NUTRIEN LTD (NTR.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:NTR - CA67077M1086 - Common Stock
97.11 CAD
+3.19 (+3.4%)
Taking everything into account, NTR scores 6 out of 10 in our fundamental rating. NTR was compared to 29 industry peers in the Chemicals industry. While NTR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on NTR. These ratings could make NTR a good candidate for value investing.
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
- The Return On Assets of NTR (3.49%) is better than 86.21% of its industry peers.
- Looking at the Return On Equity, with a value of 7.20%, NTR belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
- NTR has a better Return On Invested Capital (4.86%) than 79.31% of its industry peers.
- NTR had an Average Return On Invested Capital over the past 3 years of 8.34%. This is in line with the industry average of 7.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.49% | ||
| ROE | 7.2% | ||
| ROIC | 4.86% |
ROA(3y)5.91%
ROA(5y)5%
ROE(3y)12.48%
ROE(5y)10.56%
ROIC(3y)8.34%
ROIC(5y)7.09%
1.3 Margins
- NTR's Profit Margin of 6.79% is amongst the best of the industry. NTR outperforms 93.10% of its industry peers.
- NTR's Profit Margin has declined in the last couple of years.
- NTR has a better Operating Margin (12.63%) than 79.31% of its industry peers.
- In the last couple of years the Operating Margin of NTR has grown nicely.
- NTR has a better Gross Margin (30.20%) than 89.66% of its industry peers.
- 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 | 12.63% | ||
| PM (TTM) | 6.79% | ||
| GM | 30.2% |
OM growth 3Y-13.46%
OM growth 5Y2.09%
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 below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, NTR has less shares outstanding
- Compared to 5 years ago, NTR has less shares outstanding
- NTR has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 1.91 indicates that NTR is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of NTR (1.91) is better than 72.41% of its industry peers.
- NTR has a debt to FCF ratio of 6.46. This is a slightly negative value and a sign of low solvency as NTR would need 6.46 years to pay back of all of its debts.
- NTR has a better Debt to FCF ratio (6.46) than 86.21% of its industry peers.
- NTR has a Debt/Equity ratio of 0.53. This is a neutral value indicating NTR is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.53, NTR is doing good in the industry, outperforming 65.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 6.46 | ||
| Altman-Z | 1.91 |
ROIC/WACC0.39
WACC12.59%
2.3 Liquidity
- A Current Ratio of 1.41 indicates that NTR should not have too much problems paying its short term obligations.
- NTR has a Current ratio (1.41) which is comparable to the rest of the industry.
- A Quick Ratio of 0.89 indicates that NTR may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.89, NTR is in line with its industry, outperforming 44.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 13.48% over the past year.
- The Earnings Per Share has been growing by 10.65% on average over the past years. This is quite good.
- Looking at the last year, NTR shows a small growth in Revenue. The Revenue has grown by 0.25% in the last year.
- The Revenue has been growing slightly by 5.28% on average over the past years.
EPS 1Y (TTM)13.48%
EPS 3Y-17.44%
EPS 5Y10.65%
EPS Q2Q%148.72%
Revenue 1Y (TTM)0.25%
Revenue growth 3Y-2.14%
Revenue growth 5Y5.28%
Sales Q2Q%12.78%
3.2 Future
- The Earnings Per Share is expected to grow by 6.03% on average over the next years.
- Based on estimates for the next years, NTR will show a small growth in Revenue. The Revenue will grow by 2.11% on average per year.
EPS Next Y36.09%
EPS Next 2Y17.01%
EPS Next 3Y9.12%
EPS Next 5Y6.03%
Revenue Next Year2.75%
Revenue Next 2Y1.95%
Revenue Next 3Y1.14%
Revenue Next 5Y2.11%
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
- The Price/Earnings ratio is 17.47, which indicates a rather expensive current valuation of NTR.
- Based on the Price/Earnings ratio, NTR is valued cheaper than 89.66% of the companies in the same industry.
- NTR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 14.72 indicates a correct valuation of NTR.
- Based on the Price/Forward Earnings ratio, NTR is valued a bit cheaper than the industry average as 79.31% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. NTR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.47 | ||
| Fwd PE | 14.72 |
4.2 Price Multiples
- 82.76% of the companies in the same industry are more expensive than NTR, based on the Enterprise Value to EBITDA ratio.
- 82.76% 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 | 15.54 | ||
| EV/EBITDA | 7.83 |
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)0.48
PEG (5Y)1.64
EPS Next 2Y17.01%
EPS Next 3Y9.12%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.31%, NTR has a reasonable but not impressive dividend return.
- NTR's Dividend Yield is a higher than the industry average which is at 2.08.
- NTR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
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.
- As NTR did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)2.94%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- NTR pays out 58.76% of its income as dividend. This is a bit on the high side, but may be sustainable.
- NTR's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP58.76%
EPS Next 2Y17.01%
EPS Next 3Y9.12%
NUTRIEN LTD / NTR.CA FAQ
What is the ChartMill fundamental rating of NUTRIEN LTD (NTR.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to NTR.CA.
Can you provide the valuation status for NUTRIEN LTD?
ChartMill assigns a valuation rating of 7 / 10 to NUTRIEN LTD (NTR.CA). This can be considered as Undervalued.
How profitable is NUTRIEN LTD (NTR.CA) stock?
NUTRIEN LTD (NTR.CA) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for NTR stock?
The Price/Earnings (PE) ratio for NUTRIEN LTD (NTR.CA) is 17.47 and the Price/Book (PB) ratio is 1.36.
What is the financial health of NUTRIEN LTD (NTR.CA) stock?
The financial health rating of NUTRIEN LTD (NTR.CA) is 5 / 10.