MOSAIC CO/THE (MOS) Stock Fundamental Analysis
NYSE:MOS - New York Stock Exchange, Inc. - US61945C1036 - Common Stock - Currency: USD
Taking everything into account, MOS scores 4 out of 10 in our fundamental rating. MOS was compared to 85 industry peers in the Chemicals industry. MOS has an average financial health and profitability rating. MOS is not valued too expensively and it also shows a decent growth rate.
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
MOS's Return On Assets of 1.59% is in line compared to the rest of the industry. MOS outperforms 55.29% of its industry peers.
MOS has a Return On Equity of 3.12%. This is comparable to the rest of the industry: MOS outperforms 51.76% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.47%, MOS is doing worse than 65.88% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MOS is in line with the industry average of 6.81%.
The last Return On Invested Capital (2.47%) for MOS is well below the 3 year average (8.76%), which needs to be investigated, but indicates that MOS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 3.12% | ||
| ROIC | 2.47% |
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 of 3.32%. This is in the better half of the industry: MOS outperforms 61.18% of its industry peers.
MOS's Profit Margin has declined in the last couple of years.
The Operating Margin of MOS (7.11%) is worse than 60.00% of its industry peers.
MOS's Operating Margin has improved in the last couple of years.
The Gross Margin of MOS (14.47%) is worse than 74.12% of its industry peers.
MOS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.11% | ||
| PM (TTM) | 3.32% | ||
| GM | 14.47% |
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
The debt/assets ratio for MOS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.08 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 2.08. This is comparable to the rest of the industry: MOS outperforms 54.12% of its industry peers.
The Debt to FCF ratio of MOS is 21.64, which is on the high side as it means it would take MOS, 21.64 years of fcf income to pay off all of its debts.
MOS has a Debt to FCF ratio of 21.64. This is comparable to the rest of the industry: MOS outperforms 49.41% of its industry peers.
MOS has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MOS (0.39) is better than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 21.64 | ||
| Altman-Z | 2.08 |
ROIC/WACC0.29
WACC8.39%
2.3 Liquidity
MOS has a Current Ratio of 1.12. This is a normal value and indicates that MOS is financially healthy and should not expect problems in meeting its short term obligations.
MOS has a Current ratio of 1.12. This is amonst the worse of the industry: MOS underperforms 84.71% of its industry peers.
MOS has a Quick Ratio of 1.12. This is a bad value and indicates that MOS is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of MOS (0.44) is worse than 92.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The earnings per share for MOS have decreased strongly by -40.91% in the last year.
MOS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 47.88% yearly.
Looking at the last year, MOS shows a very negative growth in Revenue. The Revenue has decreased by -13.37% in the last year.
Measured over the past years, MOS shows a small growth in Revenue. The Revenue has been growing by 4.55% on average per year.
EPS 1Y (TTM)-40.91%
EPS 3Y-26.76%
EPS 5Y47.88%
EPS Q2Q%-24.62%
Revenue 1Y (TTM)-13.37%
Revenue growth 3Y-3.45%
Revenue growth 5Y4.55%
Sales Q2Q%-2.18%
3.2 Future
Based on estimates for the next years, MOS will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.38% on average per year.
MOS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.66% yearly.
EPS Next Y49.26%
EPS Next 2Y19.08%
EPS Next 3Y8.52%
EPS Next 5Y11.38%
Revenue Next Year14.92%
Revenue Next 2Y6.37%
Revenue Next 3Y3.85%
Revenue Next 5Y2.66%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
Based on the Price/Earnings ratio of 20.02, the valuation of MOS can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of MOS is on the same level as its industry peers.
MOS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.05.
Based on the Price/Forward Earnings ratio of 12.98, the valuation of MOS can be described as correct.
Based on the Price/Forward Earnings ratio, MOS is valued a bit cheaper than 63.53% of the companies in the same industry.
MOS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.02 | ||
| Fwd PE | 12.98 |
4.2 Price Multiples
71.76% of the companies in the same industry are more expensive than MOS, based on the Enterprise Value to EBITDA ratio.
MOS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.4 | ||
| EV/EBITDA | 8.16 |
4.3 Compensation for Growth
MOS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.41
PEG (5Y)0.42
EPS Next 2Y19.08%
EPS Next 3Y8.52%
5. Dividend
5.1 Amount
MOS has a Yearly Dividend Yield of 2.37%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.55, MOS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, MOS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
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.
Dividend Growth(5Y)36.86%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MOS pays out 73.93% of its income as dividend. 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.
DP73.93%
EPS Next 2Y19.08%
EPS Next 3Y8.52%
36.44
-0.46 (-1.25%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.38%
Inst Owner Change-0.6%
Ins Owners0.28%
Ins Owner Change-4.17%
Market Cap11.56B
Analysts76.52
Price Target40.47 (11.06%)
Short Float %3.99%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
Yearly Dividend0.84
Dividend Growth(5Y)36.86%
DP73.93%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.72%
Min EPS beat(2)-21.92%
Max EPS beat(2)8.48%
EPS beat(4)1
Avg EPS beat(4)-17.62%
Min EPS beat(4)-37.77%
Max EPS beat(4)8.48%
EPS beat(8)1
Avg EPS beat(8)-13.77%
EPS beat(12)1
Avg EPS beat(12)-13.6%
EPS beat(16)2
Avg EPS beat(16)-10.11%
Revenue beat(2)0
Avg Revenue beat(2)-3.34%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)-2.46%
Revenue beat(4)0
Avg Revenue beat(4)-5.92%
Min Revenue beat(4)-12.08%
Max Revenue beat(4)-2.46%
Revenue beat(8)3
Avg Revenue beat(8)-1.93%
Revenue beat(12)5
Avg Revenue beat(12)-1.42%
Revenue beat(16)5
Avg Revenue beat(16)-2.15%
PT rev (1m)3.37%
PT rev (3m)19.29%
EPS NQ rev (1m)4.6%
EPS NQ rev (3m)11.65%
EPS NY rev (1m)3.3%
EPS NY rev (3m)19.63%
Revenue NQ rev (1m)-1.16%
Revenue NQ rev (3m)2.91%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)5.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.02 | ||
| Fwd PE | 12.98 | ||
| P/S | 1.04 | ||
| P/FCF | 54.4 | ||
| P/OCF | 8.13 | ||
| P/B | 0.98 | ||
| P/tB | 1.08 | ||
| EV/EBITDA | 8.16 |
EPS(TTM)1.82
EY4.99%
EPS(NY)2.81
Fwd EY7.7%
FCF(TTM)0.67
FCFY1.84%
OCF(TTM)4.48
OCFY12.3%
SpS34.88
BVpS37.11
TBVpS33.75
PEG (NY)0.41
PEG (5Y)0.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 3.12% | ||
| ROCE | 4.13% | ||
| ROIC | 2.47% | ||
| ROICexc | 2.5% | ||
| ROICexgc | 2.64% | ||
| OM | 7.11% | ||
| PM (TTM) | 3.32% | ||
| GM | 14.47% | ||
| FCFM | 1.92% |
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 Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 21.64 | ||
| Debt/EBITDA | 2.52 | ||
| Cap/Depr | 117.73% | ||
| Cap/Sales | 10.93% | ||
| Interest Coverage | 4.34 | ||
| Cash Conversion | 78.37% | ||
| Profit Quality | 57.78% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 2.08 |
F-Score4
WACC8.39%
ROIC/WACC0.29
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)-40.91%
EPS 3Y-26.76%
EPS 5Y47.88%
EPS Q2Q%-24.62%
EPS Next Y49.26%
EPS Next 2Y19.08%
EPS Next 3Y8.52%
EPS Next 5Y11.38%
Revenue 1Y (TTM)-13.37%
Revenue growth 3Y-3.45%
Revenue growth 5Y4.55%
Sales Q2Q%-2.18%
Revenue Next Year14.92%
Revenue Next 2Y6.37%
Revenue Next 3Y3.85%
Revenue Next 5Y2.66%
EBIT growth 1Y-18.55%
EBIT growth 3Y-35.84%
EBIT growth 5Y7.5%
EBIT Next Year146.92%
EBIT Next 3Y31.13%
EBIT Next 5Y17.84%
FCF growth 1Y-90.76%
FCF growth 3Y-62.49%
FCF growth 5YN/A
OCF growth 1Y-60.26%
OCF growth 3Y-15.94%
OCF growth 5Y3.47%