Potash Corporation of Saskatchewan Inc. (NYSE:POT) trade is getting exciting but lets take a deeper look whether it is as good a moment. Now trading with a market value of 14.72B, the company has a mix of catalysts and obstacles that spring from the nature of its operations. In light of the many issues surrounding this company, we thought it was a good time to take a close look at the numbers in order to form a realistic perspective on the fundamental picture for this stock.
Potash Corporation of Saskatchewan Inc. (NYSE:POT) Fundamentals That Matter
It’s generally a good idea to start with the most fundamental piece of the picture: the balance sheet. The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For POT, the company currently has 125.97 million of cash on the books, which is offset by 1.07 billion in current liabilities. The trend over time is important to note. In this case, the company’s debt has been falling. The company also has 22.49 billion in total assets, balanced by 11.46 billion in total liabilities, which should give you a sense of the viability of the company under any number of imagined business contexts.
Potash Corporation of Saskatchewan Inc. (POT) saw 267.75 million in free cash flow last quarter, representing a quarterly net change in cash of 47.01 million. Perhaps most importantly where cash movements are concerned, the company saw about 439.91 million in net operating cash flow.
Potash Corporation of Saskatchewan Inc. (NYSE:POT) Revenue Growth Potential
As far as key trends that demonstrate something of the future investment potential of this stock, we need to take a closer look at the top line, first and foremost. Last quarter, the company saw 1.51 billion in total revenues. That represents a quarterly year/year change in revenues of 0.11 in sequential terms, the POT saw sales decline by 0.03.
But what about the bottom line? After all, that’s what really matters in the end. Potash Corporation of Saskatchewan Inc. (POT) is intriguing when broken down to its core data. The cost of selling goods last quarter was 1.16 billion, yielding a gross basic income of 342.88 million. For shareholders, given the total diluted outstanding shares of 840.12 million, this means overall earnings per share of 0.32. Note, this compares with a consensus analyst forecast of 0.12 in earnings per share for its next fiscal quarterly report.
Is Potash Corporation of Saskatchewan Inc. (NYSE:POT) Valuation Attractive
Looking ahead at valuations, according to the consensus, the next fiscal year is forecast to bring about 0.63 in total earnings per share. If we consider a median price to earnings ratio on the stock, that corresponds with a stock price of 26.19. However, one should always remember: the trends are more important than the forecasts. This continues to be an interesting story, and we look forward to updating it again soon on Potash Corporation of Saskatchewan Inc..