One-glance verdict
Undervalued
$39.23 our estimate vs market $24.32
Wall Street consensus: $21.50 (-45.2% lower than our fair-value estimate)
38% below our estimate, below the bear case
Fundamentals snapshot
Yara International ASA
YARIY · OID · Basic Materials · Agricultural Inputs
Current price
$24.32
52-week range
$17.48 - $31.28
Market cap
$12.39B
Balance sheet
Watch
6.38x Adequate
Net debt $3.07B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 12.7% last year.
- Reward Returns 17.9% on equity, ahead of 66% of its peers.
- Risk Forward P/E (8.8x) is higher than trailing (8.1x) - earnings are expected to drop.
- Risk Operating margin compressed from 15.5% to 13.5% over 3 years.
What this company does
Yara International ASA
Yara International is one of the world's largest fertilizer companies, making products that help farmers grow more food for a growing global population. The company makes most of its money selling these crop nutrition products worldwide, which makes it a critical part of the global food supply chain (the entire system of getting food from the farm to your table). Yara also sells digital tools that help farmers use fertilizer more efficiently and make better decisions about their crops.
How the company got here
Yara's story began in Norway in 1905 as Norsk Hydro, a company that used the country's large hydropower resources to create the world's first mineral nitrogen fertilizers. This was a big deal because it helped farmers grow more food to feed a growing European population. For many years, the fertilizer business was part of Norsk Hydro, which grew into a large company with interests in oil and metals. In 2004, the agricultural division was spun off and became Yara International, a separate company listed on the Oslo Stock Exchange. Since then, Yara has grown to become a global leader in crop nutrition, operating in over 60 countries.
What it actually does
Yara's main business is making and selling products that help farmers grow better crops, known as crop nutrition. Think of it as creating advanced food for plants, providing the essential nutrients they need to thrive. Their products range from basic fertilizers containing nitrogen, phosphorus, and potassium to more specialized formulas that address specific soil or crop needs. Beyond fertilizers, Yara also produces nitrogen-based chemicals for industrial uses and is working on producing ammonia with lower emissions. They also offer digital tools to help farmers apply these products more precisely, improving crop yields while being more environmentally friendly.
Crop Nutrition
This is Yara's core business and where it makes most of its money. This segment provides a wide variety of fertilizers and other products that deliver essential nutrients to crops. Farmers and agricultural businesses buy these products to increase the amount and quality of the food they grow. Yara offers a complete range of products under brand names like YaraMila (containing a mix of key nutrients) and YaraBela (nitrogen-based), ensuring they have a solution for almost any type of crop or soil.
Industrial Solutions
This part of the company sells nitrogen-based products to customers outside of farming. These chemicals are used in a wide range of industries for things like reducing emissions from vehicles and power plants, in mining, and for civil explosives. For example, one of their products helps to reduce harmful nitrogen oxide (a type of air pollution) from diesel engines. This is a significant business for Yara, providing another source of revenue (money the company earns) beyond agriculture.
Yara Clean Ammonia
This is a newer and forward-looking part of Yara's business, focused on producing ammonia with much lower environmental impact. Ammonia is a key ingredient in fertilizer but is also being explored as a clean fuel for ships and a way to transport hydrogen for energy. By investing in 'clean ammonia,' Yara is positioning itself to be a key player in the future hydrogen economy. This segment represents a small but potentially fast-growing slice of the company's future.
What management is betting on now
Yara's leadership is focused on strengthening its core fertilizer business while also investing in a more sustainable future. A major priority is to 'decarbonize' their production, meaning they are working to reduce the greenhouse gas emissions created when making their products. They are also heavily promoting 'regenerative agriculture,' which involves farming practices that improve soil health and reduce environmental impact. By developing digital tools for more precise fertilizer application and investing in clean ammonia, management is betting that being a leader in sustainability will also lead to long-term profitable growth.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $39.23 vs current price $24.32
Wall Street consensus is the average analyst price target: $21.50 (-45.2% lower than our fair-value estimate).
Our most-likely fair value is $39.23 a share — about 61.3% above today's price of $24.32, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $3.1B. Interest coverage 6.4x.
Net debt
$3.07B
Interest coverage
6.38x
Yara International ASA's profit covers its interest bill about 6.4 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
YARIY
BASELINE
Yara International ASA
Total debt $3.77B Interest coverage 6.38x This is the baseline the peer rows are being compared against.
Total debt $3.61B Interest coverage 16.38x +157% vs YARIY Carries about 2.6x more debt cushion than YARIY.
Total debt $12.73B Interest coverage 5.31x -17% vs YARIY Carries about 1.2x less debt cushion than YARIY.
Total debt $6.08B Interest coverage 4.47x -30% vs YARIY Carries about 1.4x less debt cushion than YARIY.
Total debt $4.87B Interest coverage 14.55x +128% vs YARIY Carries about 2.3x more debt cushion than YARIY.
Total debt $4.40B Interest coverage 1.39x -78% vs YARIY Carries about 4.6x less debt cushion than YARIY.
What you should know
The case for and against YARIY
3 Rewards
3 Risks
Rewards
-
Revenue grew 12.7% last year.
-
Returns 17.9% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Forward P/E (8.8x) is higher than trailing (8.1x) - earnings are expected to drop.
-
Operating margin compressed from 15.5% to 13.5% over 3 years.
-
Net debt grew 1.4% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
8.08x
Forward P/E
8.84x
P/B
1.42x
P/S
0.75x
EV/EBITDA
5.19x
PEG ratio
2.53x
Profitability
How much profit each dollar creates
Gross margin
30.0%
Operating margin
13.5%
Net margin
9.3%
ROE
17.9%
ROA
7.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.42x
Current ratio
1.78x
Quick ratio
0.64x
Total debt
$3.77B
Total cash
$705.00M
Growth
How the business has been compounding
Revenue TTM
$16.54B
Revenue 5Y CAGR
-13.2%
EPS TTM
3.01
EPS 5Y CAGR
-21.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.89B
Free CF TTM
$956.00M
FCF margin
5.8%
Dividend
Shareholder payout
Yield
4.7%
Payout ratio
39.4%
Last ex-div date
2026-05-15