NUTRIEN LTD (NTR) Stock Fundamental Analysis
NYSE:NTR - New York Stock Exchange, Inc. - CA67077M1086 - Common Stock - Currency: USD
NTR gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 85 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 expensive and it does not seem to be growing.
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.
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 0.99%, NTR is in line with its industry, outperforming 49.41% of the companies in the same industry.
NTR has a Return On Equity (2.19%) which is in line with its industry peers.
NTR has a Return On Invested Capital of 4.05%. This is comparable to the rest of the industry: NTR outperforms 47.06% 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 6.84%.
The last Return On Invested Capital (4.05%) for NTR is well below the 3 year average (8.32%), which needs to be investigated, but indicates that NTR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.19% | ||
| ROIC | 4.05% |
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's Profit Margin of 2.05% is in line compared to the rest of the industry. NTR outperforms 54.12% of its industry peers.
In the last couple of years the Profit Margin of NTR has declined.
NTR has a Operating Margin of 10.64%. This is comparable to the rest of the industry: NTR outperforms 60.00% of its industry peers.
In the last couple of years the Operating Margin of NTR has grown nicely.
NTR has a Gross Margin (28.47%) which is in line with its industry peers.
NTR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.64% | ||
| PM (TTM) | 2.05% | ||
| GM | 28.47% |
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
NTR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, NTR has less shares outstanding
Compared to 5 years ago, NTR has less shares outstanding
Compared to 1 year ago, NTR has a worse debt to assets ratio.
2.2 Solvency
NTR has an Altman-Z score of 1.61. 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 (1.61) is worse than 61.18% of its industry peers.
NTR has a debt to FCF ratio of 17.12. This is a negative value and a sign of low solvency as NTR would need 17.12 years to pay back of all of its debts.
With a Debt to FCF ratio value of 17.12, NTR perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
NTR has a Debt/Equity ratio of 0.55. This is a neutral value indicating NTR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.55, NTR is in the better half of the industry, outperforming 61.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 17.12 | ||
| Altman-Z | 1.61 |
ROIC/WACC0.54
WACC7.48%
2.3 Liquidity
A Current Ratio of 1.22 indicates that NTR should not have too much problems paying its short term obligations.
NTR has a Current ratio of 1.22. This is in the lower half of the industry: NTR underperforms 78.82% of its industry peers.
NTR has a Quick Ratio of 1.22. This is a bad value and indicates that NTR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.59, NTR is doing worse than 85.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The earnings per share for NTR have decreased strongly by -15.09% 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 10.65% yearly.
NTR shows a decrease in Revenue. In the last year, the revenue decreased by -9.37%.
NTR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.28% yearly.
EPS 1Y (TTM)-15.09%
EPS 3Y-17.44%
EPS 5Y10.65%
EPS Q2Q%-76.09%
Revenue 1Y (TTM)-9.37%
Revenue growth 3Y-2.14%
Revenue growth 5Y5.28%
Sales Q2Q%-5.38%
3.2 Future
The Earnings Per Share is expected to grow by 3.40% on average over the next years.
Based on estimates for the next years, NTR will show a small growth in Revenue. The Revenue will grow by 1.47% on average per year.
EPS Next Y9.38%
EPS Next 2Y8.36%
EPS Next 3Y4.39%
EPS Next 5Y3.4%
Revenue Next Year2.18%
Revenue Next 2Y2.33%
Revenue Next 3Y1.92%
Revenue Next 5Y1.47%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 19.09.
Compared to the rest of the industry, the Price/Earnings ratio of NTR is on the same level as its industry peers.
NTR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.45.
NTR is valuated correctly with a Price/Forward Earnings ratio of 14.63.
NTR's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.90. NTR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 14.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NTR indicates a somewhat cheap valuation: NTR is cheaper than 72.94% of the companies listed in the same industry.
NTR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.2 | ||
| EV/EBITDA | 8.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NTR does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.04
PEG (5Y)1.79
EPS Next 2Y8.36%
EPS Next 3Y4.39%
5. Dividend
5.1 Amount
NTR has a Yearly Dividend Yield of 3.92%.
NTR's Dividend Yield is rather good when compared to the industry average which is at 3.69. NTR pays more dividend than 81.18% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, NTR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
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
201.90% of the earnings are spent on dividend by NTR. This is not a sustainable payout ratio.
NTR's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP201.9%
EPS Next 2Y8.36%
EPS Next 3Y4.39%
60.14
+0.15 (+0.25%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners73.92%
Inst Owner Change7.45%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap29.38B
Analysts76.3
Price Target47.05 (-21.77%)
Short Float %1.32%
Short Ratio2.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.92% |
Yearly Dividend2.15
Dividend Growth(5Y)2.94%
DP201.9%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-38.09%
Min EPS beat(2)-64.42%
Max EPS beat(2)-11.77%
EPS beat(4)1
Avg EPS beat(4)-21.87%
Min EPS beat(4)-64.42%
Max EPS beat(4)4.79%
EPS beat(8)2
Avg EPS beat(8)-21.12%
EPS beat(12)3
Avg EPS beat(12)-21.26%
EPS beat(16)5
Avg EPS beat(16)-15.34%
Revenue beat(2)0
Avg Revenue beat(2)-6.17%
Min Revenue beat(2)-6.9%
Max Revenue beat(2)-5.44%
Revenue beat(4)0
Avg Revenue beat(4)-6.42%
Min Revenue beat(4)-8.9%
Max Revenue beat(4)-4.44%
Revenue beat(8)2
Avg Revenue beat(8)-4.3%
Revenue beat(12)3
Avg Revenue beat(12)-4.13%
Revenue beat(16)6
Avg Revenue beat(16)-1.93%
PT rev (1m)6.47%
PT rev (3m)10.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.43%
EPS NY rev (1m)0%
EPS NY rev (3m)1.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.09 | ||
| Fwd PE | 14.63 | ||
| P/S | 1.14 | ||
| P/FCF | 34.2 | ||
| P/OCF | 9.99 | ||
| P/B | 1.22 | ||
| P/tB | 2.88 | ||
| EV/EBITDA | 8.01 |
EPS(TTM)3.15
EY5.24%
EPS(NY)4.11
Fwd EY6.83%
FCF(TTM)1.76
FCFY2.92%
OCF(TTM)6.02
OCFY10.01%
SpS52.57
BVpS49.2
TBVpS20.86
PEG (NY)2.04
PEG (5Y)1.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.19% | ||
| ROCE | 6.75% | ||
| ROIC | 4.05% | ||
| ROICexc | 4.14% | ||
| ROICexgc | 6.17% | ||
| OM | 10.64% | ||
| PM (TTM) | 2.05% | ||
| GM | 28.47% | ||
| FCFM | 3.34% |
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-Score5
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 17.12 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 88.74% | ||
| Cap/Sales | 8.1% | ||
| Interest Coverage | 3.69 | ||
| Cash Conversion | 57.91% | ||
| Profit Quality | 163% | ||
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 1.61 |
F-Score5
WACC7.48%
ROIC/WACC0.54
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)-15.09%
EPS 3Y-17.44%
EPS 5Y10.65%
EPS Q2Q%-76.09%
EPS Next Y9.38%
EPS Next 2Y8.36%
EPS Next 3Y4.39%
EPS Next 5Y3.4%
Revenue 1Y (TTM)-9.37%
Revenue growth 3Y-2.14%
Revenue growth 5Y5.28%
Sales Q2Q%-5.38%
Revenue Next Year2.18%
Revenue Next 2Y2.33%
Revenue Next 3Y1.92%
Revenue Next 5Y1.47%
EBIT growth 1Y-14.97%
EBIT growth 3Y-15.65%
EBIT growth 5Y7.22%
EBIT Next Year87.09%
EBIT Next 3Y23.25%
EBIT Next 5Y14.2%
FCF growth 1Y-82.38%
FCF growth 3Y-13.08%
FCF growth 5Y-4.89%
OCF growth 1Y-59.8%
OCF growth 3Y-3.11%
OCF growth 5Y-0.72%