Can Exelon Stock Keep the Lights on in 2017?
Right now, Exelon (EXC), the largest hybrid utility in the US, seems to be relatively better placed among peers.
In 2016, Southern Company (SO) and Duke Energy (DUK) gave away 86% and 91%, respectively, of their profits as dividends.
In 2016, Duke Energy (DUK) paid dividends of $3.36 per share, while Southern Company (SO) paid dividends of $2.22 per share.
Utility giants SO and DUK have healthy dividend profiles and premium yields. But to know which one is superior, we have to compare dividend profiles.
Intrepid Potash (IPI) has a volatile history. The stock closed at $1.65 on March 23, 2017, a 20.7% fall YTD (year-to-date).
Investors’ returns have taken a hit and so has the confidence in the uptick of the fertilizer industry. Let’s discuss these returns in more detail.
Due to falling industry fundamentals, Intrepid Potash’s ability to generate enough cash flow has affected its ability to service its debts.
In 2016, Intrepid Potash’s gross margin per metric ton for its potash products was -$74 (or $81 per short ton), resulting in a gross margin rate of -42%.
In this article, we’ll compare the company’s potash cost of goods per ton to its average selling price per ton and those of other players in the market.
Companies invest in expansion projects during profitable years, but those facilities have longer lead times. When the supply side outweighs the demand side, prices take a hit.
Potash and Trio’s margins being below zero for a sustained period may prove dangerous for Intrepid Potash. The company’s having higher costs than its selling prices is simply not sustainable.
Potash’s market (SOIL) includes big fish such as PotashCorp (POT), The Mosaic Company (MOS), and Agrium (AGU), along with international players.
Sales for commodity companies such as Intrepid Potash, PotashCorp (POT), Agrium (AGU), and CF Industries (CF) are a function of shipments and realized prices.
In recent quarters, Intrepid Potash’s sales have suffered significantly. The company’s sales come from two products: potash and langbeinite, also known as Trio.
Intrepid Potash (IPI) stock has remained weak in terms of performance so far this year. On March 22, 2017, Intrepid Potash was trading at a fall of 22% year-to-date.
As of March 21, 2017, Sprint’s (S) forward EV-to-EBITDA metric was ~5.8x, which was lower than T-Mobile’s (TMUS) at ~6.6x.
As of March 21, 2017, Sprint’s forward EV-to-EBITDA metric was ~5.8x, which was lower than T-Mobile’s at ~6.6x.
Freeport’s 2017 guidance could be in disarray because of Grasberg issues. Freeport’s debt reduction plan would be impacted due to the Grasberg impasse.
Currently, Freeport is barred from exporting copper concentrates from Indonesia. The company’s export permit expired earlier this year.
Currently, total copper inventories in LME-registered warehouses stand at ~330,000 metric tons—similar to levels at the beginning of the year.