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 (or YTD).
The company, which sells only potash fertilizers, has been burdened by its outstanding debt obligations. Its debt burden has led it to renegotiate terms with its lenders, putting it in high-risk territory.
PotashCorp (POT), the largest producer of potash fertilizer, also fell as much as 5.9% YTD. The Mosaic Company (MOS) and Agrium (AGU), which also produce potash fertilizers, are also in the negative territory so far this year. Mosaic has fallen 1.9%, and Agrium has fallen 5.7% YTD.
Together, these three companies hold marketing and distribution consortium Canpotex. Canpotex markets and distributes potash fertilizer from these three customers.
While fertilizer stocks remain under pressure this year, the broader S&P 500 Index (SPY) has risen 4.9% YTD, and the VanEck Vectors Agribusiness ETF (MOO), which invests in agribusiness-related stocks and has ~31% of its portfolio invested in agricultural chemicals, has risen 4.4% YTD.
The agricultural fertilizer business is undergoing a slower-than-expected recovery. If you follow our weekly series, you’re likely aware that fertilizer prices have been under continued pressure, as a result of which fertilizer companies have suffered. For our most recent update, read Fertilizer Stocks Were Broadly Negative: Week Ending March 17.
In this series, we’ll discuss how Intrepid’s fundamentals have performed recently and what lies ahead for the company.