NUTRIEN LTD (NTR) Stock Fundamental Analysis
NYSE:NTR - CA67077M1086 - Common Stock
57.62 USD
-1.2 (-2.04%)
57.98 USD
+0.36 (+0.62%)
We assign a fundamental rating of 4 out of 10 to NTR. NTR was compared to 84 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 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.
NTR had a positive operating cash flow in the past year.
In the past 5 years NTR has always been profitable.
Each year in the past 5 years NTR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.56%, NTR is in the better half of the industry, outperforming 63.10% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.43%, NTR is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
NTR has a Return On Invested Capital (4.36%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for NTR is in line with the industry average of 6.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 5.43% | ||
| ROIC | 4.36% |
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
The Profit Margin of NTR (5.25%) is better than 70.24% of its industry peers.
NTR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 11.43%, NTR is in the better half of the industry, outperforming 63.10% of the companies in the same industry.
In the last couple of years the Operating Margin of NTR has grown nicely.
NTR has a Gross Margin (29.18%) which is comparable to the rest of the 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 | 11.43% | ||
| PM (TTM) | 5.25% | ||
| GM | 29.18% |
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
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.
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 1.67. This is a bad value and indicates that NTR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.67, NTR is in line with its industry, outperforming 41.67% of the companies in the same industry.
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 Debt to FCF ratio of 7.96. This is in the better half of the industry: NTR outperforms 73.81% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that NTR is somewhat dependend on debt financing.
The Debt to Equity ratio of NTR (0.51) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 7.96 | ||
| Altman-Z | 1.67 |
ROIC/WACC0.57
WACC7.66%
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 Current ratio of 1.33. This is amonst the worse of the industry: NTR underperforms 83.33% 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.
The Quick ratio of NTR (0.85) is worse than 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The earnings per share for NTR have decreased by -1.70% 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 -3.26% in the past year.
Measured over the past years, NTR shows a small growth in Revenue. The Revenue has been growing by 5.28% on average per year.
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
The Earnings Per Share is expected to grow by 2.50% on average over the next years.
The Revenue is expected to grow by 0.65% on average over the next years.
EPS Next Y30.65%
EPS Next 2Y14.23%
EPS Next 3Y6.51%
EPS Next 5Y2.5%
Revenue Next Year2.19%
Revenue Next 2Y1.59%
Revenue Next 3Y1.1%
Revenue Next 5Y0.65%
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
The Price/Earnings ratio is 16.65, which indicates a correct valuation of NTR.
Compared to the rest of the industry, the Price/Earnings ratio of NTR indicates a somewhat cheap valuation: NTR is cheaper than 64.29% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.08. NTR is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.62 indicates a correct valuation of NTR.
Based on the Price/Forward Earnings ratio, NTR is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.72, NTR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.65 | ||
| Fwd PE | 12.62 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NTR indicates a rather cheap valuation: NTR is cheaper than 80.95% of the companies listed in the same industry.
75.00% of the companies in the same industry are more expensive than NTR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.34 | ||
| EV/EBITDA | 7.26 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of NTR may justify a higher PE ratio.
PEG (NY)0.54
PEG (5Y)1.56
EPS Next 2Y14.23%
EPS Next 3Y6.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.84%, NTR has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.54, NTR pays a better dividend. On top of this NTR pays more dividend than 83.33% 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
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 78.21% 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.
DP78.21%
EPS Next 2Y14.23%
EPS Next 3Y6.51%
57.62
-1.2 (-2.04%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners73.92%
Inst Owner Change-3.84%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap28.00B
Analysts73.85
Price Target48.53 (-15.78%)
Short Float %0.73%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
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)2.22%
PT rev (3m)9.8%
EPS NQ rev (1m)10.7%
EPS NQ rev (3m)65.25%
EPS NY rev (1m)19.45%
EPS NY rev (3m)19.45%
Revenue NQ rev (1m)1.83%
Revenue NQ rev (3m)1.16%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.65 | ||
| Fwd PE | 12.62 | ||
| P/S | 1.08 | ||
| P/FCF | 16.34 | ||
| P/OCF | 7.63 | ||
| P/B | 1.12 | ||
| P/tB | 2.49 | ||
| EV/EBITDA | 7.26 |
EPS(TTM)3.46
EY6%
EPS(NY)4.57
Fwd EY7.93%
FCF(TTM)3.53
FCFY6.12%
OCF(TTM)7.56
OCFY13.11%
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 | 7.16% | ||
| ROIC | 4.36% | ||
| ROICexc | 4.5% | ||
| ROICexgc | 6.72% | ||
| OM | 11.43% | ||
| 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)8.32%
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-Score6
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 7.96 | ||
| Debt/EBITDA | 2.38 | ||
| Cap/Depr | 82.51% | ||
| Cap/Sales | 7.54% | ||
| Interest Coverage | 3.99 | ||
| Cash Conversion | 68.72% | ||
| Profit Quality | 125.68% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 1.67 |
F-Score6
WACC7.66%
ROIC/WACC0.57
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 Y30.65%
EPS Next 2Y14.23%
EPS Next 3Y6.51%
EPS Next 5Y2.5%
Revenue 1Y (TTM)-3.26%
Revenue growth 3Y-2.14%
Revenue growth 5Y5.28%
Sales Q2Q%2.84%
Revenue Next Year2.19%
Revenue Next 2Y1.59%
Revenue Next 3Y1.1%
Revenue Next 5Y0.65%
EBIT growth 1Y3.23%
EBIT growth 3Y-15.65%
EBIT growth 5Y7.22%
EBIT Next Year87.09%
EBIT Next 3Y23.25%
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%