NUTRIEN LTD (NTR.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:NTR - CA67077M1086 - Common Stock
95.51 CAD
-1.6 (-1.65%)
Overall NTR gets a fundamental rating of 6 out of 10. We evaluated NTR against 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 would make NTR suitable 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.
- Each year in the past 5 years NTR has been profitable.
- NTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- NTR has a Return On Assets of 3.49%. This is amongst the best in the industry. NTR outperforms 86.21% of its industry peers.
- With an excellent Return On Equity value of 7.20%, NTR belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
- 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
- NTR has a better Profit Margin (6.79%) than 93.10% of its industry peers.
- In the last couple of years the Profit Margin of NTR has declined.
- NTR has a Operating Margin of 12.63%. This is in the better half of the industry: NTR outperforms 79.31% of its industry peers.
- 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.
- 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.
- NTR has less shares outstanding than it did 1 year ago.
- NTR has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for NTR is higher compared to a year ago.
2.2 Solvency
- NTR has an Altman-Z score of 1.91. 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 has a Altman-Z score of 1.91. This is in the better half of the industry: NTR outperforms 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.
- 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.
- A Debt/Equity ratio of 0.53 indicates that 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 | 1.91 |
ROIC/WACC0.39
WACC12.57%
2.3 Liquidity
- A Current Ratio of 1.41 indicates that NTR should not have too much problems paying 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.
- 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.
- NTR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.65% yearly.
- 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
- NTR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.03% yearly.
- 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.
- 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 17.24.
- 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 28.87, which is the current average of the S&P500 Index.
- NTR is valuated correctly with a Price/Forward Earnings ratio of 14.54.
- Based on the Price/Forward Earnings ratio, NTR is valued a bit cheaper than 79.31% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. NTR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.24 | ||
| Fwd PE | 14.54 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, NTR is valued cheaply inside the industry as 82.76% of the companies are valued more expensively.
- 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 | 15.34 | ||
| EV/EBITDA | 7.8 |
4.3 Compensation for Growth
- NTR's 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
- With a Yearly Dividend Yield of 3.31%, NTR has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.08, NTR pays a bit more dividend than its industry peers.
- NTR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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 17.24 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.