Q: I have a position in Nutrien where I'm now more or less breakeven. I'm considering adding after the drop... thoughts?
5i Research Answer:
NTR is currently trading at 11.8x Forward P/E, historical averages range from 7.7x to 23.7x. We think the current valuation is quite attractive given NTR’s aggressive share buyback plan. Having said that, NTR is quite mature: NTR generates lots of cash but growth is quite limited. Based on consensus estimates, sales are expected to decline by 21% in FY 2023 (largely priced in the cyclical downturn), and then normalize to around 3% growth annually going forward. We can't comment on personal position sizes but do consider it buyable for longer term investors today. The dividend is attractive while one awaits a recovery.