NUTRIEN LTD (NTR.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:NTR - CA67077M1086 - Common Stock
95.51 CAD
-0.75 (-0.78%)
We assign a fundamental rating of 6 out of 10 to NTR. 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. NTR may be a bit undervalued, certainly considering the very reasonable score on growth This makes NTR very considerable for value investing!
1. Profitability
1.1 Basic Checks
- In the past year NTR was profitable.
- NTR had a positive operating cash flow in the past year.
- In the past 5 years NTR has always been profitable.
- Each year in the past 5 years NTR had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.49%, NTR belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
- NTR has a Return On Equity of 7.20%. This is amongst the best in the industry. NTR outperforms 82.76% of its industry peers.
- NTR's Return On Invested Capital of 4.86% is fine compared to the rest of the industry. NTR outperforms 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
- Looking at the Profit Margin, with a value of 6.79%, NTR belongs to the top of the industry, outperforming 93.10% of the companies in the same industry.
- In the last couple of years the Profit Margin of NTR has declined.
- Looking at the Operating Margin, with a value of 12.63%, NTR is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
- NTR's Operating Margin has improved in the last couple of years.
- The Gross Margin of NTR (30.20%) is better than 89.66% of its industry peers.
- NTR's Gross Margin has been stable in the last couple of years.
| 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 1.90 indicates that NTR is not a great score, but indicates only limited risk for bankruptcy at the moment.
- The Altman-Z score of NTR (1.90) is better than 72.41% 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.
- Looking at the Debt to FCF ratio, with a value of 6.46, NTR belongs to the top of the industry, outperforming 86.21% of the companies in the same industry.
- NTR has a Debt/Equity ratio of 0.53. This is a neutral value indicating NTR is somewhat dependend on debt financing.
- NTR's Debt to Equity ratio of 0.53 is fine compared to the rest of the industry. NTR outperforms 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 6.46 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.39
WACC12.56%
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.
- Looking at the Current ratio, with a value of 1.41, NTR is in line with its industry, outperforming 48.28% of the companies in the same industry.
- A Quick Ratio of 0.89 indicates that NTR may have some problems paying 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
- The Earnings Per Share has grown by an nice 13.48% over the past 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.
- The Revenue has been growing slightly by 0.25% in the past year.
- Measured over the past years, NTR shows a small growth in Revenue. The Revenue has been growing by 5.28% on average per year.
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
- NTR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.03% yearly.
- 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.
- 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
- NTR is valuated rather expensively with a Price/Earnings ratio of 17.27.
- 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 28.60.
- NTR is valuated correctly with a Price/Forward Earnings ratio of 14.57.
- Based on the Price/Forward Earnings ratio, NTR is valued a bit cheaper than 79.31% of the companies in the same industry.
- NTR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.27 | ||
| Fwd PE | 14.57 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of NTR indicates a rather cheap valuation: NTR is cheaper than 82.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.38 | ||
| EV/EBITDA | 7.77 |
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)1.62
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.
- Compared to an average industry Dividend Yield of 2.08, NTR pays a bit more dividend than its industry peers.
- 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
- 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 17.27 and the Price/Book (PB) ratio is 1.34.
What is the financial health of NUTRIEN LTD (NTR.CA) stock?
The financial health rating of NUTRIEN LTD (NTR.CA) is 5 / 10.