Bunge Ltd Stock Upgraded (BG)
NEW YORK (
)
-- Bunge
(NYSE:
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- BG's revenue growth has slightly outpaced the industry average of 25.5%. Since the same quarter one year prior, revenues rose by 29.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 253.49% to $1,251.00 million when compared to the same quarter last year. Despite an increase in cash flow of 253.49%, BUNGE LTD is still growing at a significantly lower rate than the industry average of 18938.52%.
- BUNGE LTD's earnings per share declined by 15.4% 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, BUNGE LTD reported lower earnings of $6.05 versus $14.77 in the prior year. This year, the market expects an improvement in earnings ($6.66 versus $6.05).
- Despite currently having a low debt-to-equity ratio of 0.34, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.47 is very low and demonstrates very weak liquidity.
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Bunge Limited engages in the agriculture and food businesses worldwide. The company has a P/E ratio of 10.4, above the average food & beverage industry P/E ratio of 9.1 and below the S&P 500 P/E ratio of 17.7. Bunge has a market cap of $8.48 billion and is part of the
sector and
industry. Shares are up 11% year to date as of the close of trading on Monday.
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-- Written by a member of TheStreet RatingsStaff
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