ASX:NUF

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Nufarm Limited, together with its subsidiaries, develops, manufactures, and sells crop protection products in the Asia Pacific, Europe, and North America. More Details

Rewards

Trading at 58.4% below our estimate of its fair value

Earnings are forecast to grow 69.83% per year

Risk Analysis

No risks detected for NUF from our risk checks.


Snowflake Analysis

Adequate balance sheet and fair value.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.1%

NUF

-2.4%

AU Chemicals

-1.4%

AU Market


1 Year Return

-40.8%

NUF

-33.1%

AU Chemicals

-7.1%

AU Market

Return vs Industry: NUF underperformed the Australian Chemicals industry which returned -33.9% over the past year.

Return vs Market: NUF underperformed the Australian Market which returned -6.9% over the past year.


Shareholder returns

NUFIndustryMarket
7 Day-4.1%-2.4%-1.4%
30 Day-7.4%-1.4%3.4%
90 Day-12.6%-2.0%3.8%
1 Year-40.8%-40.8%-32.1%-33.1%-3.7%-7.1%
3 Year-58.1%-59.0%-30.0%-33.7%16.9%2.1%
5 Year-51.3%-55.1%-19.4%-28.1%46.0%15.6%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NUF (A$3.75) is trading below our estimate of fair value (A$9.02)

Significantly Below Fair Value: NUF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NUF is unprofitable, so we can't compare its PE Ratio to the AU Chemicals industry average.

PE vs Market: NUF is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NUF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NUF is good value based on its PB Ratio (0.8x) compared to the AU Chemicals industry average (4.1x).


Next Steps

Future Growth

How is Nufarm forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

69.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NUF is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: NUF is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NUF's is expected to become profitable in the next 3 years.

Revenue vs Market: NUF's revenue (3.8% per year) is forecast to grow slower than the Australian market (4.6% per year).

High Growth Revenue: NUF's revenue (3.8% 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 (4.4%).


Next Steps

Past Performance

How has Nufarm performed over the past 5 years?

-51.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NUF is currently unprofitable.

Growing Profit Margin: NUF is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NUF is unprofitable, and losses have increased over the past 5 years at a rate of 51.6% per year.

Accelerating Growth: Unable to compare NUF's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NUF is unprofitable, making it difficult to compare its past year earnings growth to the Chemicals industry (-3.9%).


Return on Equity

High ROE: NUF has a negative Return on Equity (-16.91%), as it is currently unprofitable.


Next Steps

Financial Health

How is Nufarm's financial position?


Financial Position Analysis

Short Term Liabilities: NUF's short term assets (A$2.6B) exceed its short term liabilities (A$1.3B).

Long Term Liabilities: NUF's short term assets (A$2.6B) exceed its long term liabilities (A$1.1B).


Debt to Equity History and Analysis

Debt Level: NUF's debt to equity ratio (45.8%) is considered high.

Reducing Debt: NUF's debt to equity ratio has reduced from 56.9% to 45.8% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: NUF has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if NUF has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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

1.80%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Greg Hunt (61 yo)

5.42yrs

Tenure

AU$1,906,506

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 ($USD1.36M) is above average for companies of similar size in the Australian market ($USD945.32K).

Compensation vs Earnings: Greg's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Hunt
MD, CEO & Executive Director5.42yrsAU$1.91m0.14%
A$ 2.0m
Paul Binfield
Chief Financial Officer8.92yrsAU$1.20m0.052%
A$ 743.8k
Nerida Mossop
General Manager of Investor Relations & Corporate Communications1.67yrsno datano data
Fiona Smith
Group Executive Corporate Services1.33yrsno datano data
John Holding
Group Executive of People & Performance2.75yrsno datano data

2.8yrs

Average Tenure

Experienced Management: NUF's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregory Hunt
MD, CEO & Executive Director5.42yrsAU$1.91m0.14%
A$ 2.0m
Peter Margin
Non-Executive Independent Director9yrsAU$215.09k0.00092%
A$ 13.1k
John Gillam
Chairman of the Board0.083yrno data0.049%
A$ 693.7k
Anne Brennan
Non-Executive Independent Director9.67yrsAU$190.27k0.0037%
A$ 53.1k
Gordon Davis
Non-Executive Independent Director9.42yrsAU$209.15k0.019%
A$ 268.5k
Fransis Ford
Non-Executive Independent Director8yrsAU$209.15k0.014%
A$ 192.8k
Toshikazu Takasaki
Non-Independent Non-Executive Director7.83yrsAU$170.04kno data
Marie McDonald
Non-Executive Independent Director3.58yrsAU$200.79k0.0092%
A$ 130.6k

7.9yrs

Average Tenure

62.5yo

Average Age

Experienced Board: NUF's board of directors are considered experienced (7.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NUF insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$1.424b
  • Shares outstanding: 379.69m
  • 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, develops, manufactures, and sells crop protection products in the Asia Pacific, Europe, and North America. The company offers herbicides, insecticides, and f ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 10:31
End of Day Share Price2020/10/26 00:00
Earnings2020/07/31
Annual Earnings2020/07/31


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.