NUTRIEN LTD (NTR) Stock Fundamental Analysis
NYSE:NTR - New York Stock Exchange, Inc. - CA67077M1086 - Common Stock
We assign a fundamental rating of 4 out of 10 to NTR. NTR was compared to 85 industry peers in the Chemicals industry. NTR has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
NTR had positive earnings in each of the past 5 years.
In the past 5 years NTR always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.41%, NTR perfoms like the industry average, outperforming 42.17% of the companies in the same industry.
The Return On Equity of NTR (2.94%) is comparable to the rest of the industry.
NTR has a Return On Invested Capital of 4.50%. This is comparable to the rest of the industry: NTR outperforms 51.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NTR is above the industry average of 6.59%.
The 3 year average ROIC (10.46%) for NTR is well above the current ROIC(4.50%). The reason for the recent decline needs to be investigated.
| 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
NTR's Profit Margin of 2.76% is in line compared to the rest of the industry. NTR outperforms 46.99% of its industry peers.
NTR's Profit Margin has declined in the last couple of years.
The Operating Margin of NTR (10.57%) is comparable to the rest of the industry.
NTR's Operating Margin has improved in the last couple of years.
NTR has a Gross Margin (29.06%) which is in line with 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 | 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
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
The debt/assets ratio for NTR is higher compared to a year ago.
2.2 Solvency
NTR has an Altman-Z score of 1.63. This is a bad value and indicates that NTR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.63, NTR is doing worse than 63.86% of the companies in the same 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.
NTR has a Debt to FCF ratio of 6.47. This is in the better half of the industry: NTR outperforms 65.06% of its industry peers.
A Debt/Equity ratio of 0.54 indicates that NTR is somewhat dependend on debt financing.
NTR has a Debt to Equity ratio of 0.54. This is comparable to the rest of the industry: NTR outperforms 57.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 6.47 | ||
| Altman-Z | 1.63 |
ROIC/WACC0.63
WACC7.14%
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.
The Current ratio of NTR (1.27) is worse than 85.54% 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.
Looking at the Quick ratio, with a value of 0.82, NTR is doing worse than 80.72% of the companies in the same industry.
| 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 -40.77% in the last year.
Measured over the past years, NTR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.47% on average per year.
Looking at the last year, NTR shows a very negative growth in Revenue. The Revenue has decreased by -14.12% in the last year.
The Revenue has been growing by 8.15% on average over the past years. This is quite good.
EPS 1Y (TTM)-40.77%
EPS 3Y36.35%
EPS 5Y10.47%
EPS Q2Q%11.43%
Revenue 1Y (TTM)-14.12%
Revenue growth 3Y11.59%
Revenue growth 5Y8.15%
Sales Q2Q%-5.27%
3.2 Future
The Earnings Per Share is expected to decrease by -6.53% 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 2.32% on average per year.
EPS Next Y-16.58%
EPS Next 2Y-7.79%
EPS Next 3Y-3.9%
EPS Next 5Y-6.53%
Revenue Next Year-9.5%
Revenue Next 2Y-3.51%
Revenue Next 3Y-1.89%
Revenue Next 5Y2.32%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.50 indicates a correct valuation of NTR.
78.31% of the companies in the same industry are more expensive than NTR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.96. NTR is valued slightly cheaper when compared to this.
NTR is valuated correctly with a Price/Forward Earnings ratio of 13.92.
Based on the Price/Forward Earnings ratio, NTR is valued a bit cheaper than the industry average as 66.27% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.11, NTR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.5 | ||
| Fwd PE | 13.92 |
4.2 Price Multiples
NTR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NTR is cheaper than 85.54% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NTR is valued a bit cheaper than the industry average as 79.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.16 | ||
| EV/EBITDA | 7.16 |
4.3 Compensation for Growth
NTR has a very decent profitability rating, which may justify a higher PE ratio.
NTR's earnings are expected to decrease with -3.90% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.38
EPS Next 2Y-7.79%
EPS Next 3Y-3.9%
5. Dividend
5.1 Amount
NTR has a Yearly Dividend Yield of 4.19%, which is a nice return.
Compared to an average industry Dividend Yield of 3.34, NTR pays a better dividend. On top of this NTR pays more dividend than 86.75% of the companies listed in the same industry.
NTR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
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 decreased its dividend recently.
Dividend Growth(5Y)2.94%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
144.20% of the earnings are spent on dividend by NTR. This is not a sustainable payout ratio.
The Dividend Rate of NTR has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP144.2%
EPS Next 2Y-7.79%
EPS Next 3Y-3.9%
NUTRIEN LTD
NYSE:NTR (1/17/2025, 8:18:12 PM)
After market: 51.62 0 (0%)51.62
+0.12 (+0.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners71.16%
Inst Owner Change0.27%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap25.47B
Analysts73.6
Price Target40 (-22.51%)
Short Float %1.04%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
Yearly Dividend2.06
Dividend Growth(5Y)2.94%
DP144.2%
Div Incr Years1
Div Non Decr Years1
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)-2.81%
PT rev (3m)-10.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-50.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.18%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.5 | ||
| Fwd PE | 13.92 | ||
| P/S | 0.96 | ||
| P/FCF | 11.16 | ||
| P/OCF | 5.58 | ||
| P/B | 1.02 | ||
| P/tB | 2.32 | ||
| EV/EBITDA | 7.16 |
EPS(TTM)3.56
EY6.9%
EPS(NY)3.71
Fwd EY7.18%
FCF(TTM)4.62
FCFY8.96%
OCF(TTM)9.25
OCFY17.91%
SpS53.82
BVpS50.6
TBVpS22.23
PEG (NY)N/A
PEG (5Y)1.38
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 | 1.63 |
F-Score5
WACC7.14%
ROIC/WACC0.63
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)-40.77%
EPS 3Y36.35%
EPS 5Y10.47%
EPS Q2Q%11.43%
EPS Next Y-16.58%
EPS Next 2Y-7.79%
EPS Next 3Y-3.9%
EPS Next 5Y-6.53%
Revenue 1Y (TTM)-14.12%
Revenue growth 3Y11.59%
Revenue growth 5Y8.15%
Sales Q2Q%-5.27%
Revenue Next Year-9.5%
Revenue Next 2Y-3.51%
Revenue Next 3Y-1.89%
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 5Y10.58%
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%