NTRNutrien Ltd.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.4×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Margins have held roughly steady, a stable cost structure.
A balanced mix of margins, efficiency, and leverage. ROE 9% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is NTR?
Nutrien Ltd. earns 8.3% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 0.65 points below what the capital costs: growth destroys value
- Operating margin
- 14%
Operating margin · Agricultural Inputs median 9.6% · fiscal year to FY2025
- Cash conversion
- 1.42×
Cash conversion · 3.09× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −1.6%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2021 | 17% |
| FY2022 | 29% |
| FY2023 | 9.4% |
| FY2024 | 7.1% |
| FY2025 | 14% |
Details›
- Gross marginfiscal year to FY2025
- 31%
- Operating marginfiscal year to FY2025
- 14%
- Net marginfiscal year to FY2025
- 8.4%
- Free cash flow margin
- 7.9%
- Revenue, trailing twelve months
- $26.9B
- Free cash flow, trailing twelve months
- $2.13B
- Net income, trailing twelve months
- $2.27B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 8.3%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.