Please ensure Javascript is enabled for purposes of website accessibility

Why Agrium Is Poised to Bounce Back

By Brian D. Pacampara, CFA - Apr 25, 2013 at 9:43AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Market-trouncing returns could be written in this 5-Star.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fertilizer producer Agrium (NYSE: AGU) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Agrium, and see what CAPS investors are saying about the stock right now.

Agrium facts

Headquarters (founded)

Calgary, Canada (1931)

Market Cap

$13.8 billion

Industry

Fertilizers and agricultural chemicals

Trailing-12-Month Revenue

$16.7 billion

Management

CEO Michael Wilson (since 2003)

CFO Stephen Dyer (since 2011)

Return on Equity (average, past 3 years)

21.1%

Cash/Debt

$726.0 million / $4.0 billion

Dividend Yield

2.2%

Competitors

CF Industries

PotashCorp

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 1,767 members who have rated Agrium believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, Googlespooch, succinctly summed up the Agrium bull case for our community:

Agrium has been able to do well as a diversified agriculture company. They have a strong presence in the nitrogen business (very profitable). They also have been able to keep up good margins in their seed business. They have also been able to grow alternative forms of income rapidly over the last few years albeit at the loss of some gross margin with regards to that division of their revenues. Besides all of that, Agrium is in a business that is essential to life as we know it: providing the inputs to produce food for millions of Americans. If all of that was not enough, they have a good dividend ratio and a tendency to grow that dividend consistently.

Editor's note: In a previous version of this article we incorrectly stated that the CEO is Michael Dyson, when in fact it is Michael Wilson. The Motley Fool regrets the error.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
332%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.