TSX:NTR

Stock Analysis Report

Executive Summary

Nutrien Ltd. produces and markets crop nutrients to agricultural, industrial, and feed customers worldwide.

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-2.6%

NTR

-2.1%

CA Chemicals

0.2%

CA Market


1 Year Return

-7.4%

NTR

-14.0%

CA Chemicals

2.4%

CA Market

Return vs Industry: NTR exceeded the Canadian Chemicals industry which returned -14% over the past year.

Return vs Market: NTR underperformed the Canadian Market which returned 2.4% over the past year.


Shareholder returns

NTRIndustryMarket
7 Day-2.6%-2.1%0.2%
30 Day-6.5%-5.7%-3.3%
90 Day-6.1%-6.7%-1.8%
1 Year-4.1%-7.4%-11.0%-14.0%6.0%2.4%
3 Yearn/a-6.7%-12.2%14.2%4.0%
5 Yearn/a-18.3%-26.9%27.2%8.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Nutrien 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: NTR (CA$64.03) is trading below our estimate of fair value (CA$133.65)

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


Price To Earnings Ratio

PE vs Industry: NTR is poor value based on its PE Ratio (230.1x) compared to the Chemicals industry average (14.9x).

PE vs Market: NTR is poor value based on its PE Ratio (230.1x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

PEG Ratio: NTR is poor value based on its PEG Ratio (10.5x)


Price to Book Ratio

PB vs Industry: NTR is good value based on its PB Ratio (1.2x) compared to the CA Chemicals industry average (1.2x).


Next Steps

Future Growth

How is Nutrien forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

21.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTR's forecast earnings growth (21.9% per year) is above the savings rate (1.9%).

Earnings vs Market: NTR's earnings (21.9% per year) are forecast to grow faster than the Canadian market (12.9% per year).

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

Revenue vs Market: NTR's revenue (6.8% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: NTR's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NTR's Return on Equity is forecast to be low in 3 years time (8.5%).


Next Steps

Past Performance

How has Nutrien performed over the past 5 years?

-53.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NTR's earnings have declined by -53.8% per year over the past 5 years.

Accelerating Growth: NTR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NTR had negative earnings growth (-79.9%) over the past year, making it difficult to compare to the Chemicals industry average (-25.7%).


Return on Equity

High ROE: NTR's Return on Equity (0.6%) is considered low.


Return on Assets

ROA vs Industry: NTR's Return on Assets is below or equal to the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: NTR has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Nutrien's financial position?


Financial Position Analysis

Short Term Liabilities: NTR's short term assets ($10.5B) exceeds its short term liabilities ($7.8B)

Long Term Liabilities: NTR's short term assets (10.5B) do not cover its long term liabilities (14.7B)


Debt to Equity History and Analysis

Debt Level: NTR's debt to equity ratio (45.1%) is considered high

Reducing Debt: NTR's debt to equity ratio has reduced from 46.3% to 45.1% over the past 5 years.

Debt Coverage: NTR's debt is well covered by operating cash flow (23.4%).

Interest Coverage: NTR's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet

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

Debt Coverage by Assets: NTR's debt is covered by short term assets (assets are 1.006680x debt).


Next Steps

Dividend

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

3.68%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%2.0%markettop25%6.0%industryaverage2.3%forecastin3Years3.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: NTR's dividend (3.68%) is higher than the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: NTR's dividend (3.68%) is low compared to the top 25% of dividend payers in the Canadian market (5.96%).

Stable Dividend: Whilst dividend payments have been stable, NTR has been paying a dividend for less than 10 years.

Growing Dividend: NTR's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (795.6%), NTR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NTR's dividends in 3 years are forecast to be well covered by earnings (47.4% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Chuck Magro (49yo)

2.3yrs

Tenure

US$12,889,855

Compensation

Mr. Charles Victor Magro, also known as Chuck, B.Sc. (Chem), MBA is President and Chief Executive Officer of Nutrien Ltd. since June 2, 2017. Mr. Magro served as President and Chief Executive Officer of Ag ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Chuck's total compensation is reasonable compared to companies of similar size in the Canadian market.

Compensation vs Earnings: Chuck's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

0.8yrs

Average Tenure

49yo

Average Age

Experienced Management: NTR's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.8yrs

Average Tenure

59yo

Average Age

Experienced Board: NTR's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$18,38006 Aug 19
Robert Kirkpatrick
EntityIndividual
Shares261
Max PriceUS$70.42
SellUS$100,10702 Aug 19
Robert Kirkpatrick
EntityIndividual
Shares1,396
Max PriceUS$71.71
SellUS$1,470,02013 Jun 19
Joseph Podwika
EntityIndividual
Role
Chief Legal Officer
Executive VP & Chief Legal Officer
Shares20,781
Max PriceUS$70.80
BuyUS$96,34505 Jun 19
Michael Webb
EntityIndividual
Role
Chief Administrative Officer
Executive VP and Chief Human Resources & Administrative Officer
Shares1,500
Max PriceUS$64.23
SellUS$36,17304 Mar 19
Robert Kirkpatrick
EntityIndividual
Shares500
Max PriceUS$72.35
SellUS$445,12314 Feb 19
Derek Pannell
EntityIndividual
Shares6,221
Max PriceUS$71.55
BuyUS$501,09710 Jan 19
Aaron Regent
EntityIndividual
Shares7,900
Max PriceUS$63.43
SellUS$112,87519 Dec 18
Robert Kirkpatrick
EntityIndividual
Shares1,500
Max PriceUS$75.25
BuyUS$63,29314 Dec 18
Michael Webb
EntityIndividual
Role
Chief Administrative Officer
Executive VP and Chief Human Resources & Administrative Officer
Shares1,000
Max PriceUS$63.29

Ownership Breakdown


Management Team

  • Mike Frank (55yo)

    Executive VP & CEO of Retail

    • Tenure: 0yrs
    • Compensation: US$4.28m
  • Joseph Podwika (56yo)

    Executive VP & Chief Legal Officer

    • Tenure: 0yrs
  • Richard Downey

    Vice President of Investor & Corporate Relations

    • Tenure: 0yrs
  • Chuck Magro (49yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$12.89m
  • Brent Poohkay (49yo)

    Executive VP & Chief Information Officer

    • Tenure: 0yrs
  • Mike Webb

    Executive VP and Chief Human Resources & Administrative Officer

    • Tenure: 0yrs
  • Pedro Farah

    Executive VP & CFO

    • Tenure: 0.7yrs
  • Kevin Graham (41yo)

    Executive VP & President of Sales

    • Tenure: 0yrs
  • Fred Thun

    Senior Vice President of Finance

    • Tenure: 0.8yrs
    • Compensation: US$2.57m
  • Mark Thompson

    Executive VP

    • Tenure: 0.8yrs

Board Members

  • Maura Clark (60yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$281.00k
  • Russ Girling (56yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$264.00k
  • Keith Martell (56yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$276.00k
  • John Estey (68yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$271.00k
  • Alice Laberge (62yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$268.00k
  • Dave Everitt (67yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$266.00k
  • Mayo Schmidt (61yo)

    Independent Board Chairman

    • Tenure: 0.4yrs
    • Compensation: US$270.00k
  • Chuck Magro (49yo)

    President

    • Tenure: 2.3yrs
    • Compensation: US$12.89m
  • Miranda Hubbs (53yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$266.00k
  • Consuelo Madere (58yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$266.00k

Company Information

Nutrien Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nutrien Ltd.
  • Ticker: NTR
  • Exchange: TSX
  • Founded: 2017
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: CA$36.681b
  • Shares outstanding: 572.87m
  • Website: https://www.nutrien.com

Number of Employees


Location

  • Nutrien Ltd.
  • 122 – 1st Avenue South
  • Suite 500
  • Saskatoon
  • Saskatchewan
  • S7K 7G3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NTRTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 2018
NTR NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNJan 2018
NTRNYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 2018
N7TDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 2018
0NHSLSE (London Stock Exchange)YesCommon SharesGBUSDJan 2018

Biography

Nutrien Ltd. produces and markets crop nutrients to agricultural, industrial, and feed customers worldwide. It operates in four segments: Retail, Potash, Nitrogen, and Phosphate and Sulfate. The company of ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:52
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.