Nutrien: Patience Will Award Shareholders

Summary

  • Nutrien's 2023 results show a decline in gross margin and net profit compared to previous years.
  • The company's guidance for 2023 indicates a need for approximately $2.1-2.2 billion in sustaining capital expenditures (and leases).
  • Nutrien's long-term outlook suggests a normalized EBITDA of $7-7.5 billion per year, providing potential for higher free cash flows.
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Tractor spreading potash fertilizer on green wheat field. Farmer spreading potash fertilizers. Agriculture vehicle spraying field.

Volha Maksimava/iStock via Getty Images

Introduction

Nutrien (NYSE:NTR) likely doesn’t need a lengthy introduction. As a well-known company in the fertilizer sector, it's a proxy for the wellbeing of the agricultural sectors thanks to its worldwide presence. Of course the company operates in a cyclical business and

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The Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I currently have no position but will likely initiate a small long position while writing put options that are just slightly out of the money.

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