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 only an average score on both its financial health and profitability. MOS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year MOS was profitable.
MOS had a positive operating cash flow in the past year.
MOS had positive earnings in each of the past 5 years.
In the past 5 years MOS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.59%, MOS is in line with its industry, outperforming 55.29% of the companies in the same industry.
MOS's Return On Equity of 3.12% is in line compared to the rest of the industry. MOS outperforms 51.76% of its industry peers.
MOS has a Return On Invested Capital of 2.47%. This is in the lower half of the industry: MOS underperforms 65.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MOS is in line with the industry average of 6.81%.
The 3 year average ROIC (8.76%) for MOS is well above the current ROIC(2.47%). The reason for the recent decline needs to be investigated.
| 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.
In the last couple of years the Profit Margin of MOS has declined.
The Operating Margin of MOS (7.11%) is worse than 60.00% of its industry peers.
In the last couple of years the Operating Margin of MOS has grown nicely.
MOS has a Gross Margin of 14.47%. This is in the lower half of the industry: MOS underperforms 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.
MOS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MOS has less shares outstanding
MOS has a worse debt/assets ratio than last year.
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 (2.08) which is in line with its industry peers.
MOS has a debt to FCF ratio of 21.64. This is a negative value and a sign of low solvency as MOS would need 21.64 years to pay back of all of its debts.
MOS has a Debt to FCF ratio (21.64) which is in line with its industry peers.
A Debt/Equity ratio of 0.39 indicates that MOS is not too dependend on debt financing.
MOS's Debt to Equity ratio of 0.39 is fine compared to the rest of the industry. MOS outperforms 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
WACC8.4%
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.
A Quick Ratio of 0.44 indicates that MOS may have some problems paying its short term obligations.
MOS has a Quick ratio of 0.44. This is amonst the worse of the industry: MOS underperforms 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.
The Revenue is expected to grow by 2.66% on average over the next years.
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.
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 20.27, MOS is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as MOS.
MOS is valuated rather cheaply when we compare the Price/Earnings ratio to 28.05, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.14, the valuation of MOS can be described as correct.
63.53% of the companies in the same industry are more expensive than MOS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 37.67. MOS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.27 | ||
| Fwd PE | 13.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MOS indicates a somewhat cheap valuation: MOS is cheaper than 71.76% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MOS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.09 | ||
| EV/EBITDA | 8.16 |
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)0.41
PEG (5Y)0.42
EPS Next 2Y19.08%
EPS Next 3Y8.52%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.37%, MOS has a reasonable but not impressive dividend return.
MOS's Dividend Yield is a higher than the industry average which is at 3.55.
MOS's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
5.2 History
The dividend of MOS is nicely growing with an annual growth rate of 36.86%!
MOS has been paying a dividend for at least 10 years, so it has 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%
36.9
-0.49 (-1.31%)
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 Cap11.71B
Analysts76.52
Price Target40.47 (9.67%)
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 | 20.27 | ||
| Fwd PE | 13.14 | ||
| P/S | 1.06 | ||
| P/FCF | 55.09 | ||
| P/OCF | 8.23 | ||
| P/B | 0.99 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 8.16 |
EPS(TTM)1.82
EY4.93%
EPS(NY)2.81
Fwd EY7.61%
FCF(TTM)0.67
FCFY1.82%
OCF(TTM)4.48
OCFY12.15%
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
WACC8.4%
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%