5 Things to Know About Nutrien Stock in January 2023

Nutrien Ltd. (TSX:NTR) stock has put together a nice run on the back of strong fundamentals and geopolitical tensions.

| More on:
A tractor harvests lentils.

Source: Getty Images

Nutrien (TSX:NTR) is a Saskatoon-based company that provides crop inputs and services. This company is the largest producer of potash and the third-largest producer of nitrogen fertilizer on the planet. Today, I want to discuss five things that investors should know about Nutrien stock as we enter the final days of January 2023. Let’s jump in.

Nutrien stock enjoyed a sharp uptick in 2022

Shares of Nutrien have increased 19% year over year as of close on January 20. The stock has shot up 7.7% in the year-to-date period in 2023.

This top potash and fertilizer producer surged to a 52-week high of $147.93 in the second half of April 2022. Its shares would parry volatility throughout the year but maintained a triple-digit valuation through most of 2022. Investors who want to track its gains and turbulence can play with the interactive chart below.

Geopolitical strife drove interest in the stock last year

On February 24, 2022, Russia launched a full-scale invasion of Ukraine. This represented a major escalation in a period of tension and conflict that has engulfed the two nations since the Ukrainian revolution in February 2014. Since then, Russia annexed Crimea, and the two nations have struggled for territory in the Donbass region.

The full-scale invasion sparked fierce condemnation from the United States and most of its NATO and European Union allies. Indeed, the NATO and E.U. coalition has provided financial aid, military equipment, and training to Ukraine in its battle against the much larger Russian state.

Ukraine is sometimes referred to as the “breadbasket of Europe” due to its richly fertile soil. It is one of the three largest exporters of grain on Earth. The Russia-Ukraine conflict has severely impacted the world’s food supply. This means that companies like Nutrien have been leaned on to pick up the slack. That also drove interest in the stock.

The company still has a role to play in this food crisis

NATO and E.U. aid has played a massive role in keeping Ukraine afloat during the war. The country has been able to restart large grain shipments through its ports. This, in turn, has led to a dip in the price of fertilizer.

That does not mean that the food crisis is over. Indeed, the crisis is still being fueled by the ongoing conflict, the aftershocks of the COVID-19 pandemic, high fuel prices, and the impacts of climate change. Nutrien still has a part to play in this global crisis.

Nutrien is set to release its last batch of earnings

The company is expected to release its final batch of fiscal 2022 earnings in the middle of February. In the third quarter of 2022, Nutrien achieved total sales of $8.18 billion — up 36% from the prior year. Meanwhile, sales jumped 48% to $30.3 billion in the first nine months of fiscal 2022.

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. This measure aims to give a better picture of a company’s profitability. Nutrien delivered adjusted EBITDA of $2.46 billion in the third quarter of 2022 — up 50% from the third quarter of fiscal 2021. Moreover, adjusted net earnings per share surged 82% to $2.51.

Good news: This stock still looks cheap

Nutrien stock currently possess a very attractive price-to-earnings ratio of 5.5. Meanwhile, it offers a quarterly dividend of $0.48 per share. That represents a 2.4% yield.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends Nutrien. The Motley Fool has a disclosure policy.

More on Metals and Mining Stocks

growing plant shoots on stacked coins
Stocks for Beginners

1 Copper Stock to Buy as Copper Prices Shine

The price of copper continues to climb, and more copper production is on the way for this top stock up…

Read more »

silver metal
Metals and Mining Stocks

Buy the Dip: 1 Dividend Stock Due to Shine

This dividend stock's dividend just rose higher as the price of silver dropped, but don't let that scare you off…

Read more »

Metals and Mining Stocks

Iron Stomach? 2 Riskier Stocks That Could Pay Off Big Time in the Future

Two TSX stocks could deliver greater earnings to investors with higher risk appetites.

Read more »

Gold bullion on a chart
Metals and Mining Stocks

This Gold Stock Just Dipped 5%: Time to Buy?

This gold stock has been rising higher and higher but recently went through a 5% dip in share price. So,…

Read more »

Gold king in chess game face with the another silver team on black background (Concept for company strategy, business victory or decision)
Stocks for Beginners

Pan American Silver: Buy, Sell, or Hold?

PAAS stock (TSX:PAAS) is up 44% in the last year alone! But it's not all down to the rise in…

Read more »

Nuclear power station cooling tower
Metals and Mining Stocks

1 Canadian Mining Stock Worth a Long-Term Investment

Strong fundamentals should continue to boost Cameco stock's long-term outlook, as the nuclear industry's momentum continues.

Read more »

Super sized rock trucks take a load of platinum rich rock into the crusher.
Metals and Mining Stocks

Lundin Mining Stock: Buy, Sell, or Hold?

Lundin (TSX:LUN) stock saw its shares surge this last year with the price of copper, and more strong guidance could…

Read more »

grow dividends
Metals and Mining Stocks

Invest $5,000 in This Dividend Stock for $1,060 in Passive Income

Franco Nevada stock trades at a 20% discount to consensus price target estimates while offering investors a tasty yield of…

Read more »