AGU CN/ AGU

Agrium Inc.

Industrial/Transportation


Presented:10/29/2014
Price:CA$108.10
Cap:$12.50B
Current Price:CA$144.58
Cap:$15.97B

Presented

Date10/29/2014
PriceCA$108.10
Market Cap$12.50B
Ent Value$15.49B
P/E Ratio20.28x
Book ValueCA$48.05
Div Yield3%
Shares O/S144.00M
Ave Daily Vol540,000
Short IntN/A

Current

PriceCA$144.58
Market Cap$15.97B
Agrium Inc. produces, retails, and distributes the crop nutrients, crop protection products, seeds, and agronomics primarily in North America, South America, Europe, and Australia. The company operates through two segments, Retail and Wholesale. The Retail segment supplies crop protection products, such as herbicide, fungicide, insecticide, and adjuvant products; crop nutrients, including dry and liquid nitrogen, phosphate, potash, sulfur, and micronutrients; seeds; and merchandise comprising fencing, feed supplements, livestock-related animal health products, irrigation equipment, and other products. It also provides product application, soil and leaf testing, crop scouting, seed treatment, cattle, livestock and wool marketing, insurance, and real estate, as well as offers plant nutrient and precision agriculture software packages. The Wholesale segment produces, markets, and distributes a range of nutrients, including nitrogen-based, potash, and phosphate-based crop nutrient products to agricultural and industrial customers. The company also offers crop-inputs technology and precision agriculture services under the Echelon brand name; and supplies specialty fertilizers. The company was formerly known as Cominco Fertilizers Ltd. and changed its name to Agrium Inc. in 1995. Agrium Inc. was founded in 1931 and is headquartered in Calgary, Canada.

Presented by: Jeff Ubben, Founder, CEO & CIO, ValueAct Capital at The Excellence in Investing: San Francisco conference 

Publicly traded companies mentioned herein: Agrium Inc (AGU), CF Industries Holdings (CF), The Mosaic Company (MOS)

Highlights

Mr. Ubben began by saying it has become increasingly difficult to find value in the market today, as there aren’t many high quality businesses trading at low prices. Generally speaking, he said investors have to look at lower quality companies to find any semblance of value. However, he outlined a case for a “12-24 month trade” in shares of Agrium (AGU) that could yield respectable upside if his assessment of the setup is accurate.

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