NYSE:BG

Stock Analysis Report

Executive Summary

Bunge Limited operates as an agribusiness and food company worldwide.

Rewards

Trading at 52.7% below its fair value

Earnings are forecast to grow 157.02% per year

Pays a reliable dividend of 3.66%

Risk Analysis

Debt is not well covered by operating cash flow

Dividend of 3.66% is not well covered by earnings



Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Glencore

LSE:GLEN

Share Price & News

How has Bunge's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.5%

BG

1.1%

US Food

1.1%

US Market


1 Year Return

-6.4%

BG

10.2%

US Food

17.8%

US Market

Return vs Industry: BG underperformed the US Food industry which returned 10.2% over the past year.

Return vs Market: BG underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

BGIndustryMarket
7 Day3.5%1.1%1.1%
30 Day-2.1%3.4%1.4%
90 Day-5.6%1.1%3.9%
1 Year-2.9%-6.4%13.4%10.2%20.3%17.8%
3 Year-16.9%-24.1%2.0%-6.1%44.8%35.4%
5 Year-29.4%-38.4%44.7%27.1%71.3%52.4%

Price Volatility Vs. Market

How volatile is Bunge's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bunge undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BG ($54.71) is trading below our estimate of fair value ($115.76)

Significantly Below Fair Value: BG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BG is unprofitable, so we can't compare its PE Ratio to the Food industry average.

PE vs Market: BG is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BG is good value based on its PB Ratio (2.1x) compared to the US Food industry average (2.2x).


Next Steps

Future Growth

How is Bunge forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

157.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: BG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BG's is expected to become profitable in the next 3 years.

Revenue vs Market: BG's revenue (2.3% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: BG's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BG's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has Bunge performed over the past 5 years?

-35.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BG is currently unprofitable.

Growing Profit Margin: BG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BG is unprofitable, and losses have increased over the past 5 years at a rate of -35.3% per year.

Accelerating Growth: Unable to compare BG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BG is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (-17.5%).


Return on Equity

High ROE: BG has a negative Return on Equity (-25.21%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bunge's financial position?


Financial Position Analysis

Short Term Liabilities: BG's short term assets ($10.8B) exceed its short term liabilities ($7.4B).

Long Term Liabilities: BG's short term assets ($10.8B) exceed its long term liabilities ($6.2B).


Debt to Equity History and Analysis

Debt Level: BG's debt to equity ratio (127.8%) is considered high.

Reducing Debt: BG's debt to equity ratio has increased from 71.6% to 127.8% over the past 5 years.

Debt Coverage: BG's debt is not well covered by operating cash flow (10.9%).

Interest Coverage: Insufficient data to determine if BG's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: BG has a high level of physical assets or inventory.

Debt Coverage by Assets: BG's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

What is Bunge's current dividend yield, its reliability and sustainability?

3.66%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years4.1%

Current dividend yield vs market & industry

Notable Dividend: BG's dividend (3.66%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: BG's dividend (3.66%) is low compared to the top 25% of dividend payers in the US market (3.67%).


Stability and Growth of Payments

Stable Dividend: BG's dividends per share have been stable in the past 10 years.

Growing Dividend: BG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: BG is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: BG's dividends in 3 years are forecast to be covered by earnings (63.1% payout ratio).


Next Steps

Management

What is the CEO of Bunge's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

Greg Heckman (57yo)

0.9yrs

Tenure

US$86,066

Compensation

Mr. Gregory A. Heckman, also known as Greg, serves as Chief Executive Officer of Bunge Limited since April 25, 2019. Mr. Heckman served as the Acting Chief Executive Officer of Bunge Limited since January  ...


Management Age and Tenure

0.9yrs

Average Tenure

53yo

Average Age

Experienced Management: BG's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

1.2yrs

Average Tenure

60yo

Average Age

Experienced Board: BG's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: BG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$97,60519 Nov 19
J. Simmons
EntityIndividual
Shares1,786
Max PriceUS$54.65
BuyUS$1,045,41603 Sep 19
Continental Grain Company Corp.
EntityCompany
Shares20,000
Max PriceUS$52.27
BuyUS$6,543,78329 Aug 19
Continental Grain Company Corp.
EntityCompany
Shares125,000
Max PriceUS$52.38
BuyUS$8,159,78328 May 19
Continental Grain Company Corp.
EntityCompany
Shares160,000
Max PriceUS$51.13
BuyUS$1,006,13228 May 19
Paul Fribourg
EntityIndividual
Role
Member of the Board of Directors
Director
Shares19,750
Max PriceUS$50.94
BuyUS$205,60023 May 19
H. Jay Winship
EntityIndividual
Shares4,000
Max PriceUS$51.40
BuyUS$512,77722 May 19
Brian Zachman
EntityIndividual
Role
Senior Key Executive
President of Global Risk Management
Shares10,000
Max PriceUS$51.28

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Raul Padilla (63yo)

    President of Global Operations

    • Tenure: 0.6yrs
    • Compensation: US$4.79m
  • Greg Heckman (57yo)

    CEO & Director

    • Tenure: 0.9yrs
    • Compensation: US$86.07k
  • Joseph Podwika (56yo)

    Chief Legal Officer

    • Tenure: 0.08yrs
  • Ruth Wisener

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Deborah Borg (42yo)

    Executive VP and Chief HR & Communications Officer

    • Tenure: 0yrs
  • John Neppl (53yo)

    Chief Financial Officer

    • Tenure: 0.9yrs
  • Pierre Mauger (47yo)

    Chief Transformation Officer

    • Tenure: 0.6yrs
  • Matt Simmons (53yo)

    Principal Accounting Officer & Controller

    • Tenure: 4.3yrs
  • Christos Dimopoulos (45yo)

    President of Global Supply Chains

    • Tenure: 1.2yrs
  • Brian Zachman (47yo)

    President of Global Risk Management

    • Tenure: 0.9yrs

Board Members

  • Kathi Hyle (60yo)

    Non-Executive Chair of the Board

    • Tenure: 1yrs
    • Compensation: US$260.00k
  • Paul Fribourg (65yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: US$88.57k
  • Carol Browner (63yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$263.00k
  • J. Fyrwald (60yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$60.05k
  • Greg Heckman (57yo)

    CEO & Director

    • Tenure: 0.9yrs
    • Compensation: US$86.07k
  • Andrew Ferrier (60yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$240.00k
  • Vinita Bali (64yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$286.81k
  • Mark Zenuk (52yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$165.55k
  • Jay Winship (51yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$86.07k

Company Information

Bunge Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bunge Limited
  • Ticker: BG
  • Exchange: NYSE
  • Founded: 1818
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Market Cap: US$7.565b
  • Shares outstanding: 141.66m
  • Website: https://www.bunge.com

Number of Employees


Location

  • Bunge Limited
  • 50 Main Street
  • White Plains
  • New York
  • 10606
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BGNYSE (New York Stock Exchange)YesCommon SharesUSUSDAug 2001
BU3DB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2001
BG *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNAug 2001
0U6RLSE (London Stock Exchange)YesCommon SharesGBUSDAug 2001
BGEP.FOTCPK (Pink Sheets LLC)4.875% CNV PFDUSUSDNov 2006
BNGBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 5 COM USD0.01ARARSMay 2011

Biography

Bunge Limited operates as an agribusiness and food company worldwide. It operates in five segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy, and Fertilizer. The Agribusines ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 23:47
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.