![]() In addition, it provides nitrogen-based crop nutrients, animal feed ingredients, and other ancillary services and purchases and sells phosphates, potash, and nitrogen products. The company also produces and sells potash for use in the manufacturing of mixed crop nutrients and animal feed ingredients, and for industrial use and for use in the de-icing and as a water softener regenerant. It owns and operates mines, which produce concentrated phosphate crop nutrients, such as diammonium phosphate, monoammonium phosphate, and ammoniated phosphate products and phosphate-based animal feed ingredients primarily under the Biofos and Nexfos brand names, as well as produces a double sulfate of potash magnesia product under K-Mag brand name. ![]() ![]() The company operates through three segments: Phosphates, Potash, and Mosaic Fertilizantes. ![]() Considering that the size of repurchases already represents nearly 4.0% of the company's market capitalization, investors can take this as an aggressive message from insiders saying, 'hey, our stock is cheap!'.The Mosaic Company, through its subsidiaries, produces and markets concentrated phosphate and potash crop nutrients in North America and internationally. Insiders at Mosaic know this and have put their money to back up their views.Īccording to the latest investor presentation, Mosaic management has allocated up to $456 million into repurchasing shares so far in 2023 considering that these shares were repurchased at prices seemingly higher than today's, investors could reasonably assume that a similar - or larger - set of buybacks may be on the way. However, on a longer-term view, which is the value investor's natural habitat, when 'the money' does not like and thus disregards a set of names in a sector, it becomes hunting season. While broader markets favor smaller firms, these perceptions are typically guided by short-term intentions, as traders may be looking to exploit near-term catalysts that expand earnings enough to normalize the P/E ratio and provide a quick gain in the underlying stock price. However, value investors can go against the grain and find the needle in the haystack. Revenues declined by 8% yearly, not an alarming rate by any means, though a fraction of the scarier bottom-line results.Ī 63% annual decline in net earnings, which severely affected the subsequent earnings per share figure, could have been enough to spark the stock price decline and the price target downgrade. Considering current valuations favor smaller businesses, this dynamic can be viewed as the early pivoting sign in the underlying industry.īy going through the first quarter 2023 earnings results for Mosaic, investors can understand why analysts have taken such a hostile stance concerning the consensus price target. Smaller companies like Lavoro (NASDAQ: LVRO) are trading at a significantly higher valuation multiple of 25.0x, implying that the broader markets are willing to pay a higher premium for the underlying company's current - and future earnings. Historically, richer valuations stemming from financial stocks and 'small caps' typically signal a more optimistic view of the future. 'The money' has pivoted their preferences toward smaller capitalization companies in the agricultural inputs sector, a sign of the times pointing to a perceived bull market. What comes as a surprise is the relative valuation that these analysts are targeting as the stock is currently trading at a price-to-earnings ratio of 4.4x, it could imply that the 'money' does not like the sector. Analysts at Barclays (LON: BARC) took a more aggressive stance toward Mosaic, lowering their price targets from a previous consensus of $50.00 per share to a current view reflecting $40.0 per share targets. Analysts at Bank of America (NYSE: BAC) had lowered their price targets for Mosaic, placing the new consensus at $50.00 per share when previously consensus stood at $60.00 per share. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |