TSX:NTR

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Adequate balance sheet and slightly overvalued.


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

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


Market Performance


7 Day Return

9.9%

NTR

9.5%

CA Chemicals

4.5%

CA Market


1 Year Return

-35.5%

NTR

-40.8%

CA Chemicals

-24.5%

CA Market

Return vs Industry: NTR exceeded the Canadian Chemicals industry which returned -43.1% over the past year.

Return vs Market: NTR underperformed the Canadian Market which returned -26% over the past year.


Shareholder returns

NTRIndustryMarket
7 Day9.9%9.5%4.5%
30 Day-15.3%-18.9%-20.1%
90 Day-26.1%-30.1%-24.9%
1 Year-32.8%-35.5%-38.3%-40.8%-22.0%-24.5%
3 Yearn/a-66.7%-69.1%-14.2%-22.2%
5 Yearn/a-66.7%-70.8%-1.9%-16.5%

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$43.47) is trading below our estimate of fair value (CA$116.56)

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 (18.1x) compared to the Chemicals industry average (9.8x).

PE vs Market: NTR is poor value based on its PE Ratio (18.1x) compared to the Canadian market (10.6x).


Price to Earnings Growth Ratio

PEG Ratio: NTR is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: NTR is overvalued based on its PB Ratio (0.8x) compared to the CA Chemicals industry average (0.7x).


Next Steps

Future Growth

How is Nutrien forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

16.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTR's forecast earnings growth (16.1% per year) is above the savings rate (1.4%).

Earnings vs Market: NTR's earnings (16.1% per year) are forecast to grow faster than the Canadian market (7.5% per year).

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

Revenue vs Market: NTR's revenue (3.1% per year) is forecast to grow slower than the Canadian market (3.9% per year).

High Growth Revenue: NTR's revenue (3.1% 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 (6.8%).


Next Steps

Past Performance

How has Nutrien performed over the past 5 years?

-34.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTR has high quality earnings.

Growing Profit Margin: NTR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NTR's earnings have declined by -34.6% per year over the past 5 years.

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

Earnings vs Industry: NTR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (-9.2%).


Return on Equity

High ROE: NTR's Return on Equity (4.3%) is considered low.


Next Steps

Financial Health

How is Nutrien's financial position?


Financial Position Analysis

Short Term Liabilities: NTR's short term assets ($10.7B) exceed its short term liabilities ($9.1B).

Long Term Liabilities: NTR's short term assets ($10.7B) do not cover its long term liabilities ($14.8B).


Debt to Equity History and Analysis

Debt Level: NTR's debt to equity ratio (43.9%) is considered high.

Reducing Debt: NTR's debt to equity ratio has reduced from 48.3% to 43.9% over the past 5 years.

Debt Coverage: NTR's debt is well covered by operating cash flow (36.5%).

Interest Coverage: NTR's interest payments on its debt are well covered by EBIT (4.2x 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 1.1x debt).


Next Steps

Dividend

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

5.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NTR's dividend (5.83%) is higher than the bottom 25% of dividend payers in the Canadian market (2.73%).

High Dividend: NTR's dividend (5.83%) is low compared to the top 25% of dividend payers in the Canadian market (8.76%).


Stability and Growth of Payments

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 (103.3%), 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 covered by earnings (63% payout ratio).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Chuck Magro (49yo)

2.67s

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: Chuck's total compensation ($USD12.89M) is above average for companies of similar size in the Canadian market ($USD6.69M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Charles Magro
President2.67yrsUS$12.89m0.015% $3.9m
Michael Frank
Executive VP & CEO of Retailno dataUS$4.28m0.0073% $1.9m
Pedro Farah
Executive VP & CFO1yrno datano data
Brent Poohkay
Executive VP & Chief Information Officerno datano data0.0031% $805.3k
Michael Webb
Executive VP and Chief Human Resources & Administrative Officerno datano data0.0018% $468.0k
Richard Downey
Vice President of Investor & Corporate Relationsno datano datano data
Noralee Bradley
Executive VP & Chief Legal Officer0.17yrno data0.00016% $41.8k
Kevin Graham
Executive VP & President of Salesno datano datano data
Mark Thompson
Executive VP1.17yrsno data0.0013% $350.4k
Stephen Dowdle
President of PCS Salesno dataUS$1.40mno data

1.1yrs

Average Tenure

49yo

Average Age

Experienced Management: NTR's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Charles Magro
President2.67yrsUS$12.89m0.015% $3.9m
Maura Clark
Independent Director2.17yrsUS$281.00k0.00039% $102.0k
Russell Girling
Independent Director2.17yrsUS$264.00k0.0024% $632.7k
Keith Martell
Independent Director2.17yrsUS$276.00k0.00067% $175.2k
John Estey
Independent Director2.17yrsUS$271.00k0.0032% $844.5k
Alice Laberge
Independent Director2.17yrsUS$268.00k0.0012% $311.1k
David Everitt
Independent Director2.17yrsUS$266.00k0.0011% $292.8k
Mayo Schmidt
Independent Board Chairman0.83yrUS$270.00k0.0015% $392.2k
Miranda Hubbs
Independent Director2.17yrsUS$266.00k0.00088% $230.1k
Consuelo Madere
Independent Director2.17yrsUS$266.00k0.0012% $303.3k

2.2yrs

Average Tenure

59yo

Average Age

Experienced Board: NTR's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: NTR 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

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$26.146b
  • Shares outstanding: 569.14m
  • 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 offers potash, nitrogen, phosphate, and sulfate products. It also distributes crop nutrients, crop protection products, seeds, and merchandise products through operating 1,700 retail locations. The company was incorporated in 2017 and is headquartered in Saskatoon, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 01:34
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.