Jerome Dodson (Trades, Portfolio), First Eagle Investment (Trades, Portfolio) and Steven Cohen (Trades, Portfolio) added to their stakes in Potash Corp. of Saskatchewan (POT, Financial) during the third quarter.
Potash Corp. of Saskatchewan has a market cap of $15.33 billion, a price-earnings (P/E) ratio of 31.67, an enterprise value of $19.51 billion, a price-book (P/B) ratio of 1.88 and a quick ratio of 0.44.
According to GuruFocus Potash Corp. of Saskatchewan has a 5 of 10 financial strength rating with a cash-debt ratio of 0.03, an equity-asset ratio of 0.46, an interest coverage ratio of 3.46, a Piotroski F-Score of 4 and a Beneish M-Score of -2.93 indicating that the company is not a manipulator of its financial statements.
Potash Corp. of Saskatchewan also has a 6 of 10 profitability and growth rating with an operating margin of 17.11%, a net-margin of 10.11%, a return on equity (ROE) of 5.82%, a return on assets (ROA) of 2.76%, revenue growth (three years) of 4.70% and earnings-per-share growth (EPS) of -3.90% over the previous three years.
Potash Corp. of Saskatchewan is the world’s largest fertilizer company by capacity. It produces three primary crop nutrients including potash, nitrogen and phosphate. The company’s goal is to feed everyone in the world.
In 2015 Potash Corp. of Saskatchewan estimated that its potash operations represented 20% of global potash capacity according to its most recent 10-K filing.
Dodson, First Eagle Investment and Cohen likely boosted their stakes for the following reasons.
- Potash Corp. of Saskatchewan is a key player in meeting the global challenge to feed the world.
- The company has a differentiation advantage because it is already the world’s largest fertilizer company by capacity.
- Potash Corp. of Saskatchewan has reported strong financial numbers over the previous 10 years. It has increased its revenue growth by 8.4%, its EBITDA has grown by 12.50%, the company’s operating income growth has increased by 11.70%, its EPS without NRI has grown by 11.30%, and book value has grown by an estimated 16.30% over the previous 10 years.
Potash Corp. of Saskatchewan’s market price has gained an estimated 10% since the gurus boosted their stakes.
Disclosure:Ă‚ Author does not own any shares of this company.
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