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Yara International (ADR) (YARIY)
:YARIY
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Yara International
(OTC:YARIY)
Rating:60Neutral
Price Target:
$19.50
▲(0.83%Upside)
Yara International (YARIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.82B
Dividend Yield1.25%
Average Volume (3M)1.00K
Price to Earnings (P/E)14.0
Beta (1Y)0.52
Revenue Growth3.10%
EPS Growth167.57%
CountryUS
Employees16,624
SectorBasic Materials
Sector Strength73
IndustryAgricultural Inputs
Share Statistics
EPS (TTM)0.46
Shares Outstanding509,451,260
10 Day Avg. Volume0
30 Day Avg. Volume1,000
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.64
Price to Sales (P/S)0.00
P/FCF Ratio6.72
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue0.16
Enterprise Value/Gross Profit2.32
Enterprise Value/Ebitda1.28
Forecast
1Y Price Target
$19.50Price Target Upside0.83% Upside
Rating ConsensusHold
Number of Analyst Covering0
Yara International Business Overview & Revenue Model
Company DescriptionYara International (YARIY) is a global leader in the agriculture industry, primarily focusing on the production and distribution of nitrogen-based mineral fertilizers and industrial products. Operating across numerous countries, Yara serves the agriculture sector by providing essential nutrients for crop production, as well as offering environmental solutions and industrial applications. The company's core products include a wide range of fertilizers such as urea, ammonia, nitrates, and complex fertilizers, designed to boost yield efficiency and improve the sustainability of agricultural practices.
How the Company Makes MoneyYara International generates revenue predominantly through the sale of its nitrogen-based fertilizers to farmers and agricultural businesses worldwide. The company's key revenue streams include the sale of products like urea, nitrates, and ammonia, which are essential for improving crop yields. Additionally, Yara offers environmental and technical solutions for industrial applications, such as reducing emissions and improving air quality, which also contribute to its income. Significant partnerships with agricultural distributors and direct sales to farmers enhance its market reach and revenue. Factors like global agricultural demand, prices of raw materials, and exchange rates play a crucial role in shaping Yara's earnings.
Yara International Earnings Call Summary
Earnings Call Date:Jul 18, 2025
(Q4-2024)
| % Change Since: 3.53%|
Next Earnings Date:Oct 17, 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.Q4-2024 Updates
Positive Updates
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.
Negative Updates
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.Yara International Financial Statement Overview
Summary
Yara International exhibits a steady financial position with moderate profitability and strong cash flow generation. The income statement reveals moderate profitability with a Gross Profit Margin of 27.1% and a Net Profit Margin of 2.05%. The balance sheet reflects stability with a Debt-to-Equity Ratio of 0.54, and the cash flow statement shows strong cash conversion and significant improvement in free cash generation.Income Statement
Yara International's income statement reveals moderate profitability with a Gross Profit Margin of approximately 27.1% for TTM (Trailing-Twelve-Months) and a Net Profit Margin of 2.05%. While the company demonstrates consistent revenue, recent results show a decline from 2023 to TTM. The EBIT Margin stands at 5.85%, and the EBITDA Margin is 12.62%, indicating operational profitability, albeit with room for improvement. Revenue growth was negative compared to prior periods, signaling potential challenges in revenue generation.65
Positive
Balance Sheet
The balance sheet of Yara International reflects a stable equity base with a Debt-to-Equity Ratio of 0.54, suggesting moderate leverage. The Return on Equity (ROE) for TTM is 3.86%, which is relatively low but stable. The Equity Ratio is 47.9%, indicating a fairly balanced capital structure. Overall, the balance sheet is stable, but there's a need for improved asset utilization and profitability to enhance shareholder returns.70
Positive
Cash Flow
Yara International's cash flow statement shows a strong Operating Cash Flow to Net Income Ratio of 5.37, highlighting effective cash conversion. The Free Cash Flow to Net Income Ratio is 1.76, suggesting good cash generation relative to net income. The Free Cash Flow Growth Rate from the previous year is 106.45%, indicating significant improvement in free cash generation. This robust cash flow performance provides financial flexibility and supports ongoing operations.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.13B | 13.81B | 15.43B | 23.90B | 16.62B | 11.59B |
| Gross Profit | 3.83B | 3.68B | 3.34B | 6.55B | 4.48B | 3.57B |
| EBITDA | 1.78B | 1.41B | 1.47B | 4.74B | 2.58B | 1.91B |
| Net Income | 290.00M | 14.00M | 48.00M | 2.78B | 449.00M | 691.00M |
Balance Sheet | ||||||
| Total Assets | 15.67B | 14.99B | 16.03B | 17.98B | 17.27B | 16.61B |
| Cash, Cash Equivalents and Short-Term Investments | 326.00M | 232.00M | 447.00M | 908.00M | 350.00M | 1.33B |
| Total Debt | 4.09B | 4.05B | 4.23B | 4.22B | 4.33B | 4.29B |
| Total Liabilities | 8.15B | 7.99B | 8.46B | 9.38B | 10.15B | 8.38B |
| Stockholders Equity | 7.51B | 6.99B | 7.55B | 8.59B | 7.10B | 8.14B |
Cash Flow | ||||||
| Free Cash Flow | 512.00M | 248.00M | 1.15B | 1.47B | 597.00M | 1.31B |
| Operating Cash Flow | 1.56B | 1.29B | 2.29B | 2.39B | 1.41B | 2.05B |
| Investing Cash Flow | -1.03B | -1.08B | -1.20B | -509.00M | -874.00M | 248.00M |
| Financing Cash Flow | -512.00M | -401.00M | -1.52B | -1.23B | -1.50B | -1.23B |
Yara International Technical Analysis
Positive
19.34
Price Trends
18.56
Positive
16.89
Positive
15.67
Positive
Market Momentum
0.18
Negative
60.59
Neutral
98.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YARIY, the sentiment is Positive. The current price of 19.34 is above the 20-day moving average (MA) of 18.84, above the 50-day MA of 18.56, and above the 200-day MA of 15.67, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 60.59 is Neutral, neither overbought nor oversold. The STOCH value of 98.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for YARIY.
Yara International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $5.28B | 16.85 | 8.81% | 5.49% | 1.45% | -70.85% | |
70 Neutral | $8.83B | 23.32 | 6.70% | 2.70% | -3.48% | -18.34% | |
69 Neutral | $11.86B | 32.09 | 3.09% | 2.30% | -13.37% | -50.63% | |
63 Neutral | $10.49B | 9.49 | 1.49% | 2.70% | 2.28% | -33.88% | |
60 Neutral | $9.82B | 13.96 | 9.19% | 1.25% | 3.10% | 167.57% | |
57 Neutral | $4.04B | 139.94 | 4.98% | 3.86% | 0.75% | ― |
* Basic Materials Sector Average
Performance Comparison
YARIY
Yara International
19.34
5.24
37.16%
FMC
FMC
43.21
-13.29
-23.52%
MOS
Mosaic Co
37.39
9.07
32.03%
SMG
Scotts Miracle-Gro Company
69.39
1.71
2.53%
ICL
Icl
6.80
2.63
63.07%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.