MOSAIC CO/THE (MOS)
US61945C1036 - Common Stock
We assign a fundamental rating of 5 out of 10 to MOS. MOS was compared to 84 industry peers in the Chemicals industry. MOS has only an average score on both its financial health and profitability. MOS has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
MOS had positive earnings in the past year.
MOS had a positive operating cash flow in the past year.
MOS had positive earnings in 4 of the past 5 years.
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 47.62% of the companies in the same industry.
The Return On Equity of MOS (3.14%) is comparable to the rest of the industry.
MOS has a Return On Invested Capital (3.23%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MOS is significantly above the industry average of 6.50%.
The 3 year average ROIC (14.26%) for MOS is well above the current ROIC(3.23%). The reason for the recent decline needs to be investigated.
| 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 has a Profit Margin of 3.24%. This is comparable to the rest of the industry: MOS outperforms 50.00% of its industry peers.
In the last couple of years the Profit Margin of MOS has grown nicely.
MOS has a Operating Margin of 6.98%. This is comparable to the rest of the industry: MOS outperforms 46.43% of its industry peers.
MOS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 15.45%, MOS is doing worse than 70.24% of the companies in the same industry.
MOS's Gross Margin has been stable in the last couple of years.
| 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 well above the Cost of Capital (WACC), so MOS is creating value.
Compared to 1 year ago, MOS has less shares outstanding
The number of shares outstanding for MOS has been reduced compared to 5 years ago.
Compared to 1 year ago, MOS has a worse debt to assets ratio.
2.2 Solvency
MOS has an Altman-Z score of 1.90. 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's Altman-Z score of 1.90 is in line compared to the rest of the industry. MOS outperforms 51.19% of its industry peers.
The Debt to FCF ratio of MOS is 13.49, which is on the high side as it means it would take MOS, 13.49 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MOS (13.49) is comparable to the rest of the 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 70.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 13.49 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.43
WACC7.45%
2.3 Liquidity
A Current Ratio of 1.19 indicates that MOS should not have too much problems paying its short term obligations.
MOS's Current ratio of 1.19 is on the low side compared to the rest of the industry. MOS is outperformed by 89.29% of its industry peers.
MOS has a Quick Ratio of 1.19. This is a bad value and indicates that MOS is not financially healthy enough and could expect problems in meeting its short term obligations.
MOS has a worse Quick ratio (0.49) than 94.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
MOS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -51.30%.
MOS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.99% yearly.
MOS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -23.77%.
The Revenue has been growing slightly by 7.39% on average over the past years.
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
MOS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.18% yearly.
MOS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.97% yearly.
EPS Next Y-32.37%
EPS Next 2Y-16.56%
EPS Next 3Y-14.92%
EPS Next 5Y6.18%
Revenue Next Year-15.51%
Revenue Next 2Y-6.81%
Revenue Next 3Y-4.58%
Revenue Next 5Y0.97%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 11.63, which indicates a very decent valuation of MOS.
Compared to the rest of the industry, the Price/Earnings ratio of MOS indicates a rather cheap valuation: MOS is cheaper than 88.10% of the companies listed in the same industry.
MOS is valuated cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.48, which indicates a very decent valuation of MOS.
Based on the Price/Forward Earnings ratio, MOS is valued cheaper than 83.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, MOS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 10.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MOS is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
MOS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.45 | ||
| EV/EBITDA | 6.16 |
4.3 Compensation for Growth
The decent profitability rating of MOS may justify a higher PE ratio.
A cheap valuation may be justified as MOS's earnings are expected to decrease with -14.92% in the coming years.
PEG (NY)N/A
PEG (5Y)1.06
EPS Next 2Y-16.56%
EPS Next 3Y-14.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.31%, MOS has a reasonable but not impressive dividend return.
MOS's Dividend Yield is rather good when compared to the industry average which is at 2.95. MOS pays more dividend than 82.14% of the companies in the same industry.
MOS's Dividend Yield is a higher than the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
5.2 History
On average, the dividend of MOS grows each year by 58.93%, which is quite nice.
MOS has paid a dividend for at least 10 years, which is a reliable track record.
MOS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)58.93%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
MOS pays out 72.55% 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.
DP72.55%
EPS Next 2Y-16.56%
EPS Next 3Y-14.92%
MOSAIC CO/THE
NYSE:MOS (11/21/2024, 8:04:00 PM)
After market: 26.07 +0.02 (+0.08%)26.05
+0.61 (+2.4%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.27B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.63 | ||
| Fwd PE | 10.48 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.59% | ||
| ROE | 3.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.98% | ||
| PM (TTM) | 3.24% | ||
| GM | 15.45% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-51.3%
EPS 3Y61.34%
EPS 5Y
EPS Q2Q%
EPS Next Y-32.37%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-23.77%
Revenue growth 3Y16.41%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y