Potash Corp./Saskatchewan (USA) ($POT) Cautious Buy or Hold to $23 Confident Investor Rating: Fair
Company name | Potash Corp./Saskatchewan (USA) |
Stock ticker | POT |
Live stock price | [stckqut]POT[/stckqut] |
P/E compared to competitors | Good |
MANAGEMENT EXECUTION
Employee productivity | Good |
Sales growth | Poor |
EPS growth | Poor |
P/E growth | Good |
EBIT growth | Fair |
ANALYSIS
Confident Investor Rating | Fair |
Target stock price (TWCA growth scenario) | $17.19 |
Target stock price (averages with growth) | $15.22 |
Target stock price (averages with no growth) | $10.13 |
Target stock price (manual assumptions) | $23.64 |
The following company description is from Google Finance: http://www.google.com/finance?q=pot
Potash Corporation of Saskatchewan Inc. (PCS) is a fertilizer company. The Company operates in three business segments: potash, nitrogen and phosphate. The Company owns and operates five potash operations in Saskatchewan and one in New Brunswick. Its nitrogen operations involve the production of nitrogen fertilizers and nitrogen feed and industrial products, including ammonia, urea, nitrogen solutions, ammonium nitrate and nitric acid. It has nitrogen facilities in Georgia, Louisiana, Ohio and Trinidad. The Company’s phosphate operations include the manufacture and sale of solid and liquid phosphate fertilizers, phosphate feed and industrial acid, which is used in food products and industrial processes. It has phosphate mines and mineral processing plant complexes in Florida and North Carolina. The Company also has four phosphate feed plants in the United States and produce phosphoric acid at its Geismar, Louisiana facility.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Potash Corp./Saskatchewan (USA) as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. I have been disappointed in the growth of Potash, I am removing it from my Watch List.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Potash Corp./Saskatchewan (USA) calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $26.93
- Growth: 0.07
- Current EPS (TTM): $1.81
- P/E: 15
- Future EPS Calc: $2.53
- Future Stock Price Calc: $38.07
- Target stock price: $23.64
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I hope that this makes you a Confident Investor.