OTCPK:NUFM.F

Stock Analysis Report

Executive Summary

Nufarm Limited, together with its subsidiaries, manufactures and sells crop protection products in Australia, New Zealand, Asia, Europe, North America, and South America.

Rewards

Trading at 43.7% below its fair value

Earnings are forecast to grow 45% per year

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Shareholders have been diluted in the past year



Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

NUFM.F

1.2%

US Chemicals

0.9%

US Market


1 Year Return

10.1%

NUFM.F

-3.9%

US Chemicals

20.0%

US Market

Return vs Industry: NUFM.F exceeded the US Chemicals industry which returned -3.7% over the past year.

Return vs Market: NUFM.F underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

NUFM.FIndustryMarket
7 Day0%1.2%0.9%
30 Day0%-1.2%1.4%
90 Dayn/a1.0%8.8%
1 Year10.1%10.1%10.1%-3.9%22.5%20.0%
3 Year-38.0%-38.0%28.9%4.5%49.9%40.3%
5 Year-16.1%-16.1%38.4%8.3%73.2%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

43.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NUFM.F ($4.25) is trading below our estimate of fair value ($7.54)

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


Price To Earnings Ratio

PE vs Industry: NUFM.F is poor value based on its PE Ratio (80x) compared to the Chemicals industry average (22.2x).

PE vs Market: NUFM.F is poor value based on its PE Ratio (80x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: NUFM.F is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: NUFM.F is good value based on its PB Ratio (1.1x) compared to the US Chemicals industry average (2.1x).


Next Steps

Future Growth

How is Nufarm forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

45.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NUFM.F's forecast earnings growth (45% per year) is above the savings rate (1.7%).

Earnings vs Market: NUFM.F's earnings (45% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: NUFM.F's revenue is expected to decline over the next 3 years (-2.4% per year).

High Growth Revenue: NUFM.F's revenue is forecast to decline over the next 3 years (-2.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NUFM.F's Return on Equity is forecast to be low in 3 years time (5.3%).


Next Steps

Past Performance

How has Nufarm performed over the past 5 years?

-1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NUFM.F has high quality earnings.

Growing Profit Margin: NUFM.F became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NUFM.F's earnings have declined by -1.9% per year over the past 5 years.

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

Earnings vs Industry: NUFM.F has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (-14.6%).


Return on Equity

High ROE: NUFM.F's Return on Equity (1.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nufarm's financial position?


Financial Position Analysis

Short Term Liabilities: NUFM.F's short term assets (A$3.2B) exceed its short term liabilities (A$1.8B).

Long Term Liabilities: NUFM.F's short term assets (A$3.2B) exceed its long term liabilities (A$1.5B).


Debt to Equity History and Analysis

Debt Level: NUFM.F's debt to equity ratio (72.3%) is considered high.

Reducing Debt: NUFM.F's debt to equity ratio has increased from 47.7% to 72.3% over the past 5 years.

Debt Coverage: NUFM.F's debt is not well covered by operating cash flow (5.6%).

Interest Coverage: NUFM.F's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: NUFM.F's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

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

1.55%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate NUFM.F's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NUFM.F's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NUFM.F's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NUFM.F's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: NUFM.F is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NUFM.F's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Greg Hunt (60yo)

4.8yrs

Tenure

AU$1,763,052

Compensation

Mr. Gregory Allan Hunt, also known as Greg, Grad. Dip., Mgmnt, AMP Harvard, AICD, REBA, has been the Chief Executive Officer and Managing Director of Nufarm Limited since May 05, 2015. Mr. Hunt serves as M ...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD1.18M) is below average for companies of similar size in the US market ($USD3.78M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Hunt
MD, CEO & Executive Director4.8yrsAU$1.76m0.13% A$2.0m
Paul Binfield
Chief Financial Officer8.3yrsAU$1.07m0.087% A$1.3m
Nerida Mossop
General Manager of Investor Relations & Corporate Communications1yrsno datano data
Fiona Smith
Group Executive Corporate Services0.7yrsno datano data
John Holding
Group Executive of People & Performance2.1yrsno datano data

2.1yrs

Average Tenure

Experienced Management: NUFM.F's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gregory Hunt
MD, CEO & Executive Director4.8yrsAU$1.76m0.13% A$2.0m
Donald McGauchie
Non-Executive Independent Chairman9.6yrsAU$392.57k0.020% A$305.9k
Peter Margin
Non-Executive Independent Director8.3yrsAU$203.76k0.00092% A$13.9k
Anne Brennan
Non-Executive Independent Director9yrsAU$190.27k0.0037% A$56.4k
Gordon Davis
Non-Executive Independent Director8.8yrsAU$209.15k0.019% A$285.3k
Fransis Ford
Non-Executive Independent Director7.3yrsAU$197.82k0.014% A$204.8k
Toshikazu Takasaki
Non-Independent Non-Executive Director7.2yrsAU$170.04kno data
Marie McDonald
Non-Executive Independent Director2.9yrsAU$186.22k0.0059% A$88.9k

7.8yrs

Average Tenure

63yo

Average Age

Experienced Board: NUFM.F's board of directors are considered experienced (7.8 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 been diluted in the past year, with total shares outstanding growing by 18.9%.


Top Shareholders

Company Information

Nufarm Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nufarm Limited
  • Ticker: NUFM.F
  • Exchange: OTCPK
  • Founded: 2000
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: AU$2.252b
  • Listing Market Cap: AU$1.513b
  • Shares outstanding: 379.69m
  • Website: https://www.nufarm.com

Number of Employees


Location

  • Nufarm Limited
  • 103-105 Pipe Road
  • Laverton North
  • Victoria
  • 3026
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NUFASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
NUFM.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
NUFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
NUFCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
NFRM.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJan 2016

Biography

Nufarm Limited, together with its subsidiaries, manufactures and sells crop protection products in Australia, New Zealand, Asia, Europe, North America, and South America. It operates through two segments, Crop Protection and Seed Technologies. The company offers herbicides, insecticides, and fungicides to protect crops from damage caused by weeds, pests, and diseases. It also provides seeds and seed treatment products. The company was incorporated in 2000 and is headquartered in Laverton North, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 00:07
End of Day Share Price2020/01/15 00:00
Earnings2019/07/31
Annual Earnings2019/07/31


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.