NYSE:MOS is an undervalued gem with solid fundamentals.

Last update: Nov 3, 2023

Discover MOSAIC CO/THE (NYSE:MOS), an undervalued stock highlighted by our stock screener. NYSE:MOS showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Looking at the Valuation

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:MOS scores a 7 out of 10:

The Price/Earnings ratio is 4.70, which indicates a rather cheap valuation of MOS.
Based on the Price/Earnings ratio, MOS is valued cheaply inside the industry as 89.53% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 23.73, MOS is valued rather cheaply.
The Price/Forward Earnings ratio is 9.63, which indicates a very decent valuation of MOS.
Based on the Price/Forward Earnings ratio, MOS is valued a bit cheaper than 75.58% of the companies in the same industry.
MOS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 18.67, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, MOS is valued cheaper than 88.37% of the companies in the same industry.
MOS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MOS is cheaper than 87.21% of the companies in the same industry.
The excellent profitability rating of MOS may justify a higher PE ratio.

Evaluating Profitability: NYSE:MOS

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:MOS was assigned a score of 8 for profitability:

MOS has a Return On Assets of 9.37%. This is amongst the best in the industry. MOS outperforms 83.72% of its industry peers.
MOS has a better Return On Equity (17.48%) than 77.91% of its industry peers.
MOS has a Return On Invested Capital of 12.16%. This is amongst the best in the industry. MOS outperforms 84.88% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MOS is above the industry average of 8.15%.
The last Return On Invested Capital (12.16%) for MOS is above the 3 year average (11.90%), which is a sign of increasing profitability.
MOS's Profit Margin of 12.89% is amongst the best of the industry. MOS outperforms 84.88% of its industry peers.
MOS has a better Operating Margin (18.25%) than 80.23% of its industry peers.
In the last couple of years the Operating Margin of MOS has grown nicely.
MOS's Gross Margin has improved in the last couple of years.

A Closer Look at Health for NYSE:MOS

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:MOS has earned a 7 out of 10:

The Altman-Z score of MOS (2.70) is better than 68.60% of its industry peers.
MOS has a debt to FCF ratio of 2.08. This is a good value and a sign of high solvency as MOS would need 2.08 years to pay back of all of its debts.
MOS has a better Debt to FCF ratio (2.08) than 87.21% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that MOS is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.21, MOS is doing good in the industry, outperforming 75.58% of the companies in the same industry.
The current and quick ratio evaluation for MOS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

What does the Growth looks like for NYSE:MOS

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:MOS has received a 4 out of 10:

The Earnings Per Share has been growing by 58.52% on average over the past years. This is a very strong growth
Measured over the past years, MOS shows a very strong growth in Revenue. The Revenue has been growing by 20.88% on average per year.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of MOS

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.