Trade-Ideas LLC identified

Potash Corp of Saskatchewan

(

POT

) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Potash Corp of Saskatchewan as such a stock due to the following factors:

  • POT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $150.9 million.
  • POT traded 19,130 shares today in the pre-market hours as of 7:35 AM.
  • POT is down 2.9% today from yesterday's close.

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More details on POT:

Potash Corporation of Saskatchewan Inc., together with its subsidiaries, produces and sells fertilizers, and related industrial and feed products worldwide. It operates in three segments: Potash, Nitrogen, and Phosphate. The stock currently has a dividend yield of 5.9%. POT has a PE ratio of 11. Currently there are 4 analysts that rate Potash Corp of Saskatchewan a buy, 4 analysts rate it a sell, and 8 rate it a hold.

The average volume for Potash Corp of Saskatchewan has been 9.3 million shares per day over the past 30 days. Potash Corp of Saskatchewan has a market cap of $14.2 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 0.32 and a short float of 3.3% with 4.62 days to cover. Shares are up 1.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Potash Corp of Saskatchewan as a

hold

. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.55, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.42 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • POT, with its decline in revenue, underperformed when compared the industry average of 5.7%. Since the same quarter one year prior, revenues fell by 27.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Net operating cash flow has significantly decreased to $188.00 million or 63.91% when compared to the same quarter last year. Despite a decrease in cash flow of 63.91%, POTASH CORP SASK INC is still significantly exceeding the industry average of -118.83%.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Chemicals industry and the overall market, POTASH CORP SASK INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • The gross profit margin for POTASH CORP SASK INC is currently lower than what is desirable, coming in at 32.84%. It has decreased significantly from the same period last year. Along with this, the net profit margin of 6.20% trails that of the industry average.

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