NUTRIEN LTD (NTR) Stock Fundamental Analysis
USA - NYSE:NTR - CA67077M1086 - Common Stock
57.1 USD
+0.15 (+0.26%)
57.1 USD
0 (0%)
Overall NTR gets a fundamental rating of 4 out of 10. We evaluated NTR against 83 industry peers in the Chemicals industry. While NTR is still in line with the averages on profitability rating, there are concerns on its financial health. NTR is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year NTR was profitable.
In the past year NTR had a positive cash flow from operations.
In the past 5 years NTR has always been profitable.
NTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.56%, NTR is doing good in the industry, outperforming 62.65% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.43%, NTR is in the better half of the industry, outperforming 63.86% of the companies in the same industry.
NTR's Return On Invested Capital of 4.36% is in line compared to the rest of the industry. NTR outperforms 54.22% of its industry peers.
NTR had an Average Return On Invested Capital over the past 3 years of 8.32%. This is in line with the industry average of 6.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 5.43% | ||
| ROIC | 4.36% |
ROA(3y)5.91%
ROA(5y)5%
ROE(3y)12.48%
ROE(5y)10.56%
ROIC(3y)8.32%
ROIC(5y)7.08%
1.3 Margins
NTR has a Profit Margin of 5.25%. This is in the better half of the industry: NTR outperforms 69.88% of its industry peers.
NTR's Profit Margin has declined in the last couple of years.
NTR has a better Operating Margin (11.43%) than 62.65% of its industry peers.
NTR's Operating Margin has improved in the last couple of years.
NTR's Gross Margin of 29.18% is in line compared to the rest of the industry. NTR outperforms 54.22% 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 | 11.43% | ||
| PM (TTM) | 5.25% | ||
| GM | 29.18% |
OM growth 3Y-13.8%
OM growth 5Y1.85%
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 just above the Cost of Capital (WACC), so NTR is still creating some value.
The number of shares outstanding for NTR has been reduced compared to 1 year ago.
The number of shares outstanding for NTR has been reduced compared to 5 years ago.
NTR has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.66, we must say that NTR is in the distress zone and has some risk of bankruptcy.
NTR has a Altman-Z score of 1.66. This is in the lower half of the industry: NTR underperforms 60.24% of its industry peers.
The Debt to FCF ratio of NTR is 7.96, which is on the high side as it means it would take NTR, 7.96 years of fcf income to pay off all of its debts.
NTR has a Debt to FCF ratio of 7.96. This is in the better half of the industry: NTR outperforms 73.49% of its industry peers.
NTR has a Debt/Equity ratio of 0.51. This is a neutral value indicating NTR is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.51, NTR is doing good in the industry, outperforming 68.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 7.96 | ||
| Altman-Z | 1.66 |
ROIC/WACC0.55
WACC7.88%
2.3 Liquidity
NTR has a Current Ratio of 1.33. This is a normal value and indicates that NTR is financially healthy and should not expect problems in meeting its short term obligations.
NTR's Current ratio of 1.33 is on the low side compared to the rest of the industry. NTR is outperformed by 84.34% of its industry peers.
A Quick Ratio of 0.85 indicates that NTR may have some problems paying its short term obligations.
NTR's Quick ratio of 0.85 is on the low side compared to the rest of the industry. NTR is outperformed by 75.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
NTR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.70%.
NTR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.65% yearly.
NTR shows a decrease in Revenue. In the last year, the revenue decreased by -3.26%.
NTR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.28% yearly.
EPS 1Y (TTM)-1.7%
EPS 3Y-17.44%
EPS 5Y10.65%
EPS Q2Q%13.25%
Revenue 1Y (TTM)-3.26%
Revenue growth 3Y-2.14%
Revenue growth 5Y5.28%
Sales Q2Q%2.84%
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 2.50% on average per year.
Based on estimates for the next years, NTR will show a small growth in Revenue. The Revenue will grow by 0.65% on average per year.
EPS Next Y30.65%
EPS Next 2Y14.23%
EPS Next 3Y6.51%
EPS Next 5Y2.5%
Revenue Next Year2.42%
Revenue Next 2Y1.79%
Revenue Next 3Y1.04%
Revenue Next 5Y0.65%
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
Based on the Price/Earnings ratio of 16.50, the valuation of NTR can be described as correct.
67.47% of the companies in the same industry are more expensive than NTR, based on the Price/Earnings ratio.
NTR is valuated rather cheaply when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.50, NTR is valued correctly.
NTR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NTR is cheaper than 68.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.77. NTR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.5 | ||
| Fwd PE | 12.5 |
4.2 Price Multiples
81.93% 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 a bit cheaper than the industry average as 77.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.2 | ||
| EV/EBITDA | 7.09 |
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.
The decent profitability rating of NTR may justify a higher PE ratio.
PEG (NY)0.54
PEG (5Y)1.55
EPS Next 2Y14.23%
EPS Next 3Y6.51%
5. Dividend
5.1 Amount
NTR has a Yearly Dividend Yield of 3.93%. Purely for dividend investing, there may be better candidates out there.
NTR's Dividend Yield is rather good when compared to the industry average which is at 3.43. NTR pays more dividend than 83.13% of the companies in the same industry.
NTR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
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.
The dividend of NTR decreased recently.
Dividend Growth(5Y)2.94%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
78.21% of the earnings are spent on dividend by NTR. This is not a sustainable payout ratio.
NTR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP78.21%
EPS Next 2Y14.23%
EPS Next 3Y6.51%
57.1
+0.15 (+0.26%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners73.92%
Inst Owner Change-3.84%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap27.74B
Analysts74.62
Price Target48.54 (-14.99%)
Short Float %0.71%
Short Ratio1.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
Yearly Dividend2.15
Dividend Growth(5Y)2.94%
DP78.21%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-27.46%
Min EPS beat(2)-64.42%
Max EPS beat(2)9.5%
EPS beat(4)1
Avg EPS beat(4)-20.7%
Min EPS beat(4)-64.42%
Max EPS beat(4)9.5%
EPS beat(8)3
Avg EPS beat(8)-18.75%
EPS beat(12)3
Avg EPS beat(12)-20.54%
EPS beat(16)6
Avg EPS beat(16)-14.65%
Revenue beat(2)0
Avg Revenue beat(2)-5.13%
Min Revenue beat(2)-6.9%
Max Revenue beat(2)-3.35%
Revenue beat(4)0
Avg Revenue beat(4)-5.03%
Min Revenue beat(4)-6.9%
Max Revenue beat(4)-3.35%
Revenue beat(8)1
Avg Revenue beat(8)-4.98%
Revenue beat(12)3
Avg Revenue beat(12)-4.14%
Revenue beat(16)5
Avg Revenue beat(16)-2.21%
PT rev (1m)-0.36%
PT rev (3m)3.54%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)65.87%
EPS NY rev (1m)19.45%
EPS NY rev (3m)19.45%
Revenue NQ rev (1m)1.27%
Revenue NQ rev (3m)2.45%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.5 | ||
| Fwd PE | 12.5 | ||
| P/S | 1.07 | ||
| P/FCF | 16.2 | ||
| P/OCF | 7.56 | ||
| P/B | 1.11 | ||
| P/tB | 2.47 | ||
| EV/EBITDA | 7.09 |
EPS(TTM)3.46
EY6.06%
EPS(NY)4.57
Fwd EY8%
FCF(TTM)3.53
FCFY6.17%
OCF(TTM)7.56
OCFY13.23%
SpS53.44
BVpS51.64
TBVpS23.1
PEG (NY)0.54
PEG (5Y)1.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 5.43% | ||
| ROCE | 7.16% | ||
| ROIC | 4.36% | ||
| ROICexc | 4.5% | ||
| ROICexgc | 6.72% | ||
| OM | 11.43% | ||
| PM (TTM) | 5.25% | ||
| GM | 29.18% | ||
| FCFM | 6.6% |
ROA(3y)5.91%
ROA(5y)5%
ROE(3y)12.48%
ROE(5y)10.56%
ROIC(3y)8.32%
ROIC(5y)7.08%
ROICexc(3y)8.52%
ROICexc(5y)7.24%
ROICexgc(3y)13.15%
ROICexgc(5y)11.34%
ROCE(3y)13.7%
ROCE(5y)11.6%
ROICexcg growth 3Y-18.54%
ROICexcg growth 5Y4.74%
ROICexc growth 3Y-17.04%
ROICexc growth 5Y5.87%
OM growth 3Y-13.8%
OM growth 5Y1.85%
PM growth 3Y-38.9%
PM growth 5Y-12.08%
GM growth 3Y-4.64%
GM growth 5Y1.41%
F-Score6
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 7.96 | ||
| Debt/EBITDA | 2.38 | ||
| Cap/Depr | 82.51% | ||
| Cap/Sales | 7.54% | ||
| Interest Coverage | 3.99 | ||
| Cash Conversion | 68.72% | ||
| Profit Quality | 125.68% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 1.66 |
F-Score6
WACC7.88%
ROIC/WACC0.55
Cap/Depr(3y)112.14%
Cap/Depr(5y)101.14%
Cap/Sales(3y)7.97%
Cap/Sales(5y)7.55%
Profit Quality(3y)156.44%
Profit Quality(5y)184.5%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.7%
EPS 3Y-17.44%
EPS 5Y10.65%
EPS Q2Q%13.25%
EPS Next Y30.65%
EPS Next 2Y14.23%
EPS Next 3Y6.51%
EPS Next 5Y2.5%
Revenue 1Y (TTM)-3.26%
Revenue growth 3Y-2.14%
Revenue growth 5Y5.28%
Sales Q2Q%2.84%
Revenue Next Year2.42%
Revenue Next 2Y1.79%
Revenue Next 3Y1.04%
Revenue Next 5Y0.65%
EBIT growth 1Y3.23%
EBIT growth 3Y-15.65%
EBIT growth 5Y7.22%
EBIT Next Year87.09%
EBIT Next 3Y23.25%
EBIT Next 5Y14.2%
FCF growth 1Y-58.86%
FCF growth 3Y-13.08%
FCF growth 5Y-4.89%
OCF growth 1Y-47.55%
OCF growth 3Y-3.11%
OCF growth 5Y-0.72%