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 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MOS had positive earnings in the past year.
In the past year MOS had a positive cash flow from operations.
MOS had positive earnings in 4 of the past 5 years.
In the past 5 years MOS always reported a positive cash flow from operatings.
1.2 Ratios
MOS has a Return On Assets (1.59%) which is comparable to the rest of the industry.
MOS has a Return On Equity of 3.14%. This is comparable to the rest of the industry: MOS outperforms 45.78% of its industry peers.
MOS has a Return On Invested Capital of 3.23%. This is in the lower half of the industry: MOS underperforms 62.65% of its industry peers.
MOS had an Average Return On Invested Capital over the past 3 years of 14.26%. This is significantly above the industry average of 6.61%.
The last Return On Invested Capital (3.23%) for MOS is well below the 3 year average (14.26%), 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 | 3.14% | ||
| ROIC | 3.23% |
ROA(3y)9.26%
ROA(5y)5.12%
ROE(3y)18.19%
ROE(5y)9.98%
ROIC(3y)14.26%
ROIC(5y)9.72%
1.3 Margins
MOS's Profit Margin of 3.24% is in line compared to the rest of the industry. MOS outperforms 49.40% of its industry peers.
MOS's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 6.98%, MOS perfoms like the industry average, outperforming 43.37% of the companies in the same industry.
MOS's Operating Margin has improved in the last couple of years.
MOS has a worse Gross Margin (15.45%) than 73.49% of its industry peers.
In the last couple of years the Gross Margin of MOS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.98% | ||
| PM (TTM) | 3.24% | ||
| GM | 15.45% |
OM growth 3Y16.82%
OM growth 5Y2.51%
PM growth 3Y3.5%
PM growth 5Y11.65%
GM growth 3Y9.58%
GM growth 5Y0.65%
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.
MOS has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.92 indicates that MOS is not a great score, but indicates only limited risk for bankruptcy at the moment.
MOS has a Altman-Z score (1.92) which is in line with its industry peers.
MOS has a debt to FCF ratio of 13.49. This is a negative value and a sign of low solvency as MOS would need 13.49 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.49, MOS is in line with its industry, outperforming 50.60% of the companies in the same industry.
MOS has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MOS (0.33) is better than 67.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 13.49 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.38
WACC8.55%
2.3 Liquidity
MOS has a Current Ratio of 1.19. This is a normal value and indicates that MOS is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MOS (1.19) is worse than 86.75% of its industry peers.
A Quick Ratio of 0.49 indicates that MOS may have some problems paying its short term obligations.
MOS has a Quick ratio of 0.49. This is amonst the worse of the industry: MOS underperforms 92.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The earnings per share for MOS have decreased strongly by -51.30% in the last year.
The Earnings Per Share has been growing by 10.99% on average over the past years. This is quite good.
The Revenue for MOS has decreased by -23.77% in the past year. This is quite bad
MOS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.39% yearly.
EPS 1Y (TTM)-51.3%
EPS 3Y61.34%
EPS 5Y10.99%
EPS Q2Q%-50%
Revenue 1Y (TTM)-23.77%
Revenue growth 3Y16.41%
Revenue growth 5Y7.39%
Sales Q2Q%-20.78%
3.2 Future
Based on estimates for the next years, MOS will show a decrease in Earnings Per Share. The EPS will decrease by -0.98% on average per year.
MOS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.27% yearly.
EPS Next Y-39.7%
EPS Next 2Y-18.85%
EPS Next 3Y-13.37%
EPS Next 5Y-0.98%
Revenue Next Year-17.42%
Revenue Next 2Y-7.19%
Revenue Next 3Y-4.56%
Revenue Next 5Y-2.27%
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
With a Price/Earnings ratio of 11.50, the valuation of MOS can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of MOS indicates a rather cheap valuation: MOS is cheaper than 85.54% of the companies listed in the same industry.
MOS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.30.
With a Price/Forward Earnings ratio of 10.96, the valuation of MOS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, MOS is valued a bit cheaper than 78.31% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.06, MOS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 10.96 |
4.2 Price Multiples
89.16% of the companies in the same industry are more expensive than MOS, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as MOS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.15 | ||
| EV/EBITDA | 6.37 |
4.3 Compensation for Growth
MOS has a very decent profitability rating, which may justify a higher PE ratio.
MOS's earnings are expected to decrease with -13.37% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.05
EPS Next 2Y-18.85%
EPS Next 3Y-13.37%
5. Dividend
5.1 Amount
MOS has a Yearly Dividend Yield of 3.33%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.27, MOS pays a better dividend. On top of this MOS pays more dividend than 83.13% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, MOS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
5.2 History
On average, the dividend of MOS grows each year by 58.93%, which is quite nice.
MOS has been paying a dividend for at least 10 years, so it has a reliable track record.
As MOS did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)58.93%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
72.55% of the earnings are spent on dividend by MOS. This is not a sustainable payout ratio.
The Dividend Rate of MOS has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP72.55%
EPS Next 2Y-18.85%
EPS Next 3Y-13.37%
25.76
-0.86 (-3.23%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners88.05%
Inst Owner Change0.96%
Ins Owners0.41%
Ins Owner Change0.14%
Market Cap8.18B
Analysts69.17
Price Target33.24 (29.04%)
Short Float %3.05%
Short Ratio2.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.33% |
Yearly Dividend1.06
Dividend Growth(5Y)58.93%
DP72.55%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-28.52%
Min EPS beat(2)-37.77%
Max EPS beat(2)-19.28%
EPS beat(4)0
Avg EPS beat(4)-19.52%
Min EPS beat(4)-37.77%
Max EPS beat(4)-2.49%
EPS beat(8)0
Avg EPS beat(8)-16.6%
EPS beat(12)0
Avg EPS beat(12)-12.72%
EPS beat(16)3
Avg EPS beat(16)2.94%
Revenue beat(2)0
Avg Revenue beat(2)-8.51%
Min Revenue beat(2)-12.08%
Max Revenue beat(2)-4.94%
Revenue beat(4)1
Avg Revenue beat(4)-6.25%
Min Revenue beat(4)-12.08%
Max Revenue beat(4)0.4%
Revenue beat(8)5
Avg Revenue beat(8)0.46%
Revenue beat(12)5
Avg Revenue beat(12)-1.47%
Revenue beat(16)7
Avg Revenue beat(16)-0.93%
PT rev (1m)0.69%
PT rev (3m)-1.54%
EPS NQ rev (1m)-4.42%
EPS NQ rev (3m)-21.55%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-10.84%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-2.94%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-2.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 10.96 | ||
| P/S | 0.71 | ||
| P/FCF | 27.15 | ||
| P/OCF | 5.06 | ||
| P/B | 0.69 | ||
| P/tB | 0.77 | ||
| EV/EBITDA | 6.37 |
EPS(TTM)2.24
EY8.7%
EPS(NY)2.35
Fwd EY9.13%
FCF(TTM)0.95
FCFY3.68%
OCF(TTM)5.09
OCFY19.77%
SpS36.07
BVpS37.17
TBVpS33.66
PEG (NY)N/A
PEG (5Y)1.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 3.14% | ||
| ROCE | 4.19% | ||
| ROIC | 3.23% | ||
| ROICexc | 3.28% | ||
| ROICexgc | 3.48% | ||
| OM | 6.98% | ||
| PM (TTM) | 3.24% | ||
| GM | 15.45% | ||
| FCFM | 2.63% |
ROA(3y)9.26%
ROA(5y)5.12%
ROE(3y)18.19%
ROE(5y)9.98%
ROIC(3y)14.26%
ROIC(5y)9.72%
ROICexc(3y)14.83%
ROICexc(5y)10.09%
ROICexgc(3y)15.86%
ROICexgc(5y)10.81%
ROCE(3y)18.07%
ROCE(5y)12.29%
ROICexcg growth 3Y27.5%
ROICexcg growth 5Y6.19%
ROICexc growth 3Y28.13%
ROICexc growth 5Y7.18%
OM growth 3Y16.82%
OM growth 5Y2.51%
PM growth 3Y3.5%
PM growth 5Y11.65%
GM growth 3Y9.58%
GM growth 5Y0.65%
F-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 13.49 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 131.51% | ||
| Cap/Sales | 11.49% | ||
| Interest Coverage | 4.2 | ||
| Cash Conversion | 89.83% | ||
| Profit Quality | 81.2% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 1.92 |
F-Score5
WACC8.55%
ROIC/WACC0.38
Cap/Depr(3y)146.02%
Cap/Depr(5y)144.06%
Cap/Sales(3y)9.06%
Cap/Sales(5y)10.99%
Profit Quality(3y)72.12%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-51.3%
EPS 3Y61.34%
EPS 5Y10.99%
EPS Q2Q%-50%
EPS Next Y-39.7%
EPS Next 2Y-18.85%
EPS Next 3Y-13.37%
EPS Next 5Y-0.98%
Revenue 1Y (TTM)-23.77%
Revenue growth 3Y16.41%
Revenue growth 5Y7.39%
Sales Q2Q%-20.78%
Revenue Next Year-17.42%
Revenue Next 2Y-7.19%
Revenue Next 3Y-4.56%
Revenue Next 5Y-2.27%
EBIT growth 1Y-56.54%
EBIT growth 3Y35.99%
EBIT growth 5Y10.09%
EBIT Next Year23.99%
EBIT Next 3Y9.13%
EBIT Next 5Y5.57%
FCF growth 1Y-85.92%
FCF growth 3Y34.6%
FCF growth 5Y17.15%
OCF growth 1Y-52.56%
OCF growth 3Y15%
OCF growth 5Y11.29%