Yara International (OB:YAR) - Share price, News & Analysis

YAR fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	4/6
Financial Health	5/6
Dividends	4/6

YAR Stock Overview

Yara International ASA provides environmental and industrial solutions in Norway, European Union, Europe, Africa, Asia, North and Latin America, Australia, and New Zealand.

Rewards

Trading at 44.8% below our estimate of its fair value

Earnings grew by 68.1% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 27.2% per year for the next 3 years

Dividend of 10.48% is not well covered by earnings

Large one-off items impacting financial results

Yara International Competitors

Linde

NYSE:LIN

US$158.0b

Saudi Basic Industries

SASE:2010

ر.س358.2b

General Electric

NYSE:GE

US$82.8b

Nutrien

TSX:NTR

CA$68.7b

Price History & Performance

Summary of all time highs, changes and price drops for Yara International
Historical stock prices
Current Share Price	kr473.30
52 Week High	kr502.80
52 Week Low	kr385.50
Beta	0.39
1 Month Change	-3.98%
3 Month Change	5.58%
1 Year Change	6.79%
3 Year Change	23.45%
5 Year Change	46.53%
Change since IPO	828.04%

Shareholder Returns

	YAR	NO Chemicals	NO Market
7D	2.2%	2.8%	2.1%
1Y	6.8%	9.1%	12.3%

Return vs Industry: YAR underperformed the Norwegian Chemicals industry which returned 9.1% over the past year.

Return vs Market: YAR underperformed the Norwegian Market which returned 12.3% over the past year.

Price Volatility

Is YAR's price volatile compared to industry and market?
YAR volatility
YAR Average Weekly Movement	5.5%
Chemicals Industry Average Movement	8.1%
Market Average Movement	7.4%
10% most volatile stocks in NO Market	12.9%
10% least volatile stocks in NO Market	4.2%

Stable Share Price: YAR is not significantly more volatile than the rest of Norwegian stocks over the past 3 months, typically moving +/- 6% a week.

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

About the Company

Founded	Employees	CEO	Website
1905	17,800	Svein Holsether	https://www.yara.com

Yara International ASA provides environmental and industrial solutions in Norway, European Union, Europe, Africa, Asia, North and Latin America, Australia, and New Zealand. The company offers nitrogen-based fertilizers, including urea, urea ammonium nitrate, calcium ammonium nitrate, ammonium nitrate, and ammonium sulfate; compound fertilizers that contain plant nutrients, such as nitrogen, phosphorus, and potassium; and blended products, as well as foliar and fertigation solutions through micronutrients. It also offers farmer centric solutions; solutions for farming, such as crop monitoring, variable rate fertilization, N-Tester BT, and Driving Mode, a mobile app; N-Sensor, a tractor-mounted tool that allows growers to measure a crop’s nitrogen requirement; CheckIT, a smartphone app using a library of crop photographs to give a simple and fast identification of nutrient deficiencies; TankmixIT, an app used to check for the physical compatibility when tank mixing; and Tankmix.com, an online service providing advice on the physical mixing characteristics of Yara’s foliar products with agrochemicals.

Yara International Fundamentals Summary

How do Yara International's earnings and revenue compare to its market cap?
YAR fundamental statistics
Market Cap	US$12.34b
Earnings (TTM)	US$1.38b
Revenue (TTM)	US$19.41b

8.9x

P/E Ratio

0.6x

P/S Ratio

Is YAR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
YAR income statement (TTM)
Revenue	US$19.41b
Cost of Revenue	US$14.15b
Gross Profit	US$5.27b
Other Expenses	US$3.89b
Earnings	US$1.38b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 19, 2022

Earnings per share (EPS)	5.42
Gross Margin	27.13%
Net Profit Margin	7.11%
Debt/Equity Ratio	45.2%

How did YAR perform over the long term?

See historical performance and comparison

Dividends

10.5%

Current Dividend Yield

63%

Payout Ratio

Valuation

Is Yara International undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

44.8%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: YAR (NOK473.3) is trading below our estimate of fair value (NOK856.97)

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

Price To Earnings Ratio

PE vs Industry: YAR is good value based on its PE Ratio (8.9x) compared to the European Chemicals industry average (13.1x).

PE vs Market: YAR is good value based on its PE Ratio (8.9x) compared to the Norwegian market (13.6x).

Price to Earnings Growth Ratio

PEG Ratio: YAR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: YAR is good value based on its PB Ratio (1.5x) compared to the NO Chemicals industry average (3.4x).

Future Growth

How is Yara International forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-27.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: YAR's earnings are forecast to decline over the next 3 years (-27.2% per year).

Earnings vs Market: YAR's earnings are forecast to decline over the next 3 years (-27.2% per year).

High Growth Earnings: YAR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: YAR's revenue is expected to decline over the next 3 years (-7.3% per year).

High Growth Revenue: YAR's revenue is forecast to decline over the next 3 years (-7.3% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: YAR's Return on Equity is forecast to be low in 3 years time (17%).

Past Performance

How has Yara International performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

24.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: YAR has a large one-off loss of $755.0M impacting its March 31 2022 financial results.

Growing Profit Margin: YAR's current net profit margins (7.1%) are higher than last year (6.9%).

Past Earnings Growth Analysis

Earnings Trend: YAR's earnings have grown significantly by 24.6% per year over the past 5 years.

Accelerating Growth: YAR's earnings growth over the past year (68.1%) exceeds its 5-year average (24.6% per year).

Earnings vs Industry: YAR earnings growth over the past year (68.1%) exceeded the Chemicals industry 44.9%.

Return on Equity

High ROE: YAR's Return on Equity (16.2%) is considered low.

Financial Health

How is Yara International's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: YAR's short term assets ($9.1B) exceed its short term liabilities ($6.0B).

Long Term Liabilities: YAR's short term assets ($9.1B) exceed its long term liabilities ($4.5B).

Debt to Equity History and Analysis

Debt Level: YAR's net debt to equity ratio (36.6%) is considered satisfactory.

Reducing Debt: YAR's debt to equity ratio has increased from 21.3% to 45.2% over the past 5 years.

Debt Coverage: YAR's debt is well covered by operating cash flow (31.7%).

Interest Coverage: YAR's interest payments on its debt are well covered by EBIT (26.8x coverage).

Balance Sheet

Dividend

What is Yara International current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

10.48%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: YAR's dividend (10.48%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.86%).

High Dividend: YAR's dividend (10.48%) is in the top 25% of dividend payers in the Norwegian market (6.53%)

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (63%), YAR's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (410.7%), YAR's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

1.9yrs

Average management tenure

CEO

Svein Holsether (49 yo)

6.67yrs

Tenure

US$1,523,000

Compensation

Mr. Svein Tore Holsether has been the Chief Executive Officer and President of Yara International ASA since joining on September 9, 2015. Mr. Holsether Joined Yara International ASA in 2015. He served as t...

CEO Compensation Analysis

Compensation vs Market: Svein's total compensation ($USD1.52M) is about average for companies of similar size in the Norwegian market ($USD1.54M).

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

Leadership Team

Experienced Management: YAR's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.

Board Members

Experienced Board: YAR's board of directors are considered experienced (4 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31