This is a step-by-step stock review to answer the question, is Nutrien (NTR) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
1. Nutrien Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Formation: Formed in 2018 from the merger of Agrium Inc. and Potash Corporation of Saskatchewan Inc.
- Industry Leader: World’s largest provider of crop inputs and services.
- Global Presence: Operates in 14 countries, serving customers in over 160 countries.
- Diverse Offerings: Provides crop nutrients, crop protection products, and agronomic services.
- Innovative Solutions: Invests in research and development for new agricultural technologies.
- Sustainable Practices: Promotes responsible nutrient management and environmental stewardship.
- Digital Agriculture: Uses digital technologies to enhance precision farming and productivity.
- Customer-Centric Approach: Focuses on meeting the needs of farmers with tailored solutions and support.
- Community Engagement: Supports rural development and education through local community initiatives.
- Financial Strength: Maintains a strong financial position, enabling growth and investment opportunities.
- Future Outlook: Positioned for continued growth and success, driving innovation and sustainability.
- Impact: Plays a vital role in feeding a growing population and supporting global food security.
2. MOS (Margin of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: Overpriced
- Score: 33/100
- MOS: 1%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Nutrien (NTR) makes money:
- Crop nutrients: Nutrien earns money by selling fertilizers and crop nutrients to farmers and agricultural producers.
- Crop protection products: Generates revenue from the sale of pesticides, herbicides, and other crop protection products.
- Agronomic services: Provides agronomic services such as soil testing, crop scouting, and consulting, charging fees for these services.
- Digital agriculture: Offers digital agriculture solutions and technologies to optimize farming practices, earning revenue from subscriptions and usage fees.
- Seed sales: Sells seeds for various crops, including genetically modified and hybrid varieties, generating income from seed sales.
- Equipment sales: May earn money from the sale of agricultural equipment, machinery, and irrigation systems.
- Sustainability initiatives: Offers products and services focused on sustainable agriculture, catering to environmentally conscious farmers and consumers.
- International operations: Generates revenue from its operations in multiple countries, serving farmers and customers globally.
- Retail operations: Owns and operates retail outlets and stores selling agricultural inputs, earning revenue from product sales.
- Financial services: Provides financing, credit, and insurance services to farmers, earning income from interest, fees, and premiums.
Here are a few of the other companies that Nutrien (NTR) has acquired over the years. This is important because a company will use a “Buy before build” philosophy to go to market faster and add additional streams of revenue. A company with more revenue streams has a more stable business model. Keep in mind, that most companies don’t build new software because it takes too long to go to market and generate revenue.
- Agrible Inc.
- Waypoint Analytical Inc.
- Agroservicios Pampeanos S.A.
- Actagro LLC
- Agbridge Inc.
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Nutrien (NTR) stacks up against other companies.
- CF Industries – 50/100
- ICL Group Ltd ICL – 44/100
- Nutrien (NTR) – 33/100
- Intrepid Potash, Inc. IPI – 33/100
- Yara International – 28/100
- The Mosaic Company – 28/100
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Expanded Nutrien’s global footprint, establishing a strong presence in key agricultural markets worldwide.
- Led strategic acquisitions and mergers, enhancing Nutrien’s product offerings, capabilities, and market share.
- Drove innovation in sustainable agriculture, investing in research and development of advanced technologies and solutions.
- Streamlined operations and improved efficiency, optimizing supply chain management and reducing costs.
- Strengthened customer relationships, implementing initiatives to enhance service quality and satisfaction.
- Fostered a culture of safety and environmental stewardship, promoting responsible practices across Nutrien’s operations.
- Supported rural communities and agricultural development, contributing to economic growth and prosperity.
- Positioned Nutrien as a leader in digital agriculture, leveraging technology to empower farmers and improve productivity.
- Championed diversity and inclusion initiatives, promoting equal opportunities and representation within Nutrien.
- Ken Seitz’s leadership has propelled Nutrien to new heights, driving growth, innovation, and sustainability in the agricultural industry.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Nutrien (NTR) is 57/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Nutrien (NTR) stock a good buy?
Some of the top questions investors can have is Nutrien (NTR) stock a good buy or should I buy Nutrien (NTR) stock?
Nutrien is a top global agricultural company and a strong investment for several reasons:
- Largest Producer: Nutrien is the biggest producer of potash and a major player in nitrogen and phosphate production, which are essential for crop growth and always in demand.
- Integrated Model: Nutrien combines retail and wholesale operations, providing stability and less market risk. It has the largest retail network in the industry, offering many products and services to farmers, which builds loyalty and regular income.
- Sustainability: The company invests in new technologies to reduce environmental impact and improve efficiency, aligning with global trends towards sustainable farming.
- Innovation: Nutrien focuses on forward-thinking solutions and sustainable agriculture, making it a leader in the industry.
Risks to Consider:
- Volatile Prices: Prices of commodities can change a lot, affecting profits.
- Regulations and Politics: Changes in laws and global politics can impact operations.
- Weather: Farming depends on weather, which can be unpredictable and affect crop yields and fertilizer demand.
Conclusion: Nutrien’s leadership, strong business model, and focus on sustainability make it a great investment. However, investors should also consider market risks and external factors before deciding.
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To truly know if Nutrien (NTR) is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
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