The valuation multiples, particularly the PEG of 0.37, imply a significant earnings rebound is anticipated. However, comparing to peers like CF Industries (PEG 0.33), Nutrien's discount is modest, suggesting the market is assigning a similar recovery multiple. The EV/EBITDA of 7.39 is below its own 10-quarter median, but this metric can be distorted during cyclical troughs when EBITDA is compressed, making the valuation appear artificially cheap relative to normalized earnings power.

The gross margin of 30.1% in Q2 2026 is near the high end of the recent range, indicating strong pricing or cost control during peak demand. However, the net margin of 11.2% demonstrates that a significant portion of gross profit is consumed by fixed operating costs, as evidenced by the relatively stable SG&A noted in prior analysis. This volatility means a single quarter's profitability is not indicative of the company's full-year earning power, which appears to be moderately resilient on a cycle-adjusted basis.

The ROIC trend is highly volatile, swinging from near-zero to mid-single digits within quarters, which is characteristic of a capital-intensive, commodity-driven business. The current ROIC of 3.9% is likely still below Nutrien's cost of capital, suggesting that on a quarterly basis, the company may not be generating economic profit. The drivers are clearly cyclical margin expansion rather than sustained improvements in asset turnover, which remains low at 0.20, reinforcing the capital-intensive nature of the operations.

The CCC data is inconsistent, with some periods missing, but when available it shows a wide range from 31 to over 100 days, indicating profound variability in working capital efficiency. The consistently high DIO reflects the need to carry inventory through seasonal cycles. The lack of a stable DPO figure (with many periods blank) suggests either data unavailability or highly variable payment terms with suppliers, making it difficult to assess true supplier leverage. This working capital volatility is a primary driver of the erratic free cash flow profile noted previously.

The gap between the current and quick ratios has persisted at around 0.53 over the last two quarters, quantifying the inventory-heavy nature of Nutrien's working capital. This structure creates seasonal vulnerability; in periods of weak sales or falling commodity prices, converting inventory to cash could become challenging. The cash balance of $921M provides a buffer, but the liquidity position is not fortress-like and would likely deteriorate under a severe, sustained downturn in the agricultural cycle.