Long term Growth Analysis of Potash Corporation of Saskatchewan Inc. (NYSE:POT)

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Quarterly Sales and EPS Roundup:

Potash Corporation of Saskatchewan Inc. (POT) reported sales (ttm) of 4.52 Billion, whereas, 13 number of analysts estimated the mean sale of 937.35 million. The analysts estimated sales for the higher end at 1029 million and lower end at 866.74 million while the year ago reported sale was 1139.63 million.

5 number of analysts have estimated the sales of the company for the quarter, analysts estimated mean sale target of 999.18 million while high and low sale targets are estimated at 1035 million and 947.82 million respectively.

Potash Corporation of Saskatchewan Inc. (POT) reported earning per shares for the quarter ending Oct 26 BMO at 0.09, whereas, 19 number of analysts estimated the mean EPS at 0.08. The analysts estimated EPS for the higher end at 0.11 and lower end at 0.02 while the year ago reported earnings per share was 0.14.

The company has mean EPS estimate of 0.15 reported by 9 number of analyst for the quarter ending Current Qtr.(Dec2017). The analysts estimated mean EPS at 0.15 while the high and low EPS estimate stand at 0.18 and 0.11 respectively. In contrast to the year ago quarter EPS was at 0.19. EPS long term mean growth rate estimated by 1 analysts is at 8%, whereas, the high and low Long term growth rate estimated at 8 and 8.

Valuation Ratios of Potash Corporation of Saskatchewan Inc. (POT) versus the Industry and Sector:

Let’s have a look at some of the important valuation ratios of the Potash Corporation of Saskatchewan Inc. (POT). These ratios are important while doing valuation of the company or the shares of the company.

Potash Corporation of Saskatchewan Inc. (POT) currently has P/E (Price to Earnings) ratio of 35.76 while the company’s industry has 22.57 P/E and the sector P/E is 21.19. Similarly, the company’s last 5 years high P/E ratio is 47.02 and low P/E is 11.29, whereas, the industry’s and sector’s  high P/E for the past year is 26.6 and 146.8 respectively and low P/E ratio for the last 5 years is 8.6 for the industry and 14.28 for the Sector.

Beta is also an important valuation ratio for analyzing the stock of the company, POT has Beta of 0.45 while its industry and Sector’s beta remains at 1.11 and 0.84 respectively.

Price to Sale ratio of the company stands at 3.55 while Price to Book Ratio stands at 1.89. Its Price to Cash Flow ratio shows the value of 14, whereas, the industry and sector ratio of Price to Cash Flow ticked at 15.8 and 16.55 respectively.

5 Year Growth Rate Analysis:

Growth rates are very important while analyzing the long term growth and valuation of a certain company.

5 year sales growth rate is an important factor for valuation analysis, the 5 year sales growth of the company stands at -12.55 while the industry’s and the sector’s growth for next 5 years ticked at 8.39 and 0.55 respectively. The company’s 5 year Earnings per share growth and Capital Spending growth remains at -35.75 and -16.32.

Potash Corporation of Saskatchewan Inc. (POT) Trading Statistics:

The company declined -1.1% and closed its last trading session at $19.11. The market capitalization of the company is at $15.94 Billion. The stock touched 52-week High of $20.26 on 01/25/17 and 52-week Low of $15.74 on 05/18/17. The stock currently has Weekly Volatility of 1.72% and Monthly Volatility of 1.61%. The Beta for the company stands at 0.45 and its Average True Range (ATR) shows a value of 0.31.

 

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