MOSAIC CO/THE (MOS) Stock Fundamental Analysis
NYSE:MOS - New York Stock Exchange, Inc. - US61945C1036 - Common Stock - Currency: USD
MOS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 85 industry peers in the Chemicals industry. While MOS is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
In the past 5 years MOS has always been profitable.
Each year in the past 5 years MOS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MOS (0.76%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 1.52%, MOS is in line with its industry, outperforming 44.71% of the companies in the same industry.
With a Return On Invested Capital value of 2.02%, MOS is not doing good in the industry: 68.24% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for MOS is in line with the industry average of 7.05%.
The 3 year average ROIC (8.76%) for MOS is well above the current ROIC(2.02%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.76% | ||
| ROE | 1.52% | ||
| ROIC | 2.02% |
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
MOS has a Profit Margin (1.57%) which is in line with its industry peers.
In the last couple of years the Profit Margin of MOS has declined.
The Operating Margin of MOS (5.59%) is worse than 61.18% of its industry peers.
In the last couple of years the Operating Margin of MOS has grown nicely.
Looking at the Gross Margin, with a value of 13.59%, MOS is doing worse than 74.12% of the companies in the same industry.
In the last couple of years the Gross Margin of MOS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.59% | ||
| PM (TTM) | 1.57% | ||
| GM | 13.59% |
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.
Compared to 1 year ago, MOS has less shares outstanding
MOS has less shares outstanding than it did 5 years ago.
MOS has a worse debt/assets ratio than last year.
2.2 Solvency
MOS has an Altman-Z score of 1.92. 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.
The Altman-Z score of MOS (1.92) is comparable to the rest of the industry.
The Debt to FCF ratio of MOS is 89.13, which is on the high side as it means it would take MOS, 89.13 years of fcf income to pay off all of its debts.
MOS has a Debt to FCF ratio of 89.13. This is in the lower half of the industry: MOS underperforms 60.00% of its industry peers.
MOS has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
MOS has a Debt to Equity ratio of 0.36. This is in the better half of the industry: MOS outperforms 69.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 89.13 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.26
WACC7.82%
2.3 Liquidity
MOS has a Current Ratio of 1.08. This is a normal value and indicates that MOS is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.08, MOS is not doing good in the industry: 84.71% of the companies in the same industry are doing better.
MOS has a Quick Ratio of 1.08. 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's Quick ratio of 0.47 is on the low side compared to the rest of the industry. MOS is outperformed by 88.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
MOS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.54%.
MOS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 47.88% yearly.
MOS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -18.79%.
MOS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.55% yearly.
EPS 1Y (TTM)-44.54%
EPS 3Y-26.76%
EPS 5Y47.88%
EPS Q2Q%-36.62%
Revenue 1Y (TTM)-18.79%
Revenue growth 3Y-3.45%
Revenue growth 5Y4.55%
Sales Q2Q%-10.59%
3.2 Future
The Earnings Per Share is expected to grow by 13.24% 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 Y24.77%
EPS Next 2Y13.31%
EPS Next 3Y7.77%
EPS Next 5Y13.24%
Revenue Next Year8.33%
Revenue Next 2Y4.25%
Revenue Next 3Y2.97%
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.
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
MOS is valuated correctly with a Price/Earnings ratio of 14.71.
Based on the Price/Earnings ratio, MOS is valued a bit cheaper than the industry average as 63.53% of the companies are valued more expensively.
MOS is valuated rather cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.79, the valuation of MOS can be described as reasonable.
MOS's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MOS is cheaper than 76.47% of the companies in the same industry.
MOS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 11.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MOS is valued a bit cheaper than 63.53% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MOS is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 194.96 | ||
| EV/EBITDA | 7.46 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.59
PEG (5Y)0.31
EPS Next 2Y13.31%
EPS Next 3Y7.77%
5. Dividend
5.1 Amount
MOS has a Yearly Dividend Yield of 3.23%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.97, MOS pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, MOS pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
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.
MOS has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)36.86%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
154.77% of the earnings are spent on dividend by MOS. 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.
DP154.77%
EPS Next 2Y13.31%
EPS Next 3Y7.77%
29.13
+0.2 (+0.69%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners89.93%
Inst Owner Change0.24%
Ins Owners0.34%
Ins Owner Change1.5%
Market Cap9.24B
Analysts72.8
Price Target33.11 (13.66%)
Short Float %2.53%
Short Ratio1.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
Yearly Dividend0.84
Dividend Growth(5Y)36.86%
DP154.77%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-29.84%
Min EPS beat(2)-37.77%
Max EPS beat(2)-21.92%
EPS beat(4)0
Avg EPS beat(4)-20.36%
Min EPS beat(4)-37.77%
Max EPS beat(4)-2.49%
EPS beat(8)0
Avg EPS beat(8)-16.37%
EPS beat(12)0
Avg EPS beat(12)-14.35%
EPS beat(16)2
Avg EPS beat(16)-10.17%
Revenue beat(2)0
Avg Revenue beat(2)-8.15%
Min Revenue beat(2)-12.08%
Max Revenue beat(2)-4.22%
Revenue beat(4)0
Avg Revenue beat(4)-7.41%
Min Revenue beat(4)-12.08%
Max Revenue beat(4)-4.22%
Revenue beat(8)4
Avg Revenue beat(8)-0.52%
Revenue beat(12)5
Avg Revenue beat(12)-1.61%
Revenue beat(16)6
Avg Revenue beat(16)-1.93%
PT rev (1m)-0.15%
PT rev (3m)0.28%
EPS NQ rev (1m)-4.69%
EPS NQ rev (3m)-23.78%
EPS NY rev (1m)5.07%
EPS NY rev (3m)6.4%
Revenue NQ rev (1m)-1.95%
Revenue NQ rev (3m)-3.87%
Revenue NY rev (1m)1.32%
Revenue NY rev (3m)3.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 11.79 | ||
| P/S | 0.83 | ||
| P/FCF | 194.96 | ||
| P/OCF | 7.11 | ||
| P/B | 0.8 | ||
| P/tB | 0.89 | ||
| EV/EBITDA | 7.46 |
EPS(TTM)1.98
EY6.8%
EPS(NY)2.47
Fwd EY8.48%
FCF(TTM)0.15
FCFY0.51%
OCF(TTM)4.1
OCFY14.06%
SpS35.06
BVpS36.2
TBVpS32.85
PEG (NY)0.59
PEG (5Y)0.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.76% | ||
| ROE | 1.52% | ||
| ROCE | 3.31% | ||
| ROIC | 2.02% | ||
| ROICexc | 2.05% | ||
| ROICexgc | 2.17% | ||
| OM | 5.59% | ||
| PM (TTM) | 1.57% | ||
| GM | 13.59% | ||
| FCFM | 0.43% |
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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 89.13 | ||
| Debt/EBITDA | 2.54 | ||
| Cap/Depr | 122.07% | ||
| Cap/Sales | 11.25% | ||
| Interest Coverage | 3.33 | ||
| Cash Conversion | 78.88% | ||
| Profit Quality | 27.1% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | 1.92 |
F-Score4
WACC7.82%
ROIC/WACC0.26
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)-44.54%
EPS 3Y-26.76%
EPS 5Y47.88%
EPS Q2Q%-36.62%
EPS Next Y24.77%
EPS Next 2Y13.31%
EPS Next 3Y7.77%
EPS Next 5Y13.24%
Revenue 1Y (TTM)-18.79%
Revenue growth 3Y-3.45%
Revenue growth 5Y4.55%
Sales Q2Q%-10.59%
Revenue Next Year8.33%
Revenue Next 2Y4.25%
Revenue Next 3Y2.97%
Revenue Next 5Y2.66%
EBIT growth 1Y-53.55%
EBIT growth 3Y-35.84%
EBIT growth 5Y7.5%
EBIT Next Year115.58%
EBIT Next 3Y28.66%
EBIT Next 5Y17.47%
FCF growth 1Y-95.28%
FCF growth 3Y-62.49%
FCF growth 5YN/A
OCF growth 1Y-46.03%
OCF growth 3Y-15.94%
OCF growth 5Y3.47%