Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Yara International Offers A Tricky Balance Of Quality And Value

There's more to Yara International (OTCPK:YARIY) than run-of-the-mill commodity fertilizers, but I have to wonder whether the market is already sufficiently pricing in the advantages of the company's increasing leverage to value-added and specialty products. The ADRs have been quite strong over the past year (up about 29%) while most fertilizer stocks have lagged the market, and up almost 20% over the past three months despite very weak urea prices. I don't want to undersell the company's ability to leverage lower input costs and premiums for its nitrate and NPK sales, but the valuation already appears to factor in a pretty healthy recovery from this trough.

A Large Player In A Vital Area

Yara is one of the...

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