Potash Corporation Of Saskatchewan (POT) Down In Pre-Market Trading

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Potash Corporation of Saskatchewan ( POT) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Potash Corporation 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 $180.2 million.
  • POT traded 91,170 shares today in the pre-market hours as of 8:50 AM.
  • POT is down 2.1% today from Friday'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 primarily in the United States and Canada. The company mines and produces potash, which is used as fertilizer. The stock currently has a dividend yield of 4.4%. POT has a PE ratio of 12.2. Currently there are 5 analysts that rate Potash Corporation of Saskatchewan a buy, 1 analyst rates it a sell, and 11 rate it a hold.

The average volume for Potash Corporation of Saskatchewan has been 14.6 million shares per day over the past 30 days. Potash Corporation of Saskatchewan has a market cap of $27.3 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.08 and a short float of 3.4% with 5.03 days to cover. Shares are down 22.6% year to date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Potash Corporation of Saskatchewan as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Chemicals industry average. The net income increased by 23.2% when compared to the same quarter one year prior, going from $522.00 million to $643.00 million.
  • The gross profit margin for POTASH CORP SASK INC is rather high; currently it is at 50.56%. Regardless of POT's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, POT's net profit margin of 29.99% significantly outperformed against the industry.
  • The current debt-to-equity ratio, 0.34, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.98 is somewhat weak and could be cause for future problems.
  • Net operating cash flow has declined marginally to $1,202.00 million or 1.63% when compared to the same quarter last year. Despite a decrease in cash flow of 1.63%, POTASH CORP SASK INC is in line with the industry average cash flow growth rate of -11.07%.
  • POT has underperformed the S&P 500 Index, declining 23.54% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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