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Yara International (YARIY)
OTHER OTC:YARIY
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Yara International
(OTC:YARIY)55Neutral
Yara International (YARIY) vs. S&P 500 (SPY)
Market Cap
$7.16B
Dividend Yield1.14%
Average Volume (3M)21.72K
Price to Earnings (P/E)507.3
Beta (1Y)0.58
Revenue Growth-10.25%
EPS Growth-70.81%
CountryUS
Employees17,500
SectorBasic Materials
Sector Strength56
IndustryAgriculture
Share Statistics
EPS (TTM)0.03
Shares Outstanding509,451,260
10 Day Avg. Volume21,023
30 Day Avg. Volume21,719
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.46
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Yara International Business Overview & Revenue Model
Company DescriptionYara International ASA is a leading global agricultural company headquartered in Oslo, Norway. It specializes in the production and distribution of crop nutrition solutions, with a focus on improving agricultural productivity while minimizing environmental impact. Yara operates in three main sectors: crop nutrition, environmental solutions, and industrial products. Its core products include nitrogen-based fertilizers, specialty fertilizers, and industrial gases.
How the Company Makes MoneyYara International generates revenue primarily through the sale of its crop nutrition products, which include a wide array of nitrogen-based fertilizers and specialty fertilizers tailored to enhance crop yields and soil health. The company also earns income from its environmental solutions segment, providing products and services to reduce emissions and improve air quality. Additionally, Yara offers industrial gases and chemicals, which contribute to its revenue streams. Strategic partnerships and joint ventures in various regions further bolster its market presence and earnings potential. The company leverages its extensive distribution network and technological innovations to maintain a competitive edge in the global agricultural sector.
Yara International Financial Statement Overview
Summary
Yara International's financial performance is moderate with stable operational efficiency but declining profitability and cash flow generation. Revenue and net income declines pose challenges, while balance sheet stability offers some resilience.Income Statement
Yara International's income statement shows a fluctuating revenue trend with a decline from 2023 to 2024. The gross profit margin decreased from 21.6% in 2023 to 26.6% in 2024, indicating a reduction in profitability per revenue unit. Net profit margin dropped significantly from 0.3% in 2023 to 0.1% in 2024, showing pressure on net income. EBIT and EBITDA margins are stable, suggesting operational efficiency, but overall profitability is under pressure due to declining revenues and net income.65
Positive
Balance Sheet
The balance sheet reflects moderate financial stability. The debt-to-equity ratio improved slightly from 0.56 in 2023 to 0.58 in 2024, indicating a balanced leverage. Return on equity (ROE) significantly decreased from 0.6% in 2023 to 0.2% in 2024, reflecting lower efficiency in generating returns on equity capital. Equity ratio remains consistent, showing stability in the equity base relative to total assets.72
Positive
Cash Flow
Cash flow analysis reveals a challenging period for free cash flow, which decreased from $1,149 million in 2023 to $248 million in 2024. This sharp decline indicates potential cash management issues. The operating cash flow to net income ratio remains positive, reflecting the company's ability to generate cash from operations despite declining net income. However, free cash flow to net income ratio is under pressure, highlighting reduced cash generation relative to net income.58
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 13.81B | 15.43B | 23.90B | 16.62B | 11.59B | Gross Profit |
| 3.68B | 3.33B | 6.55B | 4.48B | 3.57B | EBIT |
| 686.00M | 392.00M | 3.83B | 1.59B | 903.00M | EBITDA |
| 1.46B | 1.47B | 4.84B | 1.86B | 1.91B | Net Income Common Stockholders |
| 14.00M | 48.00M | 2.78B | 449.00M | 691.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 317.00M | 447.00M | 908.00M | 350.00M | 1.33B | Total Assets |
| 14.99B | 16.03B | 17.98B | 17.27B | 16.61B | Total Debt |
| 4.05B | 4.23B | 4.22B | 4.33B | 4.29B | Net Debt |
| 3.73B | 3.78B | 3.31B | 3.98B | 2.96B | Total Liabilities |
| 7.99B | 8.46B | 9.38B | 10.15B | 8.38B | Stockholders Equity |
| 6.99B | 7.55B | 8.59B | 7.10B | 8.14B |
| Cash Flow | Free Cash Flow | |||
| 248.00M | 1.15B | 1.47B | 597.00M | 1.31B | Operating Cash Flow |
| 1.29B | 2.29B | 2.39B | 1.41B | 2.05B | Investing Cash Flow |
| -1.08B | -1.20B | -509.00M | -874.00M | 248.00M | Financing Cash Flow |
| -401.00M | -1.52B | -1.23B | -1.50B | -1.23B |
Yara International Technical Analysis
Negative
13.95
Price Trends
14.20
Negative
14.54
Negative
14.54
Negative
Market Momentum
-0.04
Positive
41.26
Neutral
0.21
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YARIY, the sentiment is Negative. The current price of 13.95 is below the 20-day moving average (MA) of 14.44, below the 50-day MA of 14.20, and below the 200-day MA of 14.54, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 41.26 is Neutral, neither overbought nor oversold. The STOCH value of 0.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YARIY.
Yara International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $13.74B | 12.02 | 24.43% | 2.56% | -10.48% | -13.78% | |
70 Outperform | $37.41B | 40.58 | 2.94% | 4.38% | -13.24% | -65.53% | |
63 Neutral | $7.33B | 42.32 | 1.52% | 3.60% | -18.79% | -84.24% | |
60 Neutral | $22.34B | 12.76 | 8.12% | 4.32% | -9.01% | -43.53% | |
55 Neutral | $7.16B | 507.35 | 0.20% | 1.14% | -10.25% | -70.81% | |
54 Neutral | $319.17M | ― | -44.87% | ― | -8.74% | -492.08% | |
47 Neutral | $2.64B | -4.00 | -31.55% | 3.33% | 2.93% | -29.90% |
* Basic Materials Sector Average
Performance Comparison
YARIY
Yara International
13.95
-1.84
-11.65%
ADM
Archer Daniels Midland
45.82
-5.69
-11.05%
CF
Cf Industries Holdings
75.28
-2.28
-2.94%
IPI
Intrepid Potash
24.13
2.99
14.14%
MOS
Mosaic Co
23.08
-7.25
-23.90%
TSE:NTR
Nutrien
70.21
3.96
5.98%
Yara International Earnings Call Summary
Earnings Call Date: Feb 7, 2025 | % Change Since: -6.12% | Next Earnings Date: Apr 25, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive developments, such as progress on Clean Ammonia projects and cost reduction efforts, against challenges like reduced dividend payouts, high tax rates, and working capital inefficiencies. While there are promising market opportunities and strategic initiatives in place, financial caution and operational adjustments are necessary to address current obstacles.Highlights
Clean Ammonia Projects Progress
Yara remains optimistic about the profitability of its Clean Ammonia projects in the U.S., projecting first half 2026 for final investment decisions, emphasizing low-cost gas and scale as key factors.
Cost Reduction Plan on Track
Yara is on track to achieve a $150 million cost reduction by the end of 2025, with significant savings expected from FTE reductions and external cost reductions.
Positive Market Outlook
Yara reports a positive outlook for global nitrogen markets, highlighting tightening conditions and expectations for a strong application season in the U.S.
Strong Demand for Clean Ammonia
Yara sees firm demand in Europe driven by regulations like Redtree, ETS, and CBAM, while exploring multiple partnership opportunities for equity funding.
Lowlights
Dividend Reduction and Leverage Concerns
Yara's Board has decided to lower the dividend payout for 2024 due to high leverage levels and low free cash flow, despite a positive outlook for the nitrogen market.
High Tax Rate Impact
Yara experienced a high tax rate in Q4, driven by unrecognized deferred tax assets and currency losses, impacting adjusted EPS figures.
Working Capital Challenges
Yara's working capital is at 108 days, above the target of 90 days, highlighting ongoing challenges in optimizing operational efficiency.
Mothballing of UK Plant
Yara has mothballed its Hull plant in the UK due to factors including gas costs, affecting its ammonia production capacity.
Company Guidance
During the Yara Fourth Quarter Results 2024 Conference Call, management provided guidance on several key metrics and strategic initiatives. They reaffirmed their target of achieving a USD 150 million cost reduction by the end of 2025, primarily through external cost reductions and a hiring freeze, with the bulk of savings expected in the second half of 2025. Additionally, they discussed the Clean Ammonia projects, with a final investment decision (FID) anticipated in the first half of 2026, emphasizing low-cost gas, scale, and partnerships as essential variables. The company also highlighted its commitment to maintaining a strong dividend policy while exercising caution with leverage, acknowledging a positive outlook for the nitrogen market. Furthermore, Yara indicated plans to optimize its portfolio and explore equity funding structures for clean ammonia, while also addressing potential impacts from tariffs and shifting global market dynamics, including Chinese export policies.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.