Potash Corp. ($POT) Possible Buy to $38 Confident Investor Rating: Good

 

Company name Potash Corp./Saskatchewan (USA)
Stock ticker POT
Live stock price [stckqut]POT[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Fair
P/E growth Good
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $35.96
Target stock price (averages with growth) $40.41
Target stock price (averages with no growth) $35.58
Target stock price (manual assumptions) $43.33

The following company description is from Google Finance: http://www.google.com/finance?q=pot

Potash Corporation of Saskatchewan Inc. (PCS) is an integrated fertilizer and related industrial and feed products company. The Company operates in three segments: potash, phosphate and nitrogen. The Company owns and operates five potash mines in Saskatchewan and one in New Brunswick. Its phosphate operations include the manufacture and sale of solid and liquid phosphate fertilizers, phosphate feed and industrial acid, which is used in food products and industrial processes. The Company also has a phosphate mine and two mineral processing plant complexes in northern Florida and five phosphates feed plants in the United States. It produces phosphoric acid at its Geismar, Louisiana facility. The nitrogen operations involve the production of nitrogen fertilizers and nitrogen feed and industrial products, including ammonia, urea, nitrogen solutions, ammonium nitrate and nitric acid. It has nitrogen facilities in Georgia, Louisiana, Ohio and Trinidad.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Potash Corp./Saskatchewan (USA).

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Potash Corp./Saskatchewan (USA) calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
[s2If current_user_can(s2member_level1)]
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

Stock price at the time of the calculation: $36.9

Growth: 0.12

Current EPS (TTM): $1.8

P/E: 22

Future EPS Calc: $3.17

Future Stock Price Calc: $69.78

Target stock price: $43.33

I hope that this makes you a better investor. [/s2If]

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