Potash Corporation Of Saskatchewan (POT) Leading In Pre-Market Activity

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 leader 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 $231.3 million.
  • POT traded 10,935 shares today in the pre-market hours as of 8:39 AM.
  • POT is up 2.1% 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 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 4.3%. POT has a PE ratio of 14.6. Currently there are 4 analysts that rate Potash Corporation of Saskatchewan a buy, 1 analyst rates it a sell, and 13 rate it a hold.

The average volume for Potash Corporation of Saskatchewan has been 8.5 million shares per day over the past 30 days. Potash Corporation of Saskatchewan has a market cap of $28.3 billion and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.07 and a short float of 3.7% with 4.46 days to cover. Shares are down 19.4% year to date as of the close of trading on Tuesday.

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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 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 feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.

Highlights from the ratings report include:
  • 40.99% is the gross profit margin for POTASH CORP SASK INC which we consider to be strong. 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 23.42% significantly outperformed against the industry.
  • The current debt-to-equity ratio, 0.36, 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 0.80 is somewhat weak and could be cause for future problems.
  • The revenue fell significantly faster than the industry average of 7.3%. Since the same quarter one year prior, revenues fell by 29.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Chemicals industry. The net income has significantly decreased by 44.8% when compared to the same quarter one year ago, falling from $645.00 million to $356.00 million.
  • Net operating cash flow has decreased to $616.00 million or 18.84% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

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