Strong performance from Nufarm
15/12/15 closing share price: $7.55
52 week high: $8.865
Most recent dividend: 6c
Annual dividend yield: 1.32%
The recent results for 2014-15 underline how strongly Nufarm has performed despite headwinds on a variety of fronts.
Management (led by a "new broom") have been incredibly proactive in responding to the environment, lifting the company's financial performance by innovating their offering, focusing on higher-margin product and stripping out costs while continuing to seek out further efficiencies.
This is streamlining the business and increasing its leverage to strong long-term demand in the crop protection market, with the agricultural sector hungry for products that can lift yields.
While the company is not having it all its own way, we believe the overall investment thesis remains intact.
That is, with the world's land in fixed supply and agricultural yields in focus, Nufarm's value proposition is compelling.
Disclosure: Nufarm is held in the Fat Prophets Concentrated Australian and Small & Mid-Cap Model Portfolios.