PotashCorp's Wide Moat Intact
The company will benefit as its expanded potash capacity is eventually filled.
We're holding steady on our U.S. dollar-denominated fair value estimate of $41 per share for Potash Corporation of Saskatchewan (POT) following the release of first-quarter results. Our Canadian dollar-denominated fair value estimate falls to CAD 50 per share from CAD 52 on movement in the Canadian/U.S. dollar exchange rate. Our wide economic moat rating based on cost advantage remains intact. We think the shares look undervalued.
Potash volume advanced marginally in the first quarter, up 1.6% from the first quarter of 2014. This was an encouraging result, given weakness in PotashCorp's important North American market caused by a late start to the spring planting season and above-normal offshore imports to the continent.
Jeffrey Stafford does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.