BUNGE GLOBAL SA (BG) Stock Fundamental Analysis
NYSE:BG - New York Stock Exchange, Inc. - CH1300646267 - Common Stock - Currency: USD
BG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 91 industry peers in the Food Products industry. BG has an average financial health and profitability rating. BG has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally BG also has an excellent dividend rating. With these ratings, BG could be worth investigating further for dividend investing!.
1. Profitability
1.1 Basic Checks
BG had positive earnings in the past year.
BG had a positive operating cash flow in the past year.
Each year in the past 5 years BG has been profitable.
In multiple years BG reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of BG (4.10%) is better than 64.84% of its industry peers.
BG's Return On Equity of 10.34% is fine compared to the rest of the industry. BG outperforms 69.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.15%, BG is in the better half of the industry, outperforming 64.84% of the companies in the same industry.
BG had an Average Return On Invested Capital over the past 3 years of 10.77%. This is significantly below the industry average of 28.10%.
The 3 year average ROIC (10.77%) for BG is well above the current ROIC(6.15%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.1% | ||
| ROE | 10.34% | ||
| ROIC | 6.15% |
ROA(3y)6.65%
ROA(5y)6.66%
ROE(3y)16.17%
ROE(5y)18.73%
ROIC(3y)10.77%
ROIC(5y)10.22%
1.3 Margins
Looking at the Profit Margin, with a value of 2.13%, BG is in line with its industry, outperforming 53.85% of the companies in the same industry.
In the last couple of years the Profit Margin of BG has declined.
BG has a Operating Margin (3.03%) which is in line with its industry peers.
In the last couple of years the Operating Margin of BG has grown nicely.
The Gross Margin of BG (6.07%) is worse than 83.52% of its industry peers.
In the last couple of years the Gross Margin of BG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.03% | ||
| PM (TTM) | 2.13% | ||
| GM | 6.07% |
OM growth 3Y-7.82%
OM growth 5Y6.69%
PM growth 3Y-14.75%
PM growth 5YN/A
GM growth 3Y2.27%
GM growth 5Y3.43%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BG is still creating some value.
Compared to 1 year ago, BG has less shares outstanding
BG has less shares outstanding than it did 5 years ago.
BG has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.58 indicates that BG is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.58, BG is doing good in the industry, outperforming 75.82% of the companies in the same industry.
A Debt/Equity ratio of 0.57 indicates that BG is somewhat dependend on debt financing.
BG's Debt to Equity ratio of 0.57 is in line compared to the rest of the industry. BG outperforms 46.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.58 |
ROIC/WACC0.85
WACC7.21%
2.3 Liquidity
BG has a Current Ratio of 2.04. This indicates that BG is financially healthy and has no problem in meeting its short term obligations.
BG's Current ratio of 2.04 is fine compared to the rest of the industry. BG outperforms 69.23% of its industry peers.
A Quick Ratio of 1.12 indicates that BG should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.12, BG is in the better half of the industry, outperforming 68.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
BG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.82%.
The Earnings Per Share has been growing by 20.28% on average over the past years. This is a very strong growth
Looking at the last year, BG shows a very negative growth in Revenue. The Revenue has decreased by -10.92% in the last year.
Measured over the past years, BG shows a small growth in Revenue. The Revenue has been growing by 5.24% on average per year.
EPS 1Y (TTM)-40.82%
EPS 3Y-10.8%
EPS 5Y20.28%
EPS Q2Q%-40.46%
Revenue 1Y (TTM)-10.92%
Revenue growth 3Y-3.53%
Revenue growth 5Y5.24%
Sales Q2Q%-13.22%
3.2 Future
The Earnings Per Share is expected to decrease by -1.12% on average over the next years.
BG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.79% yearly.
EPS Next Y-12.62%
EPS Next 2Y-1.3%
EPS Next 3Y-1.12%
EPS Next 5YN/A
Revenue Next Year-2.35%
Revenue Next 2Y0.47%
Revenue Next 3Y2.79%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
BG is valuated reasonably with a Price/Earnings ratio of 9.42.
Based on the Price/Earnings ratio, BG is valued cheaper than 83.52% of the companies in the same industry.
BG is valuated cheaply when we compare the Price/Earnings ratio to 27.51, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.38, the valuation of BG can be described as reasonable.
95.60% of the companies in the same industry are more expensive than BG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BG to the average of the S&P500 Index (35.58), we can say BG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.42 | ||
| Fwd PE | 8.38 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BG indicates a rather cheap valuation: BG is cheaper than 85.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.85 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y-1.3%
EPS Next 3Y-1.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.66%, BG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.72, BG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, BG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
5.2 History
The dividend of BG has a limited annual growth rate of 3.89%.
BG has been paying a dividend for at least 10 years, so it has a reliable track record.
BG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.89%
Div Incr Years4
Div Non Decr Years23
5.3 Sustainability
BG pays out 34.19% of its income as dividend. This is a sustainable payout ratio.
DP34.19%
EPS Next 2Y-1.3%
EPS Next 3Y-1.12%
74.99
-1.75 (-2.28%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners93.93%
Inst Owner Change0%
Ins Owners1.08%
Ins Owner Change8.63%
Market Cap10.08B
Analysts78.95
Price Target91.37 (21.84%)
Short Float %4.26%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.66% |
Yearly Dividend2.71
Dividend Growth(5Y)3.89%
DP34.19%
Div Incr Years4
Div Non Decr Years23
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.96%
Min EPS beat(2)-7.78%
Max EPS beat(2)35.7%
EPS beat(4)2
Avg EPS beat(4)6.23%
Min EPS beat(4)-7.78%
Max EPS beat(4)35.7%
EPS beat(8)6
Avg EPS beat(8)15.02%
EPS beat(12)7
Avg EPS beat(12)11.53%
EPS beat(16)11
Avg EPS beat(16)25.58%
Revenue beat(2)0
Avg Revenue beat(2)-8.38%
Min Revenue beat(2)-13.41%
Max Revenue beat(2)-3.35%
Revenue beat(4)0
Avg Revenue beat(4)-7.15%
Min Revenue beat(4)-13.41%
Max Revenue beat(4)-1.9%
Revenue beat(8)0
Avg Revenue beat(8)-7.46%
Revenue beat(12)2
Avg Revenue beat(12)-6.23%
Revenue beat(16)5
Avg Revenue beat(16)-2.21%
PT rev (1m)0.72%
PT rev (3m)0.61%
EPS NQ rev (1m)-4.43%
EPS NQ rev (3m)-38.3%
EPS NY rev (1m)0.69%
EPS NY rev (3m)-0.45%
Revenue NQ rev (1m)-1.68%
Revenue NQ rev (3m)-8.23%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)-6.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.42 | ||
| Fwd PE | 8.38 | ||
| P/S | 0.2 | ||
| P/FCF | N/A | ||
| P/OCF | 16.23 | ||
| P/B | 0.95 | ||
| P/tB | 1.03 | ||
| EV/EBITDA | 4.85 |
EPS(TTM)7.96
EY10.61%
EPS(NY)8.95
Fwd EY11.94%
FCF(TTM)-6.17
FCFYN/A
OCF(TTM)4.62
OCFY6.16%
SpS381.95
BVpS78.71
TBVpS72.89
PEG (NY)N/A
PEG (5Y)0.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.1% | ||
| ROE | 10.34% | ||
| ROCE | 8.57% | ||
| ROIC | 6.15% | ||
| ROICexc | 7.96% | ||
| ROICexgc | 8.4% | ||
| OM | 3.03% | ||
| PM (TTM) | 2.13% | ||
| GM | 6.07% | ||
| FCFM | N/A |
ROA(3y)6.65%
ROA(5y)6.66%
ROE(3y)16.17%
ROE(5y)18.73%
ROIC(3y)10.77%
ROIC(5y)10.22%
ROICexc(3y)12.86%
ROICexc(5y)11.97%
ROICexgc(3y)13.65%
ROICexgc(5y)12.78%
ROCE(3y)14.6%
ROCE(5y)14.18%
ROICexcg growth 3Y-15.42%
ROICexcg growth 5Y5.22%
ROICexc growth 3Y-14.88%
ROICexc growth 5Y6.42%
OM growth 3Y-7.82%
OM growth 5Y6.69%
PM growth 3Y-14.75%
PM growth 5YN/A
GM growth 3Y2.27%
GM growth 5Y3.43%
F-Score4
Asset Turnover1.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.98 | ||
| Cap/Depr | 304.62% | ||
| Cap/Sales | 2.82% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 30.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 3.58 |
F-Score4
WACC7.21%
ROIC/WACC0.85
Cap/Depr(3y)226.28%
Cap/Depr(5y)171.37%
Cap/Sales(3y)1.77%
Cap/Sales(5y)1.37%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-40.82%
EPS 3Y-10.8%
EPS 5Y20.28%
EPS Q2Q%-40.46%
EPS Next Y-12.62%
EPS Next 2Y-1.3%
EPS Next 3Y-1.12%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.92%
Revenue growth 3Y-3.53%
Revenue growth 5Y5.24%
Sales Q2Q%-13.22%
Revenue Next Year-2.35%
Revenue Next 2Y0.47%
Revenue Next 3Y2.79%
Revenue Next 5YN/A
EBIT growth 1Y-47.03%
EBIT growth 3Y-11.07%
EBIT growth 5Y12.28%
EBIT Next Year3.93%
EBIT Next 3Y7.5%
EBIT Next 5YN/A
FCF growth 1Y67.92%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y131.65%
OCF growth 3YN/A
OCF growth 5YN/A