0.73 | 1.23%
MOSAIC CO's gross profit margin for the third quarter of its fiscal year 2012 has increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. MOSAIC CO is extremely liquid. Currently, the Quick Ratio is 2.82 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 11.12% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
| Income Statement | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Net Sales ($mil) | 2240.6 | 2189.5 |
| EBITDA ($mil) | 632.9 | 519.7 |
| EBIT ($mil) | 471.1 | 384.7 |
| Net Income ($mil) | 344.6 | 273.3 |
| Balance Sheet | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Cash & Equiv. ($mil) | 3322.7 | 3201.9 |
| Total Assets ($mil) | 17322.1 | 15936.7 |
| Total Debt ($mil) | 1072.6 | 1093.3 |
| Equity ($mil) | 13124.6 | 11810.9 |
| Profitability | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Gross Profit Margin | 32.59 | 29.63 |
| EBITDA Margin | 28.24 | 23.73 |
| Operating Margin | 21.03 | 17.57 |
| Sales Turnover | 0.58 | 0.7 |
| Return on Assets | 11.02 | 13.0 |
| Return on Equity | 14.55 | 17.54 |
| Debt | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Current Ratio | 4.13 | 3.67 |
| Debt/Capital | 0.08 | 0.08 |
| Interest Expense | 0.0 | 0.0 |
| Interest Coverage | 0.0 | 0.0 |
| Share Data | Q3 FY12 | Q3 FY11 |
|---|---|---|
| Shares outstanding (mil) | 425.75 | 425.44 |
| Div / share | 0.25 | 0.05 |
| EPS | 0.81 | 0.64 |
| Book value / share | 30.83 | 27.76 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 3050488.0 | 2793944.0 |
BUY. The current P/E ratio indicates a significant discount compared to an average of 29.42 for the Chemicals industry and a discount compared to the S&P 500 average of 19.08. To use another comparison, its price-to-book ratio of 1.98 indicates a discount versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 4.15. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, MOSAIC CO proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MOS 13.64 | Peers 29.42 | MOS 11.50 | Peers 14.61 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. MOS is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. MOS is trading at a discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| MOS 12.31 | Peers 17.49 | MOS NM | Peers 1.31 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. MOS is trading at a discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. MOS's negative PEG ratio makes this valuation measure meaningless. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| MOS 1.98 | Peers 4.15 | MOS -3.87 | Peers 5.58 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. MOS is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, MOS is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| MOS 2.58 | Peers 2.18 | MOS -9.42 | Peers 4.20 | |||||||||||||||||||||
|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. MOS is trading at a premium to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. MOS significantly trails its peers on the basis of sales growth |
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