MOSAIC CO/THE (MOS) Stock Fundamental Analysis
NYSE:MOS - New York Stock Exchange, Inc. - US61945C1036 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to MOS. 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MOS was profitable.
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 1.59%, MOS is in line with its industry, outperforming 55.29% of the companies in the same industry.
MOS has a Return On Equity (3.12%) which is in line with its industry peers.
The Return On Invested Capital of MOS (2.47%) is worse than 65.88% of its industry peers.
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 6.84%.
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
The Profit Margin of MOS (3.32%) is better than 61.18% of its industry peers.
MOS's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 7.11%, MOS is doing worse than 60.00% of the companies in the same industry.
MOS's Operating Margin has improved in the last couple of years.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MOS is still creating some value.
MOS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MOS has been reduced compared to 5 years ago.
The debt/assets ratio for MOS is higher compared to a year ago.
2.2 Solvency
MOS has an Altman-Z score of 2.08. This is not the best score and indicates that MOS is in the grey zone with still only limited risk for bankruptcy at the moment.
MOS has a Altman-Z score (2.08) which is comparable to the rest of the industry.
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's Debt to FCF ratio of 21.64 is in line compared 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/WACC0.3
WACC8.22%
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.
With a Quick ratio value of 0.44, MOS is not doing good in the industry: 92.94% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
MOS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.91%.
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 -13.37% in the last year.
The Revenue has been growing slightly by 4.55% on average over the past years.
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
The Earnings Per Share is expected to grow by 11.38% on average over the next years. This is quite good.
Based on estimates for the next years, MOS will show a small growth in Revenue. The Revenue will grow by 2.66% on average per year.
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 20.03, MOS is valued on the expensive side.
MOS's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of MOS to the average of the S&P500 Index (27.30), we can say MOS is valued slightly cheaper.
With a Price/Forward Earnings ratio of 12.98, MOS is valued correctly.
Based on the Price/Forward Earnings ratio, MOS is valued a bit cheaper than the industry average as 67.06% of the companies are valued more expensively.
MOS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.03 | ||
| Fwd PE | 12.98 |
4.2 Price Multiples
74.12% 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 | 54.41 | ||
| EV/EBITDA | 8.08 |
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 2.45%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.53, MOS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, MOS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
5.2 History
The dividend of MOS is nicely growing with an annual growth rate of 36.86%!
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%
36.45
+0.51 (+1.42%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners90.38%
Inst Owner Change-0.3%
Ins Owners0.28%
Ins Owner Change-4.17%
Market Cap11.56B
Analysts76.52
Price Target39.15 (7.41%)
Short Float %3.83%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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)0.52%
PT rev (3m)18.25%
EPS NQ rev (1m)-1.23%
EPS NQ rev (3m)5.43%
EPS NY rev (1m)2.36%
EPS NY rev (3m)23.22%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)3.1%
Revenue NY rev (1m)0.25%
Revenue NY rev (3m)6.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.03 | ||
| Fwd PE | 12.98 | ||
| P/S | 1.05 | ||
| P/FCF | 54.41 | ||
| P/OCF | 8.13 | ||
| P/B | 0.98 | ||
| P/tB | 1.08 | ||
| EV/EBITDA | 8.08 |
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
WACC8.22%
ROIC/WACC0.3
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%