National Fertilizer Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are covered by earnings (1.6x coverage).
• National Fertilizers's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• National Fertilizers's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

health

Pros

• National Fertilizers is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• National Fertilizers is profitable, therefore cash runway is not a concern.
• National Fertilizers is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 1.3x debt.
• National Fertilizers's cash and other short term assets cover its long term commitments.

Cons

• Operating cash flow is negative therefore debt is not well covered.
• The level of debt compared to net worth has increased over the past 5 years (264.5% vs 308.9% today).
• Interest payments on debt are not well covered by earnings (EBIT is 1.5x annual interest expense, ideally 3x coverage).
• National Fertilizers's level of debt (308.9%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• Virendra's remuneration is lower than average for companies of similar size in India.

Cons

• The average tenure for the National Fertilizers board of directors is less than 3 years, this suggests a new board.
• The average tenure for the National Fertilizers management team is less than 2 years, this suggests a new team.

misc

Pros

Cons

• National Fertilizers is not covered by any analysts.
• National Fertilizers has significant price volatility in the past 3 months.

past

Pros

• National Fertilizers has delivered over 20% year on year earnings growth in the past 5 years.
• National Fertilizers has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

• National Fertilizers's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• National Fertilizers used its assets less efficiently than the IN Chemicals industry average last year based on Return on Assets.
• National Fertilizers has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• National Fertilizers's 1-year earnings growth is negative, it can't be compared to the IN Chemicals industry average.

value

Pros

• National Fertilizers is good value based on assets compared to the IN Chemicals industry average.
• National Fertilizers is good value based on earnings compared to the IN Chemicals industry average.
• National Fertilizers is good value based on earnings compared to the India market.
• BSE:523630 is up 12.9% outperforming the Chemicals industry which returned 6.9% over the past month.
• BSE:523630 is up 12.9% outperforming the market in India which returned 8% over the past month.

Cons

• National Fertilizers's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• National Fertilizers's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• 523630 underperformed the Chemicals industry which returned 2.2% over the past year.
• 523630 underperformed the Market in India which returned -14.5% over the past year.