Nutrien lets you profit from cyclical upswing

Article Excerpt

Fertilizer demand and prices are moving up again with the global economy—spurring Nutrien’s profits. The company’s recent sale of its investment in Egypt also frees up cash for new growth projects and acquisitions. Moreover, Nutrien is rewarding investors with higher dividends and share buybacks. NUTRIEN LTD. $72 is a buy. The company (Toronto symbol NTR; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 569.8 million; Market cap: $41.0 billion; Price-to-sales ratio: 2.1; Dividend yield: 3.2%; TSINetwork Rating: Average; www.nutrien.com) is the world’s largest producer of agricultural fertilizers: it ships about 25 million tonnes annually. It also sells seeds, fertilizer and other agricultural products through 2,000 retail stores in seven countries. The company has settled a dispute with the Egyptian government over its 26% stake in the state-owned Misr Fertilizers Production Company (MOPCO). In 2019, Nutrien sued MOPCO over the cancellation of a marketing agreement. Under the terms of the settlement, Nutrien will drop all claims and sell its 26% stake in MOPCO to the Egyptian government for $540…