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 does not seem to be growing, but still is valued expensively.
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.
NTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NTR has a Return On Assets (0.99%) which is comparable to the rest of the industry.
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.
NTR had an Average Return On Invested Capital over the past 3 years of 8.32%. This is in line with the industry average of 6.80%.
The last Return On Invested Capital (4.05%) for NTR is well below the 3 year average (8.32%), which needs to be investigated, but indicates that NTR had better years and this may not be a problem.
| 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
Looking at the Profit Margin, with a value of 2.05%, NTR is in line with its industry, outperforming 54.12% of the companies in the same industry.
NTR's Profit Margin has declined in the last couple of years.
NTR has a Operating Margin of 10.64%. This is comparable to the rest of the industry: NTR outperforms 60.00% of its industry peers.
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.
Compared to 5 years ago, NTR has less shares outstanding
The debt/assets ratio for NTR is higher compared to a year ago.
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.
NTR has a worse Altman-Z score (1.60) than 62.35% 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's Debt to FCF ratio of 17.12 is in line compared to the rest of the industry. NTR outperforms 51.76% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that NTR is somewhat dependend on debt financing.
NTR's Debt to Equity ratio of 0.55 is fine compared to the rest 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/WACC0.53
WACC7.65%
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 Current ratio of 1.22. This is in the lower half of the industry: NTR underperforms 78.82% of its industry peers.
A Quick Ratio of 0.59 indicates that NTR may have some problems paying 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%.
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.
NTR shows a decrease in Revenue. In the last year, the revenue decreased by -9.37%.
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
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
A Price/Earnings ratio of 18.83 indicates a rather expensive valuation of NTR.
NTR's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.25, NTR is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.43, which indicates a correct valuation of NTR.
NTR's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.80, NTR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.83 | ||
| Fwd PE | 14.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NTR is valued a bit cheaper than the industry average as 71.76% of the companies are valued more expensively.
NTR's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.74 | ||
| EV/EBITDA | 7.94 |
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)2.01
PEG (5Y)1.77
EPS Next 2Y8.36%
EPS Next 3Y4.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.78%, 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 3.57. NTR pays more dividend than 81.18% of the companies in the same industry.
NTR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
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 201.90% of its income as dividend. 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%
59.32
-0.03 (-0.05%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners73.92%
Inst Owner Change-0.87%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap28.98B
Analysts75.38
Price Target47.47 (-19.98%)
Short Float %1.27%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
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)0.9%
PT rev (3m)7.67%
EPS NQ rev (1m)3.47%
EPS NQ rev (3m)7.81%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)1.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.83 | ||
| Fwd PE | 14.43 | ||
| P/S | 1.13 | ||
| P/FCF | 33.74 | ||
| P/OCF | 9.86 | ||
| P/B | 1.21 | ||
| P/tB | 2.84 | ||
| EV/EBITDA | 7.94 |
EPS(TTM)3.15
EY5.31%
EPS(NY)4.11
Fwd EY6.93%
FCF(TTM)1.76
FCFY2.96%
OCF(TTM)6.02
OCFY10.14%
SpS52.57
BVpS49.2
TBVpS20.86
PEG (NY)2.01
PEG (5Y)1.77
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
WACC7.65%
ROIC/WACC0.53
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%