Nutrien Stock Analysis

Nutrien stock analysis

Nutrien is a Canadian fertilizer company that offers sustainable long-term solutions to increase food production for its consumers. It formed after a proposed merger of PotashCorp (the world’s largest potash producer and third-largest producer in nitrogen and phosphate) and Agrium (retail supplier of agricultural products) in September 2016. However, the transaction was officially closed in January 2018. 

Nutrien is the world’s largest supplier of crop inputs and services. They have corporate offices in Canada, the United States, Australia and Argentina. The goal of PotashCorp and Agrium merging was to increase fertilizer prices and reduce overall costs by taking up a larger amount of the market where demand is already high.

Nutrein is listed on the Toronto Stock Exchange and the New York Stock Exchange under the same ticker symbol ($NTR). On the TSX Nutrein is trading at a price of $127.88 (as of close 5/13). On the NYSE Nutrein is trading at a price of $98.95 (as of close 5/13). Their initial opening stock price was $65.23 and $52.60 on the TSX and NYSE respectively in January 2018.

 $NTR NYSE chart since its January 2018 listing (weekly candles)

How Nutrien makes money

Nutrien’s success relies on the price of Potash and other commodities.  

Because commodity prices aren’t as sensitive to inflation, companies like Nutrien can be attractive to some investors at times like this, when inflation is higher.

Potash prices are near its highest in over 8 years and look like they will continue to grow with major competitors being sanctioned (Belarus and Russia) which will drive demand for Nutrien.

Nutrien stock fundamentals (NYSE)

Total Revenue (2021)Net Income (2021)Gross Profit (2021)
Price to Sales (2021)Price to Earnings (2021)Market capitalization
Equity (2021)Debt (2021)Cash in the Bank (2021)

Is Nutrien stock worth buying?

If you want exposure to farming and agriculture, Nutrien may be worth looking at.

They also pay a 2% dividend yield, so you get paid a little extra to own their stock.

Also, in February of 2022, Nutrein announced that the TSX had approved their notice to repurchase outstanding common shares that are up to 10% of their public float. 

This means they will buy back up to 10% of their shares on the open market. This could be because they feel like their stock is undervalued. It could also be that they want to retain some ownership in the company. Whatever the case, it’s usually a sign of confidence from the company.

What do I do with this information?

Companies that deal in commodities are typically seen as more stable than the rest of the market. If you’re looking for a stable, consistent stock, Nutrien may be worth further investigation.

If you own Nutrien in a TFSA, you could sell covered calls on the shares you already own.

To learn more about covered calls, check out our Options for Beginners series.

That’s all for now.

Happy trading,

Your fellow Stock Hackers,

🍒Cherry & Erwin

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