FOREIGN VALUE: Potash of Saskatchewan
Market cap: $34.3 billion
P/E ratio: 11
Earnings growth: 26%
Dividend yield: 0.4%
This Canadian company produces about a quarter of the world's potash, making it a leader in the fertilizer sector, which should benefit from an eventual return to high grain prices and a global uptick in demand for food.
The recession hit farmers hard, and many avoided buying fertilizer. While this depressed earnings in the near term, farmers will eventually have to buy again or risk damaging their fields, a situation that could create a significant earnings pop for Potash in the future. According to a recent analyst note from Jeffrey Zekauskas at J.P. Morgan, the company's earnings could jump by 54% in 2010
--K.B.
NEXT: FOREIGN VALUE: Teva
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Unilever
Last updated June 11 2009: 10:27 AM ET
Criteria include low price/earnings and price/book ratios relative to competitors, rising profit margins, and accelerating earnings growth. All data related to stock price as of June 1, 2009. P/E ratios based on the previous 12 months' reported earnings. Earnings growth based on Wall Street estimates for the next three to five years.
