The Mosaic Company (MOS) Shares: Are They Risky Or Cheap?

The Mosaic Company (NYSE:MOS) finished Wednesday with a subtraction of -$0.72 to close at $40.73, a downside of -1.74 percent. An average of 5,205,760 shares of common stock have been traded in the last five days. There was a gain of $2.37 in the past week. The last 20 days have seen an average of 4,501,615 shares traded, while the 50-day average volume stands at 3,869,174.

MOS stock has increased by 27.12% in the last month. The company shares reached their 1-month lowest point of $31.47 on 09/20/21. With the stock rallying to its 52-week high on 10/12/21, shares of the company touched a low of $16.01 and a high of $42.22 in 52 weeks. In spite of this, the price is down -3.52% from the 52-week high.


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Valuation Metrics

The Mosaic Company (MOS) has a trailing price-to-earnings (P/E) ratio of 11.10, which compares with the 27.50 for the broader industry and 13.61 for the sector. In the last five years, The Mosaic Company’s PE ratio has ranged between 271.71 and 7.781. The stock’s beta is 1.74. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.52, the price-to-book (PB) ratio at 1.50, and the price-to-cash flow ratio at 25.59.

The Mosaic Company pays a $0.30 dividend per share annually. It offers a dividend yield of 0.74%. The company has a payout ratio of 6.00%. The company’s most recent quarterly dividend payment took place on Sep. 16, and it was $0.0750 a share, without any change from last year. Its dividend has been increased for the last 1 consecutive years with the latest increase dividend $0.0250 reported on Thursday May 20 2021. Dividends have grown by -66.67% each year over the last three years.

The Mosaic Company will next go ex-dividend on 1-Dec-2021. The next dividend payment The Mosaic Company will make is expected to be $0.075.

The quick ratio of The Mosaic Company for the three months ended June 29 was 0.70, and the current ratio was 1.20, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.38 and a total debt to equity ratio of 0.43 for the quarter ending June 29. On the profitability front, the trailing 12-month gross margin is 19.70% against a 5-year average of 12.1%. The Mosaic Company’s EBITDA margin for the year ending June 29 is 19.19%, while its operating margin for the same period stands at 12.00%. Its gross profit as reported stood at $1.06 billion compared to revenue of $8.68 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, The Mosaic Company’s return on assets was 7.10%, compared to 0.3% over the last five years. In the past year, the return on investment has been 6.80%, and the 5-year average is 1.2%. Meanwhile, the return on equity (ROE) for the past 12 months has been 14.90% and the 5-year average holds at 0.6%. For the broader industry, ROE averaged 6.18 over the past year.

Earnings Surprise

In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $2.8 billion in the quarter, while revenues of $2.3 billion were grew 26.99%. The analyst consensus anticipated The Mosaic Company’s latest quarter earnings to come in at $0.97 per share, but it turned out to be $1.17, a 20.60% surprise. For the quarter, EBITDA amounted to $705.5 million. Shareholders own equity worth $379.9 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at The Mosaic Company (MOS) price momentum. RSI 9-day as of the close on 13 October was 71.64%, suggesting the stock is Overbought, with historical volatility in this time frame at 34.18%.

As of today, MOS’s price is $40.81 +6.18% or $2.37 from its 5-day moving average. MOS is currently trading +21.08% higher than its 20-day SMA and +14.86% higher than its 100-day SMA. However, the stock’s current price level is +29.96% above the SMA50 and +88.48% above the SMA200.

The stochastic %K and %D were 89.54% and 94.02%, respectively, and the average true range (ATR) was 1.34. With the 14-day stochastic at 80.08% and the average true range at 1.31, the RSI (14) stands at 71.03%. The stock has reached 1.70 on the 9-day MACD Oscillator while the 14-day reading was at 2.91.

Analyst Ratings

Mizuho launched coverage on The Mosaic Company (NYSE: MOS) in its analyst report released on October 13, 2021. The firm assigned the stock a a Buy rating.The consensus rating for The Mosaic Company (MOS) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell MOS, while 10 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 11 others rate it as a “buy”.

What is MOS’s price target for the next 12 months?

Analysts predict a range of price targets between $32.00 and $55.00, with a median target of $40.00. Taking a look at these predictions, the average price target given by analysts for The Mosaic Company (MOS) stock is $42.00.

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