We've been asking ourselves recently if the market has placed a fair valuation on Nutrien. Let's dive into some of the fundamental values of this Large-Cap Industrials company to determine if there might be an opportunity here for value-minded investors.
Nutrien's Earnings and Assets May Be Undervalued:
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 15.4 and a P/B ratio of 1.1.
Nutrien has moved 25.1% over the last year compared to 12.8% for the S&P 500 — a difference of 12.3%. 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 |
