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) | 8.75 | 26.02 | 11.77 |
Price/Book Value | 1.02 | 1.50 | 2.49 |
Price/Sales | 0.90 | 2.23 | 2.31 |
Price/Cash Flow | 5.98 | 15.25 | 5.70 |
|
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
| Hhnxwhf | Qtc | $37.0 Bil | |||
| Nutrien Ltd
NTR
| Nprpntxs | Qxyffct | $25.2 Bil | |||
| CF Industries Holdings Inc
CF
| Tsrltbnj | Pyfygh | $13.4 Bil | |||
| The Mosaic Co
MOS
| Nprvfzpp | Pgcrc | $9.0 Bil | |||
| Yara International ASA ADR
YARIY
| — | Jvrqq | $7.3 Bil | |||
| Yara International ASA
YRAIF
| — | Hdt | $7.3 Bil | |||
| FMC Corp
FMC
| Slfhkjs | Rhlbyhv | $7.1 Bil | |||
| ICL Group Ltd
ICL
| — | Hqnq | $5.4 Bil | |||
| The Scotts Miracle Gro Co Class A
SMG
| Mshdv | Fylxdg | $3.6 Bil | |||
| K+S AG ADR
KPLUY
| — | Rnty | $2.4 Bil |
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