company background image
NUF

Nufarm ASX:NUF Stock Report

Last Price

AU$5.31

Market Cap

AU$2.0b

7D

1.0%

1Y

16.7%

Updated

18 Aug, 2022

Data

Company Financials +
NUF fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance3/6
Financial Health6/6
Dividends3/6

NUF Stock Overview

Nufarm Limited, together with its subsidiaries, develops, manufactures, and sells crop protection solutions and seed technologies in Europe, the Middle East, Africa, North America, and the Asia Pacific.

Nufarm Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nufarm
Historical stock prices
Current Share PriceAU$5.31
52 Week HighAU$6.93
52 Week LowAU$4.09
Beta0.45
1 Month Change2.11%
3 Month Change-8.76%
1 Year Change16.70%
3 Year Change18.79%
5 Year Change-39.80%
Change since IPO167.71%

Recent News & Updates

May 26
An Intrinsic Calculation For Nufarm Limited (ASX:NUF) Suggests It's 49% Undervalued

An Intrinsic Calculation For Nufarm Limited (ASX:NUF) Suggests It's 49% Undervalued

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Nufarm Limited...

Shareholder Returns

NUFAU ChemicalsAU Market
7D1.0%1.0%0.7%
1Y16.7%10.4%-4.8%

Return vs Industry: NUF exceeded the Australian Chemicals industry which returned 10.4% over the past year.

Return vs Market: NUF exceeded the Australian Market which returned -4.8% over the past year.

Price Volatility

Is NUF's price volatile compared to industry and market?
NUF volatility
NUF Average Weekly Movement5.6%
Chemicals Industry Average Movement11.7%
Market Average Movement10.6%
10% most volatile stocks in AU Market17.8%
10% least volatile stocks in AU Market4.6%

Stable Share Price: NUF is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: NUF's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19162,737Greg Hunthttps://www.nufarm.com

Nufarm Limited, together with its subsidiaries, develops, manufactures, and sells crop protection solutions and seed technologies in Europe, the Middle East, Africa, North America, and the Asia Pacific. It operates through two segments, Crop Protection and Seed Technology. The company’s protection solutions include herbicides, insecticides, and fungicides that help growers protect crops against weeds, pests, and diseases.

Nufarm Fundamentals Summary

How do Nufarm's earnings and revenue compare to its market cap?
NUF fundamental statistics
Market CapAU$2.02b
Earnings (TTM)AU$95.23m
Revenue (TTM)AU$3.73b

21.2x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NUF income statement (TTM)
RevenueAU$3.73b
Cost of RevenueAU$2.79b
Gross ProfitAU$945.67m
Other ExpensesAU$850.43m
EarningsAU$95.23m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Nov 16, 2022

Earnings per share (EPS)0.25
Gross Margin25.34%
Net Profit Margin2.55%
Debt/Equity Ratio38.4%

How did NUF perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

32%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is NUF undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NUF?

Other financial metrics that can be useful for relative valuation.

NUF key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA7.9x
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

How does NUF's PE Ratio compare to its peers?

NUF PE Ratio vs Peers
The above table shows the PE ratio for NUF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11.1x
SFR Sandfire Resources
10.3x-0.2%AU$2.0b
PRU Perseus Mining
11.7x26.2%AU$2.2b
RRL Regis Resources
13.8x12.3%AU$1.2b
CSR CSR
8.5x-5.7%AU$2.3b
NUF Nufarm
21.2x13.8%AU$2.0b

Price-To-Earnings vs Peers: NUF is expensive based on its Price-To-Earnings Ratio (21.2x) compared to the peer average (11.1x).


Price to Earnings Ratio vs Industry

How does NUF's PE Ratio compare vs other companies in the Global Chemicals Industry?

Price-To-Earnings vs Industry: NUF is expensive based on its Price-To-Earnings Ratio (21.2x) compared to the Global Chemicals industry average (16.2x)


Price to Earnings Ratio vs Fair Ratio

What is NUF's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NUF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.2x
Fair PE Ratio19.2x

Price-To-Earnings vs Fair Ratio: NUF is expensive based on its Price-To-Earnings Ratio (21.2x) compared to the estimated Fair Price-To-Earnings Ratio (19.2x).


Share Price vs Fair Value

What is the Fair Price of NUF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NUF (A$5.31) is trading below our estimate of fair value (A$10.83)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


13.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NUF's forecast earnings growth (13.8% per year) is above the savings rate (1.8%).

Earnings vs Market: NUF's earnings (13.8% per year) are forecast to grow faster than the Australian market (6.1% per year).

High Growth Earnings: NUF's earnings are forecast to grow, but not significantly.

Revenue vs Market: NUF's revenue is expected to decline over the next 3 years (-0.5% per year).

High Growth Revenue: NUF's revenue is forecast to decline over the next 3 years (-0.5% 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 (5.6%).


Discover growth companies

Past Performance

How has Nufarm performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-29.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NUF has high quality earnings.

Growing Profit Margin: NUF became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NUF has become profitable over the past 5 years, growing earnings by -29% per year.

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 (196.9%).


Return on Equity

High ROE: NUF's Return on Equity (4.8%) is considered low.


Discover strong past performing companies

Financial Health

How is Nufarm's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NUF's short term assets (A$2.9B) exceed its short term liabilities (A$1.7B).

Long Term Liabilities: NUF's short term assets (A$2.9B) exceed its long term liabilities (A$802.2M).


Debt to Equity History and Analysis

Debt Level: NUF's net debt to equity ratio (16.7%) is considered satisfactory.

Reducing Debt: NUF's debt to equity ratio has reduced from 61.2% to 38.4% over the past 5 years.

Debt Coverage: NUF's debt is well covered by operating cash flow (37.4%).

Interest Coverage: NUF's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Discover healthy companies

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.51%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NUF's dividend (1.51%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.57%).

High Dividend: NUF's dividend (1.51%) is low compared to the top 25% of dividend payers in the Australian market (6.31%).


Stability and Growth of Payments

Stable Dividend: NUF's dividend payments have been volatile in the past 10 years.

Growing Dividend: NUF's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (31.9%), NUF's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (19.4%), NUF's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

4.6yrs

Average management tenure


CEO

Greg Hunt (63 yo)

7.25yrs

Tenure

AU$2,571,792

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD1.78M) is about average for companies of similar size in the Australian market ($USD1.59M).

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


Leadership Team

Experienced Management: NUF's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: NUF's board of directors are considered experienced (6.3 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 employee growth, exchange listings and data sources


Key Information

  • Name: Nufarm Limited
  • Ticker: NUF
  • Exchange: ASX
  • Founded: 1916
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Implied Market Cap: AU$2.019b
  • Shares outstanding: 380.17m
  • Website: https://www.nufarm.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/18 00:00
End of Day Share Price2022/08/18 00:00
Earnings2022/03/31
Annual Earnings2021/09/30


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.