NYSE:MOS

Stock Analysis Report

Executive Summary

The Mosaic Company, through its subsidiaries, produces and markets concentrated phosphate and potash crop nutrients in North America and internationally.

Snowflake

Fundamentals

Good value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-5.2%

MOS

1.3%

US Chemicals

1.8%

US Market


1 Year Return

-40.8%

MOS

-5.3%

US Chemicals

7.3%

US Market

Return vs Industry: MOS underperformed the US Chemicals industry which returned -5.3% over the past year.

Return vs Market: MOS underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

MOSIndustryMarket
7 Day-5.2%1.3%1.8%
30 Day-8.9%-1.5%-0.7%
90 Day-18.9%-1.5%0.06%
1 Year-40.4%-40.8%8.5%-5.3%9.7%7.3%
3 Year-15.6%-19.2%40.8%15.1%46.3%36.9%
5 Year-49.7%-54.7%43.7%12.7%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MOS ($19.64) is trading below our estimate of fair value ($42.26)

Significantly Undervalued: MOS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MOS is poor value based on its PE Ratio (29.4x) compared to the Chemicals industry average (18.9x).

PE vs Market: MOS is poor value based on its PE Ratio (29.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: MOS is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: MOS is good value based on its PB Ratio (0.7x) compared to the US Chemicals industry average (2x).


Next Steps

Future Growth

How is Mosaic forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

36.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MOS's forecast earnings growth (36% per year) is above the savings rate (2.7%).

Earnings vs Market: MOS's earnings (36% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MOS's revenue (5.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: MOS's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MOS's Return on Equity is forecast to be low in 3 years time (6.4%).


Next Steps

Past Performance

How has Mosaic performed over the past 5 years?

-32.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MOS's earnings have declined by -32.9% per year over the past 5 years.

Accelerating Growth: MOS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MOS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Chemicals industry (-2.4%).


Return on Equity

High ROE: MOS's Return on Equity (2.4%) is considered low.


Return on Assets

ROA vs Industry: MOS's Return on Assets is below or equal to the Chemicals industry average last year.


Return on Capital Employed

ROCE Improving: MOS has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Mosaic's financial position?


Financial Position Analysis

Short Term Liabilities: MOS's short term assets ($4.2B) exceeds its short term liabilities ($2.5B)

Long Term Liabilities: MOS's short term assets (4.2B) do not cover its long term liabilities (7.4B)


Debt to Equity History and Analysis

Debt Level: MOS's debt to equity ratio (40.5%) is considered high

Reducing Debt: MOS's debt to equity ratio has increased from 26.9% to 40.5% over the past 5 years.

Debt Coverage: MOS's debt is well covered by operating cash flow (23.2%).

Interest Coverage: MOS's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: MOS's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

1.02%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.5%markettop25%3.7%industryaverage2.2%forecastin3Years1.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MOS's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: MOS's dividend (1.02%) is low compared to the top 25% of dividend payers in the US market (3.72%).

Stable Dividend: MOS's dividend payments have been volatile in the past 10 years.

Growing Dividend: MOS's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.7%), MOS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MOS's dividends in 3 years are forecast to be thoroughly covered by earnings (9.5% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Joc O’Rourke (58yo)

4.2yrs

Tenure

US$10,526,054

Compensation

Mr. James C. O’Rourke, also known as Joc, P.Eng., has been the Chief Executive Officer and President at The Mosaic Company since August 5, 2015. Mr. O’Rourke served as Chief Operating Officer at The Mosaic ...


CEO Compensation Analysis

Compensation vs. Market: Joc's total compensation ($USD10.53M) is above average for companies of similar size in the US market ($USD6.79M).

Compensation vs Earnings: Joc's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.2yrs

Average Tenure

57yo

Average Age

Experienced Management: MOS's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

5.7yrs

Average Tenure

60.5yo

Average Age

Experienced Board: MOS's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

Insider Buying: MOS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$49,90216 Sep 19
William Monahan
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,360
Max PriceUS$21.15
BuyUS$249,69222 Aug 19
Cheryl Beebe
EntityIndividual
Shares12,998
Max PriceUS$19.21
BuyUS$23,55010 May 19
Mark Isaacson
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares1,000
Max PriceUS$23.55
BuyUS$100,30010 May 19
Clint Freeland
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares4,250
Max PriceUS$23.60
BuyUS$50,02210 May 19
Emery Koenig
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,089
Max PriceUS$23.95
BuyUS$240,30009 May 19
James O’Rourke
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares10,000
Max PriceUS$24.03

Ownership Breakdown


Management Team

  • Tony Brausen (60yo)

    Senior Advisor

    • Tenure: 1.3yrs
    • Compensation: US$3.62m
  • Laura Gagnon (58yo)

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Ben Pratt

    Vice President of Corporate Public Affairs

    • Tenure: 6yrs
  • Chris Lewis (57yo)

    Senior Vice President of Human Resources

    • Tenure: 0.3yrs
  • Richard McLellan (62yo)

    Senior Vice President of Mosaic Fertilizantes

    • Tenure: 12.5yrs
    • Compensation: US$3.97m
  • Clint Freeland (51yo)

    Senior VP & CFO

    • Tenure: 1.3yrs
    • Compensation: US$2.97m
  • Joc O’Rourke (58yo)

    CEO, President & Director

    • Tenure: 4.2yrs
    • Compensation: US$10.53m
  • Corrine Ricard (56yo)

    Senior Vice President of Commercial

    • Tenure: 2.7yrs
    • Compensation: US$2.41m
  • Walt Precourt (55yo)

    Senior Vice President of Strategy & Growth

    • Tenure: 7.4yrs
    • Compensation: US$2.75m
  • Mark Isaacson (57yo)

    Senior VP

    • Tenure: 5.2yrs

Board Members

  • Nancy Cooper (65yo)

    Director

    • Tenure: 8yrs
    • Compensation: US$253.69k
  • William Monahan (71yo)

    Director

    • Tenure: 15yrs
    • Compensation: US$248.69k
  • Greg Ebel (55yo)

    Chairman of the Board

    • Tenure: 1.4yrs
    • Compensation: US$388.60k
  • Kelvin Westbrook (63yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: US$225.01k
  • Tim Gitzel (56yo)

    Director

    • Tenure: 6yrs
    • Compensation: US$233.69k
  • Steven Seibert (64yo)

    Director

    • Tenure: 15yrs
    • Compensation: US$243.69k
  • David Seaton (57yo)

    Director

    • Tenure: 0.08yrs
    • Compensation: US$233.69k
  • Joc O’Rourke (58yo)

    CEO, President & Director

    • Tenure: 4.2yrs
    • Compensation: US$10.53m
  • Denise Johnson (53yo)

    Director

    • Tenure: 5.4yrs
    • Compensation: US$233.69k
  • Emery Koenig (63yo)

    Director

    • Tenure: 9yrs
    • Compensation: US$233.69k

Company Information

The Mosaic Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Mosaic Company
  • Ticker: MOS
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: US$7.578b
  • Shares outstanding: 385.87m
  • Website: https://www.mosaicco.com

Number of Employees


Location

  • The Mosaic Company
  • Atria Corporate Center
  • Suite E490
  • Plymouth
  • Minnesota
  • 55441
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MOSNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1988
02MDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1988
MOS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1988
0K3BLSE (London Stock Exchange)YesCommon StockGBUSDJan 1988
MOSC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR REPR 1/2 COM SHS USD0.01BRBRLJul 2015

Biography

The Mosaic Company, through its subsidiaries, produces and markets concentrated phosphate and potash crop nutrients in North America and internationally. The company operates through three segments: Phosph ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:07
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.