NUTRIEN LTD (NTR.CA) Stock Fundamental Analysis
TSX:NTR - Toronto Stock Exchange - CA67077M1086 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to NTR. NTR was compared to 32 industry peers in the Chemicals industry. NTR has an excellent profitability rating, but there are concerns on its financial health. NTR has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NTR had positive earnings in the past year.
In the past year NTR had a positive cash flow from operations.
Of the past 5 years NTR 4 years were profitable.
NTR had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
NTR's Return On Assets of 1.41% is fine compared to the rest of the industry. NTR outperforms 75.86% of its industry peers.
NTR has a Return On Equity of 2.94%. This is in the better half of the industry: NTR outperforms 75.86% of its industry peers.
The Return On Invested Capital of NTR (4.50%) is better than 79.31% 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 8.82%.
The last Return On Invested Capital (4.50%) for NTR is well below the 3 year average (10.46%), which needs to be investigated, but indicates that NTR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.41% | ||
| ROE | 2.94% | ||
| ROIC | 4.5% |
ROA(3y)7.58%
ROA(5y)5.16%
ROE(3y)16%
ROE(5y)10.88%
ROIC(3y)10.46%
ROIC(5y)7.58%
1.3 Margins
Looking at the Profit Margin, with a value of 2.76%, NTR is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
NTR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 10.57%, NTR is in the better half of the industry, outperforming 75.86% 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 of 29.06%. This is amongst the best in the industry. NTR outperforms 89.66% of its industry peers.
NTR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.57% | ||
| PM (TTM) | 2.76% | ||
| GM | 29.06% |
OM growth 3Y21.24%
OM growth 5Y2.91%
PM growth 3Y25.41%
PM growth 5Y-24.96%
GM growth 3Y4.6%
GM growth 5Y1.14%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NTR is still creating some value.
NTR has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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 comparable to the rest of the industry.
The Debt to FCF ratio of NTR is 6.47, which is on the high side as it means it would take NTR, 6.47 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.47, NTR is doing good in the industry, outperforming 79.31% of the companies in the same industry.
A Debt/Equity ratio of 0.54 indicates that NTR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.54, NTR is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 6.47 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.59
WACC7.62%
2.3 Liquidity
NTR has a Current Ratio of 1.27. This is a normal value and indicates that NTR is financially healthy and should not expect problems in meeting its short term obligations.
NTR has a Current ratio of 1.27. This is comparable to the rest of the industry: NTR outperforms 51.72% of its industry peers.
NTR has a Quick Ratio of 1.27. 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 of 0.82. This is comparable to the rest of the industry: NTR outperforms 51.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for NTR have decreased strongly by -19.72% in the last year.
NTR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.47% yearly.
The Revenue for NTR has decreased by -23.30% in the past year. This is quite bad
Measured over the past years, NTR shows a quite strong growth in Revenue. The Revenue has been growing by 8.15% on average per year.
EPS 1Y (TTM)-19.72%
EPS 3Y36.35%
EPS 5Y10.47%
EPS Q2Q%-16.22%
Revenue 1Y (TTM)-23.3%
Revenue growth 3Y11.59%
Revenue growth 5Y8.15%
Sales Q2Q%-6.01%
3.2 Future
Based on estimates for the next years, NTR will show a decrease in Earnings Per Share. The EPS will decrease by -3.49% on average per year.
The Revenue is expected to grow by 2.32% on average over the next years.
EPS Next Y-17.14%
EPS Next 2Y-7.98%
EPS Next 3Y-3.8%
EPS Next 5Y-3.49%
Revenue Next Year-9.5%
Revenue Next 2Y-3.38%
Revenue Next 3Y-1.85%
Revenue Next 5Y2.32%
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
With a Price/Earnings ratio of 15.05, NTR is valued correctly.
Based on the Price/Earnings ratio, NTR is valued cheaply inside the industry as 89.66% of the companies are valued more expensively.
NTR is valuated rather cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.26, NTR is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NTR indicates a rather cheap valuation: NTR is cheaper than 86.21% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NTR to the average of the S&P500 Index (22.68), we can say NTR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.05 | ||
| Fwd PE | 14.26 |
4.2 Price Multiples
89.66% of the companies in the same industry are more expensive than NTR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NTR is valued cheaper than 89.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.33 | ||
| EV/EBITDA | 7.27 |
4.3 Compensation for Growth
The decent profitability rating of NTR may justify a higher PE ratio.
A cheap valuation may be justified as NTR's earnings are expected to decrease with -3.80% in the coming years.
PEG (NY)N/A
PEG (5Y)1.44
EPS Next 2Y-7.98%
EPS Next 3Y-3.8%
5. Dividend
5.1 Amount
NTR has a Yearly Dividend Yield of 4.13%, which is a nice return.
NTR's Dividend Yield is a higher than the industry average which is at 6.92.
Compared to an average S&P500 Dividend Yield of 2.27, NTR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
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 144.20% of its income as dividend. This is not a sustainable payout ratio.
NTR's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP144.2%
EPS Next 2Y-7.98%
EPS Next 3Y-3.8%
TSX:NTR (2/21/2025, 7:00:00 PM)
74.82
-0.48 (-0.64%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners69.27%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap36.74B
Analysts75.2
Price Target59.18 (-20.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.13% |
Yearly Dividend2.06
Dividend Growth(5Y)2.94%
DP144.2%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.66%
Min EPS beat(2)-16.11%
Max EPS beat(2)4.79%
EPS beat(4)2
Avg EPS beat(4)-9.29%
Min EPS beat(4)-44.04%
Max EPS beat(4)18.18%
EPS beat(8)2
Avg EPS beat(8)-17.87%
EPS beat(12)4
Avg EPS beat(12)-14.81%
EPS beat(16)7
Avg EPS beat(16)8.86%
Revenue beat(2)0
Avg Revenue beat(2)-6.67%
Min Revenue beat(2)-8.9%
Max Revenue beat(2)-4.44%
Revenue beat(4)1
Avg Revenue beat(4)-4.28%
Min Revenue beat(4)-8.9%
Max Revenue beat(4)0.07%
Revenue beat(8)3
Avg Revenue beat(8)-3.4%
Revenue beat(12)4
Avg Revenue beat(12)-2.2%
Revenue beat(16)8
Avg Revenue beat(16)0.08%
PT rev (1m)2.21%
PT rev (3m)-2.28%
EPS NQ rev (1m)-10.98%
EPS NQ rev (3m)-56.28%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)-5.63%
Revenue NQ rev (1m)0.61%
Revenue NQ rev (3m)-8.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.05 | ||
| Fwd PE | 14.26 | ||
| P/S | 0.97 | ||
| P/FCF | 11.33 | ||
| P/OCF | 5.67 | ||
| P/B | 1.04 | ||
| P/tB | 2.36 | ||
| EV/EBITDA | 7.27 |
EPS(TTM)4.97
EY6.64%
EPS(NY)5.25
Fwd EY7.01%
FCF(TTM)6.6
FCFY8.83%
OCF(TTM)13.2
OCFY17.64%
SpS76.85
BVpS72.25
TBVpS31.74
PEG (NY)N/A
PEG (5Y)1.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.41% | ||
| ROE | 2.94% | ||
| ROCE | 6.86% | ||
| ROIC | 4.5% | ||
| ROICexc | 4.55% | ||
| ROICexgc | 6.72% | ||
| OM | 10.57% | ||
| PM (TTM) | 2.76% | ||
| GM | 29.06% | ||
| FCFM | 8.59% |
ROA(3y)7.58%
ROA(5y)5.16%
ROE(3y)16%
ROE(5y)10.88%
ROIC(3y)10.46%
ROIC(5y)7.58%
ROICexc(3y)10.68%
ROICexc(5y)7.75%
ROICexgc(3y)16.73%
ROICexgc(5y)12.21%
ROCE(3y)15.58%
ROCE(5y)11.23%
ROICexcg growth 3Y27.85%
ROICexcg growth 5Y6.39%
ROICexc growth 3Y30.71%
ROICexc growth 5Y7.87%
OM growth 3Y21.24%
OM growth 5Y2.91%
PM growth 3Y25.41%
PM growth 5Y-24.96%
GM growth 3Y4.6%
GM growth 5Y1.14%
F-Score5
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 6.47 | ||
| Debt/EBITDA | 2.61 | ||
| Cap/Depr | 98.53% | ||
| Cap/Sales | 8.59% | ||
| Interest Coverage | 3.68 | ||
| Cash Conversion | 89.07% | ||
| Profit Quality | 311.32% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 1.64 |
F-Score5
WACC7.62%
ROIC/WACC0.59
Cap/Depr(3y)111.9%
Cap/Depr(5y)103.74%
Cap/Sales(3y)7.35%
Cap/Sales(5y)7.78%
Profit Quality(3y)110.38%
Profit Quality(5y)179.29%
High Growth Momentum
Growth
EPS 1Y (TTM)-19.72%
EPS 3Y36.35%
EPS 5Y10.47%
EPS Q2Q%-16.22%
EPS Next Y-17.14%
EPS Next 2Y-7.98%
EPS Next 3Y-3.8%
EPS Next 5Y-3.49%
Revenue 1Y (TTM)-23.3%
Revenue growth 3Y11.59%
Revenue growth 5Y8.15%
Sales Q2Q%-6.01%
Revenue Next Year-9.5%
Revenue Next 2Y-3.38%
Revenue Next 3Y-1.85%
Revenue Next 5Y2.32%
EBIT growth 1Y-42.26%
EBIT growth 3Y35.3%
EBIT growth 5Y11.3%
EBIT Next Year34.88%
EBIT Next 3Y10.43%
EBIT Next 5Y8.36%
FCF growth 1Y-54.17%
FCF growth 3Y10.52%
FCF growth 5Y29.92%
OCF growth 1Y-34.93%
OCF growth 3Y15.09%
OCF growth 5Y19.81%