* Note: Prices are in Million (M) USD.
Description:
Nutrien Ltd. provides inputs, services and solutions for crops. The company is headquartered in Saskatoon, Canada.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $853 M
Debt : $12,807 M
EBITDA : $4,336 M
Net Debt (Debt - Cash): $11,954 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
This criteria used industry in which company operates:
Sector: LIFE SCIENCES
Industry: AGRICULTURAL CHEMICALS
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 15.72
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $2,534 M
Average Revenue: $12,921 M
Revenue Converted To Free Cash FLow(%): 20%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 18.49%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $25,016 M
Revenue 4 Years Ago (2020-12-31): $20,908 M
Last 5 Years Average Revenue Growth: 4%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $494 M
Share Count 5 Years Ago (2020-12-31): $570 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $3.50
Trailing 12-Month Earnings Per Share (EPS): $3.95
Average Earnings Per Share (EPS): $3.73
Dividend Per Share (DPS): $2
Payout Ratio: 58%
Dividend Yield: 4%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 3, 3 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 19%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $59
52-Week Low: $42
Threshold Price (15% Above 52-Week Low): $49
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $29,581 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 23 points to above Nutrien Ltd (NTR) stock.
Last 7 Years Avg PE (Limited to last 7 years of EPS data) 15, Fair Value PE 15, Industry Based PE is 15 and Growth based PE is 10. Based on these all values average assigned is 13.75.
Value-Trades has assined P/E value 13.75. Since an average (Current Year EPS + Next Year EPS) earning per share is $3.725.
The fair value of Nutrien Ltd (NTR) stock should be (13.75 x $3.725) = $51.22
