Mosaic Co Stock Buy Recommendation Reiterated (MOS)
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- MOS's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MOS has a quick ratio of 2.49, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has increased to $1,229.30 million or 26.35% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 0.32%.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 1.9%. Since the same quarter one year prior, revenues slightly dropped by 1.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- MOSAIC CO's earnings per share declined by 17.9% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, MOSAIC CO reported lower earnings of $4.40 versus $5.62 in the prior year. This year, the market expects an improvement in earnings ($5.05 versus $4.40).
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, MOS has underperformed the S&P 500 Index, declining 8.68% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
--Written by a member of TheStreet Ratings Staff. FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free Download Now
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