Feeding a growing global population while addressing climate challenges and the environmental impact of traditional agriculture is a pressing issue. The future of agriculture lies in innovation, where technology meets sustainability to transform how we grow, harvest, and distribute food.

In this article, I have highlighted two Agtech companies, ICL Group Ltd (ICL) and Yara International ASA (YARIY), revolutionizing farming practices with smarter, more sustainable approaches to help feed the world.

With the population projected to reach 9.7 billion by 2050, the demand for innovative, resource-efficient farming solutions has surged. This urgency has spurred the rise of AgTech, blending advanced technologies like IoT, AI, and big data analytics with traditional farming practices to revolutionize the industry. These technologies enable real-time monitoring of crops, soil, and weather, optimizing resource use, increasing yields, and reducing environmental impact.

The global agritech market, valued at $24.42 billion in 2024, is set to almost double to $48.98 billion by 2030, growing at a CAGR of 12.3%. In tandem, smart farming innovations like vertical farming, hydroponics, and aquaponics are driving sustainable food production in urban areas with minimal environmental footprints. The global smart farming market is also experiencing rapid growth, projected to hit $117.20 billion by 2034, exhibiting a CAGR of 19.1%.

Given these favorable trends, let’s examine the fundamentals of the two featured Agriculture stocks, beginning with the second choice.

Stock #2: Yara International ASA (YARIY)

YARIY is a Norway-based producer, distributor, and seller of nitrogen-based mineral fertilizers and related industrial products. Its offerings include ammonium- and urea-based fertilizers, coatings, biostimulants, and organic-based fertilizers, as well as nitrate, calcium nitrate, micronutrient, and fertigation fertilizers.

On December 06, 2024, the company started renewable-based ammonia production in Brazil, using biomethane to deliver lower-carbon fertilizers. This innovation is expected to reduce the carbon footprint of crops like coffee by up to 40% while unlocking new markets and revenue streams for farmers. The move aligns with YARIY’s commitment to decarbonizing food and industrial value chains as it targets carbon neutrality by 2050.

On November 18, YARIY signed two agreements with Petrobras regarding a potential partnership in fertilizers and industrial products. Both agreements are based on resumed production in Araucaria Nitrogenados S.A. (ANSA), a wholly owned subsidiary of Petrobras.

Under the first agreement, ANSA will produce an Automotive Liquid Reducing Agent (ARLA 32) and use YARIY’s high-quality automotive grade urea as raw material. The second agreement aims towards achieving greater production efficiency with technical cooperation for the development of joint studies of fertilizers, industrial products, and energy products.

In terms of the trailing-12-month levered FCF margin, YARIY’s 6.15% is 18.8% higher than the 5.18% industry average. Similarly, its 7.40% trailing-12-month Return on Common Equity is 27.9% higher than the 5.79% industry average. Its 0.87x trailing-12-month asset turnover ratio is 30.6% higher than the 0.66x industry average.

For the fiscal third quarter that ended September 30, 2024, YARIY’s revenue and other income stood at $3.65 billion. Its operating income grew 147.2% from the year-ago value to $309 million. The company’s net income and earnings per share came in at $286 million and $1.12, up significantly from the prior year’s quarter, respectively. Also, its EBITDA increased 52.1% year-over-year to $604 million.

Analysts expect YARIY’s revenue to decline by 10.1% year-over-year to $14.08 billion for the fiscal year 2024, which ended December 31. However, its revenue for the fiscal first quarter (ending March 2025) is expected to grow 14.9% from the prior-year quarter to $3.80 billion.

The stock has gained 12.3% over the past month to close the last trading session at $14.76.

YARIY’s stance is apparent in its POWR Ratings. The stock has a B grade for Value and Stability. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

Among 24 stocks in the Agriculture industry, it is ranked #6. Click here to see YARIY ratings for Growth, Momentum, Sentiment, and Quality.

Stock #1: ICL Group Ltd (ICL)

Headquartered in Tel Aviv, Israel, ICL operates as a specialty minerals and chemicals company globally through four segments: Industrial Products; Potash; Phosphate Solutions; and Growing Solutions. Its products include potash and phosphate fertilizers, specialty fertilizers, functional ingredients, flame retardants, and magnesia products.

On December 13, 2024, ICL introduced VeriQuel R100, a new phosphorus-based flame retardant for rigid polyurethane insulation. It improves sustainability and fire safety, meets stricter environmental rules, and works seamlessly with current manufacturing methods.

In terms of the trailing-12-month gross profit margin, ICL’s 32.91% is 13.9% higher than the 28.90% industry average. Its 5.83% trailing-12-month net income margin is 21.4% higher than the 4.80% industry average. Also, its 3.50% trailing-12-month Return on Total Assets is 45% higher than the 2.41% industry average.

During the third quarter, which ended September 30, 2024, ICL’s sales amounted to $1.75 billion, while its adjusted operating income stood at $243 million, up 7% year-over-year. The company’s adjusted net income attributable to shareholders and adjusted earnings per share came in at $113 million and $0.11, respectively. Also, its adjusted EBITDA rose 10.7% year-over-year to $383 million.

Street expects ICL’s EPS for the current quarter ending March 31, 2025, to increase 11.9% year-over-year to $0.10. For fiscal year 2025, its EPS is expected to grow 12.3% from the prior year, settling at $0.42. Additionally, it topped the EPS estimates in each of the trailing four quarters, which is promising.

ICL’s shares have gained 41.1% over the past three months and 16.8% year-to-date to close the last trading session at $5.77.

ICL’s strong fundamentals are reflected in its POWR Ratings. It has an overall rating of A, which equates to Strong Buy in our proprietary rating system.

It has an A grade for Sentiment and a B for Value, Stability, and Quality. Within the same industry, it is ranked first. Click here to see ICL’s ratings for Growth and Momentum.

What To Do Next?

Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:

3 Stocks to DOUBLE This Year >

ICL shares were unchanged in premarket trading Tuesday. Year-to-date, ICL has gained 16.80%, versus a 2.27% rise in the benchmark S&P 500 index during the same period.

About the Author: Shweta Kumari

Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions. More...

More Resources for the Stocks in this Article