Top fertilizer stocks: CF, MOS, CTVA and 2 more to explore in March

March 13, 2022 12:10 AM PST | By Versha Jain
Follow us on Google News:

Highlights

  • The consumer price index (CPI) rose 7.9% in February, the highest in four decades, driven by high energy, food, and services costs.
  • Russia is one of the world’s top fertilizer producers, but sanctions could disrupt supplies.
  • Higher fertilizers cost could hit crop yield.

The consumer price index (CPI) rose 7.9% in February, the highest in four decades. The prices may go up further in March if the Russia-Ukraine war does not stop.

Russia is among the top producers of fertilizers globally. It exports a significant portion of its production. But the Russian sanctions could increase fertilizer cost and hit crop production.

On Wednesday, Ukraine banned the export of barley, sugar, and meat until the end of this year as the war took its toll on agricultural and meat production.

Here we discuss five fertilizers stocks that may be worth exploring this year.

Also Read:  From NVDA to AMD: Top semiconductor stocks to watch in March

CF Industries Holdings, Inc. (NYSE: CF)

Market Cap: US$20.16 billion

Closing price on March 10, 2022: US$97.25

CF Industries produces and distributes nitrogen fertilizers. Its production facilities are in the US. It also has joint ventures with the UK, Trinidad, and Tobago.

It makes nitrogen using low-cost natural gas. It is regarded as one of the world’s lowest-cost nitrogen producers. It also invests in carbon-free blue and green ammonia used as an alternative fuel to hydrogen.

 Also Read: Top 5 green energy stocks to watch in March: NEE to TSLA

For the fiscal year 2021, the Illinois-based company earned a net income of US$917 million or US$4.24 per diluted share. The EBITDA was US$2.17 billion. It reported net sales of US$6.5 billion compared to US$4.1 billion in fiscal 2020.

 In FY 2020, the net income was US$317 million or US$1.47 per diluted share, and EBITDA was US$1.32 billion.

The stock has a dividend yield of 1.3% and an annualized dividend of US$1.20. It traded in the range of US$100.52 to US$43.19 in one year.

Also Read: BAC, BX, MS among top financial stocks to explore in March

CF, MOS, to CTVA: Top fertilizer stocks to look for

Source: Pixabay

Also Read: Explore OXY, MRO among five energy stocks with over 30% YTD return

Mosaic Company (NYSE: MOS)

Market Cap: US$22.91 billion

Closing price on March 10, 2022: US$62.19

Tampa, Florida-based Mosaic Company produces phosphate and potash - primary crop nutrients. It has rock mines in Florida, Louisiana, New Mexico, Brazil, Peru, and Saskatchewan.

Mosaic reported net sales of US$12.36 billion for the fiscal year ended December 31, 2021, compared to US$8.68 billion for the previous fiscal year. Its net earnings came in at US41.63 billion or US$4.27 per diluted share versus US$0.666 billion or US$1.75 per diluted share in fiscal 2020.

On February 24, the company announced an accelerated share repurchase or ASR agreement with Goldman Sachs to buy back US$400 million of its common stocks.

The stock has a dividend yield of 0.78% and an annualized dividend of US$0.45. It traded in the range of US$64.71 to US$28.26 in one year.

Also Read: Top 5 gold stock picks for strategic inflation hedge: From GOLD to FNV

Intrepid Potash, Inc (NYSE: IPI)

Market Cap: US$1.1 billion

Closing price on March 10, 2022: US$81.15

Intrepid produces and sells potash and its byproducts. The company has three operating segments: Potash, Trio, and Oilfield solutions. The company has production facilities in the US, and most of its revenue also comes from the US. It is based in Denver, Colorado.

In February 2022, its board of directors approved a US$35 million share repurchase program after the fourth-quarter and full-year earnings results.

It reported sales of US$270 million in fiscal 2021 compared to US$197 million in the previous fiscal year. The net income of the company was US$249.8 million or US$19.07 per diluted share compared to the net loss of US$27.15 million or US$2.09 per diluted share in fiscal 2020.

The stock has a P/E ratio of 4.36 and the forward P/E for one year of 14.49. Its stock traded in the price range of US$84.39 to US$22.82 in the last 52 weeks.

Also Read: From VALE to BHP: Top nickel stocks to explore amid supply concerns

Corteva, Inc. (NYSE: CTVA)

Market Cap: US$38.96 billion

Closing price on March 10, 2022: US$53.59

Corteva develops seed and crop chemicals. The Wilmington, Delaware-based company operates globally, but around half of its revenue comes from North America.

Its net sales grew 10% YoY to US$15.66 billion in the fiscal year 2021 compared to US$14.2 billion in the previous fiscal year. The net income came in at US$1.76 billion or US$2.37 per diluted share compared to US$0.681 billion or US$0.91 per diluted share for fiscal 2020.

For full-year 2022, the company expects the net sales to be in the range of US$16.7 billion to US$17.0 billion.

The stock has a dividend yield of 1.09% and an annualized dividend of US$0.56. It traded in the range of US$54.02 to US$40.60 in one year.

Also Read: UNP, UPS among top 5 industrial stocks to keep an eye on in March

CF, MOS, to CTVA: Top fertilizer stocks to look for) 

Also Read: Top 5 Agri commodity stocks - ADM, MOS and 3 others to explore

FMC Corporation (NYSE: FMC)

Market Cap: US$15.64 billion

Closing price on March 10, 2022: US$124.42

The Philadelphia, Pennsylvania-based FMC Corporation is a pure-play crop chemical company. Its crop chemical portfolio has exposure to various crops and geographies.

This agricultural company announced a regular quarterly dividend of US$0.53 per share payable on April 21, 2022, to shareholders of record on March 31, 2022.

In fiscal 2021, its revenue grew around 9% to US$5.05 billion, compared to US$4.64 billion in fiscal 2020. It posted a net income of US$734 million compared to US$550 million in the previous year.

The stock has a dividend yield of 1.77% and an annualized dividend of US$2.12. It traded in the range of US$124.94 to US$87.27 in the last 52 weeks.

Also Read: OXY, CVX, KR among top 5 Warren Buffett stocks to watch now

Bottomline

Russia and Ukraine supply more than 25% of the wheat demand worldwide. Analysts expect the global nitrogen inventory to remain low in 2022 because of strong demand and lower production. Besides the war restrictions, shutdowns, high energy prices etc., impacted fertilizer  production in the US, Europe, and India.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.



Top Listed Companies