Potash Corp of Saskatchewan Inc

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POT : NYSE : Basic Materials
$19.28 | %
Today's Range: 19.1 - 19.38
Avg. Daily Volume: 4658500.0
09/22/17 - 4:00 PM ET

Financial Analysis

POTASH CORP SASK INC's gross profit margin for the second quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. POTASH CORP SASK INC has very weak liquidity. Currently, the Quick Ratio is 0.39 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 5.90% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)1120.01053.0
EBITDA ($mil)331.0330.0
EBIT ($mil)163.0162.0
Net Income ($mil)201.0121.0

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)97.0143.0
Total Assets ($mil)17319.017326.0
Total Debt ($mil)4532.04634.0
Equity ($mil)8498.08024.0

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin33.8436.56
EBITDA Margin29.5531.33
Operating Margin14.5515.38
Sales Turnover0.260.3
Return on Assets2.753.91
Return on Equity5.618.46
Debt Q2 FY17 Q2 FY16
Current Ratio0.980.86
Interest Expense61.054.0
Interest Coverage2.673.0

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)840.09839.43
Div / share0.10.25
Book value / share10.129.56
Institutional Own % n/a n/a
Avg Daily Volume4633395.05218248.0


HOLD. This stock's P/E ratio indicates a significant discount compared to an average of 48.53 for the Chemicals industry and a premium compared to the S&P 500 average of 24.93. To use another comparison, its price-to-book ratio of 1.90 indicates a discount versus the S&P 500 average of 3.11 and a significant discount versus the industry average of 5.01. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
POT 33.74 Peers 48.53   POT 13.47 Peers 17.01

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

POT 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.

POT is trading at a discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
POT 28.92 Peers 26.07   POT 0.56 Peers 1.72

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

POT is trading at a premium to its peers.


Discount. 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 trades at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
POT 1.90 Peers 5.01   POT -29.63 Peers -25.05

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 significant 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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
POT 3.65 Peers 2.40   POT -13.98 Peers 9.37

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



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