Syngenta (SYT) is an agri-business operating in three segments -- crop protection, seeds, and business development. The company is engaged in the discovery, development, manufacture and marketing of a range of products designed to improve crop productivity and food quality.
Of the 6 analysts covering the stock, 50% recommend a buy while the remaining rate a hold. There are no sell ratings. On average, analysts estimate a 13.4% upside from current levels.
For 2010, Syngenta's net sales were up 6% to $11.64 billion, compared to the year-ago period, on expanding market share. In dollar terms, dividend increased by 32% with record free cash flows of $1.1 billion. However, net income fell 1% to $1.4 billion, or $16.44 per share, from the year-ago period. During the past three years, Syngenta's bottom-line expanded at the rate of 8% per annum, much higher compared to close competitors like Dow Chemical (DOW) with growth at negative 7.2% and Monsanto (MON) at negative 0.7%.Looking ahead, the company is committed to spending an annual $1 billion on research and development. Syngenta recently announced its decision to integrate its crop protection and seeds business, improving its operations. The company's CEO said that these plans have been under discussion for three years now. Meanwhile, in 2011, the company is planning a share repurchase program worth $200 million, which will generate total cash returns of around $850 million. Capitalizing on the current systems investment and after it integrates supply chain activities across the crop production and seeds business, the company expects to generate $300 million in savings. Additionally, $150 million is seen arising in savings from integrated organization structure and $200 million from improved efficiency in procurement activities.
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