Yara International (YARIY) AI Stock Analysis

• Market Cap: $10.00B
• Dividend Yield: 1.16%
• Average Volume (3M): 2.32K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.43
• Revenue Growth: 7.55%
• EPS Growth: 34.28%
• Country: US
• Employees: 16,624
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 0.67
• Shares Outstanding: 509,451,260
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 2,323
• PEG Ratio: -11.05
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 0.97
• P/FCF Ratio: 53.99
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 0.84
• Enterprise Value/Gross Profit: 3.54
• Enterprise Value/Ebitda: 5.31
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $20.50 ▲(14.08% Upside)

Yara International's overall stock score reflects its solid financial performance and successful cost management, as highlighted in the earnings call. The technical analysis indicates a mild upward trend, while the valuation suggests the stock is reasonably priced. Market uncertainties and regulatory challenges pose risks, but the company's strategic initiatives and stable financials provide a strong foundation.

Positive Factors

Revenue Growth

The recovery in revenue growth indicates Yara's ability to adapt and expand its market presence, supporting long-term business sustainability.

Cost Management

Effective cost management enhances profitability and operational efficiency, providing a competitive edge in the agricultural sector.

Cash Flow Improvement

Improved cash generation strengthens financial flexibility, enabling Yara to invest in growth opportunities and weather economic fluctuations.

Negative Factors

European Market Uncertainty

Regulatory changes and market uncertainties in Europe could impact pricing and demand, posing risks to Yara's revenue stability in the region.

Farmer Affordability Challenges

Input cost inflation and regulatory burdens may reduce farmers' purchasing power, affecting Yara's sales and market penetration.

Higher Operating Capital Outflow

Increased working capital outflow can strain cash flow, limiting Yara's ability to invest in growth and manage financial obligations effectively.

Yara International Business Overview & Revenue Model

Company Description

Yara International ASA is a global leader in crop nutrition and a key player in the agricultural sector. Founded in Norway in 1905, the company specializes in the production and distribution of nitrogen-based fertilizers, as well as providing sustainable crop nutrition solutions. Yara operates in various segments, including fertilizers, crop protection, and digital farming, with a commitment to sustainability and innovation to enhance agricultural productivity worldwide.

How the Company Makes Money

Yara International generates revenue primarily through the sale of fertilizers, particularly nitrogen-based products, which are essential for crop growth. The company operates a revenue model based on the production and distribution of its core products, including urea, ammonium nitrate, and other specialty fertilizers. Key revenue streams include direct sales to farmers, agricultural distributors, and retail markets. Additionally, Yara invests in research and development to offer precision farming solutions, integrating digital tools that help farmers optimize their crop yields and resource use. Significant partnerships with agricultural organizations, research institutions, and sustainability initiatives also bolster its market presence and contribute to its earnings through collaborative projects and innovations in crop nutrition.

Yara International Financial Statement Overview

Summary

Yara International exhibits a solid financial performance with strong cash flow generation and stable profitability margins. The company has managed to recover from previous revenue declines, showing resilience in a challenging market. While leverage is moderate, the company should focus on maintaining consistent profitability to enhance shareholder value. The positive cash flow trajectory is a key strength, supporting future growth and investment opportunities.

Income Statement

Yara International's income statement shows a solid performance with a TTM gross profit margin of 27.20% and a net profit margin of 4.82%. The company has demonstrated revenue growth of 2.97% in the TTM period, recovering from a decline in previous years. The EBIT and EBITDA margins are healthy at 8.62% and 15.89%, respectively, indicating efficient operational management. However, the volatility in revenue growth rates over the years suggests potential market challenges.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.52, indicating moderate leverage. The return on equity (ROE) is 9.28% for the TTM, showing a decent return on shareholders' investments. The equity ratio stands at 47.68%, suggesting a balanced capital structure. While the company maintains a solid equity base, the fluctuating ROE over the years highlights potential profitability challenges.

Cash Flow

Yara International's cash flow statement is strong, with a free cash flow growth rate of 22.66% in the TTM period, reflecting improved cash generation capabilities. The operating cash flow to net income ratio is 2.30, indicating robust cash flow relative to earnings. The free cash flow to net income ratio is 0.39, suggesting efficient cash conversion. Despite past fluctuations, the recent positive trends in cash flow metrics are promising.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.04B	13.81B	15.43B	23.90B	16.62B	11.59B
Gross Profit	3.57B	3.68B	3.34B	6.55B	4.48B	3.57B
EBITDA	2.38B	1.41B	1.47B	4.83B	2.58B	1.91B
Net Income	734.78M	14.00M	48.00M	2.78B	449.00M	691.00M
Balance Sheet
Total Assets	16.99B	14.99B	16.03B	17.98B	17.27B	16.61B
Cash, Cash Equivalents and Short-Term Investments	926.98M	232.00M	447.00M	908.00M	350.00M	1.33B
Total Debt	4.25B	4.05B	4.23B	4.22B	4.33B	4.29B
Total Liabilities	8.57B	7.99B	8.46B	9.38B	10.15B	8.38B
Stockholders Equity	8.40B	6.99B	7.55B	8.59B	7.10B	8.14B
Cash Flow
Free Cash Flow	704.83M	248.00M	1.15B	1.47B	597.00M	1.31B
Operating Cash Flow	1.65B	1.29B	2.29B	2.39B	1.41B	2.05B
Investing Cash Flow	-930.96M	-1.08B	-1.20B	-509.00M	-874.00M	248.00M
Financing Cash Flow	-682.55M	-401.00M	-1.52B	-1.23B	-1.50B	-1.23B

Yara International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 17.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YARIY, the sentiment is Neutral. The current price of 17.97 is below the 20-day moving average (MA) of 20.13, below the 50-day MA of 19.04, and below the 200-day MA of 18.10, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 43.59 is Neutral, neither overbought nor oversold. The STOCH value of 9.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for YARIY.

Yara International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CF	70 Outperform	$12.69B	9.96	27.46%	2.56%	12.59%	31.40%
YARIY	69 Neutral	$10.00B	13.50	9.22%	1.16%	7.55%	34.28%
MOS	65 Neutral	$8.25B	6.74	10.00%	3.70%	3.82%	239.39%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ICL	60 Neutral	$7.19B	19.55	6.15%	3.36%	1.77%	-8.72%
SMG	50 Neutral	$3.53B	24.97	―	4.52%	-3.93%	―
FMC	47 Neutral	$1.88B	-3.53	-11.52%	16.68%	-13.42%	-136.59%