Nutrien stands out as the world’s largest fertilizer producer by capacity, commanding a roughly 20% global market share in potash. This dominant market position, combined with its massive retail network across North America and Australia, creates a highly integrated and resilient business model that captures value at multiple stages of the agricultural supply chain.
Furthermore, the firm has proven its ability to generate substantial cash flow and maintain profitability even amidst fluctuating commodity prices. With strong underlying global demand for crop nutrients driven by population growth and food security needs, the stock is well-positioned to deliver robust earnings while actively rewarding investors through consistent dividends and share buybacks.
The stock trades at just 13.9 times the company’s forward earnings forecast. That’s very reasonable for an industry leader with a globally entrenched position in potash. While cyclical fertilizer markets typically command lower valuation multiples compared to broader market indices, the company’s strong retail segment provides a protective buffer that stabilizes cash flows during cyclical wholesale downturns.
NUTRIEN LTD. (Toronto symbol NTR; www.nutrien.com) is the world’s largest producer of agricultural fertilizers, including potash, nitrogen and phosphate. It also sells seeds, fertilizers and agricultural products to farmers through some 2,000 stores spread across the Western Hemisphere and Australia.
The Iran war has disrupted the supply of chemicals used to make nitrogen and phosphate fertilizers. That has increased the price and volatility of those products. Demand for potash also remains strong.
Meanwhile, the company stands to gain from the U.S. Department of Agriculture’s plan to invest $500 million U.S. to increase fertilizer production in that country. It seems that this plan is aimed at building or expanding nitrogen fertilizer (made from natural gas) facilities and lowering U.S. imports of potash from Canada. The company operates five nitrogen plants in the U.S., so it could qualify for some of this cash.
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Nutrien’s stock still cheap despite share price gains
Nutrien reported mixed results for the latest quarter.
In the quarter ended June 30, 2026, Nutrien’s revenue rose 3.6%, to $10.81 billion from $10.44 billion a year earlier (all amounts except share price in U.S. dollars). That topped the consensus forecast of $10.67 billion.
Higher prices for potash and nitrogen fertilizers due to the disruptions caused by the Iran war offset lower volumes. The company’s retail business, which sells seeds and other supplies to farmers, also benefited from the higher prices.
However, higher costs for fuel helped cut earnings before unusual items by 1.5%, to $2.61 a share (or a total of $1.25 billion) from $2.65 a share (or $1.29 billion). That also missed the consensus estimate of $2.71.
The company is now conducting a strategic review of its phosphate operations. That business accounted for 4% of its total revenue in the latest quarter. Nutrien may also sell its Trinidad nitrogen facility, which it shut down in 2025, and its retail operations in Brazil.
The company also expects its potash sales will range from 14.2 million and 14.8 million tonnes for all of 2026, up from its earlier range of 14.1 million to 14.2 million tonnes.
The stock, which has gained 26% since the start of 2026, trades at just 13.9 times this year’s projected earnings of $5.56 U.S. a share. The $2.20 dividend yields a solid 3.0%.
Recommendation in The Successful Investor: Nutrien Ltd. is a buy for the Resources portion of your portfolio.
