We're maintaining our $70 (CAD 96) fair value estimates following Nutrien's investor day. Our narrow-moat rating is also unchanged. At current prices, we view Nutrien shares as undervalued with the stock trading in 4-star territory and roughly 25% below our fair value estimate.
Declining arable land per person will force growers to be more productive and should drive growth in a variety of crop inputs.
Volatile pricing and demand for crop nutrients have characterized Nutrien's business during the past few years, highlighting the cyclical nature of the company's cash flows.
|
Metric
|
NTR
|
CTVA
|
CF
|
|---|---|---|---|
Price/Earnings (Normalized) | 8.41 | 25.35 | 11.13 |
Price/Book Value | 0.98 | 1.46 | 2.35 |
Price/Sales | 0.87 | 2.18 | 2.18 |
Price/Cash Flow | 5.75 | 14.86 | 5.39 |
|
Metric
|
NTR
|
CTVA
|
CF
|
|---|---|---|---|
Quick Ratio | 0.46 | 0.84 | 3.34 |
Current Ratio | 1.15 | 1.51 | 3.94 |
Interest Coverage | 2.80 | 3.14 | 11.96 |
|
Metric
|
NTR
|
CTVA
|
CF
|
|---|---|---|---|
Return on Assets (Normalized) | 3.42% | 3.89% | 10.62% |
Return on Equity (Normalized) | 7.31% | 6.72% | 25.93% |
Return on Invested Capital (Normalized) | 5.84% | 5.53% | 12.56% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Corteva Inc
CTVA
| Fgncmhgjm | Qhxh | $36.0 Bil | |||
| Nutrien Ltd
NTR
| Ltvmrrxdq | Sbhbnvq | $24.3 Bil | |||
| CF Industries Holdings Inc
CF
| Wbjrsfxx | Rsmmvmx | $12.7 Bil | |||
| The Mosaic Co
MOS
| Ngkypbqfr | Qvgh | $8.7 Bil | |||
| Yara International ASA ADR
YARIY
| — | Pxmzw | $7.1 Bil | |||
| Yara International ASA
YRAIF
| — | Qbv | $7.1 Bil | |||
| FMC Corp
FMC
| Sjqxbhjy | Mlfcdk | $7.0 Bil | |||
| ICL Group Ltd
ICL
| — | Sfrbm | $5.6 Bil | |||
| The Scotts Miracle Gro Co Class A
SMG
| Phzrg | Vstbpp | $3.5 Bil | |||
| K+S AG
KPLUF
| — | Jhgn | $2.3 Bil |
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