Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fertilizer giant Potash Corp. of Saskatchewan
With that in mind, let's take a closer look at PotashCorp's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Saskatoon, Canada (1953)|
|Market Cap||$46.4 billion|
|Industry||Fertilizers and agricultural chemicals|
|Trailing-12-Month Revenue||$6.05 billion|
CEO William Doyle (since 1998)
CFO Wayne Brownlee (since 1999)
|Return on Equity (Average, Past 3 Years)||36.8%|
|Cash/Debt||$411.9 million / $5.58 billion|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Late last year, EpiphanyStock touched on the long-term tailwinds working in PotashCorp's favor: "Agriculture commodities will be the great secular trend of the next decade. ... Rising ag prices, higher protein demands in the developing world and the need to replenish overworked soil all will serve to propel [PotashCorp] earnings higher in the coming years."
PotashCorp even boasts an impressive three-year average operating margin of 35.6%. That's higher than that of fertilizer foes Agrium (11%), CF Industries (28.8%), and Mosaic (23.2%).
CAPS member IAMFOOLISHHWY65 elaborates on the bull case:
Global weather patterns causing crop failures; raising taste and nutrition expectations of emerging economic countries; reduced yields on over utilized farm lands; inflationary prices in the economies in many countries; limited current supply of potash are reasons why this stock should over perform in the next 2 to 4 years.
Consistency of high global crop yields; reduced crop pricing; alternative, economic food sources; large incremental increases in potash or a lower cost alternative to potash could reduce the stocks in this sector to also-ran stocks.
The first set of reasons seems to be causing an intermediate term perfect storm for increasing the price of stocks in this sector.
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