Fundamental Analysis & Analyst Recommendations - QMS Global Agricultural Chemicals Flexindex
Recent changes in global ownership and coordination among potash suppliers have raised concerns they might begin prioritizing volume over price. Potash supply has historically been more consolidated and disciplined compared with other fertilizers. This has supported a valuation premium for producers, with consensus forward P/E multiples 2.3x above the all-fertilizer average since 2009, on average. This premium has narrowed with recent potash-stock declines.
Potash producer Uralkali's gross profit per ton consistently tops global peers, affording it the ability to announce it will expand capacity while prices fall. Uralkali's gross profit per metric ton has ranked No. 1 or No. 2 among competitors every year since 2007, while selling potash at global prices. Ukrali says its analysis shows its costs at port are one-third less vs. North America and less than half European levels.
Uralkali's recent
