Yara International (YARIY) AI Stock Analysis

• Market Cap: $11.70B
• Dividend Yield: 1.16%
• Average Volume (3M): 2.32K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.42
• 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: 1.29
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 4.21
• Enterprise Value/Ebitda: 6.31
• 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: $25.00 ▲(39.12% 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

Market leadership in crop nutrition

Yara's long-established global leadership in crop nutrition underpins durable demand for its core nitrogen-based fertilizers. Essential inputs to agriculture create recurring revenue and deep customer relationships across markets, supporting steady structural cash flows and scale-driven advantages.

Sustained cost discipline and margin recovery

Raising cost-reduction targets reflects persistent operational focus that improves margins and resilience across cycles. Structural savings enhance free cash flow potential and provide buffer against commodity and regulatory shocks, supporting sustainable profitability and reinvestment capacity.

Stable balance sheet and moderate leverage

A moderate leverage profile and near-50% equity ratio provide financial flexibility for cyclical capital needs and strategic projects. This capital structure reduces refinancing risk and supports investment in decarbonization or ammonia projects without unduly straining liquidity over the medium term.

Negative Factors

Regulatory cost headwind (CBAM)

CBAM and related European regulatory changes create structural cost push for nitrogen imports and may alter competitive dynamics. Added carbon-related import costs can compress margins, require capital for cleaner production, and force price adjustments that could dampen demand over multiple seasons.

Phosphate market pressure and farmer affordability

Sustained high phosphate costs and disrupted supply reduce farmers' purchasing power, structurally limiting volume growth and product mix. Prolonged affordability pressures can shift crop nutrition demand patterns, forcing Yara to absorb costs or accept lower volumes and margins over several planting cycles.

Cash conversion and working capital strain

Relatively weak cash conversion metrics and reported net working capital outflows signal structural volatility in cash generation. Persistent working-capital swings constrain investment capacity, make funding capital projects harder without external financing, and can limit ability to sustain dividends or accelerate de-leveraging.

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 shows a solid financial performance with a recovery in revenue growth and improved profitability margins. The balance sheet is stable with moderate leverage and a healthy equity position. Cash flow generation has improved, though there is room for better cash flow management.

Income Statement

Yara International's income statement shows a strong recovery with a TTM revenue growth rate of 3.38% after a decline in the previous year. The gross profit margin of 27.20% and net profit margin of 4.82% indicate healthy profitability, although the net margin is relatively low compared to industry standards. The EBIT and EBITDA margins have improved significantly, reflecting better operational efficiency.

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 is 9.28%, which is a positive sign of profitability, although it has decreased from previous years. The equity ratio of 49.44% suggests a solid capital structure, providing a cushion against potential financial risks.

Cash Flow

Cash flow analysis reveals a 12.24% growth in free cash flow, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 0.38 suggests that the company is efficiently converting its earnings into cash. However, the free cash flow to net income ratio of 0.39 indicates room for improvement in cash flow management.

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: Positive
• Last Price: 17.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 17.97 is below the 20-day moving average (MA) of 21.18, below the 50-day MA of 20.02, and below the 200-day MA of 18.63, indicating a bullish trend. The MACD of 0.85 indicates Negative momentum. The RSI at 75.43 is Negative, neither overbought nor oversold. The STOCH value of 98.39 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CF	70 Outperform	$14.54B	11.24	27.46%	2.56%	12.59%	31.40%
YARIY	69 Neutral	$11.70B	15.88	9.22%	1.16%	7.55%	34.28%
MOS	65 Neutral	$8.73B	7.13	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	$6.91B	18.71	6.15%	3.36%	1.77%	-8.72%
SMG	52 Neutral	$3.73B	43.42	―	4.52%	-3.93%	―
FMC	47 Neutral	$1.97B	-3.71	-11.52%	16.68%	-13.42%	-136.59%