TSX:NTR

Stock Analysis Report

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Market Cap

CA$45.0b

Last Updated

2021/06/12 16:51 UTC

Data Sources

Company Financials +

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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: NTR's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.2%

NTR

2.8%

CA Chemicals

0.3%

CA Market


1 Year Return

60.2%

NTR

65.0%

CA Chemicals

37.0%

CA Market

Return vs Industry: NTR underperformed the Canadian Chemicals industry which returned 65% over the past year.

Return vs Market: NTR exceeded the Canadian Market which returned 37% over the past year.


Shareholder returns

NTRIndustryMarket
7 Day1.2%2.8%0.3%
30 Day9.4%4.2%4.6%
90 Day8.2%4.7%6.0%
1 Year67.2%60.2%71.7%65.0%41.4%37.0%
3 Year25.6%11.8%15.9%3.7%32.5%20.0%
5 Yearn/a38.5%15.1%62.6%38.2%

Long-Term 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?

28.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NTR (CA$78.91) is trading below our estimate of fair value (CA$110.47)

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 (59.5x) compared to the Canadian Chemicals industry average (59.2x).

PE vs Market: NTR is poor value based on its PE Ratio (59.5x) compared to the Canadian market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: NTR is poor value based on its PEG Ratio (10.7x)


Price to Book Ratio

PB vs Industry: NTR is good value based on its PB Ratio (1.7x) compared to the CA Chemicals industry average (3.9x).


Future Growth

How is Nutrien forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NTR's forecast earnings growth (5.6% per year) is above the savings rate (1.5%).

Earnings vs Market: NTR's earnings (5.6% per year) are forecast to grow slower than the Canadian market (13.5% per year).

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

Revenue vs Market: NTR's revenue (3.6% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: NTR's revenue (3.6% 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 (7.9%).


Past Performance

How has Nutrien performed over the past 5 years?

8.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NTR has a large one-off loss of $699.0M impacting its March 31 2021 financial results.

Growing Profit Margin: NTR's current net profit margins (3%) are lower than last year (4.6%).


Past Earnings Growth Analysis

Earnings Trend: NTR's earnings have grown by 8.2% 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 (-32.2%) over the past year, making it difficult to compare to the Chemicals industry average (95.9%).


Return on Equity

High ROE: NTR's Return on Equity (2.8%) is considered low.


Financial Health

How is Nutrien's financial position?


Financial Position Analysis

Short Term Liabilities: NTR's short term assets ($12.5B) exceed its short term liabilities ($9.3B).

Long Term Liabilities: NTR's short term assets ($12.5B) do not cover its long term liabilities ($16.3B).


Debt to Equity History and Analysis

Debt Level: NTR's debt to equity ratio (46.1%) is considered high.

Reducing Debt: NTR's debt to equity ratio has reduced from 55.1% to 46.1% over the past 5 years.

Debt Coverage: NTR's debt is well covered by operating cash flow (35.9%).

Interest Coverage: NTR's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


Dividend

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

2.84%

Current Dividend Yield


Upcoming Dividend Payment

TodayJun 12 2021Ex Dividend DateJun 29 2021Dividend Pay DateJul 16 202117 days from Ex DividendBuy in the next 16 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: NTR's dividend (2.84%) is higher than the bottom 25% of dividend payers in the Canadian market (1.53%).

High Dividend: NTR's dividend (2.84%) is low compared to the top 25% of dividend payers in the Canadian market (4.45%).


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 3 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (165.9%), 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 (55.6% payout ratio).


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Mayo Schmidt (62 yo)

0.17

Tenure

US$442,000

Compensation

Mr. Mayo M. Schmidt, B.B.A. serves as the President & Chief Executive Officer at Nutrien Ltd. since April 19, 2021. He has been a Director of Potash Corporation of Saskatchewan, Inc. since January 1, 2018....


Leadership Team

Experienced Management: NTR's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: NTR's board of directors are considered experienced (3.4 years average tenure).


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$44.995b
  • Shares outstanding: 570.21m
  • Website: https://www.nutrien.com

Number of Employees


Location

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

Listings


Biography

Nutrien Ltd. provides crop inputs, services, and solutions. The company offers potash, nitrogen, phosphate, and sulfate products; and financial solutions. It also distributes crop nutrients, crop protectio...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/12 16:51
End of Day Share Price2021/06/11 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.