MOSAIC CO/THE (MOS) Stock Fundamental Analysis
NYSE:MOS - New York Stock Exchange, Inc. - US61945C1036 - Common Stock - Currency: USD
MOS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. While MOS is still in line with the averages on profitability rating, there are concerns on its financial health. MOS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
MOS had positive earnings in the past year.
MOS had a positive operating cash flow in the past year.
Each year in the past 5 years MOS has been profitable.
MOS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.76%, MOS is in line with its industry, outperforming 45.88% of the companies in the same industry.
MOS has a Return On Equity of 1.52%. This is comparable to the rest of the industry: MOS outperforms 44.71% of its industry peers.
With a Return On Invested Capital value of 2.02%, MOS is not doing good in the industry: 68.24% of the companies in the same industry are doing better.
MOS had an Average Return On Invested Capital over the past 3 years of 8.76%. This is in line with the industry average of 7.10%.
The 3 year average ROIC (8.76%) for MOS is well above the current ROIC(2.02%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.76% | ||
| ROE | 1.52% | ||
| ROIC | 2.02% |
ROA(3y)7.05%
ROA(5y)6.38%
ROE(3y)13.57%
ROE(5y)12.61%
ROIC(3y)8.76%
ROIC(5y)7.81%
1.3 Margins
MOS has a Profit Margin (1.57%) which is comparable to the rest of the industry.
MOS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.59%, MOS is doing worse than 61.18% of the companies in the same industry.
MOS's Operating Margin has improved in the last couple of years.
The Gross Margin of MOS (13.59%) is worse than 74.12% of its industry peers.
In the last couple of years the Gross Margin of MOS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.59% | ||
| PM (TTM) | 1.57% | ||
| GM | 13.59% |
OM growth 3Y-33.55%
OM growth 5Y2.83%
PM growth 3Y-50.79%
PM growth 5YN/A
GM growth 3Y-19.33%
GM growth 5Y6.18%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MOS is creating some value.
The number of shares outstanding for MOS has been reduced compared to 1 year ago.
Compared to 5 years ago, MOS has less shares outstanding
Compared to 1 year ago, MOS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.95 indicates that MOS is not a great score, but indicates only limited risk for bankruptcy at the moment.
MOS has a Altman-Z score of 1.95. This is comparable to the rest of the industry: MOS outperforms 55.29% of its industry peers.
The Debt to FCF ratio of MOS is 89.13, which is on the high side as it means it would take MOS, 89.13 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 89.13, MOS is doing worse than 60.00% of the companies in the same industry.
A Debt/Equity ratio of 0.36 indicates that MOS is not too dependend on debt financing.
MOS's Debt to Equity ratio of 0.36 is fine compared to the rest of the industry. MOS outperforms 69.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 89.13 | ||
| Altman-Z | 1.95 |
ROIC/WACC0.26
WACC7.7%
2.3 Liquidity
A Current Ratio of 1.08 indicates that MOS should not have too much problems paying its short term obligations.
MOS's Current ratio of 1.08 is on the low side compared to the rest of the industry. MOS is outperformed by 84.71% of its industry peers.
MOS has a Quick Ratio of 1.08. This is a bad value and indicates that MOS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.47, MOS is doing worse than 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
MOS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.54%.
Measured over the past years, MOS shows a very strong growth in Earnings Per Share. The EPS has been growing by 47.88% on average per year.
Looking at the last year, MOS shows a very negative growth in Revenue. The Revenue has decreased by -18.79% in the last year.
MOS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.55% yearly.
EPS 1Y (TTM)-44.54%
EPS 3Y-26.76%
EPS 5Y47.88%
EPS Q2Q%-36.62%
Revenue 1Y (TTM)-18.79%
Revenue growth 3Y-3.45%
Revenue growth 5Y4.55%
Sales Q2Q%-10.59%
3.2 Future
MOS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.24% yearly.
The Revenue is expected to grow by 2.66% on average over the next years.
EPS Next Y24.77%
EPS Next 2Y13.31%
EPS Next 3Y7.77%
EPS Next 5Y13.24%
Revenue Next Year8.96%
Revenue Next 2Y4.51%
Revenue Next 3Y2.98%
Revenue Next 5Y2.66%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.35, MOS is valued correctly.
MOS's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.88. MOS is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 12.31, the valuation of MOS can be described as correct.
MOS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MOS is cheaper than 69.41% of the companies in the same industry.
MOS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.35 | ||
| Fwd PE | 12.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MOS is valued a bit cheaper than 67.06% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MOS indicates a slightly more expensive valuation: MOS is more expensive than 60.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 203.46 | ||
| EV/EBITDA | 7.71 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.62
PEG (5Y)0.32
EPS Next 2Y13.31%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
MOS has a Yearly Dividend Yield of 3.04%.
Compared to an average industry Dividend Yield of 3.80, MOS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, MOS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
5.2 History
On average, the dividend of MOS grows each year by 36.86%, which is quite nice.
MOS has paid a dividend for at least 10 years, which is a reliable track record.
MOS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)36.86%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
154.77% of the earnings are spent on dividend by MOS. This is not a sustainable payout ratio.
The dividend of MOS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP154.77%
EPS Next 2Y13.31%
EPS Next 3Y7.77%
30.4
+0.15 (+0.5%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners89.93%
Inst Owner Change0.03%
Ins Owners0.34%
Ins Owner Change1.5%
Market Cap9.64B
Analysts72.8
Price Target33.93 (11.61%)
Short Float %2.66%
Short Ratio1.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
Yearly Dividend0.84
Dividend Growth(5Y)36.86%
DP154.77%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-29.84%
Min EPS beat(2)-37.77%
Max EPS beat(2)-21.92%
EPS beat(4)0
Avg EPS beat(4)-20.36%
Min EPS beat(4)-37.77%
Max EPS beat(4)-2.49%
EPS beat(8)0
Avg EPS beat(8)-16.37%
EPS beat(12)0
Avg EPS beat(12)-14.35%
EPS beat(16)2
Avg EPS beat(16)-10.17%
Revenue beat(2)0
Avg Revenue beat(2)-8.15%
Min Revenue beat(2)-12.08%
Max Revenue beat(2)-4.22%
Revenue beat(4)0
Avg Revenue beat(4)-7.41%
Min Revenue beat(4)-12.08%
Max Revenue beat(4)-4.22%
Revenue beat(8)4
Avg Revenue beat(8)-0.52%
Revenue beat(12)5
Avg Revenue beat(12)-1.61%
Revenue beat(16)6
Avg Revenue beat(16)-1.93%
PT rev (1m)2.32%
PT rev (3m)2.76%
EPS NQ rev (1m)-1.3%
EPS NQ rev (3m)-23.78%
EPS NY rev (1m)3%
EPS NY rev (3m)6.4%
Revenue NQ rev (1m)-0.95%
Revenue NQ rev (3m)-3.87%
Revenue NY rev (1m)1.91%
Revenue NY rev (3m)4.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.35 | ||
| Fwd PE | 12.31 | ||
| P/S | 0.87 | ||
| P/FCF | 203.46 | ||
| P/OCF | 7.42 | ||
| P/B | 0.84 | ||
| P/tB | 0.93 | ||
| EV/EBITDA | 7.71 |
EPS(TTM)1.98
EY6.51%
EPS(NY)2.47
Fwd EY8.13%
FCF(TTM)0.15
FCFY0.49%
OCF(TTM)4.1
OCFY13.47%
SpS35.06
BVpS36.2
TBVpS32.85
PEG (NY)0.62
PEG (5Y)0.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.76% | ||
| ROE | 1.52% | ||
| ROCE | 3.31% | ||
| ROIC | 2.02% | ||
| ROICexc | 2.05% | ||
| ROICexgc | 2.17% | ||
| OM | 5.59% | ||
| PM (TTM) | 1.57% | ||
| GM | 13.59% | ||
| FCFM | 0.43% |
ROA(3y)7.05%
ROA(5y)6.38%
ROE(3y)13.57%
ROE(5y)12.61%
ROIC(3y)8.76%
ROIC(5y)7.81%
ROICexc(3y)9.06%
ROICexc(5y)8.11%
ROICexgc(3y)9.66%
ROICexgc(5y)8.67%
ROCE(3y)13.98%
ROCE(5y)12.46%
ROICexcg growth 3Y-39.11%
ROICexcg growth 5Y3.45%
ROICexc growth 3Y-38.79%
ROICexc growth 5Y3.81%
OM growth 3Y-33.55%
OM growth 5Y2.83%
PM growth 3Y-50.79%
PM growth 5YN/A
GM growth 3Y-19.33%
GM growth 5Y6.18%
F-Score4
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 89.13 | ||
| Debt/EBITDA | 2.54 | ||
| Cap/Depr | 122.07% | ||
| Cap/Sales | 11.25% | ||
| Interest Coverage | 3.33 | ||
| Cash Conversion | 78.88% | ||
| Profit Quality | 27.1% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 1.95 |
F-Score4
WACC7.7%
ROIC/WACC0.26
Cap/Depr(3y)133.87%
Cap/Depr(5y)139.65%
Cap/Sales(3y)9.34%
Cap/Sales(5y)10.39%
Profit Quality(3y)62.8%
Profit Quality(5y)61.07%
High Growth Momentum
Growth
EPS 1Y (TTM)-44.54%
EPS 3Y-26.76%
EPS 5Y47.88%
EPS Q2Q%-36.62%
EPS Next Y24.77%
EPS Next 2Y13.31%
EPS Next 3Y7.77%
EPS Next 5Y13.24%
Revenue 1Y (TTM)-18.79%
Revenue growth 3Y-3.45%
Revenue growth 5Y4.55%
Sales Q2Q%-10.59%
Revenue Next Year8.96%
Revenue Next 2Y4.51%
Revenue Next 3Y2.98%
Revenue Next 5Y2.66%
EBIT growth 1Y-53.55%
EBIT growth 3Y-35.84%
EBIT growth 5Y7.5%
EBIT Next Year115.58%
EBIT Next 3Y28.66%
EBIT Next 5Y17.47%
FCF growth 1Y-95.28%
FCF growth 3Y-62.49%
FCF growth 5YN/A
OCF growth 1Y-46.03%
OCF growth 3Y-15.94%
OCF growth 5Y3.47%