This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Potash Corp of Saskatchewan Inc
POT : NYSE : Basic Materials
$35.16 | %
Today's Range: 35.10 - 35.40
Avg. Daily Volume: 3,693,800
08/29/14 - 4:04 PM ET

Financial Analysis


POTASH CORP SASK INC's gross profit margin for the second quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. POTASH CORP SASK INC has weak liquidity. Currently, the Quick Ratio is 0.66 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 13.27% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q2 FY14 Q2 FY13
Net Sales ($mil)1892.02144.0
EBITDA ($mil)805.01033.0
EBIT ($mil)623.0847.0
Net Income ($mil)472.0643.0


Balance Sheet Q2 FY14 Q2 FY13
Cash & Equiv. ($mil)107.0630.0
Total Assets ($mil)17491.018025.0
Total Debt ($mil)4141.03463.0
Equity ($mil)8947.010317.0


Profitability Q2 FY14 Q2 FY13
Gross Profit Margin45.4550.56
EBITDA Margin42.5448.18
Operating Margin32.9339.51
Sales Turnover0.380.45
Return on Assets7.9912.56
Return on Equity15.6221.95
Debt Q2 FY14 Q2 FY13
Current Ratio1.191.47
Debt/Capital0.320.25
Interest Expense48.039.0
Interest Coverage12.9821.72


Share Data Q2 FY14 Q2 FY13
Shares outstanding (mil)829.28866.92
Div / share0.350.28
EPS0.560.73
Book value / share10.7911.9
Institutional Own % n/a n/a
Avg Daily Volume3817438.04789571.0

Valuation


HOLD. The current P/E ratio indicates a discount compared to an average of 23.93 for the Chemicals industry and a premium compared to the S&P 500 average of 19.76. To use another comparison, its price-to-book ratio of 3.29 indicates a premium versus the S&P 500 average of 2.73 and a discount versus the industry average of 4.30. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, POTASH CORP SASK INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
POT 21.80 Peers 23.93   POT 11.41 Peers 16.18

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

POT is trading at a valuation on par with its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

POT is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
POT 17.00 Peers 19.54   POT NM Peers 1.28

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

POT is trading at a valuation on par with its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

POT's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
POT 3.29 Peers 4.30   POT -36.83 Peers 61.16

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

POT is trading at a discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, POT is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
POT 4.44 Peers 2.50   POT -17.39 Peers 3.71

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

POT is trading at a significant premium to its industry.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

POT significantly trails its peers on the basis of sales growth

 

 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV

Latest Stock Upgrades/Downgrades

Brokerage Partners


Top Rated Stocks Top Rated Funds Top Rated ETFs