TNH has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
TNH has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:
"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."
Terra Nitrogen Co LP's Owner Earnings per Share (TTM) ended in Dec. 2017 was $0.00. It's Price-to-Owner-Earnings ratio for today is 0.
The historical rank and industry rank for Terra Nitrogen Co LP's Owner Earnings per Share (TTM) or its related term are showing as below:
Terra Nitrogen Co LP's Earnings per Share (Diluted) for the three months ended in Dec. 2017 was $1.44. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2017 was $5.94. It's PE Ratio ratio for today is 14.13.
Terra Nitrogen Co LP's EPS without NRI for the three months ended in Dec. 2017 was $1.44. Its EPS without NRI for the trailing twelve months (TTM) ended in Dec. 2017 was $5.94. It's PE Ratio without NRI ratio for today is 14.13.
The historical data trend for Terra Nitrogen Co LP's Owner Earnings per Share (TTM) can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Terra Nitrogen Co LP Annual Data | |||||||||||||||||||||
Trend | Dec08 | Dec09 | Dec10 | Dec11 | Dec12 | Dec13 | Dec14 | Dec15 | Dec16 | Dec17 | |||||||||||
Owner Earnings per Share (TTM) | Get a 7-Day Free Trial | 24.50 | 18.71 | 15.81 | 10.81 | 6.84 |
Terra Nitrogen Co LP Quarterly Data | ||||||||||||||||||||
Mar13 | Jun13 | Sep13 | Dec13 | Mar14 | Jun14 | Sep14 | Dec14 | Mar15 | Jun15 | Sep15 | Dec15 | Mar16 | Jun16 | Sep16 | Dec16 | Mar17 | Jun17 | Sep17 | Dec17 | |
Owner Earnings per Share (TTM) | Get a 7-Day Free Trial | 10.81 | 10.37 | 7.29 | 6.92 | 6.84 |
For the Agricultural Inputs subindustry, Terra Nitrogen Co LP's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Agriculture industry and Basic Materials sector, Terra Nitrogen Co LP's Price-to-Owner-Earnings distribution charts can be found below:
* The bar in red indicates where Terra Nitrogen Co LP's Price-to-Owner-Earnings falls into.
In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:
"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."
To make it simple, then you will have:
Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)
Terra Nitrogen Co LP's Owner Earnings per Share (TTM) Calculation:
TTM / Last Quarter | Average of Last 20 Quarters | |
Net Income | 153.9 | |
Depreciation, Depletion and Amortization | 39.0 | |
Change In Deferred Tax | 0.0 | |
5Y Average of Maintenance Capital Expenditure | 53.4 | |
Change In Working Capital | -11.7 | |
Shares Outstanding (Diluted Average) | 18.7 |
1. Start with "Net Income" from income statement. Terra Nitrogen Co LP's Net Income for the trailing twelve months (TTM) ended in Dec. 2017 was $153.9 Mil.
2. "Depreciation, Depletion and Amortization" is from cashflow statement. Terra Nitrogen Co LP's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Dec. 2017 was $39.0 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.
3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income.
Terra Nitrogen Co LP's Change In Deferred Tax for the trailing twelve months (TTM) ended in Dec. 2017 was $0.0 Mil.
4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $53.4 Mil
It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.
The following shows how to get maintenance capital expenditure.
First, calculate the revenue change regarding to the previous quarter. If the revenue decreased from the previous quarter, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous quarter, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.
Terra Nitrogen Co LP's 5-Year Average Maintenance Capital Expenditure = $53.4 Mil
5. "Change In Working Capital" is from cashflow statement. Terra Nitrogen Co LP's Change In Working Capital for the trailing twelve months (TTM) ended in Dec. 2017 was $-11.7 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.
6. Terra Nitrogen Co LP's Shares Outstanding (Diluted Average) for the months ended in Dec. 2017 was 18.686 Mil.
Terra Nitrogen Co LP's Onwer Earnings Per Share for Dec. 2017 is calculated as:
Owner Earnings per Share (TTM) | |||||
= | ( Net Income | + | Depreciation, Depletion and Amortization | + | Change In Deferred Tax |
= | ( 153.9 | + | 39 | + | 0 |
- | 5Y Avg of Maintenance CAPEX | + | Change In Working Capital ) | / | Shares Outstanding (Diluted Average) |
- | 53.368015712804 | + | -11.7) | / | 18.686 |
= | 0.00 |
Price-to-Owner-Earnings | = | Current Price | / | Owner Earnings per Share (TTM) |
= | 83.96 | / | 0.00 | |
= | 0 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.
Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.
Thank you for viewing the detailed overview of Terra Nitrogen Co LP's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.
Michael A Jackson | director | |
Anne H Lloyd | director | |
Susan L Menzel | officer: Sr. VP, Human Resources | C/O CF INDUSTRIES HOLDINGS, INC., FOUR PARKWAY NORTH, DEERFIELD IL 60015 |
Christopher D Bohn | officer: VP, Supply Chain | C/O CF INDUSTRIES HOLDINGS, INC., 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015 |
Adam L Hall | officer: VP, Corporate Development | C/O CF INDUSTRIES HOLDINGS, INC., 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015 |
Dennis P. Kelleher | director, officer: Sr Vice President and CFO | C/O CF INDUSTRIES HOLDINGS, INC, 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015 |
Theodore D Sands | director | CITYPLACE ONE SUITE 300, ARCH MINERAL CORP, CREVE COEUR MO 63141 |
Jablow Spertus Wendy S | officer: VP, Human Resources | C/O CF INDUSTRIES HOLDINGS, INC., 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015 |
Anthony J Nocchiero | director, officer: Senior Vice President and CFO | C/O CF INDUSTRIES HOLDINGS, INC., 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015 |
Lynn F White | officer: VP, Corporate Development | C/O CF INDUSTRIES HOLDINGS, INC., 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015 |
Philipp P Koch | officer: VP, Supply Chain | C/O CF INDUSTRIES, INC., ONE SALEM LAKE DRIVE, LONG GROVE IL 60047 |
Stephen R Wilson | director, officer: Chairman, President, and CEO | C/O CF INDUSTRIES, INC., ONE SALEM LAKE DRIVE, LONG GROVE IL 60047 |
Douglas C Barnard | officer: VP, GC, and Corp. Secretary | C/O CF INDUSTRIES, INC., ONE SALEM LAKE DRIVE, LONG GROVE IL 60047 |
W Anthony Will | officer: VP, Manufacturing and Dist. | C/O CF INDUSTRIES HOLDINGS, INC., 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015 |
Richard A Hoker | officer: VP and Corporate Controller | C/O CF INDUSTRIES HOLDINGS, INC., 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015 |
From GuruFocus
By Dividend King Dividend King • 03-31-2012
By Jimmy Xiao gurujx • 10-20-2014
By Dividend Dividend • 03-07-2012
By Jonathan Poland Jonathan Poland • 04-28-2015
By Jonathan Poland Jonathan Poland • 05-09-2016
By Dividend Dividend • 03-10-2012
By Ben Reynolds Ben Reynolds • 06-09-2017
By Tiziano Frateschi Tiziano Frateschi • 01-25-2015
By Thomas Macpherson Thomas Macpherson • 04-01-2015
Disclaimers: GuruFocus.com is not operated by a broker or a dealer. It has an affiliated registered investment adviser, which serves as the subadviser to an exchange traded fund. This investment adviser does not provide advice to individual investors. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.