NUTRIEN LTD (NTR.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:NTR - CA67077M1086 - Common Stock
93.92 CAD
-1.1 (-1.16%)
We assign a fundamental rating of 6 out of 10 to NTR. NTR was compared to 27 industry peers in the Chemicals industry. While NTR has a great profitability rating, there are some minor concerns on its financial health. NTR scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes NTR very considerable 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.
- Each year in the past 5 years NTR has been profitable.
- In the past 5 years NTR always reported a positive cash flow from operatings.
1.2 Ratios
- NTR's Return On Assets of 3.49% is amongst the best of the industry. NTR outperforms 85.19% of its industry peers.
- NTR's Return On Equity of 7.20% is amongst the best of the industry. NTR outperforms 81.48% of its industry peers.
- NTR has a better Return On Invested Capital (4.86%) than 77.78% 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 92.59% 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 77.78% of the companies in the same industry.
- In the last couple of years the Operating Margin of NTR has grown nicely.
- NTR's Gross Margin of 30.20% is amongst the best of the industry. NTR outperforms 88.89% 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NTR is destroying value.
- Compared to 1 year ago, NTR has less shares outstanding
- The number of shares outstanding for NTR has been reduced compared to 5 years ago.
- Compared to 1 year ago, NTR has a worse debt to assets ratio.
2.2 Solvency
- NTR has an Altman-Z score of 1.88. This is not the best score and indicates that NTR is in the grey zone with still only limited risk for bankruptcy at the moment.
- NTR's Altman-Z score of 1.88 is fine compared to the rest of the industry. NTR outperforms 70.37% of its industry peers.
- The Debt to FCF ratio of NTR is 6.46, which is on the high side as it means it would take NTR, 6.46 years of fcf income to pay off all of its debts.
- NTR has a better Debt to FCF ratio (6.46) than 85.19% of its industry peers.
- A Debt/Equity ratio of 0.53 indicates that 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 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 6.46 | ||
| Altman-Z | 1.88 |
ROIC/WACC0.39
WACC12.52%
2.3 Liquidity
- A Current Ratio of 1.41 indicates that NTR should not have too much problems paying its short term obligations.
- NTR's Current ratio of 1.41 is in line compared to the rest of the industry. NTR outperforms 44.44% of its industry peers.
- 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.
- NTR has a Quick ratio (0.89) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
- NTR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.48%, which is quite good.
- 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
- Based on estimates for the next years, NTR will show a small growth in Earnings Per Share. The EPS will grow by 6.03% on average per year.
- The Revenue is expected to grow by 2.11% on average over the next years.
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.
- 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 16.83, which indicates a correct valuation of NTR.
- NTR's Price/Earnings ratio is rather cheap when compared to the industry. NTR is cheaper than 88.89% 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 27.30.
- Based on the Price/Forward Earnings ratio of 14.19, the valuation of NTR can be described as correct.
- Based on the Price/Forward Earnings ratio, NTR is valued cheaper than 81.48% of the companies in the same industry.
- NTR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.83 | ||
| Fwd PE | 14.19 |
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 81.48% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, NTR is valued cheaply inside the industry as 81.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.98 | ||
| EV/EBITDA | 7.62 |
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)0.47
PEG (5Y)1.58
EPS Next 2Y17.01%
EPS Next 3Y9.12%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.30%, NTR has a reasonable but not impressive dividend return.
- NTR's Dividend Yield is a higher than the industry average which is at 2.26.
- Compared to an average S&P500 Dividend Yield of 1.82, NTR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.3% |
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
- 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 16.83 and the Price/Book (PB) ratio is 1.31.
What is the financial health of NUTRIEN LTD (NTR.CA) stock?
The financial health rating of NUTRIEN LTD (NTR.CA) is 5 / 10.