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Highlights:
- CVR Partners, LP (NYSE:UAN) has a P/E ratio of 5.82 and a dividend yield of 8.15%.
- CF Industries Holdings (NYSE:CF) pays an annual dividend of US$1.60.
- American Vanguard Corp’s (NYSE:AVD) P/E ratio is 25.93, and its dividend yield is 0.47%.
Fertilizers are essential for the perennial, agricultural sector, basic items that could never go out of trend and might be a good defense against inflation. The Federal Reserve is on a mission mode to bring down inflation, which surged to 8.6% at an annual rate in May.
The central bank has raised its interest rates by a record 75 basis points in May, the third hike this year, underscoring its resolve to fight rising costs. Against this backdrop, could fertilizer stocks be worth exploring? Here we discuss five fertilizer stocks that grew more than 15% in one year.
CVR Partners, LP (NYSE:UAN)
Closing price on June 23, 2022: US$102.01
Sugar Land, Texas-based CVR Partners LP manufactures nitrogen fertilizer products such as Urea Ammonium Nitrate (UAN) and ammonia for industrial and agricultural customers.
For the quarter ended March 31, 2022, the company reported a net sale of US$222.9 million compared to US$60.9 million in the previous year’s March quarter. It posted a net income of US$93.7 million or US$8.78 per share diluted compared to a net loss of US$25.3 million or US$2.37 per share diluted in the March quarter of 2021.
The stock traded in the range of US$179.74 to US$51.00 in the last 52 weeks.
Its market capitalization is US$1.14 billion, and the P/E ratio is 5.82. Its dividend yield is 8.15%, with an annualized dividend of US$9.04.
CF Industries Holdings, Inc. (NYSE:CF)
Closing price on June 23, 2022: US$80.6
Deerfield, Illinois-based CF Industries produces nitrogen fertilizers using low-cost US natural gas as feedstock, making it one of the lowest-cost nitrogen producers globally. The company also holds joint-venture interests in projects in the UK, Trinidad, and Tobago.
The company reported a net sale of US$2.86 billion compared to US$1.05 billion in the same quarter a year ago. Its net income attributable to common shareholders came in at US$883 million or US$4.21 per share diluted compared to US$151 million or US$0.70 per share diluted in the March quarter of 2021.
The stock traded in the range of US$113.48 to US$43.19 in the last 52 weeks.
It has a market capitalization of US$17.5 billion. Its P/E ratio is 10.79, and the forward P/E for one year is 4.25. The stock has a dividend yield of 1.81%, with an annualized dividend of US$1.60.
Intrepid Potash, Inc (NYSE:IPI)
Closing price on June 23, 2022: US$44.71
Intrepid Potash Inc produces and sells potash and byproducts. Its three main product segments are Potash, Trio, and Oilfield solutions. This Denver, Colorado-based company generates most of its revenue from the US.
For the March quarter of 2022, the company generated a net sale of US$104.4 million compared to US$71.5 million in the same period in the previous year. It booked a net income of US$31.4 million or US$2.31 per share diluted compared to US$2.45 million or US$0.18 per share diluted in the March quarter, 2021.
The stock traded in the range of US$121.72 to US$27.43 in one year. It has a market capitalization of US$648 million and a P/E ratio of 2.3. Its forward P/E for one year is 4.75.
Mosaic Company (NYSE:MOS)
Closing price on June 23, 2022: US$45.24
Tampa, Florida-based Mosaic produces primary crop nutrients phosphate and potash. Its assets include phosphate rock mines in Louisiana, Florida, Brazil and Peru and potash mines in New Mexico, Saskatchewan, and Brazil.
For the three months ended March 31, 2022, the company earned a net sale of US$3.9 billion compared to US$2.29 billion in the March quarter of the previous year. Its net income was US$1.18 billion or US$3.19 per diluted share compared to US$0.156 billion or US$0.41 per diluted share in the March quarter of 2021.
The stock traded in the range of US$79.28 to US$28.26 in the last 52 weeks.
It has a market capitalization of US$16.9 billion and a P/E ratio of 6.6. The forward P/E for one year is 3.25, and the dividend yield is 1.2%, with an annualized dividend of US$0.60.
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American Vanguard Corporation (NYSE:AVD)
Closing price on June 23, 2022: US$20.56
American Vanguard Corp is a diversified specialty and agricultural products company based in Newport Beach, California. It manufactures chemicals for crops, turf and ornamental plants, and human and animal health protection.
For the quarter ended March 31, 2022, the company reported a net sale of US$149.4 million compared to US$116.2 million in the previous year. Its net income came in at US$9.93 million or US$0.33 per share diluted compared to US$3.07 million or US$0.10 per share diluted in the March quarter of 2021. The stock traded in the range of US$25.99 to US$13.82 in the last 52 weeks.
It has a market capitalization of US$671 million. The P/E ratio is 25.93, and the forward P/E for one year is 19.58. It has a dividend yield of 0.47%, with an annualized dividend of US$0.10.
Bottom line:
The Russia-Ukraine war has impacted global supplies of essential commodities like oil, natural gas, wheat, fertilizers, etc., reflected in their rising prices. These countries are major exporters of gas, urea, and potash, the key materials for the fertilizer industry. However, given the volatile market scenario, investors should exercise due diligence before investing in stocks.
