ASX:NUF

Stock Analysis Report

Executive Summary

Nufarm Limited, together with its subsidiaries, manufactures and sells crop protection products in Australia, New Zealand, Asia, Europe, North America, and South America.

Snowflake

Fundamentals

Moderate growth potential with questionable track record.


Similar Companies

Share Price & News

How has Nufarm's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NUF's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.5%

NUF

1.6%

AU Chemicals

1.2%

AU Market


1 Year Return

6.7%

NUF

11.8%

AU Chemicals

12.1%

AU Market

Return vs Industry: NUF underperformed the Australian Chemicals industry which returned 11.8% over the past year.

Return vs Market: NUF underperformed the Australian Market which returned 12.1% over the past year.


Shareholder returns

NUFIndustryMarket
7 Day2.5%1.6%1.2%
30 Day-3.7%5.1%2.0%
90 Day36.8%13.1%3.2%
1 Year6.7%6.7%13.2%11.8%18.3%12.1%
3 Year-21.6%-26.7%27.1%19.1%40.6%22.1%
5 Year39.8%27.3%50.0%28.9%54.2%19.8%

Price Volatility Vs. Market

How volatile is Nufarm's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Nufarm undervalued compared to its fair value and its price relative to the market?

84.23x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NUF (A$6.24) is trading above our estimate of fair value (A$5.48)

Significantly Below Fair Value: NUF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NUF is poor value based on its PE Ratio (84.2x) compared to the Chemicals industry average (43.7x).

PE vs Market: NUF is poor value based on its PE Ratio (84.2x) compared to the Australian market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: NUF is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: NUF is good value based on its PB Ratio (1.1x) compared to the AU Chemicals industry average (4.6x).


Next Steps

Future Growth

How is Nufarm forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

37.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NUF's forecast earnings growth (37.9% per year) is above the savings rate (2.3%).

Earnings vs Market: NUF's earnings (37.9% per year) are forecast to grow faster than the Australian market (9.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NUF's revenue (0.2% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: NUF's revenue (0.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NUF's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has Nufarm performed over the past 5 years?

-1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NUF has high quality earnings.

Growing Profit Margin: NUF's current net profit margins (0.7%) are higher than last year (-0.8%).


Past Earnings Growth Analysis

Earnings Trend: NUF's earnings have declined by -1.9% per year over the past 5 years.

Accelerating Growth: NUF has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NUF has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (-0.02%).


Return on Equity

High ROE: NUF's Return on Equity (1.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nufarm's financial position?


Financial Position Analysis

Short Term Liabilities: NUF's short term assets (A$3.2B) exceeds its short term liabilities (A$1.8B)

Long Term Liabilities: NUF's short term assets (3.2B) exceeds its long term liabilities (1.5B)


Debt to Equity History and Analysis

Debt Level: NUF's debt to equity ratio (72.3%) is considered high

Reducing Debt: NUF's debt to equity ratio has increased from 47.7% to 72.3% over the past 5 years.

Debt Coverage: NUF's debt is not well covered by operating cash flow (5.6%).

Interest Coverage: NUF's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet

Inventory Level: NUF has a high level of physical assets or inventory.

Debt Coverage by Assets: NUF's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

What is Nufarm's current dividend yield, its reliability and sustainability?

1.88%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.4%markettop25%5.5%industryaverage2.8%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate NUF's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NUF's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NUF's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NUF's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: NUF is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NUF's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of Nufarm's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Greg Hunt (60yo)

4.5yrs

Tenure

AU$1,763,052

Compensation

Mr. Gregory Allan Hunt, also known as Greg, Grad. Dip., Mgmnt, AMP Harvard, AICD, REBA, has been the Chief Executive Officer and Managing Director of Nufarm Limited since May 05, 2015. Mr. Hunt serves as M ...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD1.21M) is about average for companies of similar size in the Australian market ($USD1.41M).

Compensation vs Earnings: Greg's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.0yrs

Average Tenure

Experienced Management: NUF's management team is considered experienced (3 years average tenure).


Board Age and Tenure

7.6yrs

Average Tenure

63yo

Average Age

Experienced Board: NUF's board of directors are considered experienced (7.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.9%.


Management Team

  • Fiona Smith

    Group Executive Corporate Services

    • Tenure: 0.4yrs
  • Paul Binfield (54yo)

    Chief Financial Officer

    • Tenure: 8yrs
    • Compensation: AU$1.07m
  • Greg Hunt (60yo)

    MD, CEO & Executive Director

    • Tenure: 4.5yrs
    • Compensation: AU$1.76m
  • Brent Zacharias

    Group Executive of Nuseed

    • Tenure: 4.3yrs
    • Compensation: AU$909.82k
  • Nerida Mossop

    General Manager of Investor Relations & Corporate Communications

    • Tenure: 0.8yrs
  • John Holding

    Group Executive of People & Performance

    • Tenure: 1.8yrs

Board Members

  • Donald McGauchie (69yo)

    Non-Executive Independent Chairman

    • Tenure: 9.3yrs
    • Compensation: AU$392.57k
  • Peter Margin (59yo)

    Non-Executive Independent Director

    • Tenure: 8.1yrs
    • Compensation: AU$203.76k
  • Greg Hunt (60yo)

    MD, CEO & Executive Director

    • Tenure: 4.5yrs
    • Compensation: AU$1.76m
  • Anne Brennan (59yo)

    Non-Executive Independent Director

    • Tenure: 8.8yrs
    • Compensation: AU$190.27k
  • Gordon Davis (63yo)

    Non-Executive Independent Director

    • Tenure: 8.5yrs
    • Compensation: AU$209.15k
  • Frank Ford (73yo)

    Non-Executive Independent Director

    • Tenure: 7.1yrs
    • Compensation: AU$197.82k
  • Toshikazu Takasaki (72yo)

    Non-Independent Non-Executive Director

    • Tenure: 6.9yrs
    • Compensation: AU$170.04k
  • Marie McDonald (63yo)

    Non-Executive Independent Director

    • Tenure: 2.7yrs
    • Compensation: AU$186.22k

Company Information

Nufarm Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nufarm Limited
  • Ticker: NUF
  • Exchange: ASX
  • Founded: 2000
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: AU$2.369b
  • Shares outstanding: 379.64m
  • Website: https://www.nufarm.com

Number of Employees


Location

  • Nufarm Limited
  • 103-105 Pipe Road
  • Laverton North
  • Victoria
  • 3026
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NUFASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
NUFM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
NUFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
NUFCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
NFRM.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJan 2016

Biography

Nufarm Limited, together with its subsidiaries, manufactures and sells crop protection products in Australia, New Zealand, Asia, Europe, North America, and South America. It operates through two segments,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 10:31
End of Day Share Price2019/11/12 00:00
Earnings2019/07/31
Annual Earnings2019/07/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.