skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. NTR: What do you expect from forecast release today? [Nutrien Ltd.]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: What do you expect from forecast release today? Do you find good reason to get in at 52 week low share price? Tks. Larry
Asked by Larry on May 15, 2023
5i Research Answer:

NTR has experienced significant tailwinds in the last two years due to inflation, and is now trading at 7.8x times' Forward P/E. In the recent quarter, NTR’s revenue declined by -20% to $5.91B (net after freight cost), missing estimates of $6.32B and EPS is $1.11 also missing estimates of $1.49. The balance sheet is okay, with net debt of $13.8B. Total debt is around 1.9x times the trailing twelve-month cash flow of $7.3B, and cash flow declined around -10% compared to $8.1B last year, driven by declining sales. We like the aggressive share repurchases recently (Q1-2023’s shares outstanding declined by 10% compared to the same period in 2022). The company also guided down the in quarter, adjusting 2023’s EBITDA from $8.4B-10B to the range of $6.5B-8.0B, and EPS from $8.45-10.65 to $5.50-$7.50.

Overall, not a really great quarter and near-term outlook after two booming years. Howeve, we think the share price is cheap, with significant buyback, this is like a value stock, and we are okay to buy at this valuation.