Nutrien shares fell by -2.1% during the day's afternoon session, and are now trading at a price of $60.79. Is it time to buy the dip? To better answer that question, it's essential to check if the market is valuing the company's shares fairly in terms of its earnings and equity levels.
Nutrien's Valuation Is in Line With Its Sector Averages:
Nutrien Ltd. provides crop inputs and services. The company operates through four segments: Nutrien Ag Solutions, Potash, Nitrogen, and Phosphate. The company belongs to the Industrials sector, which has an average price to earnings (P/E) ratio of 24.03 and an average price to book (P/B) ratio of 2.89. In contrast, Nutrien has a trailing 12 month P/E ratio of 57.3 and a P/B ratio of 1.23.
Nutrien has moved 25.0% over the last year compared to 12.2% for the S&P 500 — a difference of 12.9%. Nutrien has a 52 week high of $65.08 and a 52 week low of $43.7.
Generally Positive Cash Flows but a Declining EPS Growth Trend:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $20,084 | $20,908 | $27,712 | $37,884 | $29,056 | $25,972 |
| Gross Margins | 27% | 25% | 34% | 41% | 28% | 28% |
| Net Margins | 5% | 2% | 11% | 20% | 4% | 3% |
| Net Income (M) | $992 | $459 | $3,179 | $7,687 | $1,282 | $700 |
| Earnings Per Share | $1.7 | $0.81 | $5.52 | $14.18 | $2.53 | $1.36 |
| EPS Growth | n/a | -52.35% | 581.48% | 156.88% | -82.16% | -46.25% |
| Free Cash Flow (M) | $3,665 | $3,323 | $3,886 | $8,110 | $5,066 | $3,535 |
| Total Debt (M) | $8,553 | $10,047 | $7,521 | $8,040 | $8,913 | $8,881 |
| Net Debt / EBITDA | 2.15 | 2.97 | 1.04 | 0.56 | 1.62 | 1.91 |
| Current Ratio | 1.17 | 1.35 | 1.11 | 1.14 | 1.17 | 1.15 |
