AGU : NYSE : Basic Materials
$90.82 -0.45 | -0.49%
Today's Range: 90.44 - 91.78
Avg. Daily Volume: 776,500
09/29/16 - 3:59 PM ET

Financial Analysis


AGRIUM INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. AGRIUM INC has weak liquidity. Currently, the Quick Ratio is 0.80 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 4.46% 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.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)6415.06992.0
EBITDA ($mil)995.01140.0
EBIT ($mil)850.01021.0
Net Income ($mil)564.0674.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)428.0780.0
Total Assets ($mil)17151.017246.0
Total Debt ($mil)5588.05215.0
Equity ($mil)6482.06785.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin24.9325.11
EBITDA Margin15.5116.3
Operating Margin13.2514.6
Sales Turnover0.820.9
Return on Assets5.064.54
Return on Equity13.3912.42
Debt Q2 FY16 Q2 FY15
Current Ratio1.321.49
Debt/Capital0.460.43
Interest Expense70.068.0
Interest Coverage12.1415.01


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)138.0143.0
Div / share0.880.88
EPS4.084.71
Book value / share46.9747.45
Institutional Own % n/a n/a
Avg Daily Volume778455.0926115.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.75 for the Chemicals industry and a significant discount compared to the S&P 500 average of 25.19. To use another comparison, its price-to-book ratio of 1.97 indicates a discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 5.71. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, AGRIUM 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
AGU 14.77 Peers 24.75   AGU 9.59 Peers 15.78

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

AGU is trading at a significant discount to 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.

AGU 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
AGU 16.16 Peers 20.26   AGU NM Peers 1.89

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

AGU is trading at a discount to 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.

AGU'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
AGU 1.97 Peers 5.71   AGU 6.63 Peers 93.43

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.

AGU is trading at a significant discount to its peers.

 

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

However, AGU 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
AGU 0.91 Peers 2.31   AGU -9.16 Peers -7.33

Discount. 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.

AGU is trading at a significant discount to its industry on this measurement.

 

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

AGU significantly trails its peers on the basis of sales growth

 

 

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