margin value of 2.05%, NTR perfoms like the industry average, outperforming 54.12% of the companies in the same industry.
In the last couple of years the Profit Margin of NTR has declined.
With a Operating Margin value of 10.64%, NTR perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Operating Margin of NTR has grown nicely.
Looking at the Gross Margin, with a value of 28.47%, NTR is in line with its industry, outperforming 52.94% of the companies in the same industry.
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 | 10.64% | ||
| PM (TTM) | 2.05% | ||
| GM | 28.47% |
OM growth 3Y-13.8%
OM growth 5Y1.85%
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NTR is still creating some value.
NTR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for NTR has been reduced compared to 5 years ago.
NTR has a worse debt/assets ratio than last year.
2.2 Solvency
NTR has an Altman-Z score of 1.61. This is a bad value and indicates that NTR is not financially healthy and even has some risk of bankruptcy.
NTR has a worse Altman-Z score (1.61) than 61.18% of its industry peers.
The Debt to FCF ratio of NTR is 17.12, which is on the high side as it means it would take NTR, 17.12 years of fcf income to pay off all of its debts.
NTR has a Debt to FCF ratio (17.12) which is comparable to the rest of the industry.
NTR has a Debt/Equity ratio of 0.55. This is a neutral value indicating NTR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.55, NTR is in the better half of the industry, outperforming 61.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 17.12 | ||
| Altman-Z | 1.61 |
ROIC/WACC0.54
WACC7.48%
2.3 Liquidity
NTR has a Current Ratio of 1.22. This is a normal value and indicates that NTR is financially healthy and should not expect problems in meeting its short term obligations.
NTR's Current ratio of 1.22 is on the low side compared to the rest of the industry. NTR is outperformed by 78.82% of its industry peers.
NTR has a Quick Ratio of 1.22. This is a bad value and indicates that NTR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of NTR (0.59) is worse than 85.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
NTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.09%.
The Earnings Per Share has been growing by 10.65% on average over the past years. This is quite good.
NTR shows a decrease in Revenue. In the last year, the revenue decreased by -9.37%.
The Revenue has been growing slightly by 5.28% on average over the past years.
EPS 1Y (TTM)-15.09%
EPS 3Y-17.44%
EPS 5Y10.65%
EPS Q2Q%-76.09%
Revenue 1Y (TTM)-9.37%
Revenue growth 3Y-2.14%
Revenue growth 5Y5.28%
Sales Q2Q%-5.38%
3.2 Future
NTR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.40% yearly.
NTR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.47% yearly.
EPS Next Y9.38%
EPS Next 2Y8.36%
EPS Next 3Y4.39%
EPS Next 5Y3.4%
Revenue Next Year2.18%
Revenue Next 2Y2.33%
Revenue Next 3Y1.92%
Revenue Next 5Y1.47%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
NTR is valuated rather expensively with a Price/Earnings ratio of 19.09.
Compared to the rest of the industry, the Price/Earnings ratio of NTR is on the same level as its industry peers.
NTR is valuated rather cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 14.63 indicates a correct valuation of NTR.
NTR's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.90. NTR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 14.63 |
4.2 Price Multiples
NTR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NTR is cheaper than 72.94% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NTR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.2 | ||
| EV/EBITDA | 8.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.04
PEG (5Y)1.79
EPS Next 2Y8.36%
EPS Next 3Y4.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.92%, NTR has a reasonable but not impressive dividend return.
NTR's Dividend Yield is rather good when compared to the industry average which is at 3.69. NTR pays more dividend than 81.18% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, 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
NTR pays out 201.90% of its income as dividend. This is not a sustainable payout ratio.
NTR's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP201.9%
EPS Next 2Y8.36%
EPS Next 3Y4.39%
60.14
+0.15 (+0.25%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners73.92%
Inst Owner Change7.45%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap29.38B
Analysts76.3
Price Target47.05 (-21.77%)
Short Float %1.32%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
Yearly Dividend2.15
Dividend Growth(5Y)2.94%
DP201.9%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-38.09%
Min EPS beat(2)-64.42%
Max EPS beat(2)-11.77%
EPS beat(4)1
Avg EPS beat(4)-21.87%
Min EPS beat(4)-64.42%
Max EPS beat(4)4.79%
EPS beat(8)2
Avg EPS beat(8)-21.12%
EPS beat(12)3
Avg EPS beat(12)-21.26%
EPS beat(16)5
Avg EPS beat(16)-15.34%
Revenue beat(2)0
Avg Revenue beat(2)-6.17%
Min Revenue beat(2)-6.9%
Max Revenue beat(2)-5.44%
Revenue beat(4)0
Avg Revenue beat(4)-6.42%
Min Revenue beat(4)-8.9%
Max Revenue beat(4)-4.44%
Revenue beat(8)2
Avg Revenue beat(8)-4.3%
Revenue beat(12)3
Avg Revenue beat(12)-4.13%
Revenue beat(16)6
Avg Revenue beat(16)-1.93%
PT rev (1m)6.47%
PT rev (3m)10.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.43%
EPS NY rev (1m)0%
EPS NY rev (3m)1.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 14.63 | ||
| P/S | 1.14 | ||
| P/FCF | 34.2 | ||
| P/OCF | 9.99 | ||
| P/B | 1.22 | ||
| P/tB | 2.88 | ||
| EV/EBITDA | 8.01 |
EPS(TTM)3.15
EY5.24%
EPS(NY)4.11
Fwd EY6.83%
FCF(TTM)1.76
FCFY2.92%
OCF(TTM)6.02
OCFY10.01%
SpS52.57
BVpS49.2
TBVpS20.86
PEG (NY)2.04
PEG (5Y)1.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.19% | ||
| ROCE | 6.75% | ||
| ROIC | 4.05% | ||
| ROICexc | 4.14% | ||
| ROICexgc | 6.17% | ||
| OM | 10.64% | ||
| PM (TTM) | 2.05% | ||
| GM | 28.47% | ||
| FCFM | 3.34% |
ROA(3y)5.91%
ROA(5y)5%
ROE(3y)12.48%
ROE(5y)10.56%
ROIC(3y)8.32%
ROIC(5y)7.08%
ROICexc(3y)8.52%
ROICexc(5y)7.24%
ROICexgc(3y)13.15%
ROICexgc(5y)11.34%
ROCE(3y)13.7%
ROCE(5y)11.6%
ROICexcg growth 3Y-18.54%
ROICexcg growth 5Y4.74%
ROICexc growth 3Y-17.04%
ROICexc growth 5Y5.87%
OM growth 3Y-13.8%
OM growth 5Y1.85%
PM growth 3Y-38.9%
PM growth 5Y-12.08%
GM growth 3Y-4.64%
GM growth 5Y1.41%
F-Score5
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 17.12 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 88.74% | ||
| Cap/Sales | 8.1% | ||
| Interest Coverage | 3.69 | ||
| Cash Conversion | 57.91% | ||
| Profit Quality | 163% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 1.61 |
F-Score5
WACC7.48%
ROIC/WACC0.54
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)-15.09%
EPS 3Y-17.44%
EPS 5Y10.65%
EPS Q2Q%-76.09%
EPS Next Y9.38%
EPS Next 2Y8.36%
EPS Next 3Y4.39%
EPS Next 5Y3.4%
Revenue 1Y (TTM)-9.37%
Revenue growth 3Y-2.14%
Revenue growth 5Y5.28%
Sales Q2Q%-5.38%
Revenue Next Year2.18%
Revenue Next 2Y2.33%
Revenue Next 3Y1.92%
Revenue Next 5Y1.47%
EBIT growth 1Y-14.97%
EBIT growth 3Y-15.65%
EBIT growth 5Y7.22%
EBIT Next Year87.09%
EBIT Next 3Y23.25%
EBIT Next 5Y14.2%
FCF growth 1Y-82.38%
FCF growth 3Y-13.08%
FCF growth 5Y-4.89%
OCF growth 1Y-59.8%
OCF growth 3Y-3.11%
OCF growth 5Y-0.72%