NUTRIEN LTD (NTR)
CA67077M1086 - Common Stock
NTR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 84 industry peers in the Chemicals industry. Both the profitability and the financial health of NTR get a neutral evaluation. Nothing too spectacular is happening here. NTR has a valuation in line with the averages, but on the other hand it 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.
In the past 5 years NTR has always been profitable.
NTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NTR's Return On Assets of 2.38% is in line compared to the rest of the industry. NTR outperforms 54.76% of its industry peers.
NTR has a Return On Equity (5.00%) which is in line with its industry peers.
NTR's Return On Invested Capital of 6.05% is fine compared to the rest of the industry. NTR outperforms 63.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NTR is above the industry average of 6.89%.
The 3 year average ROIC (10.46%) for NTR is well above the current ROIC(6.05%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 5% | ||
| ROIC | 6.05% |
ROA(3y)7.58%
ROA(5y)5.16%
ROE(3y)16%
ROE(5y)10.88%
ROIC(3y)10.46%
ROIC(5y)7.58%
1.3 Margins
The Profit Margin of NTR (4.33%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of NTR has declined.
NTR's Operating Margin of 12.56% is fine compared to the rest of the industry. NTR outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of NTR has grown nicely.
NTR's Gross Margin of 29.16% is in line compared to the rest of the industry. NTR outperforms 54.76% of its industry peers.
NTR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.56% | ||
| PM (TTM) | 4.33% | ||
| GM | 29.16% |
OM growth 3Y21.24%
OM growth 5Y2.91%
PM growth 3Y25.41%
PM growth 5Y-24.96%
GM growth 3Y4.6%
GM growth 5Y1.14%
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.
Compared to 1 year ago, NTR has less shares outstanding
The number of shares outstanding for NTR has been reduced compared to 5 years ago.
Compared to 1 year ago, NTR has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.76, we must say that NTR is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.76, NTR perfoms like the industry average, outperforming 40.48% of the companies in the same industry.
NTR has a debt to FCF ratio of 5.25. This is a neutral value as NTR would need 5.25 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.25, NTR is doing good in the industry, outperforming 70.24% of the companies in the same industry.
NTR has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.47, NTR perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 5.25 | ||
| Altman-Z | 1.76 |
ROIC/WACC0.88
WACC6.9%
2.3 Liquidity
A Current Ratio of 1.17 indicates that NTR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.17, NTR is not doing good in the industry: 89.29% of the companies in the same industry are doing better.
NTR has a Quick Ratio of 1.17. 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 has a worse Quick ratio (0.65) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The earnings per share for NTR have decreased strongly by -66.67% 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 10.47% on average per year.
The Revenue for NTR has decreased by -23.30% in the past year. This is quite bad
NTR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.15% yearly.
EPS 1Y (TTM)-66.67%
EPS 3Y36.35%
EPS 5Y10.47%
EPS growth Q2Q-81.68%
Revenue 1Y (TTM)-23.3%
Revenue growth 3Y11.59%
Revenue growth 5Y8.15%
Revenue growth Q2Q-24.81%
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 1.84% on average per year.
Based on estimates for the next years, NTR will show a small growth in Revenue. The Revenue will grow by 2.32% on average per year.
EPS Next Y-4.93%
EPS Next 2Y2.8%
EPS Next 3Y1.22%
EPS Next 5Y1.84%
Revenue Next Year-3.11%
Revenue Next 2Y-0.48%
Revenue Next 3Y0.76%
Revenue Next 5Y2.32%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
Based on the Price/Earnings ratio of 13.06, the valuation of NTR can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of NTR indicates a somewhat cheap valuation: NTR is cheaper than 78.57% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.32, NTR is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.74, NTR is valued correctly.
65.48% of the companies in the same industry are more expensive than NTR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NTR to the average of the S&P500 Index (20.24), we can say NTR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.06 | ||
| Fwd PE | 13.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NTR is valued cheaply inside the industry as 86.90% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NTR is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.76 | ||
| EV/EBITDA | 6.62 |
4.3 Compensation for Growth
NTR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.25
EPS Next 2Y2.8%
EPS Next 3Y1.22%
5. Dividend
5.1 Amount
NTR has a Yearly Dividend Yield of 3.66%.
NTR's Dividend Yield is rather good when compared to the industry average which is at 3.11. NTR pays more dividend than 84.52% of the companies 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 | 3.66% |
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
NTR pays out 82.03% of its income as dividend. This is not a sustainable payout ratio.
NTR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP82.03%
EPS Next 2Y2.8%
EPS Next 3Y1.22%
NUTRIEN LTD
NYSE:NTR (5/13/2024, 4:54:11 PM)
After market: 57.4 +0.44 (+0.77%)56.96
-1.21 (-2.08%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap28.17B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.06 | ||
| Fwd PE | 13.74 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.56% | ||
| PM (TTM) | 4.33% | ||
| GM | 29.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-66.67%
EPS 3Y36.35%
EPS 5Y
EPS growth Q2Q
EPS Next Y-4.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-23.3%
Revenue growth 3Y11.59%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y