OB:YAR

Stock Analysis Report

Yara International

Executive Summary

Yara International ASA provides environmental and industrial solutions in Norway and internationally.


Snowflake Analysis

Good value with proven track record and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: YAR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.2%

YAR

4.6%

NO Chemicals

4.0%

NO Market


1 Year Return

-0.7%

YAR

-11.7%

NO Chemicals

-21.7%

NO Market

Return vs Industry: YAR exceeded the Norwegian Chemicals industry which returned -14.6% over the past year.

Return vs Market: YAR exceeded the Norwegian Market which returned -24.1% over the past year.


Shareholder returns

YARIndustryMarket
7 Day6.2%4.6%4.0%
30 Day5.6%-4.4%-4.3%
90 Day0.6%-15.1%-22.0%
1 Year1.0%-0.7%-9.1%-11.7%-18.3%-21.7%
3 Year7.8%0.7%-4.6%-13.2%5.1%-7.9%
5 Year-2.3%-15.8%3.2%-11.8%17.6%-8.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

43.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: YAR (NOK357.4) is trading below our estimate of fair value (NOK635.63)

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


Price To Earnings Ratio

PE vs Industry: YAR is poor value based on its PE Ratio (15.5x) compared to the Chemicals industry average (13.3x).

PE vs Market: YAR is poor value based on its PE Ratio (15.5x) compared to the Norwegian market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: YAR is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: YAR is good value based on its PB Ratio (1x) compared to the XE Chemicals industry average (1.3x).


Next Steps

Future Growth

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

16.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: YAR's forecast earnings growth (16.2% per year) is above the savings rate (0.7%).

Earnings vs Market: YAR's earnings (16.2% per year) are forecast to grow slower than the Norwegian market (21% per year).

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

Revenue vs Market: YAR's revenue (2.9% per year) is forecast to grow faster than the Norwegian market (2.3% per year).

High Growth Revenue: YAR's revenue (2.9% per year) is forecast to grow slower than 20% 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 (11.1%).


Next Steps

Past Performance

How has Yara International performed over the past 5 years?

-27.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: YAR has high quality earnings.

Growing Profit Margin: YAR's current net profit margins (4.7%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: YAR's earnings have declined by -27.2% per year over the past 5 years.

Accelerating Growth: YAR's earnings growth over the past year (276.7%) exceeds its 5-year average (-27.2% per year).

Earnings vs Industry: YAR earnings growth over the past year (276.7%) exceeded the Chemicals industry 1.2%.


Return on Equity

High ROE: YAR's Return on Equity (6.6%) is considered low.


Next Steps

Financial Health

How is Yara International's financial position?


Financial Position Analysis

Short Term Liabilities: YAR's short term assets ($4.8B) exceed its short term liabilities ($3.3B).

Long Term Liabilities: YAR's short term assets ($4.8B) exceed its long term liabilities ($4.5B).


Debt to Equity History and Analysis

Debt Level: YAR's debt to equity ratio (40.3%) is considered high.

Reducing Debt: YAR's debt to equity ratio has increased from 20.9% to 40.3% over the past 5 years.

Debt Coverage: YAR's debt is well covered by operating cash flow (53.1%).

Interest Coverage: YAR's interest payments on its debt are well covered by EBIT (12.3x coverage).


Balance Sheet


Next Steps

Dividend

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

3.76%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: YAR's dividend (3.76%) is higher than the bottom 25% of dividend payers in the Norwegian market (3.73%).

High Dividend: YAR's dividend (3.76%) is low compared to the top 25% of dividend payers in the Norwegian market (8.02%).


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.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.6%), YAR's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: YAR's dividends in 3 years are forecast to be covered by earnings (55.3% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Svein Holsether (47yo)

4.58s

Tenure

US$1,606,000

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 ($USD1.61M) is above average for companies of similar size in the Norwegian market ($USD930.44K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Svein Holsether
President & CEO4.58yrsUS$1.61m0.013% $12.4m
Lars Røsæg
Executive VP & CFO1.42yrsUS$659.00k0.0013% $1.2m
Kristine Ryssdal
Executive VP & General Counsel3.92yrsUS$574.00k0.0022% $2.1m
Terje Knutsen
Executive Vice President of Sales & Marketing1.25yrsUS$830.00k0.0035% $3.4m
Brand Trollnes
Executive Vice President of People & Global Functions3.58yrsUS$668.00k0.0048% $4.6m
Rune Bratteberg
Head of Chemical Compliance & Director8.25yrsUS$49.00k0.00012% $115.7k
Terje Tollefsen
Newco IPO Lead / Senior VP of Strategy & Business Development3.83yrsUS$465.32k0.0029% $2.8m
Tove Andersen
Executive Vice President of Production4.17yrsUS$687.00k0.0029% $2.8m
Lair Hanzen
Executive Vice President of Yara Brazil4.17yrsUS$1.06m0.0060% $5.7m
Pablo Lopez
Executive Vice President of Strategy & Supply Chain2yrsUS$635.00k0.0012% $1.2m

3.8yrs

Average Tenure

51.5yo

Average Age

Experienced Management: YAR's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rune Bratteberg
Head of Chemical Compliance & Director8.25yrsUS$49.00k0.00012% $115.7k
Trond Berger
Vice Chairman of the Board0.92yrUS$61.00k0.0011% $1.1m
John Thuestad
Independent Director5.92yrsUS$53.00k0.00044% $424.1k
Geir Isaksen
Chairman of the Board2.25yrsUS$76.00k0.000030% $28.9k
Geir Sundbø
Director10.25yrsUS$42.00k0.00011% $106.0k
Håkon Reistad Fure
Director0.92yrUS$41.00k0.0083% $8.0m
Hilde Bakken
Independent Director5.92yrsUS$42.00k0.00030% $289.1k
Kimberly Lein-Mathisen
Director0.92yrUS$25.00k0.00019% $183.1k
Kari Nøstberg
Director0.58yrUS$13.00k0.00017% $163.9k
Adele Norman Pran
Director0.92yrUS$32.00kno data

1.6yrs

Average Tenure

57.5yo

Average Age

Experienced Board: YAR's board of directors are not considered experienced ( 1.6 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: YAR 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

Yara International ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Yara International ASA
  • Ticker: YAR
  • Exchange: OB
  • Founded: 1905
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: kr96.383b
  • Shares outstanding: 269.68m
  • Website: https://www.yara.com

Number of Employees


Location

  • Yara International ASA
  • Drammensveien 131
  • Oslo
  • Oslo
  • 277
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IU2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2004
YAROB (Oslo Bors)YesOrdinary SharesNONOKMar 2004
0O7DLSE (London Stock Exchange)YesOrdinary SharesGBNOKMar 2004
YRAI.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2004
YAROBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKMar 2004
YARSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFMar 2004
YARI.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDApr 2004

Biography

Yara International ASA provides environmental and industrial solutions in Norway and internationally. It operates through three segments: Crop Nutrition, Industrial, and Production. The Crop Nutrition segment offers nitrogen-based fertilizers, including urea, urea ammonium nitrate, calcium ammonium nitrate, ammonium nitrate, calcium nitrate, and compound fertilizers that contain plant nutrients, such as nitrogen, phosphorus, and potassium, as well as foliar and fertigation solutions through micronutrients. It also sells phosphate- and potash-based fertilizers sourced from third parties, as well as delivers equipment and services to store or handle products. This segment sells its products to distributors, as well as directly to farmers and co-operatives. The Industrial segment develops and sells urea, ammonia, phosphate, nitric acid, technical ammonium nitrate, and calcium nitrate for industrial applications within base chemicals, mining applications, animal nutrition, environmental solutions, and industrial nitrates. It also provides solution of reagents, technology, and service for NOx abatement for industrial plants, and transport at land and sea. The Production segment produces ammonia, fertilizers, and industrial products. It is also involved in the operation of phosphate mines; trade and shipping of ammonia; and sale of fertilizers. The company also provides logistics services; and operates customer service centers. It provides its products under the YaraBela, YaraLiva, YaraMila, YaraTera, YaraVera, and YaraVita brands. The company was founded in 1905 and is headquartered in Oslo, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 00:45
End of Day Share Price2020/04/07 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.