NUTRIEN LTD (NTR) Stock Fundamental Analysis
NYSE:NTR - New York Stock Exchange, Inc. - CA67077M1086 - Common Stock - Currency: USD
NTR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. NTR has a medium profitability rating, but doesn't score so well on its financial health evaluation. NTR is valued correctly, but it does not seem to be growing.
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.
NTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 1.30%, NTR perfoms like the industry average, outperforming 50.59% of the companies in the same industry.
NTR has a Return On Equity of 2.76%. This is comparable to the rest of the industry: NTR outperforms 48.24% of its industry peers.
NTR's Return On Invested Capital of 4.49% is in line compared to the rest of the industry. NTR outperforms 45.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NTR is in line with the industry average of 7.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 2.76% | ||
| ROIC | 4.49% |
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 (2.60%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of NTR has declined.
The Operating Margin of NTR (11.22%) is comparable to the rest of the industry.
NTR's Operating Margin has improved in the last couple of years.
NTR's Gross Margin of 28.99% is in line compared to the rest of the industry. NTR outperforms 52.94% of its industry peers.
NTR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.22% | ||
| PM (TTM) | 2.6% | ||
| GM | 28.99% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NTR is creating some value.
The number of shares outstanding for NTR has been reduced compared to 1 year ago.
NTR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NTR is higher compared to a year ago.
2.2 Solvency
NTR has an Altman-Z score of 1.64. 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 (1.64) is worse than 61.18% of its industry peers.
The Debt to FCF ratio of NTR is 9.27, which is on the high side as it means it would take NTR, 9.27 years of fcf income to pay off all of its debts.
NTR's Debt to FCF ratio of 9.27 is fine compared to the rest of the industry. NTR outperforms 62.35% of its industry peers.
NTR has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NTR (0.47) is better than 63.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 9.27 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.63
WACC7.17%
2.3 Liquidity
NTR has a Current Ratio of 1.15. This is a normal value and indicates that NTR is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.15, NTR is not doing good in the industry: 82.35% of the companies in the same industry are doing better.
A Quick Ratio of 0.63 indicates that NTR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.63, NTR is doing worse than 83.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.63 |
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.
Looking at the last year, NTR shows a very negative growth in Revenue. The Revenue has decreased by -10.61% in the last 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)-10.61%
Revenue growth 3Y-2.14%
Revenue growth 5Y5.28%
Sales Q2Q%-0.99%
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 1.13% on average per year.
NTR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.76% yearly.
EPS Next Y9.38%
EPS Next 2Y8.36%
EPS Next 3Y4.39%
EPS Next 5Y1.13%
Revenue Next Year2.18%
Revenue Next 2Y2.33%
Revenue Next 3Y1.92%
Revenue Next 5Y1.76%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.24, NTR is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of NTR is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 25.05, NTR is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 13.98, the valuation of NTR can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NTR is on the same level as its industry peers.
NTR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.07, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.24 | ||
| Fwd PE | 13.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NTR indicates a somewhat cheap valuation: NTR is cheaper than 75.29% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NTR is valued a bit cheaper than 65.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.33 | ||
| EV/EBITDA | 7.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NTR does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)1.95
PEG (5Y)1.71
EPS Next 2Y8.36%
EPS Next 3Y4.39%
5. Dividend
5.1 Amount
NTR has a Yearly Dividend Yield of 3.90%.
NTR's Dividend Yield is rather good when compared to the industry average which is at 3.77. NTR pays more dividend than 82.35% of the companies in the same industry.
NTR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
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
157.27% of the earnings are spent on dividend by NTR. This is not a sustainable payout ratio.
NTR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP157.27%
EPS Next 2Y8.36%
EPS Next 3Y4.39%
57.46
+0.48 (+0.84%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners69.27%
Inst Owner Change0.31%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap28.07B
Analysts74.62
Price Target44.19 (-23.09%)
Short Float %1.47%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.9% |
Yearly Dividend2.15
Dividend Growth(5Y)2.94%
DP157.27%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.94%
Min EPS beat(2)-16.11%
Max EPS beat(2)-11.77%
EPS beat(4)2
Avg EPS beat(4)-1.23%
Min EPS beat(4)-16.11%
Max EPS beat(4)18.18%
EPS beat(8)2
Avg EPS beat(8)-16.38%
EPS beat(12)3
Avg EPS beat(12)-16.12%
EPS beat(16)6
Avg EPS beat(16)5.77%
Revenue beat(2)0
Avg Revenue beat(2)-4.94%
Min Revenue beat(2)-5.44%
Max Revenue beat(2)-4.44%
Revenue beat(4)0
Avg Revenue beat(4)-5.66%
Min Revenue beat(4)-8.9%
Max Revenue beat(4)-3.86%
Revenue beat(8)2
Avg Revenue beat(8)-4.13%
Revenue beat(12)3
Avg Revenue beat(12)-3.6%
Revenue beat(16)7
Avg Revenue beat(16)-1.21%
PT rev (1m)4.91%
PT rev (3m)8.03%
EPS NQ rev (1m)-3.22%
EPS NQ rev (3m)-8.72%
EPS NY rev (1m)1.8%
EPS NY rev (3m)3.69%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-2.46%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.24 | ||
| Fwd PE | 13.98 | ||
| P/S | 1.08 | ||
| P/FCF | 20.33 | ||
| P/OCF | 7.94 | ||
| P/B | 1.15 | ||
| P/tB | 2.66 | ||
| EV/EBITDA | 7.26 |
EPS(TTM)3.15
EY5.48%
EPS(NY)4.11
Fwd EY7.15%
FCF(TTM)2.83
FCFY4.92%
OCF(TTM)7.24
OCFY12.59%
SpS53.16
BVpS49.96
TBVpS21.58
PEG (NY)1.95
PEG (5Y)1.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | 2.76% | ||
| ROCE | 7.32% | ||
| ROIC | 4.49% | ||
| ROICexc | 4.58% | ||
| ROICexgc | 6.97% | ||
| OM | 11.22% | ||
| PM (TTM) | 2.6% | ||
| GM | 28.99% | ||
| FCFM | 5.32% |
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-Score4
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 9.27 | ||
| Debt/EBITDA | 2.17 | ||
| Cap/Depr | 92.09% | ||
| Cap/Sales | 8.29% | ||
| Interest Coverage | 3.94 | ||
| Cash Conversion | 67.29% | ||
| Profit Quality | 204.9% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1.64 |
F-Score4
WACC7.17%
ROIC/WACC0.63
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 5Y1.13%
Revenue 1Y (TTM)-10.61%
Revenue growth 3Y-2.14%
Revenue growth 5Y5.28%
Sales Q2Q%-0.99%
Revenue Next Year2.18%
Revenue Next 2Y2.33%
Revenue Next 3Y1.92%
Revenue Next 5Y1.76%
EBIT growth 1Y-20.16%
EBIT growth 3Y-15.65%
EBIT growth 5Y7.22%
EBIT Next Year80.25%
EBIT Next 3Y22.57%
EBIT Next 5Y13.01%
FCF growth 1Y-42.34%
FCF growth 3Y-13.08%
FCF growth 5Y-4.89%
OCF growth 1Y-30.22%
OCF growth 3Y-3.11%
OCF growth 5Y-0.72%