The Russia-Ukraine war has had a destabilizing effect on several key industries. Ukraine is known as the breadbasket of Europe due to its significant global market share by volume in wheat, barley, and sunflower oil. This conflict poses a serious threat to global food security. Fortunately, Canada is well-positioned to step in with the help of stocks like Nutrien (TSX:NTR)(NYSE:NTR).
Nutrien is a Saskatoon-based company that provides crop inputs and services. Shares of Nutrien have climbed 21% in 2022 as of close on November 29. The stock is down 3.6% over the past month.
This company unveiled its third quarter fiscal 2022 earnings on November 2. Nutrien achieved sales growth of 36% in Q3 2022 to $8.18 billion. Meanwhile, net earnings surged 118% to $1.58 billion and adjusted net earnings per share surged 82% to $2.51. Free cash flow increased 79% to $1.54 billion. The company achieved sales growth of 48% to $30.3 billion in the first nine months of fiscal 2022. Moreover, adjusted EBITDA soared 116% to $10.0 billion. Adjusted net earnings per share surged 196% to $11.10.
Shares of Nutrien currently possess a very attractive price-to-earnings ratio of 5.8. The stock last paid out a quarterly dividend of $0.48 per share. That represents a 2.3% yield. I’m looking to snatch up this undervalued fertilizer giant as we move into the final month of 2022.