Many stocks have been testing new highs in 2020, and one of the most notable is The Mosaic Company (MOS). Currently, MOS is trading at $14.98 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $18.37.
To add more color to this target, the company’s high over the last year is $25.70 and the low is $6.50. Over the last 52 weeks, MOS is down -41.72% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, MOS reported a profit of $41.4 million. The Mosaic Company also saw revenues increase to $1.8 billion. In addition, MOS has free cash flow of -$73.6 million as of 03-2020 The company’s EBITDA came in at $168.9 million which compares well with its peers.
MOS booked profit margins of -15.90%, its Return on Equity (ROE) is -14.70%, and its Return on Assets is -7.10%. All told, it is clear that, MOS needs to be on your watchlist.
About The Mosaic Company
If readers are unfamiliar, The Mosaic Company, through its subsidiaries, produces and markets concentrated phosphate and potash crop nutrients in North America and internationally. The company operates through three segments: Phosphates, Potash, and Mosaic Fertilizantes. It owns and operates mines, which produce concentrated phosphate crop nutrients, such as diammonium phosphate, monoammonium phosphate, and ammoniated phosphate products; and phosphate-based animal feed ingredients primarily under the Biofos and Nexfos brand names, as well as produces a double sulfate of potash magnesia product under K-Mag brand name. The company also produces and sells potash for use in the manufacturing of mixed crop nutrients and animal feed ingredients, and for industrial use; and for use in the de-icing and as a water softener regenerant, as well as fluorosilicic acid for water fluoridation. In addition, it provides nitrogen-based crop nutrients and animal feed ingredients, and other ancillary services; and purchases and sells phosphates, potash, and nitrogen products. The company sells its products to wholesale distributors, retail chains, cooperatives, independent retailers, and national accounts. The Mosaic Company was incorporated in 2004 and is headquartered in Tampa, Florida.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. MOS has a short ratio of 2.07 and outstanding shares of 378.80M.
MOS has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 4.8 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -3.69. The Mosaic Company MOS also noted assets of $18.98 billion at the end of the last quarter. Investors should also keep an eye on sector updates as MOS has historically followed its peers on positive news.
All told, The Mosaic Company MOS has strung together solid data and demonstrated underlying fundamentals. At its current valuation, MOS represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
The Mosaic Company MOS is now commanding a market cap of 5.58B and a float of 343.15M. MOS is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of MOS stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in MOS, either long or short, and we have not been compensated for this article.