NUTRIEN LTD (NTR.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:NTR - CA67077M1086 - Common Stock
96.26 CAD
-0.85 (-0.88%)
We assign a fundamental rating of 6 out of 10 to NTR. NTR was compared to 29 industry peers in the Chemicals industry. NTR scores excellent on profitability, but there are some minor concerns on its financial health. NTR may be a bit undervalued, certainly considering the very reasonable score on growth 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.
- NTR had positive earnings in each of the past 5 years.
- Each year in the past 5 years NTR had a positive operating cash flow.
1.2 Ratios
- NTR's Return On Assets of 3.49% is amongst the best of the industry. NTR outperforms 86.21% of its industry peers.
- NTR has a better Return On Equity (7.20%) than 82.76% of its industry peers.
- The Return On Invested Capital of NTR (4.86%) is better than 79.31% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for NTR 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 has a Profit Margin of 6.79%. This is amongst the best in the industry. NTR outperforms 93.10% of its industry peers.
- NTR's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 12.63%, NTR is doing good in the industry, outperforming 79.31% of the companies in the same industry.
- NTR's Operating Margin has improved in the last couple of years.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NTR is destroying value.
- NTR has less shares outstanding than it did 1 year ago.
- NTR has less shares outstanding than it did 5 years ago.
- 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 Debt to FCF ratio of 6.46. This is amongst the best in the industry. NTR outperforms 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.
- Looking at the Debt to Equity ratio, with a value of 0.53, NTR is in the better half of 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
WACC12.57%
2.3 Liquidity
- NTR has a Current Ratio of 1.41. This is a normal value and indicates that NTR is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of NTR (1.41) is comparable to the rest of the industry.
- NTR has a Quick Ratio of 1.41. 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 (0.89) is comparable to the rest of the 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.
- The Revenue has been growing slightly by 0.25% in the past 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.
- NTR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.11% yearly.
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
- A Price/Earnings ratio of 17.38 indicates a rather expensive valuation of NTR.
- Based on the Price/Earnings ratio, NTR is valued cheaper than 89.66% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, NTR is valued a bit cheaper.
- The Price/Forward Earnings ratio is 14.65, which indicates a correct valuation of NTR.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of NTR indicates a somewhat cheap valuation: NTR is cheaper than 79.31% of the companies listed in the same industry.
- 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 | 17.38 | ||
| Fwd PE | 14.65 |
4.2 Price Multiples
- NTR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NTR is cheaper than 82.76% of the companies in the same industry.
- NTR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. NTR is cheaper than 82.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.46 | ||
| EV/EBITDA | 7.8 |
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.
- NTR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.48
PEG (5Y)1.63
EPS Next 2Y17.01%
EPS Next 3Y9.12%
5. Dividend
5.1 Amount
- NTR has a Yearly Dividend Yield of 3.31%. Purely for dividend investing, there may be better candidates out there.
- NTR's Dividend Yield is a higher than the industry average which is at 2.08.
- Compared to an average S&P500 Dividend Yield of 1.82, NTR pays a better dividend.
| 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.
- NTR has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)2.94%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- 58.76% of the earnings are spent on dividend by NTR. This is a bit on the high side, but may be sustainable.
- The dividend of NTR is growing, but earnings are growing more, so the dividend growth is 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 17.38 and the Price/Book (PB) ratio is 1.35.
What is the financial health of NUTRIEN LTD (NTR.CA) stock?
The financial health rating of NUTRIEN LTD (NTR.CA) is 5 / 10.