Affärsvärlden gives a buy recommendation for Norwegian company Yara
Published on 04/25/2025 at 09:25,
updated on 04/25/2025 at 09:26
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Norwegian fertilizer manufacturer Yara is one of the world's largest producers of nitrogen-based fertilizers. The industry is cyclical and characterized by high capital intensity. Yara has historically generated good returns compared to its competitors. After a couple of weak years, the company now appears to be heading toward a more profitable situation. This is according to Affärsvärlden in an analysis published on Friday.
In its main scenario, the magazine sees a potential of 38 percent for the share over the next couple of years.
"The risks are relatively high as the company is strongly affected by raw material prices that are difficult to predict and control. However, in the long term, we believe that Yara is well positioned in a market with brighter prospects ahead. We are setting a 'buy' rating," writes Affärsvärlden in its conclusion.
Yara International ASA is a worldwide leader in producing and selling mineral fertilizers. Net sales break down by activity as follows:
- production and sale of mineral fertilizers (78%): 22.9 million tons sold in 2024 of simple nitrogenated fertilizers (calcium nitrates, urea, etc.), complex fertilizers (nitrogen- phosphorous- and potassium- based), specialty fertilizers (plant nutrition products, potassium nitrates, etc.), and magnesium- and sulfur-based fertilizers. Net sales are distributed by geographic area between Europe (33.8%), Americas (43.8%), Africa and Asia (22.4%);
- sale of industrial chemical products (15.8%): 6.5 million tons of nitrogen based chemical products sold (including ammonia, nitric acids, ammonium nitrates) for the automotive, construction, waste treatment, shipping, chemical, mining and animal feed industries;
- production of ammonia (5.7%). The group also develops ammonia trading activity;
- other (0.5%).
At the end of 2024, the group had 26 production sites worldwide.
Net sales are distributed geographically as follows: Europe (34.9%), Brazil (21.5%), Latin America (9.1%), Asia (16.6%), North America (12%) and Africa (5.9%).
