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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BG was profitable.
In the past year BG had a positive cash flow from operations.
BG had positive earnings in each of the past 5 years.
In multiple years BG reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.10%, BG is in the better half of the industry, outperforming 65.93% of the companies in the same industry.
BG has a Return On Equity of 10.34%. This is in the better half of the industry: BG outperforms 71.43% of its industry peers.
With a decent Return On Invested Capital value of 6.15%, BG is doing good in the industry, outperforming 65.93% 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 28.39%.
The last Return On Invested Capital (6.15%) for BG is well below the 3 year average (10.77%), which needs to be investigated, but indicates that BG had better years and this may not be a problem.
| 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.
Looking at the Operating Margin, with a value of 3.03%, BG is in line with its industry, outperforming 49.45% of the companies in the same industry.
In the last couple of years the Operating Margin of BG has grown nicely.
BG's Gross Margin of 6.07% is on the low side compared to the rest of the industry. BG is outperformed by 82.42% of its industry peers.
BG's Gross Margin has improved in the last couple of years.
| 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
BG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for BG has been reduced compared to 1 year ago.
The number of shares outstanding for BG has been reduced compared to 5 years ago.
Compared to 1 year ago, BG has a worse debt to assets ratio.
2.2 Solvency
BG has an Altman-Z score of 3.60. This indicates that BG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.60, BG is in the better half of the industry, outperforming 75.82% of the companies in the same industry.
BG has a Debt/Equity ratio of 0.57. This is a neutral value indicating BG is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.57, BG perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.6 |
ROIC/WACC0.65
WACC9.5%
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 has a Current ratio of 2.04. This is in the better half of the industry: BG outperforms 68.13% of its industry peers.
BG has a Quick Ratio of 1.12. This is a normal value and indicates that BG is financially healthy and should not expect problems in meeting its short term obligations.
BG has a better Quick ratio (1.12) than 67.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The earnings per share for BG have decreased strongly by -40.82% in the last year.
The Earnings Per Share has been growing by 20.28% on average over the past years. This is a very strong growth
The Revenue for BG has decreased by -10.92% in the past year. This is quite bad
The Revenue has been growing slightly by 5.24% on average over the past years.
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
Based on estimates for the next years, BG will show a decrease in Earnings Per Share. The EPS will decrease by -0.14% on average per year.
The Revenue is expected to grow by 2.60% on average over the next years.
EPS Next Y-13.19%
EPS Next 2Y-1.44%
EPS Next 3Y-0.14%
EPS Next 5YN/A
Revenue Next Year-2.95%
Revenue Next 2Y0.09%
Revenue Next 3Y2.6%
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
A Price/Earnings ratio of 10.09 indicates a reasonable valuation of BG.
79.12% of the companies in the same industry are more expensive than BG, based on the Price/Earnings ratio.
BG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.15.
The Price/Forward Earnings ratio is 8.99, which indicates a very decent valuation of BG.
94.51% of the companies in the same industry are more expensive than BG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.60. BG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.09 | ||
| Fwd PE | 8.99 |
4.2 Price Multiples
BG's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BG is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.2 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y-1.44%
EPS Next 3Y-0.14%
5. Dividend
5.1 Amount
BG has a Yearly Dividend Yield of 3.40%.
Compared to an average industry Dividend Yield of 4.75, BG pays a bit more dividend than its industry peers.
BG's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
5.2 History
The dividend of BG has a limited annual growth rate of 3.89%.
BG has paid a dividend for at least 10 years, which is 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-1.44%
EPS Next 3Y-0.14%
80.28
-0.16 (-0.2%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupFood, Beverage & Tobacco
GICS IndustryFood Products
Earnings (Last)
Earnings (Next)
Inst Owners93.93%
Inst Owner Change-2.65%
Ins Owners1.08%
Ins Owner Change7.03%
Market Cap10.79B
Analysts78
Price Target91.37 (13.81%)
Short Float %3.21%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.4% |
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)0.82%
PT rev (3m)-2.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-35.44%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-1.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.67%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)-7.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.09 | ||
| Fwd PE | 8.99 | ||
| P/S | 0.21 | ||
| P/FCF | N/A | ||
| P/OCF | 17.37 | ||
| P/B | 1.02 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 5.2 |
EPS(TTM)7.96
EY9.92%
EPS(NY)8.93
Fwd EY11.12%
FCF(TTM)-6.17
FCFYN/A
OCF(TTM)4.62
OCFY5.76%
SpS381.95
BVpS78.71
TBVpS72.89
PEG (NY)N/A
PEG (5Y)0.5
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 | 3.6 |
F-Score4
WACC9.5%
ROIC/WACC0.65
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-13.19%
EPS Next 2Y-1.44%
EPS Next 3Y-0.14%
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-2.95%
Revenue Next 2Y0.09%
Revenue Next 3Y2.6%
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