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.

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 $170.7 million.
  • POT traded 11,852 shares today in the pre-market hours as of 8:42 AM.
  • POT is down 5% 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. The company operates in three segments: Potash, Nitrogen, and Phosphate. The stock currently has a dividend yield of 4.6%. POT has a PE ratio of 18.3. Currently there are 7 analysts that rate Potash Corp of Saskatchewan a buy, 2 analysts rate it a sell, and 9 rate it a hold.

The average volume for Potash Corp of Saskatchewan has been 3.6 million shares per day over the past 30 days. Potash Corp of Saskatchewan has a market cap of $27.7 billion and is part of the basic materials sector and chemicals industry. Shares are down 5.3% 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 buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 4.8%. Since the same quarter one year prior, revenues rose by 23.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 44.48% is the gross profit margin for POTASH CORP SASK INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.39% significantly outperformed against the industry average.
  • Net operating cash flow has slightly increased to $713.00 million or 8.68% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -3.00%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 77.0% when compared to the same quarter one year prior, rising from $230.00 million to $407.00 million.
  • The current debt-to-equity ratio, 0.48, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that POT's debt-to-equity ratio is low, the quick ratio, which is currently 0.57, displays a potential problem in covering short-term cash needs.

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