NUTRIEN LTD (NTR) Stock Fundamental Analysis
NYSE:NTR - New York Stock Exchange, Inc. - CA67077M1086 - Common Stock - Currency: USD
Taking everything into account, NTR scores 4 out of 10 in our fundamental rating. 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
NTR had positive earnings in the past year.
In the past year NTR had a positive cash flow from operations.
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
NTR's Return On Assets of 0.99% is in line compared to the rest of the industry. NTR outperforms 49.41% of its industry peers.
NTR has a Return On Equity (2.19%) which is in line with its industry peers.
NTR has a Return On Invested Capital (4.05%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for NTR is in line with the industry average of 6.85%.
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
NTR has a Profit Margin of 2.05%. This is comparable to the rest of the industry: NTR outperforms 54.12% of its industry peers.
NTR's Profit Margin has declined in the last couple of years.
The Operating Margin of NTR (10.64%) is comparable to the rest of the industry.
NTR's Operating Margin has improved in the last couple of years.
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.
NTR's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, NTR has less shares outstanding
Compared to 5 years ago, NTR has less shares outstanding
Compared to 1 year ago, NTR has a worse debt to assets ratio.
2.2 Solvency
NTR has an Altman-Z score of 1.60. This is a bad value and indicates that NTR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of NTR (1.60) is worse than 62.35% of its industry peers.
NTR has a debt to FCF ratio of 17.12. This is a negative value and a sign of low solvency as NTR would need 17.12 years to pay back of all of its debts.
NTR's Debt to FCF ratio of 17.12 is in line compared to the rest of the industry. NTR outperforms 54.12% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that NTR is somewhat dependend on debt financing.
NTR has a Debt to Equity ratio of 0.55. This is in the better half of the industry: NTR outperforms 61.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 17.12 | ||
| Altman-Z | 1.6 |
ROIC/WACC0.55
WACC7.34%
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 has a worse Current ratio (1.22) than 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.
NTR's Quick ratio of 0.59 is on the low side compared to the rest of the industry. NTR is outperformed by 85.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The earnings per share for NTR have decreased strongly by -15.09% in the last year.
Measured over the past years, NTR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.65% on average per year.
The Revenue has decreased by -9.37% in the past year.
NTR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.28% yearly.
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
Based on estimates for the next years, NTR will show a small growth in Earnings Per Share. The EPS will grow by 3.40% on average per year.
Based on estimates for the next years, NTR will show a small growth in Revenue. The Revenue will grow by 1.47% on average per year.
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
The Price/Earnings ratio is 18.97, which indicates a rather expensive current valuation of NTR.
Compared to the rest of the industry, the Price/Earnings ratio of NTR is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.52. NTR is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.54, which indicates a correct valuation of NTR.
NTR's Price/Forward Earnings is on the same level as the industry average.
NTR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.25, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.97 | ||
| Fwd PE | 14.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NTR is valued a bit cheaper than 69.41% of the companies in the same industry.
NTR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.98 | ||
| EV/EBITDA | 7.98 |
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)2.02
PEG (5Y)1.78
EPS Next 2Y8.36%
EPS Next 3Y4.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.77%, NTR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.72, NTR pays a better dividend. On top of this NTR pays more dividend than 81.18% of the companies listed in the same industry.
NTR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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.
NTR has decreased its dividend recently.
Dividend Growth(5Y)2.94%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
201.90% of the earnings are spent on dividend by NTR. This is not a sustainable payout ratio.
The dividend of NTR is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP201.9%
EPS Next 2Y8.36%
EPS Next 3Y4.39%
59.75
-0.54 (-0.9%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners69.27%
Inst Owner Change7.45%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap29.19B
Analysts76.3
Price Target46.88 (-21.54%)
Short Float %1.5%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.77% |
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)6.07%
PT rev (3m)11.08%
EPS NQ rev (1m)4.2%
EPS NQ rev (3m)4.7%
EPS NY rev (1m)0%
EPS NY rev (3m)4.69%
Revenue NQ rev (1m)0.87%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.97 | ||
| Fwd PE | 14.54 | ||
| P/S | 1.14 | ||
| P/FCF | 33.98 | ||
| P/OCF | 9.93 | ||
| P/B | 1.21 | ||
| P/tB | 2.86 | ||
| EV/EBITDA | 7.98 |
EPS(TTM)3.15
EY5.27%
EPS(NY)4.11
Fwd EY6.88%
FCF(TTM)1.76
FCFY2.94%
OCF(TTM)6.02
OCFY10.07%
SpS52.57
BVpS49.2
TBVpS20.86
PEG (NY)2.02
PEG (5Y)1.78
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 | 1.6 |
F-Score5
WACC7.34%
ROIC/WACC0.55
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%