The Mosaic Company (MOS) in a Bullish Manner

Company Profile:

The Mosaic Company, through its subsidiaries, produces and markets concentrated phosphate and potash crop nutrients primarily for the agricultural industry worldwide. The company operates through three segments: Phosphates, Potash, and International Distribution. 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. 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, as well as fluorosilicic acid for water fluoridation. In addition, it provides nitrogen-based crop nutrients and animal feed ingredients, and other ancillary services; and purchases and sells phosphates, potash, and nitrogen products. The Mosaic Company was founded in 2004 and is headquartered in Plymouth, Minnesota.

Recent News:

The Mosaic Company reported first quarter 2016 net earnings of $257 million, down from $295 million in the first quarter of 2015. Earnings per diluted share were $0.73. Mosaic’s net sales in the first quarter of 2016 were $1.7 billion, down from $2.1 billion last year, reflecting lower prices as well as lower potash sales volumes.

On May 19, 2016, its Board of Directors declared a quarterly dividend of $0.275 per share on the Company’s common stock. The dividend will be paid on June 16, 2016, to stockholders of record as of the close of business on June 2, 2016.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

MOS’s strengths can be seen in its better profitability compared with its peers. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 53.85. The current P/E ratio indicates it is undervalued compared to the average P/E ratio of the industry and the sector. We rate the Mosaic Company (MOS) a STRONG BUY.

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